CBP Details its "Role of the Broker" Work with NCBFAA
In a January 26, 2012 posting, U.S. Customs and Border Protection states it is currently spearheading two projects to modernize the role of the broker: (1) Broker Pre-Certification and (2) Broker Regulation Redesign. The key concepts of this initiative are to leverage broker relationships to extend the opportunity for small and medium enterprises (SMEs) to be recognized as trusted partners, while also allowing for established “best practices” within the industry.
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(The Role of the Broker-Regulatory Revision Workgroup was established in 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.)
CBP provides the following brief descriptions of its two Role of the Broker projects:
Broker Pre-Certification for ISA Applicants - Review and Report Function
Brokers who apply and are accepted into the Importer Self Assessment Pre-Certification Program (ISA-PC) will perform the comprehensive review of the ISA applicant’s package and evaluate the applicant’s readiness to self-govern and participate in the ISA program.
The accredited broker will draft a final report on the applicant’s ISA readiness and submit it the Partnership Programs Branch for processing and validation. If there are no anomalies, the report will be scheduled for ISA Review Board approval/certification.
Broker Reg Redesign for ISA, Admin Costs, Due Diligence, Continuing Ed
Current broker regulations have not kept up with advancements in technology and the facilitation goals of the agency. CBP is attempting to address this through amendments to the regulations that will:
- Clarify brokers’ responsibilities related to importer validation, and provide greater visibility of importers.
- Modernize the regulations to align with current electronic capabilities and business practices. These modernizations could result in decreased administrative costs for both CBP and customs brokers.
- Reinforce the broker’s responsibility to exercise due diligence in conducting business and to “professionalize” the customs broker by introducing a continuing education requirement.
(See ITT's Online Archives 12011817 for summary of CBP's "BEST" goals to improve cargo security and trade competitiveness within the supply chain in the 21st century. Among these goals is an expanded role of the broker to help ensure trade compliance and pre-certification of trusted partners in all modes of transportation.
See ITT's Online Archives 11121224 for summary of the December 7, 2011 COAC meeting where CBP officials stated that the Workgroup for ISA pre-certification would begin defining what it would mean to be an "accredited broker" who would pre-certify importers for the ISA program. Officials had stated that CBP planned to draft an outline of a development and implementation plan for such pre-certification for consideration and comment by the Workgroup's meeting in January 2012.
See ITT's Online Archives 11100364 and 11101414 for summaries of the Workgroup's final recommendations on the Role of the Broker project at an October 4, 2011 COAC meeting. The recommendations included that the expanded role of the broker allow pre-certification of C-TPAT applicants and ISA applicants, have a continuing education requirement, and modernize reporting to CBP, among others things.)