CBP Opens Customs Broker ISA Pre-certification Pilot

CBP will soon begin accepting applications from customs brokers interested in participating in a new pilot allowing brokers to pre-certify (PC) importers for the existing Importer Self-Assessment (ISA) program. The pilot, which has been on CBP's agenda for some time (see 11082510), is meant to "leverage customs broker relationships to facilitate and promote importer participation" in ISA, the notice said. Participation within ISA among importers has been somewhat lacking, due to what some consider to be an onerous approval process.

Interested Brokers Should Notify CBP by April 30

Brokers interested in being part of the pilot should notify CBP within 10 business days of the April 30 notice, said CBP. Emails indicating interest should be sent to tppb-isa@dhs.gov with "Broker ISA PC Participant Request" as the subject, the notice said. There will be a total of nine participants in the pilot and once the candidates are selected at random, CBP will provide them with an ISA pre-certifier questionnaire that must be completed and reviewed by CBP. Qualified candidates will be invited to attend the ISA Pre-Certifier Orientation and begin offering Broker ISA pre-certification services, said CBP.

Eligibility requirements include:

• Operate as a licensed customs broker representing importers as a filer (under the licensed broker’s filer code) for at least 5 years;
• Be C-TPAT-certified for at least 3 years;
• Maintain written internal control procedures designed to ensure compliance with CBP-related activities;
• Have been trained in internal control concepts based on the Committee of Sponsoring Organization (COSO) Internal Control -- Integrated Framework course;
• Have a history of compliance with customs laws and regulations

Interested Importers

Importers considering ISA participation will have the option to use a pre-certifying broker "most likely for a fee," said CBP. A major benefit of the pre-certification will be a reduction in wait time for ISA Review Board processing of an application, the agency said. Most reviews take between 9-12 months, while reviews of pre-certified applications will take 90-120 days, said CBP.

Importers interested in using a pre-certifier must submit a complete ISA package to both CBP and the pre-certifier, said CBP. CBP will review and vet the importer and then notify the broker to proceed with the evaluation of the ISA application package. The pre-certifying broker will then:

• Review the ISA application package to ensure that all required elements are present and complete;
• Evaluate the importer’s written customs-related policies and procedures and identify areas of risk;
• Assess the design of the importer’s internal control for achieving compliance with customs laws and regulations, and develop an expectation about the operating effectiveness of its internal control;
• Consult with the importer, if necessary, on best practices and improvement considerations;
• Assess the adequacy of the importer’s risk-based self-testing plan; and
• Conclude the ISA PC evaluation and determine the importer’s ISA readiness. Once the ISA pre-certifier completes its evaluation, it is required to prepare and submit to CBP an ISA Evaluation Report based on CBP guidelines, with the following supporting documents:
  • Written risk assessment;
  • Summary of the walk-through conducted of the entry process; and
  • Synopsis of the importer’s risk-based self-testing plan.

ISA applicants that are turned down can submit a written request for reconsideration.

Requirements

ISA pre-certifier broker will be required to report to CBP on annual basis with:

• Personnel changes that impact the Broker ISA PC test program;
• Organizational and procedural changes;
• Continued proficiency training, seminars, etc., taken by the ISA pre-certifier;
• ISA applicant name(s) and importer of record number(s) for completed and pending ISA PC evaluations conducted during the last year and of any ISA PCs in progress; and
• Any broker penalties incurred during the last 12-month period.

All records regarding the business of ISA applicants are to be considered confidential business records, which may not be disclosed to anyone other than personnel involved with the ISA program from CBP or ICE, said CBP. All records must be stored and maintained separately from other required broker records, it said. CBP will review the effectiveness of the program a year after the PC orientation, it said.

(Federal Register 04/17/13)