CBP & NCBFAA Consider Continuing Ed for All Licensees, Expanded Broker Role
At the National Customs Brokers and Forwarders Association of America’s Government Affairs Conference on September 19, 2011, representatives from U.S. Customs and Border Protection and NCBFAA’s Customs Committee discussed the “Role of the Broker,” including the possibility of requiring continuing education for all licensed customs brokers and an experience requirement for permit holders. A larger role for brokers in trusted trade programs is also being contemplated, etc.
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(A “Role of the Broker-Broker Regulatory Revision” Workgroup was established in January 2011 by CBP in partnership with NCBFAA. Its goal is to develop solutions to meet the challenges of the 21st Century with respect to broker responsibilities, 19 CFR Part 111 modernization, professionalism, penalty regime/disciplinary actions, and the facilitation of C-TPAT participation.
A COAC Broker Subcommittee is also examining these areas of reform. See ITT’s Online Archives or 08/25/11 news, 11082510, for COAC overview of the Workgroup’s proposed options for all five areas of reform. Officials had stated that the Workgroup was drafting preliminary regulatory language and expected to finalize its recommendations and submit them to the Commissioner in October.)
CBP Says Commissioner Wants Recommendations from Staff by November
According to a CBP official at the conference, CBP Commissioner Bersin wants CBP staff to be ready to present some ideas on expanding the role of the broker within the next 60 days, initially focusing on those actions that are easy to achieve. The official notes that other, more difficult, changes would take more time to develop and implement.
NCBFAA Says its Exploring Ideas for Increasing Broker Professionalism, Etc.
One of the concepts on which NCBFAA has been working with CBP is increasing the professionalism of the licensed customs broker, including:
Education for licensees, certification. NCBFAA has been working on the concept of a continuing education requirement for all licensed Customs brokers1. As the concept is currently envisioned, all licensed Customs brokers would have to obtain a certain number of continuing education points in a given period in order for their license to be continued.
Licensed Customs brokers would have to certify that they have met their continuing education requirement and file a status report (i.e., self certification).
Experience for permit holders, evidence. Another concept being explored by NCBFAA with CBP is an experience requirement for obtaining a permit to conduct customs business1. Under consideration is a concept of requiring all licensed customs brokers who have not already provided responsible supervision and control in connection with a permit for which the broker qualified to obtain practical experience in a customs brokerage business and present good and sufficient evidence of that to CBP before a permit would be issued for which the broker would qualify.
(The idea is that a permitted broker conducting customs business should have to demonstrate a certain level of experience in the various aspects of customs business (e.g., valuation, classification, drawback, protests, etc.).
It was also discussed that such customs brokerage experience would not be required for a licensed broker who did not want to obtain a permit (i.e., a licensed broker working for an importer, etc.).
(See ITT’s Online Archives or 09/02/11 news, 11090211, for BP summary of non-CHB licensees saying that “broker ed” and work rules are best suited for permits, not CHB licenses, etc.)
Customs broker license exam. Another sentiment expressed was that the current Customs broker license exam is probably not a sufficient way to demonstrate the ability to conduct Customs business. The NCBFAA official expressed NCBFAA’s interest in being involved in the Customs broker exam, discussing a concept where NCBFAA could contract with CBP to prepare the exam (and a CBP executive board would oversee the exam).
NCBFAA also Exploring Brokers as Force Multipliers for Trusted Trader Programs
CBP and NCBFAA are also exploring the role of the broker as a “force multiplier” for importer participation in trusted trader programs such as Customs-Trade Partnership Against Terrorism and the Importer Self-Assessment program.
Application assistance. One possible concept was that brokers could assist importers in preparing their C-TPAT applications, including reviewing and signing off on an importer’s C-TPAT application. This idea is based on the assumption that a broker assisted importer going into C-TPAT would receive expedited review of its application.
Validation preparation. The broker could also assist the importer in maintaining its C-TPAT status by helping the importer to prepare for validations.
NCBFAA Subcommittee Working on Business Resumption Planning
According to one NCBFAA source, a NCBFAA Customs Committee subcommittee has also been working for the past six months on business resumption planning (i.e., establishing a workable operating plan to be used in a severe emergency that disrupts trade). The intent of the Subcommittee’s work is to provide NCBFAA members with a deliverable -- an Emergency Preparedness and Continuation of Operations plan.
1Note that a NCBFAA source states that these are "concepts" and have not been adopted by CBP.
NCBFAA’s announcement of its new Educational Institute Director available here
See ITT’s Online Archives or 04/15/11 news, 11041523, for BP summary of CBP’s description of its new “broker revision” initiative at its April 2011 annual Trade Symposium.