CBP Puts Broker Regulations Update on Pause

TACOMA, Wash. -- CBP will put on hold some customs broker modernization efforts in order to consider a more expansive revision to the regulations, said CBP Assistant Commissioner Brenda Smith while meeting with reporters during the agency's West Coast Trade Symposium on May 27. While CBP recently announced progress in the required regulatory process, the agency will instead take another look at available options, she said. Smith said she could not discuss the specific problems within the package that resulted in the pause.

That "package presents two opportunities for modernizing," but "I don't think we've done enough homework" and "I'd like to see us take a more holistic look," she said. "There's a lot of ideas on the table" and the "current package only touches two," she said. Smith plans to do some more outreach to consider where to go next and to "level set," she said. "I want to make sure we've got everything fully vetted before we make a recommendation to the Commissioner." CBP recently began an internal review of the group of broker regulation updates in preparation for a proposed rulemaking (see 1504220017). Continuing education requirements that are also facing internal review but recently seemed to be in doubt (see 1504200053) may also be revisited, she said.

The decision to add some deadline flexibility for Air Manifest filing in the Automated Commercial Environment (1504300015) reflected some concerns with a lack of industry preparation. "What we had to keep watching is the participation of the trade community, through their software vendors, and the carriers in this case," she said. "What we recognized, fairly close to our May 1 deadline, is they weren't testing enough and because they weren't testing the confidence that it would actually work on May 1 is not what it needed to be." After the carriers asked for two additional weeks for testing, the agency said it would keep the May 1 deadline but allow for an additional four more weeks for testing, said Smith. With the June 6 testing cutoff coming up, the carriers seem to be better situated, she said. "They got religion" and there's no plan to extend the testing period, she said.

The recent Department of Homeland Security Office of the Inspector General Report that called into question CBP's internal controls in ACE development (see 1505260015) shouldn't be a cause for concern, said CBP Commissioner Gil Kerlikowske. In fact, the report "generally, overall was very positive, especially for a big expensive IT project," he said. "We looked very carefully" and, unlike many agencies that may find it easier to simply concur with the report, CBP voiced its disagreement with some of the IG's findings, he said.

CBP is still considering whether to revive a pre-classification program for the apparel Center of Excellence and Expertise (see 14031322), said Todd Owen, CBP assistant commissioner for field operations. The apparel CEE is among the newer group of CEEs, so it's still working to "beef up their staff and find their footing," said Owen. Consistency will be the guiding principal moving forward with pre-classification or any other programs with the CEEs, said Smith. "As we look at options, there will be solutions that are specific to industry," she said. But "if we put a program in one CEE, for consistency's sake, we have to make sure we can support it across the country."