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CBP Releases Proposed Rule on Customs Broker Verification of Importers

CBP on Aug. 13 released a pre-publication version of a new proposed rule setting new importer identity verification requirements for customs brokers. Set for publication the following day, the proposal would create minimum standards for what information brokers have to collect from their clients, as well as requirements to verify and maintain records on that information.

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Mandated by Section 116 of the Trade Facilitation and Trade Enforcement Act of 2015, the new standards are already met or exceeded by most customs brokers, CBP said. But by requiring all brokers to follow them, CBP hopes that the new rules will stem the practice of broker shopping.

The regulations would require that a broker follow the new standards at the time the power of attorney is obtained from any new client after the effective date of the final rule. For existing clients that are partnerships, brokers would have two years from the effective date to verify the client’s identity and update necessary information, and for all other clients, brokers would have three years, CBP said.