Agathon Associates is adding customs brokerage to the services it offers its clients, after principal David Trumbull got his customs broker license, it said in a blog post on June 18. The Boston-based company consults on international trade with a focus on textiles.
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.
CBP said the following customs broker license, as well as any and all permits, were canceled with prejudice:
The Advisory Committee on Commercial Operations of Customs and Border Protection (COAC) recommends that CBP remove the district permitting requirement and make other changes to broker regulations, said a CBP document posted ahead of the May 22 COAC meeting (here). The COAC recommendations call for new national permit framework that would require customs brokerages to employ an "adequate number of licensed brokers to ensure responsible supervision and control." The potential changes for the permitting regime has sparked some concerns among brokers, even leading to the creation of a "Save a Broker" letter writing campaign (see 14042918).
A recently started campaign is working to push back against momentum for changes at CBP that could lessen the need for individually licensed customs brokers. The campaign, called "See a Broker, Save a Broker," was started in response to coming capabilities within CBP's Automated Commercial Environment that would allow for expanded Remote Location Filing (RLF), potentially meaning a single broker's license is all that would be necessary for importers across the country. "The national permit coupled with full blown RLF not only threatens our profession through lost jobs and core missions to protect the revenue and borders by reducing the ranks currently enlisted in this shared responsibility, it also devalues the individual license holder through declining demand," the campaign said.
Coming regulatory changes at CBP will soon make the notion of district permits "a wholly irrelevant artifact," the National Customs Brokers & Forwarders Association of America (NCBFAA) said on its website. The NCBFAA recently made a point to make clear to its members that revisions to the broker permitting structure were in the works and industry engagement would be important (see 14042116) "While there appears to be strong sentiment to keep the current [district permitting system], that really is not an option," the group said.
The National Customs Brokers & Forwarders Association of America (NCBFAA) stressed the importance of member engagement in a post on the NCBFAA website, encouraging brokers to get active and help to guide CBP as it looks to revise customs broker permitting regulations. CBP is considering using a more national permitting structure for brokers, rather than the current district structure that is based on geographic regions. Although "CBP has confirmed that they are not looking into making any changes in the immediate future" the NCBFAA "wants to be proactive and begin discussions now to allow comments, ideas and concerns from all its members to be received and reviewed," it said. "The NCBFAA has to manage this process methodically, with input from all to ensure our proposal on 'permitting' maintains the professionalism that our customers and government agencies demand."
LAS VEGAS -- The Broker-Known Importer Program will at least start as an industry initiative because of restrictive rules on how CBP can launch official pilot programs, said Alan Klestadt during a panel discussion April 9 at the annual conference of the National Customs Brokers & Forwarders Association of America (NCBFAA). The association last year suggested that CBP adopt the program, which is meant to leverage some basic information brokers collect about their clients. The NCBFAA is coming up with the verification criteria and will open the program up to both association and non-association participants. In return, the NCBFAA is asking CBP to create an entry flag and incentivize importer participation. Klestadt says the NCBFAA wants CBP will conduct a survey 14 months into the program to see how it’s working. Eventually, the NCBFAA hopes CBP will formalize the program through regulations or a policy document.
Mexico's Diario Oficial of April 11 lists notices from the Secretary of the Economy as follows:
LAS VEGAS -- The Federal Maritime Commission is looking at softening changes to its regulations on Ocean Transport Intermediaries (OTIs), said FMC Chairman Mario Cordero in remarks at the National Customs Broker & Freight Forwarder Association annual conference. A May 2013 request for comments had prompted industry to decry the FMC's regulatory changes as too burdensome. Cordero said FMC staff is currently considering ways to make any new regulations more “business-friendly,” although he wouldn't say what specific changes were in the pipeline.
A customs broker is off the hook for alleged violations of the federal pesticide regulations, after an administrative law judge on March 6 dismissed an Environmental Protection Agency civil penalty proceeding. EPA had accused Mara Shipping of failing to file required notices of arrival on several shipments of pesticides. It originally requested a $172,500 penalty, according to Mara. But Mara argued customs brokers aren’t responsible for filing notices of arrival. The fight paid off, as EPA withdrew its complaint in late February. EPA did not respond for comment on why it dropped the case.