CBP Says Part 111 Reg Changes will Take at Least a Year, FR Notice on ISA Pre-Certification Soon

An update to U.S. Customs and Border Protection 19 CFR Parts 111 rules will take at least a year to be finalized, said Elena Ryan, Acting Director of Trade Facilitation and Administration at CBP. Ryan spoke June 7 during CBP’s first of several Webinars focused on the “Role of the Broker.” CBP is also in the "final stages" of putting together a Federal Register notice that will announce CBP's Importers Self-Assessment (ISA) pre-certification program, which will allow accredited brokers to assess their clients' readiness to participate in the ISA program. That notice should be out in the next few months, she said.

Ryan said CBP plans to focus on three areas for overhaul within the Webinars.

• Validating Importers
  • How do CBP and brokers know importers are who they say they are? This "leveling the playing field" because some brokers may not be requiring the same level of information from their clients, she said. It's very important to come up with requirements for bona fides. While the focus will be part 111, the changes will likely spill into Part 141 (Entry of Merchandise), potentially requiring some conforming amendments, she said.
• Aligning Business Practices with Modern Technology
  • Geographic proximity to where the goods are imported isn't a necessity anymore. The coming Centers for Excellence and Expertise (CEEs) are essentially virtual ports and it doesn't make sense to still require brokers to have a permit holder in each port they do business. Still, there's a requirement for supervision and control, so CBP and industry needs to find a way to show CBP that brokers are maintaining control over a customs business in a virtual world. This will go beyond remote location filing and expand it to all entry types, she said. CBP would like to test a pilot to gauge support from the brokers.
• Professionalization
  • One suggestion is requiring brokers to serve apprenticeships before they are able to operate independently. Another suggestion is a continuing education (CE) requirement. CBP would like to know the best way to administer such a program and what kinds of things (courses, trade shows, etc.) should be considered as CE.

Ryan also announced the subject of a new Webinar. The June 28 Webinar will be on “Broker Permitting.” Not all of the Webinar subjects have been determined, though Ryan said she expects one of them to be on the subject of CE. The next Webinar is scheduled for June 21 on "Establishing Bona Fides." The first Webinar had about 450 listeners, she said.

The Webinars and industry feedback will help toward a proposed rulemaking, she said. From the feedback, CBP can move forward on economic analysis and policy decisions and then a proposed rulemaking, hoped to be out by the Spring or Summer of 2013. Following that, CBP will draft a final rule, which are generally drafted quicker, she said.

A list of planned Webinars and dates are (here).

(See ITT's Online Archives 11121224 for summary of the initial changes to Part 111 being considered See 12052432 for discussion of "Role of the Broker" at the most recent COAC meeting).