CBP Ends Broker Self Assessment Pilot, Will Pursue Other Efforts with NCBFAA
U.S. Customs and Border Protection has announced the completion of the Broker Self-Assessment Outreach Pilot (BSA Pilot), a voluntary partnership with the customs brokerage community, which began in July 2009. CBP has decided to end the BSA pilot without a plan to proceed with another self-assessment type model; however, CBP and NCBFAA will pursue other avenues to collaborate on trade modernization efforts.
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Pilot Was Collaboration with NCBFAA Modeled After ISA
The BSA pilot was a collaborative effort between CBP and the National Customs Brokers and Forwarders Association of America (NCBFAA). CBP and NCBFAA modeled the pilot after the existing ISA program, which is based on the premise that importers with internal controls in place achieve the highest level of compliance with CBP laws and regulations. It sought to facilitate a higher level of broker compliance with CBP laws and regulations, specifically those in 19 CFR Part 111 (on customs brokers), so that the agency could focus on higher-risk trade enforcement issues. A total of 27 brokers applied and four were selected to participate.
Participants Controlled Customs Transactions, but Lacked Internal Procedures
CBP’s assessment of the pilot results showed that the participants successfully demonstrated their supervision and control over customs transactions and documented their internal controls over their customs operations. However, the procedures for the internal controls, such as supervision and control over customs transactions and customs operations, were not always written, and in some cases, the procedures were modified or improved, but not yet implemented. The pilot also disclosed that the broker’s assessment of risk factors differed from the risk factors CBP identified as potentially significant risks.
Import Transaction Compliance did not Correlate with Broker’s Compliance
In addition, it was discovered in the BSA Pilot that the import transactions compliance measurement rate (compliance with classification, valuation, free trade agreements, anti-dumping and countervailing duties, etc.) did not necessarily correlate with demonstrated compliance on the part of the broker with 19 CFR Part 111.
Broker Community too Diverse to Develop Standard Compliance Template
The NCBFAA observed that the BSA pilot demonstrated that business profiles and process management within the brokerage community is highly diverse. As such, it would be difficult to provide for a standard template that CBP could use to establish uniform methodology for compliance verification. NCBFAA recommended that CBP not pursue the BSA pilot as it is currently designed.
CBP Will Pursue Other Modernization Efforts with NCBFAA
Since CBP has decided to end the BSA pilot without a plan to proceed with another ISA-type model, CBP and NCBFAA will pursue other avenues to collaborate pertaining to trade modernization efforts.
(CBP announced in March 2011 that it was recommending ending the program. See ITT’s Online Archives 11032117 for summary.
See ITT's Online Archives 09073010 for summary announcing that CBP selected the four pilot participants.
See ITT's Online Archives 09050110 for summary of CBP listing BSA pilot program benefits, etc.)
CBP contact - Florence Constant (202) 863-6537
(FR Pub 12/02/11)