The Court of International Trade ordered a former customs broker to pay the $30,000 maximum allowable penalty for broker violations of the customs regulations, in a decision issued March 29 (here). Paul Puentes, a Los Angeles-based broker whose license was revoked in 2012 for failure to file a triennial report and pay the associated fee (see 12120527), pocketed Merchandise Processing Fees from a client, failed to file entry summaries or filed them late, and misrepresented the importer of record on entries imported on his own behalf, CIT said.
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.
Another customs broker recently agreed to additional requirements for validation of powers of attorney as part of a settlement of a trademark lawsuit with Nike. Like the recent settlement between Nike and Alto Customhouse Brokers (see 1702140037), a settlement reached in December in Los Angeles federal court between Nike and KAL America requires the customs brokerage to validate all new powers of attorney it receives from importers by means of notarization, phone calls and checking government-issued IDs. The settlement ends one of the few remaining of a series of trademark cases brought by Nike against customs brokers. Nike has over time moved away from the practice, according to customs lawyers familiar with the issue.
A customs broker can be employed by a brokerage and a freight forwarding company simultaneously as long as the freight forwarder isn't involved in customs business, CBP said in a Feb. 7 ruling (here). The ruling came at the request of Jesse Weisman, CEO of JW Customs Brokers (JWCB) and JW Transport (JWT), a freight forwarding company. Weisman sought CBP's input on "whether a conflict arises from a customs broker’s simultaneous employment with a brokerage and freight forwarding entity, and whether a customs broker so employed may receive a salary from both entities," CBP said.
CBP posted a list of frequently asked questions for customs brokers (here). The FAQs include sections on general information, the triennial status report, and trade names and corporations. Among the issues CBP addresses in the FAQs are how to obtain a customs brokerage license, what happens when a broker fails to submit a triennial report and the ability to transfer an individual's broker license to a corporation.
Licensed customs brokers can't pay a referral fee to an unlicensed third party that promotes the brokers' services if the fee is tied to entry transactions, CBP said in a Dec. 29 ruling (here). Welke Customs Brokers USA sought a Customs ruling on whether it could enter into such an arrangement with two local non-profits. Brokers are barred from paying out commissions to unlicensed parties that are a percentage of a fee paid for broker services, the agency said.
BGI Worldwide Logistics hired Giselle Rodriguez as an in-house customs broker, the company said in a news release (here). Rodriguez joined the company as its manager, U.S. customhouse broker services and compliance, BGI said. "We are committed to providing the best import/export experiences for our international clients, BGI CEO Gabriel Shweiri said. "We believe that adding a licensed customs broker to our services portfolio delivers an exceptional import logistics capability for our new and existing clients.”
International Trade Today is providing readers with some of the top stories for 2016 in case they were missed.
Regulatory agencies with jurisdiction over imports and exports published their regulatory plans for the next several months as part of the Fall 2016 Unified Agenda (here). New rulemakings include the development of a national standard for disclosing bioengineered food, a final rule to require filing of new data elements for high-risk seafood imports and a proposal to allow imports of poultry slaughtered in China.
CBP's proposed changes to customs broker license exams (see 1609130032) include several problems, the National Customs Brokers & Forwarders Association of America said in comments to CBP (here). The proposed changes would allow for electronic testing, increase the fees and adjust the allowed testing dates. Each of those provisions raises some issues, the NCBFAA said.
SAN DIEGO -- CBP is aiming to propose changes to the customs broker regulations by the end of 2016, said Cindy Allen, vice president-regulatory affairs and compliance for FedEx Trade Networks, while speaking at the Western Cargo Conference on Oct. 15. "I expect to see something by the end of the year or very soon after," she said. Allen, who is also on the Customs Commercial Operations Advisory Committee (COAC), discussed the recommendations submitted to CBP through the COAC (see 1604250011). Some of the recommendations elicited concerns among attendees.