Some of CBP's proposed changes for the regulations that govern customs brokers (see 2006040037) appear likely result in unexpected problems if not addressed by the agency before the rules are finalized, the Florida Customs Brokers and Forwarders Association said in recently filed comments. “We feel strongly against the concept of a customs broker being a 'force multiplier' from an enforcement perspective and, while we do want to ensure there is 'enhanced compliance,' deputizing brokers, as some of these proposed changes demand, can lead to an unnecessarily conflictive, non-productive broker-importer as well as broker-CBP client relationship,” the trade group said. Comments in the docket are due Aug. 4.
Licensed Customs Broker
Customs brokers are entities who assist importers in meeting federal requirements governing imports into the United States. Brokers can be private individuals, partnerships, associations or corporations licensed, regulated and empowered by U.S. Customs and Border Protection (CBP). Customs brokers oversee transactions related to customs entry and admissibility of merchandise, product classification, customs valuation, payment of duties, taxes, or other charges such as refunds, rebates, and duty drawbacks. To obtain a customs broker license, an individual must pass the U.S. Customs Broker License Exam. Customs brokers are not government employees and should not be confused with CBP officials. There are approximately 11,000 active licensed customs brokers in the United States.
Following the cancellation of the April customs broker exam, “there are a lot of people that are very interested in taking this broker exam in October” and CBP “is going to try and accommodate everyone possible,” said John Van Wallaghen, vice president at UPS Public Affairs, during the July 15 Commercial Customs Operations Advisory Committee (COAC) meeting. The agency is planning on having a “split session on a single day” that will include morning and afternoon sessions, he said. Due to gathering restrictions, additional testing space will likely be necessary in order to hold the exams, he said.
The Department of Homeland Security (DHS) published its spring 2020 regulatory agenda for CBP. Among the few trade-related changes to the agenda from the fall (see 1911220038) is the return of continuing education requirements for customs brokers. The possible regulatory action was previously listed on CBP's agenda but relegated in recent years to the agency's list of "Long-Term Actions."
CBP released its long-awaited proposal to update customs broker regulations. Among other changes, CBP proposes to “update the responsible supervision and control oversight framework, ensure that customs business is conducted within the United States, and require that the customs broker have direct communication with the importer.” The regulatory changes were under government review for years (see 1804110024) following lengthy discussions about the updates (see 1510210017).
CBP released its long-awaited proposal to update customs broker regulations. Among other changes CBP proposes to "update the responsible supervision and control oversight framework, ensure that customs business is conducted within the United States, and require that the customs broker have direct communication with the importer." Broker license application fees would also be increased under the proposal.
CBP mistakenly listed six customs brokers as having their licenses revoked due to a failure to file a 2018 triennial report (see 1902190028), it said in a notice. “This correction is being issued to identify the customs brokers whose licenses were erroneously identified as revoked,” it said. “CBP has corrected its records to reflect that the licenses were not revoked.”
The following customs brokers' licenses and all associated permits are revoked without prejudice for failure to file a triennial status report, CBP said in a notice.
Another customs broker agreed to strict power of attorney verification requirements to settle a trademark infringement lawsuit brought by Nike. Under the terms of the settlement, B&H Customs Brokers will have to visit its importer clients to verify their identities, or otherwise review the government-issued identification of the employee of the importer that signed the power of attorney. B&H did not admit its guilt as part of the settlement.
The Commerce Department is proposing new regulations that would create an Aluminum Import Monitoring and Analysis System. Similar to the Steel Import Monitoring and Analysis System in place since 2005, the new scheme would require importers of aluminum or their customs brokers to submit information in an online portal to obtain an automatically issued license, then submit the license number with entry summary documentation. Comments are due May 29.
Janet Fields, director of risk management at John S. James Co., was elected April 18 the new National Customs Brokers & Forwarders Association of America president, replacing Amy Magnus, who will now be chairman of the board. Fields has spent her whole career at John S. James Co., and has been a licensed customs broker since 1988.