CBP Should Use Broker Ratio Requirement in Permitting Regs to Ensure Supervision and Control, NCBFAA Says

CBP should require national customs broker permit holders to hire a certain number of licensed brokers in order to ensure responsible supervision and control when doing customs business, said the National Customs Brokers & Forwarders Association of America (NCBFAA) in a position paper. The paper describes the NCBFAA's various thoughts on how CBP should update customs broker regulations as it moves toward increased reliance on the national permit as part of the agency's modernization efforts. The Advisory Committee on Commercial Operations for CBP recently advised the agency to also install some employment requirements in the regulations, but did not offer specific numbers (see 14052209).

National permit holders should employ at least one licensed customs broker for every 12 employees "authorized to transact 'customs business,'" the association said. All brokers and employees should also be required to live in the U.S., it said. "The creation of a specific broker-employee ratio would ensure that the customs clearance process remains subject to direct oversight by individuals who have demonstrated a professional understanding" of the import process, it said. Brokers "are directly responsible for the preparation of the customs declaration and unlike any other party in the supply chain, they are licensed by CBP to carry out this function."

The use of a broker-employee ratio should be the one piece of several to make certain "responsible supervision and control" is a priority for national permit holders, it said. "The determination of what is necessary to perform and maintain responsible supervision and control will continue to vary depending upon the circumstances in each transaction but it is important to establish a minimum regulatory requirement which can be uniformly adopted and enforced for the entire brokerage community." CBP plans to increasingly rely on national permits has elicited some concern in the customs broker world, even leading to the creation of a "Save a Broker" letter writing campaign (see 14042918).

The current requirements of a national permit are "simply not in the best interest of supervision and control necessary for protection of the importing public nor for the protection of the revenue of the U.S.", it said. "The national permit scheme needs immediate regulatory amendment. Left untouched, the existing regulations guarantee that fewer licensed brokers will be involved in the customs clearance process."

It's clear that CBP intends to move away from the current district permitting scheme and the permitting changes will be necessary to protect those now overseeing customs transactions, said NCBFAA. "Realignment of CBP’s processing structure around the [Centers for Excellence and Expertise] is a significant change for the brokerage industry which in itself is likely to lead to consolidated processing of transactions centered around the CEE’s," the association said. "While there are certainly processing efficiencies to be realized from these changes, if the current permitting scheme is not changed, one of the likely outcomes is that there will be fewer licensed individuals supervising the customs transactions prepared on behalf of the importer."

Email ITTNews@warren-news.com for a copy of the position paper.