Brokers Want to Know About Supervision Plans, 'Sufficient' Staffing Under Part 111 Regs

At least one broker on a CBP webinar on how new Part 111 broker regulations will be implemented continued to be confused about how to determine if the company has a "sufficient" number of licensed customs brokers to supervise employees who file customs entries.

CBP will not provide a ratio of licensed brokers to the number of employees overall as part of its guidance. During the webinar, one of the presenters said the sufficient number of brokers is fact specific, and varies depending on how varied and complex the transactions are that the brokerage handles; how much proximity or easy access subordinates have to broker managers; how experienced the managers are; how experienced rank and file employees are; and the broker's previous violations of customs violatons, among other factors.

This vagueness was also a concern before the regulations were published (see 2210170071).

One of the webinar attendees asked how the company would know if it had a sufficient number of licensed brokers. CBP official Jeannine Delgado merely replied, "You, as a broker, will have to make that determination."

The CBP presenters said brokerages with a current permit do not have to submit a supervision plan, but the agency does recommend companies develop one for internal use.

Under the new regulations, which take effect Dec. 19, power of attorney agreements between importers of record or drawback claimants and brokers must be direct. They cannot be arranged through a freight forwarder, or any other third party. The webinar presentation clarified that a broker can consult with an attorney when drawing up the power of attorney documents, and can use translation services. The revised POA rules do not prohibit a Broker "A"-Broker "B" relationship. Power of attorney documents can still use electronic signatures.

An attendee asked if current POAs are grandfathered, and Delgado said no, a broker must have a POA that meets the new regulatory requirements by Dec. 19th before he or she can conduct customs business on behalf of that client.

Daniel Pitt, a client representative at CBP, told the audience that the most important advice he's been giving about the transition is that brokers should continue using the same software they do now. "If you have a question about a pop-up or a question that comes up when you're doing an entry, send that to your ABI software vendor," he said.

CBP employees clarified that there will be no lapse in active permits as brokers who are working under district permits shift to national permits on Dec. 19. If someone who has passed the broker exam wants to apply for a permit before the fees go up, that new broker will be given a district permit.

After the new regulations go into effect, CBP will no longer waive the first permit application fee, which is $100.

One attendee asked what should be done if a district permit qualifier resigned, given that the district permits are going away. The answer: nothing has to be done, because by law, companies have 180 days to replace that district permit qualifier, and there are fewer than 60 days before the new regs take effect.

A recording of this webinar and one from two weeks ago will be posted at cbp.gov. Webinar presenters recommended brokers visit a page on the new regs for all the details.