Customs Broker Regulatory Update on Hold 'Indefinitely,' NCBFAA Says
CBP officials recently told the Customs Committee of the National Customs Brokers & Forwarders Association of America that the long-discussed update to regulations governing customs brokers likely will not take place this year, the NCBFAA said in an email to members. CBP informed the committee that "our ongoing effort to modernize the regulations governing customs brokers has been put on hold indefinitely by CBP," according to the NCBFAA. Some previously expected a regulatory proposal to come in 2016 (see 1610190018).
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The delay follows a years-long discussion over updates to the 19 CFR Part 111, which recently saw some fresh momentum through a renewed effort by the Commercial Customs Operations Advisory Committee (COAC) (see 1604250011). "While CBP had stated that revised regulations, perhaps in a series of separate [Notices of Proposed Rulemakings], would be published in the second half of 2016, we have now been advised that publication in 2018 is optimistic," the NCBFAA said. "In the interim, we are challenged to run modern businesses against an outdated framework and the Customs Committee will continue to advance the issue of regulatory reform with CBP." CBP didn't comment.
The reasoning behind the delay isn't clear, but the COAC requested some clarity on CBP's plans within a Trade Modernization Subcommittee report (here) ahead of a March 1 meeting. "We suggest that CBP confirm that it may issue its proposed regulatory changes relating to customs brokers on the basis that they would not be deemed of 'significant' interest under the Administration’s regulatory standard," it said. A recent Trump administration executive order requires the repeal of two regulations for every "significant" new rulemaking (see 1702070048).