DHS Fall Regulatory Agenda for CBP Includes Part 111 Update, Broker Verification of Importers

The Department of Homeland Security (DHS) published its fall 2017 regulatory agenda for CBP. The agenda includes a first mention of a rulemaking on customs broker regulatory modernization. Among other things, "CBP will propose to update the requirements on responsible supervision and control," it said. The agency is aiming to release a proposal in June. The long-discussed update to customs broker regulations in 19 CFR Part 111 was said to be on hold indefinitely earlier this year due to the deregulatory efforts of the Trump administration (see 1703070009). The proposal is considered to be "deregulatory" by the Office of Management and Budget, something CBP was hoping for (see 1707270022).

CBP also will "propose to update the broker permitting framework by expanding the scope of the national permit authority to allow national permit holders to conduct customs business in all districts within the customs territory of the United States and removing the requirements for having a district permit in each district the broker conducts customs business," it said. "By moving towards the national permit, CBP will propose to remove the requirements that brokers maintain physical offices in the districts in which they conduct customs business." The broker permitting changes and updated supervision and control requirements were both among recommendations from the Commercial Customs Operations Advisory Committee in 2016 (see 1610190018).

A regulatory proposal on broker identification of importers is also mentioned for the first time in the agenda. The rulemaking follows provisions of the Trade Facilitation and Trade Enforcement Act that require CBP to establish minimum standards for what importers need to provide to brokers in order to validate an importer’s identity (see 1602170074). "The proposed regulations create an identification process for customs brokers to follow that occurs contemporaneously with the power of attorney that customs brokers obtain from importers," CBP said. "The proposed regulations aim to prevent fraud, to guarantee that all customs brokers perform due diligence to verify importers’ identities, and to standardize how customs brokers verify new clients."

The agenda also now lists Air Cargo Advance Screening regulations as in the final rule stage and "Fully or Partially Exempt" from an executive order meant to reduce regulations. CBP previously said it hoped the ACAS rules would meet a national security exemption to the order (see 1705180027). The agency seeks to issue the ACAS interim final rule in January, it said.

Agenda Highlights

Highlights of DHS's CBP rulemakings that are at the proposed, final or completed stages, are below. New items are marked with an asterisk (*).