CBP will soon begin accepting applications from customs brokers interested in participating in a new pilot allowing brokers to pre-certify (PC) importers for the existing Importer Self-Assessment (ISA) program. The pilot, which has been on CBP's agenda for some time (see 11082510), is meant to "leverage customs broker relationships to facilitate and promote importer participation" in ISA, the notice said. Participation within ISA among importers has been somewhat lacking, due to what some consider to be an onerous approval process.
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.
International Trade Today is providing readers with some of the top stories for April 8-12 in case they were missed.
RANCHO MIRAGE, Calif. -- Ongoing concern for new Federal Motor Carrier Safety Administration regulations was evident during the National Customs Brokers and Forwarders Association of America conference April 9. While the NCBFAA has repeatedly said the provisions of the Moving Ahead for Progress in the 21st Century Act (MAP-21) that create new financial requirements for domestic transport brokers don't apply to those engaged in customs business, it was clear there was concern among attendees. MAP-21 exempts from bonding and registration requirements those who provide for domestic transport of good as part of "customs business" and other international transportation.
CBP is considering continuing education requirements of 40 hours every three years for customs brokers to maintain their licenses, said Elena Ryan, director of Trade Facilitation and Administration at CBP, who spoke via telephone at the National Customs Brokers and Forwarders Association of America conference April 10 in California. The requirement would amount to about an "hour a month" and it would be up to the broker to decide how they want to spread it out, she said. The framework, which is still in very "preliminary stages" was developed by CBP and the NCBFAA as part of the ongoing review of 19 CFR 111 regulations. The issue has been one of the more controversial aspects of the review (see 13031422).
RANCHO MIRAGE, Calif. -- The change in chairman at the Federal Maritime Commission adds another level of uncertainty to the regulatory movement of rule changes regarding ocean transport intermediaries (OTIs), said Ed Greenberg, general counsel of the National Customs Brokers and Forwarders Association of America (NCBFAA). The possible OTI rule changes could be a major change, adding new licensing and bonding requirements for forwarders, said Greenberg, who spoke at the NCBFAA conference April 9.
Forthcoming customs reauthorization legislation will force Congress to confront tensions between trade security and trade facilitation, costs and benefits -- including how to implement the International Trade Data System and monitor Automated Commercial Enforcement -- according to a March 22 report on CBP from the Congressional Research Service. Most of the issues for Congress relating to CBP reauthorization stem from the “inherent tension between the commercial interest in trade facilitation and the often competing goals of enforcing trade laws and import security measures,” said the report, which also details the agency’s history and programs.
The 1st U.S. Circuit Court of Appeals affirmed the 2008 convictions of Zhen Hour Wu and Guofeng Wei for numerous counts of export violations, but vacated convictions related to the duo’s alleged violations of the U.S. Munitions List because of flawed jury instructions. In their defense, Wu and Wei, Chinese nationals who ran an electronics parts broker company, attacked the U.S. arms export control system as so vague it violates the Fifth Amendment’s Due Process Clause.
International Trade Today is providing readers with some of the top stories for March 11-15 in case they were missed.
The planned changes to the 19 CFR Part 111 regulations that govern customs brokers are still several stages away from implementation, said Elena Ryan, acting director of Trade Facilitation and Administration at CBP, who is overseeing the process for the agency. Ryan declined to put a time frame on the expected changes, but said the rulemaking process can sometimes be a multi-year process. While some of the discussed changes are more contentious than others, the update will be part of a single rulemaking, rather than piece by piece changes, she said in an interview.
There may be some delay in the processing of broker license applications because the FBI has stopped processing fingerprint cards for CBP's background checks, said the National Customs Brokers and Forwarders Association of America in an alert to its members. CBP will use the Global Entry System (GES) to process the fingerprint cards as it works to find a permanent solution, said the NCBFAA.