NCBFAA Outlines Role of the Broker in New Paper

The National Customs Broker and Forwarders Association of America (NCBFAA) released a new paper meant to serve "as the starting point for a continuous review of the role the licensed customs broker plays now and into the future." The paper, released Nov. 2, describes the roles currently played by customs brokers. CBP is in the process of reviewing and rewriting a number of broker regulations in CFR 19 Part 111. "Our hope is that this document serves not only to provide an historical perspective but also to provide guidance as to where we see the industry headed," said NCBFAA. "Of course, events over which we have no control may dictate changes but, absent any benchmark, we would have no idea how far we have come."

The paper breaks down the role of the broker into seven categories:

• Customs Clearance Specialist
  • This is the broker's "essential function" and there's no reason to believe that brokers will stop this service any time soon.
  • The broker is responsible for making sure the proper forms are prepared, duties and fees are paid and relevant data is transmitted.
• Compliance Professional
  • Brokers are the only entity in the supply chain required to be licensed to do "customs business."
  • Brokers aren't law enforcement agents and will never be. The broker's fiduciary responsibility is to the importer, though a broker can't submit information to CBP it knows to be incorrect.
  • Brokers provide significant compliance counseling to clients and that role is expected to grow with the CBP rewrite. The importer self-assessment program and Centers of Excellence and Expertise are areas where CBP is expected to "leverage resources and provide processing benefits to highly compliant importers."
• Secure Supply Chain Partner
  • Brokers are the "most logical party to receive, review and transmit reliable security data to the government on behalf of the importer" and is "the only source of regulated verifiable data management for the government.
• Logistics Coordinator
  • Many brokers facilitate the movement of cargo within the port. CBP, transportation companies, warehouses, etc. rely on the customs broker for this to happen seamlessly.
  • Brokers management functions are now more expansive due to tracking and tracing technology. The technology is "proving itself to be an efficient cost saving mechanism."
• Duty Payment Facilitator
  • Brokers manage multiple monthly statements for importers and themselves.
  • The Automated Clearinghouse and Periodic Monthly Statement programs created enormous efficiencies.
• Educator
  • Brokers provide customs with guidance on rules and regulations.
  • The complexity of customs laws and the speed of commerce throughout the world make continuing education necessary. The NCBFAA's Educational Institute (NEI) is designed to handle such needs.
  • The NEI "foresees opportunities where valuable continuing education can be delivered not only to the customs brokerage community, but also to any industry professional conveniently and cost effectively.
• Data Manager
  • The broker is a gateway for data, including commercial data, compliance data, financial data and transportation data.
  • It's a critical service for importers and the government.