MAP-21 Concerns Persist on Broker Exemption

RANCHO MIRAGE, Calif. -- Ongoing concern for new Federal Motor Carrier Safety Administration regulations was evident during the National Customs Brokers and Forwarders Association of America conference April 9. While the NCBFAA has repeatedly said the provisions of the Moving Ahead for Progress in the 21st Century Act (MAP-21) that create new financial requirements for domestic transport brokers don't apply to those engaged in customs business, it was clear there was concern among attendees. MAP-21 exempts from bonding and registration requirements those who provide for domestic transport of good as part of "customs business" and other international transportation.

It remains unclear where the line is for that MAP-21 exemption, said Mike Brown, executive vice president at Avalon Risk Management. “That, I think, will really have to be litigated,” he said. “The exemption really speaks to whether you need to be licensed or not. It doesn't speak to your liability.” Even brokers who believe themselves to be exempted from the regulations may want to “proactively protect” oneself through contractually limiting the liability or possibility getting licensed as a transportation broker to further “define who you are,” he said. It will become “more clear as MAP-21 ages,” he said. The NCBFAA has interpreted the bill's language to mean most work done by customs brokers is exempt from the bonding requirements of MAP-21 (see 12070325).

Companies that provide any domestic transportation, even if they mostly perform customs business, may want to register on MAP-21, said Ed Greenberg, general counsel for the NCBFAA. "It seems to me it's prudent" to say "even though I may be exempt as a customs broker I'm still going to register," he said.