Statutory Changes for Part 111 Rewrite Hoped to be Avoided, but 'Yet to be Decided,' Says CBP's Gina

The need for Congressional action as part of CBP's rewrite of regulations for customs brokers hasn't been decided, said Al Gina, CBP Assistant Commissioner in the Office of International Trade. Gina discussed the CFR 19 Part 111 rewrite with reporters following the CBP East Coast Trade Symposium Nov. 28. The agency is in the early stages of revising its regulations to reflect changes to customs filing and business practices. Statutory changes through legislation would likely slow some of the changes to the regulations.

Legislative needs are "yet to be decided," said Gina. "If we have our choice, I think legislation is always the last resort," he said. "So I think we are first looking at what authorities does CBP have and what authorities does [the commissioner] have in just implementing policy that will get us where we need to be."

Gina said a summary of the agency's broker outreach efforts, through roundtable discussions and webinars, will be presented to CBP Chief Operating Officer Thomas Winkowski in December. "The COO will have an opportunity to speak to several leaders of the brokers' associations within the next two weeks" to discuss plans to move forward, said Gina.

Legal Balance Needed

The agency would like to see more involvement from the brokers as CBP moves toward a more virtual world with a new focus on Centers for Excellence and Expertise and Remote Location Filing. There's a legal balance that still must be worked out between CBP and the brokers, said Gina. "We would like them to be more of a partner with us in allowing us to utilize them to help us with risk management," he said. The brokers "say 'well the legal judiciary responsibility is to their client.' I think they see the benefit of working with CBP. I think they are tremendous corporate citizens and want to do the right thing but I also think the lawyers and the counsel to the [National Customs Brokers and Forwarders Association of America] are saying 'Well you have responsibility to your client maybe first and foremost.' "

Gina is optimistic about the ability to work out the remaining issues with the brokers, he said. "I'm extremely encouraged that over the course of the dialog we're finding a place that will serve their interest and our interest and benefit all," said Gina. "Because they also do not want to be associated with people who are doing illicit activity and its in their best interest to make sure that anybody that they are dealing with on a regular and recurring business are legitimate importers and conducting legitimate business. So I think they think partnering with CBP helps them achieve that goal and achieves the goal on our behalf. But we also don't want to put them in an awkward position as far as where their legal responsibilities lie."