CBP Lists Regulatory Alternatives in Part 111 Rewrite Webinar, Says RLF 03 Filing by Oct.

A set of regulatory alternatives are required by the Office of Management and Budget within an economic analysis of regulatory changes. CBP said no "firm alternatives" have been decided and they will likely change. Email document@brokerpower.com for a copy of CBP's power point presentation used in the Webinar.

Regulatory alternatives being considered are:

Bona Fides

• Require checklist to verify an importer’s power of attorney (POA). (This is provided in guidance right now).
• Implement checklists in regulations and disallow POAs from freight forwarders.
• Require face-to-face, telephone, or email importer verification, and disallow POAs from freight forwarders.
• No regulatory change

Among questions being considered by CBP is how bona fides requirements might apply to foreign importers. For instance, if CBP were to require a review of articles of incorporation as a bona fide, they may differ greatly between U.S. and foreign importers, including by language.

(See ITT's Online Archives 12062211 for summary of the CBP's Webinar on establishing broker bona fides and ending 3rd-Party POA transfer.)

Broker Permitting

• Expand remote location filing (RLF) beyond 01, 03, 06 (excluding drawbacks), 11, 23, etc. entries
• No place of business required in district, but brokers need to maintain reasonable supervision and control over customs transactions through a plan submitted to CBP
• Modify/remove geographic permitting areas to the extent the law allows
• Expand definition of national permits beyond RLF
• No regulatory action

The idea of not requiring district permitting for brokers has so far not been a popular one, said Elena Ryan, acting director for trade facilitation and administration at the CBP Office of International Trade, during the webinar. Ryan also said CBP will begin to allow RLF filing of Antidumping (AD)/Countervailing (CVD) consumption entry summaries (Entry type 03) in ACE in mid-October.

(See ITT's Online Archives 12062905 for summary of CBP's Webinar on broker permitting and a pilot waiving district licensing requirement for brokers. See 12071920 for summary of CBP's planned expansion of RLF filing for the fall.)

Continuing Education

• Require CBP-accredited continuing education training/courses
• Adopt the National Customs Brokers and Forwarders Association of America’s (NCBFAA’s) Certified Customs Specialists model as standard continuing education requirement
• Accept NCBFAA CCS model plus accredit other continuing education training/courses
• No regulatory action

CBP notes the continuing education alternatives could differ according to “types” of brokers. CBP hasn't yet held a webinar on continuing education, though the next two, Aug. 23 and Sept. 6, will be on that topic. Unlike most industry continuing education requirements, which are administered at the state level, such a requirement would need to be at a national level because CBP oversees broker licensing, said Ryan. That difference may make the requirement more akin to pilot flight time regulations, which are administered by the Federal Aviation Administration nationally.

CBP is also looking at the idea of allowing licensees that don't regularly use their license to put it in suspension, as lawyers can. This would allow licensed brokers who aren't actively filing to pay less to remain licensed and won’t have to meet continuing education requirements while the license is in suspension, she said.