CBP Should Expand Corporate Compliance Definition in Part 111 Rewrite, Says BACM
CBP should revise the definition of "corporate compliance activity" in its rewrite of 19 CFR Parts 111, said a representative for the Business Alliance for Customs Modernization (BACM) during a July 27 CBP Webinar on "Understanding impacts to business processes." Current requirements that prevent in-house customs experts from replying to certain forms "doesn't make any sense," Richard Belanger, a lawyer with Sidley Austin who represents BACM, a trade association made up of large companies that are generally large consumers and employers of customs brokers' services.
Current Definition Excludes Corporate Compliance
Belanger suggested a new definition for "Customs Business" should be part of the rewrite. The current definition specifically excludes corporate compliance, saying "'customs business' does not include the mere electronic transmission of data received for transmission to Customs and does not include a corporate compliance activity." The definition makes it difficult for the in-house customs compliance groups at parent companies to deal with and respond to CBP directly, even though the in-house group is overseeing the entire interaction, he said.
BACM specifically suggests considering expanding the corporate compliance definition to include post summary work, said Belanger. The business structure for most BACM members is to have a centralized compliance department, so the current definition of corporate compliance would "preclude an in-house expert at the parent company from signing" a form 28, a request for information, or responding to a form 29," he said. That process isn't necessary, he said. To ensure high level of compliance, corporations often require that any responses to form 28, 29, or protests come to the corporate headquarters, and can’t be done by subsidiaries in field," he said.
(The CBP Form 28 is used by CBP when there is insufficient information in the entry summary package to determine admissibility, appraised value, or classification of imported merchandise. Brochures, descriptive literature, blueprints, samples, proof of payment, affidavits, etc. may be requested. CBP Form 29 is used when an entry which is entered at a rate or value of merchandise is too low, or the import quantity exceeds that of the entered quantity, and the estimated aggregate increase in duties exceeds $15. CBP notifies the importer of the specific nature of the difference. If the rate advance is a proposed action, the importer is afforded 20 days, from the date of CBP mailing the CBP Form 29, to furnish CBP with specific reasons why the rate advance should not be issued.)
The Webinar was one of several CBP is hosting as part of a review and update of broker regulations.
(See ITT's Online Archives 12060826 and 11121224 for summaries of the first Webinar on June 7. See ITT's Online Archives 12062211 for summary of the June 21 Webinar).