NCBFAA Tells CBP Brokers Should Maintain 'Multiplier' Role in 21st Century Trade Environment

Customs brokers should remain a key part of the global supply chain as CBP shifts to better operate in the modern trade environment, providing a “multiplier effect” to the agency’s education and data integrity efforts, the National Customs Brokers & Forwarders Association of America said in comments to CBP dated Feb. 4. As e-commerce causes the number of importers to explode and the associated risks to increase accordingly, brokers should be considered “trusted partners, delivering the agency from the chaos of dealing with hundreds of thousands of importers,” the NCBFAA said.

The NCBFAA submitted the letter in response to a December request for comments from CBP on the agency’s mission in the 21st century trade environment (see 1812200003). Comments, which were due Feb. 4, now total 18 posted to regulations.gov by various trade groups (the broker association's comments aren't yet posted). The NCBFAA focused on the expanded use of data and technology in the trade environment, and how customs brokers should fit in with these new processes.

First and foremost, the broker’s role should not be diluted. “Erosion of the legal concept of ‘customs business’ weakens CBP’s ability to manage commercial operations and enforcement of U.S. laws; and it broadens CBP’s exposure,” the NCBFAA said. Data requirements should remain similarly robust, especially for Section 321 imports. “At a time when CBP increasingly relies on data-driven technology, how can a huge blind spot in data collection be allowed to continue? Without the data, CBP’s technology -- now and even more so in the future -- cannot do its job,” the trade group said.

CBP should also remain “proactive in pursuing new technology,” the NCBFAA said. Blockchain could “revolutionize how we conduct business with all parties moving goods into and out of the U.S.,” it said. Artificial intelligence technology could “bring to light new processes and solutions for doing customs business” with CBP and the partner government agencies.” Mobile technology should also be put to use, allowing, for example, a CBP officer at a port to request information from the broker using a tablet or smart phone. All these initiatives should face rigorous oversight, be tested in focused pilots, and undergo close cost scrutiny, the NCBFAA said.

As CBP begins to rely more and more on big data, it needs to be careful where that data is shared, the broker group said. While sharing between CBP and the PGAs should be enhanced, CBP should be careful not to send sensitive business data to foreign governments where protection of U.S. business interests can’t be guaranteed. Data should only be shared with the public in limited circumstances, the NCBFAA said. On the other hand, more data sharing with importers and customs brokers, and Trusted Traders in particular, could help CBP catch violative shipments before they reach the U.S., it said.

CBP could also stand to loosen restrictions on internal data storage for the trade community by allowing for cloud-based storage. “Current regulations handcuff the trade with respect to the storage of data,” the NCBFAA said. "Existing regulations envision paper documents stored in physical file cabinets, whereas today’s technology allows storage of intangible data in the cloud, where geographic boundaries do not exist. CBP must update its regulations to reflect the globalization of cloud-based data storage.”

As for specific new trade processes, the NCBFAA urged CBP to finish ACE, given the time, energy and money that have been sunk into the program so far. “Too much paper remains in this paperless environment,” the NCBFAA said. "No major investment of IT funds should occur on non-ACE projects which would shortchange ACE.” The NCBFAA also urged CBP to adopt a single national statement as a payment mechanism, with credits and debits shown on a monthly basis. “This is a small but useful change which has been under discussion for some time. Now is a good time to move forward with it.”

On the other hand, CBP should exercise caution with any plans to move to a monthly summary. Cargo release and entry summary are so closely intertwined that it may be difficult to de-couple them, and brokers would still have to link them back up to provide an audit trail for their clients. “The only question is whether you do the work on the front end or the back end. Either way, a similar amount of work must be done,” the NCBFAA said. Another issue could be the logjam that would occur from everyone filing their summaries at the end of the month, it said.

The NCBFAA also urged CBP to modernize its ruling process. “The ruling process must be more responsive; business does not stand still during the 6 to 12-month review period currently being experienced,” it said. The Office of Regulations and Rulings (OR&R) needs more attorneys and analysts. In addition, the OR&R should be more interactive with the trade so that the ramifications of their decisions can be better understood prior to a decision being rendered.”