Balanced Trade Operations

CBP has emphasized the proactive and strict enforcement of U.S. trade laws to protect national economic security, facilitate fair trade, support the health and safety of the American people, and ensure a level playing field for U.S. industry.

Automated Commercial Environment (ACE)

TFTEA extends funding for ACE, the system by which the U.S. has implemented the Single Window.  ACE connects CBP, the international trade community, and more than 47 Partner Government Agencies (PGAs).  ACE facilitates legitimate trade while strengthening border security by providing government officials with better automated tools and information.

Antidumping and Countervailing Duties (AD/CVD)

TFTEA established a new administrative procedure for investigating allegations of evasion of AD/CVD orders (i.e., including ability to draw adverse inferences for failing to provide information). CBP enforces AD/CVD orders as part of the agency’s efforts to ensure a level playing field for U.S. industry.

Enforce and Protect Act of 2015 (EAPA)

Title IV, Section 421 of TFTEA is commonly known as the Enforce and Protect Act of 2015 (EAPA). EAPA establishes formal procedures for submitting, and investigating antidumping or countervailing allegations of evasion against U.S. importers.

Centers of Excellence and Expertise (Centers)

CBP created 10 industry-specific Centers to increase uniformity at the ports, facilitate the timely resolution of trade compliance issues nationwide, and further strengthen the agency’s knowledge about industry practices.

De Minimis Value Exemption

As a result of TFTEA provisions, CBP raised the De Minimis value, i.e., value of a shipment of merchandise imported by one person in one day that generally may be imported free of duties and taxes, from $200 to $800 per shipment.

Forced Labor

As a result of TFTEA provisions, CBP raised the De Minimis value, i.e., value of a shipment of merchandise imported by one person in one day that generally may be imported free of duties and taxes, from $200 to $800 per shipment.

Intellectual Property Rights (IPR)

CBP has provided new tools to better enforce IPR, enhance collaboration with IPR holders, and strengthen international partnerships to stop counterfeiting at the source.

Drawback

TFTEA included a sweeping “game-changer,” for the CBP drawback program, providing numerous and significant enhancements to the drawback laws under 19 U.S.C. § 1313, long-sought over the past decade by both CBP and the trade.

Continuing Education for Licensed Customs Brokers

Licensed Customs brokers play a critical role in protecting the revenue and facilitating the movement of compliant cargo. U.S. Customs and Border Protection published the Broker Continuing Education Notice of Proposed Rulemaking (NPRM) 86 FR 50794 in the Federal Register on Friday, September 10, 2021. In this NPRM, CBP proposes a mandatory continuing education requirement for individual licensed brokers.  This proposal is a key step forward to providing a program that can serve both government and industry, with an intended goal of raising the credibility and value of the broker’s license and profession.

Please see the posting for 86 FR 50794 here.

Modernization of the Customs Broker Regulations

U.S. Customs and Border Protection announces the publication of the Notice of Proposed Rulemaking (NPRM) for the long-awaited update to 19 CFR 111.  The NPRM for modernization of the Customs broker regulations (85 FR 34836) and elimination of Customs broker district permit fee (85 FR 34549) published June 5, 2020.  The comment period ended August 4, 2020.

It is suspected this will address many of the Commercial Customs Operations Advisory Committee’s (COAC) recommendations.

Some of the NPRM changes are listed below:

• Eliminate the “district permit” to move to a national only permit to better reflect the transition to a single permit framework that operates at the national level within the customs territory of the United States – “national permit.”
• Require brokers to have a single national permit that allows them to have sufficient authority to conduct customs business at the national level within the customs territory of the United States.  This will also eliminate the need for brokers to request permit waivers.
• Prepare a transition plan to a single national permit.
• Require brokers to provide satisfactory evidence of how the entity intends to exercise Responsible Supervision and Control.
• Make enhancement to ACE for broker reporting and Streamline Broker reporting.
• Update the factors related to Responsible Supervision and Control related to the transition of managing under the national permit that would replace the district permit.
• Require that the Power of Attorney come directly from the Importer to the Broker.
• Remove specific dollar fee amounts and reference a single source location for fees allowing greater flexibility.
• Expand Broker payment options to include electronic payment of fees.
• Require that customs business may be conducted only within the customs territory of the United States.
• Provide for the storage of electronic customs records within the customs territory of the United States.
• Require brokers to provide notification to CBP of any known breach of electronic or physical records relating to the broker’s customs business.

FEE UPDATED CALENDAR YEAR 2020

Effective October 1, 2020, the COBRA Fee for permits (USER FEE) is $150.33 (was $147.89).
Effective January 1, 2019, the broker application finger printing fee is $11.25 (was $10.00)

Validating the Power of Attorney and Electronic Signatures

Validating the Power of Attorney

Because the Power of Attorney (POA) can authorize the movement of conveyances and merchandise into the United States, it is critical that it be examined carefully.  By ensuring that each POA is valid, the broker joins U.S. Custom and Border Protection on the national security frontlines in verifying the data used to screen what enters this country.

In addition to security, the broker’s own professional business interest and continuing obligation to demonstrate “reasonable care” require verification of the POA grantor’s identity and legal authority (position in a company or partnership) to enter into a POA.

Within Commercial Customs Operations Advisory Committee’s (COAC) recommendation 010045, it is suggested that to verify the authenticity of information provided by the importer to the broker, the broker could review publicly available open source information regarding the importer’s business and as appropriate.

Here are some ways the broker can validate a Power of Attorney:

• To the greatest extent possible, have POA’s completed in person so the grantor’s unexpired government issued photo identification (driver’s license, passport, etc.) can be reviewed.
• Check applicable web sites to verify the POA grantor’s business and registration with the State authority.
• If the principal uses a trade or fictitious name in doing business, confirm that the name appears on the POA.
• Verify that the importer’s name, importer’s number and Employer Identification Number (also known as the Federal Tax Identification Number) on the POA match what is in ACE.
• Verify the importer’s address is a “brick and mortar” location on a public mapping program, and not simply a “postal box” or undeveloped parcel of land.
• Dial the provided phone landline number for authentication.
• Cross-check the provided information through a third party entity, ie: credit report, DUN’s number, or similar business identifying entity.
• Access the client’s website for depth of content versus only a surface containing a landing page.
• Check whether the POA grantor is named as a sanctioned or restricted person or entity by the U.S. Government.  See the Bureau of Industry and Security’s Export Enforcement (https://www.bis.doc.gov/index.php/oee).

Broker Management Officer (BMO) Contact Information