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NCBFAA Says Alleged San Diego Customs Conspiracy Doesn't Represent Industry

Recent allegations of customs evasion by San Diego customs brokers don't represent the integrity of the profession overall, said the National Customs Brokers and Forwarder Association of America (NCBFAA) in response to federal charges filed against a group of customs brokers. A group of eight individuals, including Gerardo Chavez, president of the San Diego Customs Association (SDCA), and three companies worked to bring in shipments worth at least $100 million, while avoiding more than $10 million in customs duties and taxes, the charges say.

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No Structural Affiliation

A spokesman for the NCBFAA said while the SDCA is a member of NCBFAA, the national association doesn't have any oversight role or structural affiliation with the SDCA. The SDCA pays dues to the NCBFAA, as do many regional associations, and so do many SDCA individual members. SDCA has its own bylaws and acts as its own entity, said the spokesman.

Chavez is also an individual member of the NCBFAA, and the NCBFAA board can revoke membership based on "moral turpitude," the spokesman said. The spokesman declined to comment on likely actions by the NCBFAA as a result of the allegations. Requests for comments from SDCA officers and members weren't immediately returned.

No Reflection on Customs Brokers' Integrity

"The association supports our nation’s laws and judicious enforcement of them," said NCBFAA. "Customs brokers and freight forwarders work under the license and close supervision of the federal government. They are entrusted with a unique responsibility to facilitate trade and thereby promote the growth of our nation’s economy. The association appreciates the efforts of ICE and CBP to enforce regulations, policies and procedure. We look forward to continuing our collaborative work to protect our nation’s interests in the future."

"The association represents over 100,000 Americans employed by nearly 870 member companies. An allegation of wrongdoing against one individual broker does not and should not reflect on the industry overall or on the integrity of the hardworking Americans who support our nation’s international trade of goods. It would be highly inappropriate for the association to discuss details related to this incident. We will refrain from such speculative or potentially prejudicial comment while the case is pending."

(See ITT's Online Archives 12072626 for summary of charges filed in the U.S. District Court for the Southern District of California.)

Email documents@brokerpower.com for a copy of the complaint.