The Federal Maritime Commission extended the comment period by 30 days for a proposed rulemaking to add new licensing and financial requirements to Ocean Transportation Intermediaries (OTIs), the agency said in a notice. The proposed rules would create some additional licensing requirements for OTIs, somewhat similar to what is required of customs brokers, and increase the bonding requirements. (see 13053031). The extension came in response to a request from the National Customs Brokers and Forwarders Association of America (NCBFAA), said the FMC. While the NCBFAA requested a 60-day extension, the FMC decided to give a 30-day extension, it said. Comments on the proposal are now due Aug. 30.
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.
The review of financial details including CBP entry and entry summary forms in order to verify billing is considered to be "customs business" and therefore would require a licensed customs broker, said CBP in a June 28 ruling. CBP addressed the issue in HQ H167815 at the request of DHL Americas, which inquired in 2011 about billing verification activities used to resolve Delivered Duty Paid (DDP) billing disputes.
The Southern California U.S. District Court sentenced on July 1 former customs broker Gerardo Chavez to 37 months imprisonment, according to a press release issued by U.S. Attorney Laura Duffy. The 42-year-old former head of the San Diego Customs Brokers Association pleaded guilty in November 2012 to charges of conspiracy to evade at least $18 million in duties.
Test takers sitting for the October customs broker license exam will have an additional half hour to complete the exam, said CBP in a notice announcing the date of the exam. The October exam, scheduled for Oct. 7, will allow four and a half hours for completion, the notice said. At least since the April 1998 exam -- the earliest exam CBP makes available that includes a cover sheet with instructions -- the agency has allowed testers four hours.
House Ways and Means Trade Subcommittee Chairman Devin Nunes, R-Calif., plans to introduce a bill later this year to create an overarching strategic economic dialogue between the U.S. and Brazil, to increase visibility and oversight of the bilateral trade relationship, Nunes said June 12. He spoke at a Subcommittee hearing on trade and investment opportunities in Brazil, where witnesses and lawmakers said the U.S. should work to ease trade flows between the countries to tap into Brazil’s vital, ever-growing market. The country has raised its global profile in recent years, they said, securing the 2014 World Cup and the 2016 Olympics; the new World Trade Organization Director General is Brazilian, and the country’s president, Dilma Rousseff, will make a state visit this October.
The Federal Maritime Commission said the following have filed applications for a license as a Non-Vessel-Operating Common Carrier (NVO) and/or Ocean Freight Forwarder (OFF)-Ocean Transportation Intermediary (OTI) pursuant to section 19 of the Shipping Act of 1984. The FMC also gave notice of the filing of applications to amend an existing OTI license or the qualifying individual for a license. Interested persons may contact the Office of Transportation Intermediaries, Federal Maritime Commission, Washington, D.C. 20573, at 202-523-5843 or at OTI@fmc.gov.
The Federal Maritime Commission (FMC) is considering numerous changes to its current Ocean Transport Intermediary (OTI) regulations, it said in a proposed rule. The agency said it is seeking the new rules to streamline internal processes, improve transparency and remove unwarranted regulatory burdens. The FMC voted to begin the rulemaking earlier this month (see 13052014). Comments are due July 31.
A Texas customs broker pleaded guilty May 14 to entry of misclassified goods, smuggling, and making false statements, in connection with a scheme where he defrauded both CBP and his clients. According to court documents, Alejandro Santos of Laredo misidentified goods duty free, and then collected the full amount of duties actually owed to CBP from clients and pocketed the difference.
CBP plans to hold another Webinar focused on developing continuing education requirements for customs brokers on June 6, the agency said in a CSMS message. CBP will answer questions and give further clarifications on the initiative. CBP recently outlined plans for customs broker continuing education rules that would require brokers to complete 40 hours of education every three years to maintain an active license (see [Ref:13050222).
Customs brokers won't be required to fulfill planned continuing education requirements ahead of the next triennial report in 2015, meaning the earliest such requirements could be required is for the 2018 report, said Elena Ryan, director of Trade Facilitation and Administration at CBP, during a Webinar on the subject. Brokers would be required to certify 40 hours of continuing education every three years as part of their triennial reports under a CBP framework that the agency is considering, she said. The framework is part of CBP's 'Role of the Broker' effort, a review and update to regulations for customs brokers.