A customs broker can be employed by a brokerage and a freight forwarding company simultaneously as long as the freight forwarder isn't involved in customs business, CBP said in a Feb. 7 ruling (here). The ruling came at the request of Jesse Weisman, CEO of JW Customs Brokers (JWCB) and JW Transport (JWT), a freight forwarding company. Weisman sought CBP's input on "whether a conflict arises from a customs broker’s simultaneous employment with a brokerage and freight forwarding entity, and whether a customs broker so employed may receive a salary from both entities," CBP said.
CBP should release the details on imported shipments found to include counterfeit products, the U.S. Chamber of Commerce Global Intellectual Property Center (GIPC) said in comments to the agency (here). The GIPC's and other comments (here) were submitted as part of CBP's proposed rule to create a donation program to help it with intellectual property rights enforcement (see 1701130021). The proposed rule is a result of the Trade Facilitation and Trade Enforcement Act, which said CBP must issue regulations allowing the agency to accept industry donations for IPR enforcement (see 1602230080). That law "also expands post-seizure information sharing with industry experts" and "CBP agents should proactively use these new tools to maximize advanced counterfeit detection with industry," the GIPC said.
Ability to Transfer Broker Clients Through Blanket POA Depends on Successorship Provisions, CBP Says
A customs brokerage that is ending operations can transfer clients to a new broker through a "single blanket power of attorney" only if the original POA includes specific successorship provisions, CBP said in a Jan. 23 ruling (here). The ruling was in response to a request from the National Customs Brokers & Forwarders Association of America, which inquired as to whether a blanket POA would suffice for the transfer. "NCBFAA states that customs brokerage entities concluding a corporate transaction such as a merger or sale must transfer clients from the entity ceasing to legally exist, to the new entity acting as its replacement," CBP said.
Congress seems unlikely to provide dedicated funding for new ACE development in upcoming appropriations legislation, according to industry officials. Still, CBP may be able to funnel operations and maintenance resources to ACE development, said one industry observer. While the end to funding for new programming isn't unexpected (see 1609140034), the shift is closer to becoming a reality as the Senate and House aim to pass final Department of Homeland Security appropriations legislation by late April, industry and congressional officials said recently.
International Trade Today is providing readers with some of the top stories for Feb. 27 - March 3 in case they were missed.
CBP has not shelved an update to customs broker regulations, an agency spokeswoman said. “CBP is not delaying work on amending the broker regulations," she said. The National Customs Brokers & Forwarders Association of America recently said in an email to members that the update to 19 CFR Part 111 is on hold indefinitely (see 1702270015). "We anticipate that the Notice of Proposed Rulemaking regarding other modernizations of the broker regulations will be placed into review this year," the spokeswoman said.
CBP’s long awaited rewrite of the Part 111 customs broker regulations is currently in the drafting process at the agency’s Office of Regulations and Rulings, said Jerry Malmo, director of the CBP Civil Enforcement Division, at the March 1 meeting of the Commercial Customs Operations Advisory Committee. Malmo’s division, which is the “policy office for the broker regulations,” has taken the 37 recommendations previously issued by the COAC (see 1604250011) and, “to the extent that we could or decided we were able to,” incorporated them into a policy statement it has given to the regulations office, he said. The regulations office then takes the policy direction “in formulating the regulations,” he said. The National Customs Brokers & Forwarders Association of America recently said the Part 111 rewrite is on hold “indefinitely” and the proposal won’t be seen until at least 2018 (see 1702270015).
CBP posted a list of frequently asked questions for customs brokers (here). The FAQs include sections on general information, the triennial status report, and trade names and corporations. Among the issues CBP addresses in the FAQs are how to obtain a customs brokerage license, what happens when a broker fails to submit a triennial report and the ability to transfer an individual's broker license to a corporation.
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).
Despite size characteristics of a tote bag, "hobo" bags with short straps can be classified as a handbag, CBP said in a Jan. 30 ruling (here). The ruling follows a further review of protest from Target Customs Brokers for Target General Merchandise regarding the classification of a women's hobo bag on three entries in 2013. CBP liquidated the entries as tote bags under subheading 4202.92.4500, which covers a travel, sports or similar bag. CBP often looks to the size of a bag to differentiate between tote bag and handbag classifications in subheading 4202.22 (see 1611020020).