Broker Regulations Working Group Hoped to be 'Last Step,' will Build on Previous Efforts

A new Broker Regulations Working Group will make use of a number lessons learned through past initiatives focused on the regulatory changes for customs brokers, said Cindy Allen during the Advisory Committee on Commercial Operations of Customs and Border Protection (COAC) meeting on Jan. 13. Allen, CEO of Trade Force Multiplier, expects the working group's recommendations to be the "last step in the process." The group will "build on" the efforts of recent COACs to figure out where there's agreement and challenges, she said. The groups will also serve as a model for future discussions involving other roles within the supply chain, she said.

The working group will include input from companies of all sizes and in all parts of the country, said Lenny Feldman, a lawyer with Sandler Travis who co-chairs the COAC’s Trade Modernization Subcommittee with Allen. CBP has discussed making updates to the regulations in 19 CFR Part 111 that govern customs brokers for several years now, but the agency has faced various hurdles and is yet to put out a formal proposal on such changes (see 1511040068). The Department of Homeland Security recently said it is targeting June for a proposal (see 1511200014). The group plans to have two meetings, the first of which is planned for Jan. 19-20 in Alexandria, Virginia.

The group will start with a look at the "low hanging fruit" and then consider the open issues, said Feldman. Such issues include record retention, the permitting process and responsible supervision and control, he said. Continuing education will be another area of discussion, he said. "If the brokers are playing this prominent role, to what extent do we encourage" continuing education, Feldman asked. The question of continuing education requirements for brokers has proven to be a controversial issue within the broker regulations discussion (see 1504200053).

It's important that the working group won't be "starting from scratch," said Troy Riley, executive director of CBP's Office of Commercial Targeting and Enforcement. Riley said. CBP plans to similarly bring in government officials with a diverse range of expertise to review that various issues, he said.