CBP Looking to Issue Broker Regulatory Update Proposal by End of 2015

Despite some recent hang-ups for CBP's plans to update regulations governing customs brokers, Troy Riley, executive director of CBP's Office of Commercial Targeting and Enforcement, is hopeful that the agency will put out an official request for comments on proposed changes by the end of 2015, he said in an Oct. 2 interview. The inclusion of a required ratio of licensed customs broker employees remains uncertain, but is unlikely to continue to hold up the proposal, said Riley. The National Customs Brokers & Forwarders Association of America previously asked CBP to add a requirement that national permit holders should employ at least one licensed customs broker for every 12 employees (see 14072222).

The broker groups "have worked with us on multiple working groups to look at the [regulatory] package in general in 19 CFR 111," he said. The ratio is just one item of consideration and "there's still a number of points of interest that both of us have discussed, agreed to and are moving forward in the process on," he said. "The ratio, though it is a topic of discussion with the NCBFAA and CBP, it's not something that I think will hold it up."

There's ongoing concerns within CBP that there's not sufficient justification behind the need for a specific 12:1 ratio, as opposed to any other ratio, he said. "We need some type of support to move that forward," because "trying to dictate business models in regulations is not a great model to follow," he said. CBP previously began an internal review of a regulatory package, including the ratio requirement (see 1504220017), but later decided to pause the effort and gather more input (see 1505270062).

Even if the ratio or an alternative isn't included, CBP would like to issue a proposed rulemaking to move the process forward and consider any public comments, he said. "We do expect for there to be additional dialog," said Riley. "We just want to move it into that process," so CBP can begin the "broad spectrum discussions," he said. A regulatory package would next go to CBP's Office of Regulations and Ruling, which would put together the formal Federal Register notice, including the rationale behind the changes, he said. It would then face review from other involved agencies before official publication, he said. Riley said he would like to see the notice published by the end of the year, though much is out of his control once it leaves CBP, he said.

CBP considers the customs brokerage industry as a "vital partner" and future business plans will remain up to the individual business, he said. "The business decisions on whether to centralize is a better way to expand their business nationwide" with a national permit, to decentralize and use brokers all over the country or "if they want to stay geographically focused," that is "up to them," he said. For CBP, "we just need to be able to put out clear guidance of what is required across those markets through the regulations," he said.