CBP Considering Pilot Waiving District Licensing Requirement for Brokers
CBP is looking into establishing a pilot program that would waive the requirement to maintain a place of business within the district where customs business is being conducted, allowing for more virtual transactions, said CBP officials June 28. The officials spoke during a CBP Webinar on "Modernizing broker permitting requirements," the third of several Webinars on changes to broker regulation.
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Small Number, Varying Sizes
The pilot would likely include a small number of brokers -- probably around nine -- with participants of all sizes of businesses, said Elena Ryan, Acting Director for Trade Facilitation and Administration at the CBP Office of International Trade. The officials said the pilot is still in its planning stages, questions remain over the legal process involved and input on any ideas from the industry is encouraged. Ryan said the idea came from the trade side.
Requirements
Considered requirements for participation:
- Must have 5 year importing history
- Must agree to file in an automated environment
- Must be C-TPAT
- Must file multiple entry types 01, 11, 23, 06, 03 (excluding drawback entries), etc.
The pilot would likely last for about a year, giving CBP enough time to test a full lifecycle within the program, from arrival through liquidation, they said. CBP would like to test all sorts of entries including quota and AD/CV entries and other government agency paper requirements, said Virginia McPherson, chief of import safety in the Office of International Trade. The additional filing abilities are one of the major difference between the pilot and current Remote Location Filing (RLF), which only includes entry types 01 and 11, she said.
While CBP is looking to expand the RLF program by including entry 03 and 06 types, the pilot allows for some time to test other capabilities, the officials said. The pilot being considered wouldn't make any changes to bonding requirements or RLF.
Remaining Questions
Several uncertainties remain and the officials asked for industry input on the following questions:
- Is the geographically based permitting system still useful in the virtual age?
- How do brokers demonstrate responsible supervision and control over their customs business if they are working in ports virtually?
- How do brokers get port-specific information if they are not traditional players in that location?
- How would small brokerages or importers with a sole broker on staff be affected?
- If CBP were to pilot a test program that would change local permitting requirements, would you support this concept?
Immediate reactions from brokers participating within the Webinar showed some concern. One broker said they worried a system in which a district broker's license wasn't required would allow for major companies to take over.
Email documents@brokerpower for a copy of the CBP Power Point presentation on the possible pilot.
(See ITT's Online Archives 12060826 and 11121224 for summaries of the first Webinar on June 7. See ITT's Online Archives 12062211 for summary of the June 21 Webinar).