CBP released on Oct. 18 its new handbook on customs broker rules and procedures. The “Customs Broker Guidance for the Trade Community is a “resource for brokers conducting customs business in compliance with CBP regulations,” including information on long-standing requirements for customs brokers as well as new requirements under the Part 111 final rule issued by CBP on Oct. 18 (see 2210170071).
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.
CBP released a fact sheet Oct. 18 on its Oct. 18 final rule amending the Part 111 customs broker regulations (see 2210170071), which was published in the Federal Register the same day. The fact sheet includes a table that details the changes, including a new definition of “processing center,” the elimination of district permits, the codification of the requirement that customs business be conducted within U.S. customs territory, broker electronic reporting, broker fee changes, broker exam and license changes, cyber security and records requirements, responsible supervision and control requirements, a prohibition on the provision of false information, and the new requirement for the broker/client relationship. CBP had said it would post a series of guidance documents on the day the final rule was published (see 2210070057), though as of press time only the fact sheet had been released.
CBP on Oct. 17 released its long-awaited final rule amending Part 111 to modernize the customs broker regulations. As expected, the final rule eliminates broker district permits, modifies CBP’s responsible supervision and control framework for brokers, and increases fees for the broker license application to better cover CBP’s costs. CBP also released a concurrent final rule eliminating all references in its regulations to the customs broker district permit fee.
CBP is finalizing its new, more flexible regulatory approach to enforcing customs broker responsible supervision and control, applying the standard with an eye to the broker’s size and circumstances and assessing a new list of criteria on a case-by-case basis.
The Part 111 broker regulations in the works for five years are about to be released (see 2209140051) and National Customs Brokers & Forwarders Association of America Customs Committee Chair Mary Jo Muoio that said there are aspects of the rules that the group welcomes, and others that it dreads.
CBP issued the following releases on commercial trade and related matters:
CBP plans to revoke hundreds of customs brokers' licenses by operation of law, without prejudice, for failure to file the 2021 triennial status report and applicable fee, it said in a notice. CBP’s list includes the broker name (individual or company), license number and port name associated with the licenses being revoked.
The following lawsuits were filed at the Court of International Trade during the week of July 11-17:
Some of the Federal Maritime Commission’s proposed changes to its rules for Carrier Automated Tariffs (see 2205090006) are unnecessary and could place too heavy a burden on industry, two trade groups and a logistics company said in comments this month. The commenters were especially critical of a proposed change that would add more requirements to container documentation, and said they wouldn't support a proposal that would allow a non-vessel operating common carrier (NVOCC) to cross-reference the terms in a vessel-operating common carrier’s (VOCC) tariffs.
The Court of International in a July 7 opinion upheld CBP's decision to deny Shuzhen Zhong a customs broker's license. Zhong, appearing pro se and seeking to get to a passing grade of 75% or higher on a customs broker license exam, appealed the answers to two questions. Judge Jane Restani ruled that CBP's decision to deny credit for both questions was backed by substantial evidence.