The National Customs Broker and Forwarders Association of America (NCBFAA) released a new paper meant to serve "as the starting point for a continuous review of the role the licensed customs broker plays now and into the future." The paper, released Nov. 2, describes the roles currently played by customs brokers. CBP is in the process of reviewing and rewriting a number of broker regulations in CFR 19 Part 111. "Our hope is that this document serves not only to provide an historical perspective but also to provide guidance as to where we see the industry headed," said NCBFAA. "Of course, events over which we have no control may dictate changes but, absent any benchmark, we would have no idea how far we have come."
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.
Post-entry audits of customs filings remain outside of "customs business" and therefore don't require broker licensing, said Myles Harmon, director-commercial and trade facilitation at CBP, in ruling HQ114654. The ruling was in response to a request from Koot & Associates, which asked for CBP input on the legal status of a new subsidiary providing "customs compliance services." The company asked CBP whether employees of the new offices, who will work to identify errors in entry documents using post-entry audit software, are performing "customs business."
A Taiwanese national was sentenced to two years in prison Oct. 24 for helping to obtain and export military sensitive parts for Iran, in violation of the Iranian trade embargo, said Immigration and Customs Enforcement. The indictment charged Susan Yip, 35, a citizen of Taiwan, along with Mehrdad Foomanie (aka Frank Foomanie) of Iran, and Merdad Ansari of the United Arab Emirates, with conspiracy to violate the Iranian Transaction Regulations, conspiracy to launder money and conspiracy to commit wire fraud. Yip had pleaded guilty to the conspiracy charge July 20, admitting that from Oct. 9, 2007 to June 15, 2011, she acted as a broker and conduit for Foomanie to buy items in the United States and have them unlawfully shipped to Iran.
CBP posted an updated "Trade Transformation" guide, providing a list of some of the remaining questions to consider as it moves toward a rewrite of broker regulations. The document also now includes a list of Automated Commercial Environment (ACE) capabilities, descriptions of ACE goals and the impacts of certain capabilities.
The Centers for Excellence and Expertise (CEEs) offer a significant amount of hope and concern among the trade industry, said individuals involved in several different facets during interviews. The CEEs, which offer industry-dedicated, virtual locations for entry summary review, are currently in a pilot phase but are widely expected to see an increased role, potentially meaning a major shift in the customs world. Several concerns remain, said industry and CBP officials, but there's also hope that they will provide for simpler and more uniform customs processes.
CBP officials addressed a number of myths surrounding the agency's rewrite of broker regulations in 19 CFR Part 111. Elena Ryan, director for trade facilitation and administration at CBP said the agency heard brokers report several pieces of misinformation regarding the regulatory update. Ryan and others spoke during an Oct. 4 Webinar that provided a rundown of the agency's outreach efforts to the broker industry. The Webinar is part of agencies outreach effort to explore the "Role of the Broker."
As export control reform continues, freight forwarders need to be thinking about employee training, monitoring, and systems controls to ensure compliance, said Paulette Kolba, chair of the National Customs Brokers and Freight Forwarders Association of America (NCBFAA) Transportation Subcommittee on Export Compliance. Kolba spoke in a webinar Oct. 4 on export control reform along with Bureau of Industry and Security Under Secretary Eric Hirschhorn.
Oct. 2-4 International Air Cargo Forum, Atlanta -- http://www.tiaca.org/tiaca/Exhibition.asp?SnID=209245202
CBP is seeking input on how to revise its regulations for broker penalties because the current set of factors considered by the agency provide an imperfect look at adherence to supervision and control requirements, said CBP officials Sept. 20. They spoke during a CBP Webinar on "Broker penalties," one of several Webinars on changes to 19 CFR 111 broker regulations. Email documents@brokerpower.com for a copy of the presentation used during the Webinar.
Sept. 24 Comments due to USTR on China's compliance with WTO commitments -- http://www.gpo.gov/fdsys/pkg/FR-2012-08-20/html/2012-20430.htm