Licensed Customs Broker

CBP is actively considering a recent proposal from the National Customs Brokers and Forwarders Association (NCBFAA) that would allow brokers to differentiate importers that a broker has gathered some basic information on, said CBP Acting Commissioner Tom Winkowski on Sept. 23. Winkowski, who spoke at the NCBFAA Government Affairs Conference, said "details of this proposal are being discussed," but "we believe the brokerage community is in a unique position to understand their clients' needs and business process and we want to leverage that expertise to enhance compliance." The NCBFAA submitted information on the proposal, called the "Broker Known Importer" program, earlier this year (see 13041124).

A Federal Maritime Commission (FMC) proposed rulemaking will inhibit job creation, national economic growth and increase regulations, National Customs Brokers and Forwarders Association of America (NCBFAA) Vice President Geoffrey Powell said in testimony on Sept. 10 (here). The testimony was delivered to the Committee on Transportation and Infrastructure Subcommittee on Coast Guard and Maritime Transportation during a hearing on maritime transportation regulations. Powell said the rulemaking, on regulations for Ocean Transport Intermediary (OTI) licensing and financial responsibility requirements would increase regulatory costs on the segment of the maritime industry referred to as ocean transportation intermediaries.

Two brothers who both worked in law enforcement agencies were arrested Sept. 5 for allegedly conspiring to export high-powered weapons from the U.S. to the Philippines, said U.S. Immigration and Customs Enforcement (ICE). Rex Maralit, a New York City police officer, and Wilfredo Maralit, a CBP officer in Los Angeles, participated in a scheme to smuggle assault rifles, sniper rifles, pistols and firearm accessories to the Philippines for sale to overseas customers. ICE said a third brother residing in the Philippines, Ariel Maralit, was also involved and had “identified customers and sought the assistance of his brothers” to purchase and ship the weapons. The brothers responded to customer orders by locating weapons advertised on firearms-brokering websites and arranged to buy the guns through dealers in the U.S. They then “disassembled the weapons and smuggled them out of the United States in disguised shipments,” ICE said.

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Nike's new trademark suit against a freight forwarder raises new questions about liability of service providers for counterfeiting violations, industry lawyers said. While the dispute began as one of a string of trademark cases against customs brokers, Nike expanded the lawsuit in August to directly allege counterfeiting by City Ocean. The forwarder has since moved to dismiss the case, and some lawyers agree that Nike’s arguments are threadbare at the moment. But the lawyer who first brought City Ocean into the case as a third party defendant says the forwarder, and CBP as well, should have noticed the allegedly counterfeit shipments were not as advertised.

The Federal Motor Carrier Safety Administration (FMCSA) provided some questions and answers outlining new financial and licensing requirements to be implemented under the Moving Ahead for Progress in the 21st Century Act (MAP-21). The Q-and-A, a response to many requests from motor carriers and transportation companies, does not mention customs brokers specifically, but does discuss the responsibilities of freight forwarders under the regulations. There's been ongoing concerns as to how the legislation would apply to customs brokers (see 13041101), despite assurance from the National Customs Brokers and Forwarders Association of America that the bill's language exempts most work done by customs brokers (see 12070325).

Chairman Mario Cordero discussed proposed changes to Federal Maritime Commission (FMC) regulations for Ocean Transport Intermediaries during an Aug. 22 address to members of the Los Angeles Customs Brokers & Freight Forwarders Association (LACBFFA). Cordero said the proposed changes to the FMC’s OTI regulations under the proposed rulemaking (see 13082122) could make the FMC’s “regulatory process more efficient” by “improving transparency” and adapting to changing industry conditions.

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The Federal Maritime Commission’s (FMC) proposed changes to ocean transport intermediary (OTI) rules fall outside the agency's regulatory duties, the National Customs Brokers and Forwarders Association of America (NCBFAA) said in comments responding to the proposed rulemaking. Those changes are “not truly relevant to the Commission’s oversight responsibilities” and should not go forward, the association said. The agency released the proposal earlier this year, saying it would lessen regulatory burdens and improve processing (see 13053031).

The Central California U.S. District Court’s $8 million judgment against customs broker Celco Customs Service for trademark infringement will move forward, after Judge Margaret Morrow denied the company’s final defenses in an Aug. 9 order. A jury had decided the penalty after finding Celco infringed trademarks held by Coach when it acted as a customs broker on entries of counterfeit handbags and wallets. But Judge Morrow vacated an April judgment because Celco never got a chance to present its “affirmative defenses.” Now having heard Celco’s arguments, the court said the defenses are invalid because the jury found Celco’s trademark violations to be willful. Celco will now file post-trial motions asking the judge to throw out the jury’s verdict based on improper infringement findings and an excessive penalty amount, its attorney said.