CBP Working on Proposed Rule Setting Importer Verification Requirements for Customs Brokers
NEW ORLEANS -- CBP is working on a proposed rule to implement new importer validation requirements for customs brokers outlined in the Trade Facilitation and Trade Enforcement Act of 2015, said Steve Hilsen, deputy executive director of CBP’s Trade Remedy & Law Enforcement Division. Hilsen spoke at the National Customs Brokers & Forwarders Association of America annual conference on April 5. The proposal, which will be “ready for comment hopefully shortly,” will include information on what brokers will be required to get from new importer clients, including the importer’s address, status of incorporation and information on the individual associated with the broker power of attorney, Hilsen said.
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Section 116 of TFTEA requires CBP to establish minimum standards for what importers need to provide to brokers, and what brokers need to collect from importers and provide to CBP, to validate the importer’s identity (see 1602170074). The new requirements will put brokers on an “even playing field” by giving them something to point to when they attempt to verify their clients, said Alan Klestadt, a lawyer with Grunfeld Desiderio who represents the NCBFAA. Hilsen acknowledged that verification can be hindered by importers pushing back against brokers they feel ask more questions than other brokers.
Efforts to implement related provisions in TFTEA -- the importer risk assessment program required by Section 115 -- are gaining steam after President Donald Trump issued his executive order on enhanced antidumping and countervailing duty collections on March 31 (see 1704030033), Hilsen said. CBP was working on implementation even prior to the order through an internal working group comprising several offices, he said. Also related to these requirements is the importer of record database required by Section 114 of TFTEA and CBP’s update of Form 5106. Though additional data elements in the form are currently undergoing Office of Management and Budget review, the trade community will get a chance to review and comment once the review is complete, Hilsen said.