Role of the Broker~Progress and Response to COAC

Commercial Operations Advisory Committee

Subcommittee on Trade Facilitation

December 7, 2011

The Role of the Broker-Broker Regulatory Revision Workgroup was established January 2011 by CBP in partnership with the National Customs Brokers and Forwarders Association of America (NCBFAA) to work collaboratively to develop solutions to meet the challenges of 21st Century commerce as it relates to their vital role.

The Workgroup is proposing concepts that will: Expand the role of the broker to meet the challenges of 21st Century global

trade Leverage broker relationships to extend the opportunity for small and

medium enterprises to be recognized as trusted partners Ensure licensed brokers exercise due diligence in conducting customs

business Increase the value of a customs broker license Increase efficiencies for both the trade and CBP

Role of the Broker~Regulatory Revision

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The Workgroup has met for several sessions to the explore solutions within the following Expanded broker role Regulatory modernization Broker responsibilities Professionalism Penalty regime/disciplinary actions

Core Topics

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4. Modernization Revamp status reporting – replace

with biannual reporting via ACE Portal

Provide for reporting of continuing education reporting via ACE Portal

Allow at-will upload of employee data into ACE

Allow alternative permit qualification Web-based exam application

process

5. Penalty Regime Propose statute language to allow

for immediate suspension of license (threats to national security), pending review of case, with due process

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Highlights of Core Topics1. Expanded Role “Pre-certification” of C-TPAT

applicants” Pre-application support for ISA

applicants

2. Broker Responsibilities Establish requirement for

importers to present bona fides Require broker to obtain evidence Broker must receive POA directly

from importer or another broker Customs business is to be

conducted within the U.S. Customs Territory

3. Professionalism Continuing education requirement

to maintain active license

Finalize proposal to present to Commissioner Bersin in October 2011 Prepare regulatory package and propose language for 19 U.S.C. § 1641

statutory changes Launch the expanded broker role—C-TPAT and ISA during 1st quarter

FY 2012 Consideration of and response to recommendations from the Role of the

Broker Sub-Committee (dated 10/4)

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Next Steps from 10/4/2011 meeting

Finalize proposal to present to Commissioner Bersin in October 2011 Reviewing 19 CFR Parts 111 and 141 (Entry of Merchandise) to prepare a

regulatory package Exploring options for proposing language for 19 U.S.C. § 1641 statutory

changes Launch the expanded broker role for the Importer Self Assessment

program

Responses to key COAC recommendations

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Progress Report

Workgroup kick-off meeting on November 15 & 16 Led by Partnership Programs Branch (OT), with support from the Broker

Compliance Branch, Account Management, Regulatory Audit, Regulations and Rulings, Office of Field Operations, and Office of Trade Relations

Trade represented by brokers, importers, and consultants Explored and began defining what it would mean to be an “accredited broker”

who would serve to “pre-certify” importers for the ISA program Began development of a Broker/CBP MOU Key issues we are continuing to explore

Role of the broker after client become ISA Third-party participation, use of consultants with knowledge of the import

process Increased benefits that could be extended to ISA members CBP must have robust training program for brokers to become accredited

CBP will draft an outline for the Development and Implementation Plan for comment and consideration at the next workgroup meeting (January 2012)

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Brokers and ISA

Workgroup participation should be expanded (importers, law firms, consultants) Agree—ISA Pre-Cert working group is comprised of more than just brokers

Broker role as force multiplier Agree—ISA Pre-Cert is first cut at this concept Does COAC have other specific ideas?

Know who is licensed in a real-time environment Agree—ACE functionality is one of CBP’s highest priorities Pursue statutory amendment for triennial (to biannual) reporting Employee lists in ACE—reg changes to clarify

Customs business must be conducted within territory of US Agree—reg changes to clarify

Continuing education requirement for brokers Agree—reg changes to establish

Vetting of powers of attorney Agree—reg changes to establish bona fides

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COAC Recommendations (10/4/11)

Contact Information:Elena RyanActing Director, Trade Facilitation & AdministrationOffice of International TradeElena.D.Ryan@dhs.gov