COAC Lists Draft Criteria for Brokers to Pre-Certify Importers for ISA
On February 21, 2012, the Advisory Committee on Commercial Operations of Customs and Border Protection (COAC) met in Washington D.C. to hear an update from the Broker Workgroup1 on CBP's plans to allow customs brokers to pre-certify Importer Self-Assessment (ISA)2 applicants.
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(CBP is working with NCBFAA on a program to allow brokers to pre-certify importers for the Importer Self Assessment (ISA-PC) program. The agency is also preparing regulatory changes to (i) establish continuing education requirements for brokers, (ii) clarify that customs business must be conducted within the territory of the U.S., and (iii) establish bona fides for broker vetting of powers of attorney. CBP is also pursuing a statutory amendment to change from triennial to biannual status reporting.)
Initial Pilot Phase to be Limited to CHBs, “Experienced” Importers
CBP plans to limit the initial pilot phase of ISA-PC to customs brokers or customs brokerage firms that are (i) C-TPAT certified, and (ii) licensed, that (iii) have a record of filing entries for importers for at least five years. The broker participant must also provide a list of those individuals that will be engaged in precertification.
The importers that are applying to be pre-certified for ISA must be C-TPAT certified and able to show evidence that they are experienced in an internal control regime.
“Consultant Piece” Expected to be Added After Initial Pilot Phase
The pilot is expected to be limited in the initial phase to those that file entries on behalf of importers. The “consultant piece” is expected to be added after this initial pilot phase.
Notice on Pilot Program Expected this Summer
CBP expects to announce the ISA-PC pilot program in a Federal Register notice targeted for early summer 2012. Before then, the "Role of the Broker" Workgroup will meet to flesh out additional aspects of the ISA-PC program. (CBP's implementation plan for ISA-PC is in internal review, and will be presented to the Workgroup at their next meeting, which is tentatively scheduled for mid-March.)
(Note that some COAC members commented that it would be advantageous to open up ISA to non-resident importers. Though not a priority at this time, CBP officials answered that the agency might want to revisit the ISA eligibility criteria, and would work with COAC when taking this fresh look.)
1The Role of the Broker-Regulatory Revision Workgroup was established in January 2011 by CBP in partnership with the National Customs Brokers and Forwarders Association of America (NCBFAA) to help small and medium enterprises (SMEs) be recognized as trusted partners, while also allowing for established “best practices” within the industry. (See ITT's Online Archives 12012721 for summary.)
2The ISA is a voluntary program for resident importers that work with U.S. Customs & Border Protection (CBP) to improve trade compliance. Those that have two years of importing experience and are certified in the Customs-Trade Partnership Against Terrorism (C-TPAT) program, are eligible. ISA participants take responsibility for self-assessment, and they must control their environment and activities by assessing risk areas and communicating, informing and monitoring their Customs operations.)
(See ITT’s Online Archives 12020702 for summary stating that CBP would be updating COAC on ISA-PC plans and other “Role of the Broker” plans at the February 21, 2012 COAC meeting.
See ITT's Online Archives 12011817 for summary of CBP's "BEST" goals to improve cargo security and trade competitiveness within the supply chain in the 21st century. Among these goals is an expanded role of the broker to (i) help ensure trade compliance and (ii) pre-certify trusted partners in all modes of transportation.)