This document summarizes a webinar hosted by U.S. Customs and Border Protection (CBP) discussing regulatory alternatives for modifying customs broker regulations. It outlines CBP's vision for brokers in the 21st century and the need to conduct regulatory and economic analysis for any changes to regulations. It presents preliminary alternatives for modifying regulations around broker bona fides, permitting, and continuing education requirements. Attendees are encouraged to provide input to assist CBP's economic analysis and help shape the regulatory alternatives. The webinar schedule and contact information for questions is also provided.
Robust collateral management: What is it? Why is it important? How to get there!
Role Of The Broker Aug 9
1. Summer 2012 Webinar Series
The Role of the Broker:
Regulatory alternatives and
economic analysis
Part of CBP’s
Initiatives for 21st Century Trade
August 9, 2012 1
2. Housekeeping
• Make sure the volume is turned up on your computer
and that the “mute” button is not engaged
• PLEASE USE YOUR COMPUTER SPEAKERS IF POSSIBLE.
We have only 125 phone lines.
• Ask questions and add comments using the “Chat”
feature
• View in “Full Screen” if you’d like to hide the CC
• Producer has responsibility for the content of this
webinar
• Contact us offline at RoleoftheBroker@cbp.dhs.gov
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3. Your hosts today
• Elena Ryan, Acting Director for Trade Facilitation and
Administration, Office of International Trade
• Seth Renkema, Chief Economist, Office of International
Trade
• Andrew Rollo, Economist, Office of International Trade
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4. What is your vision for the 21st
Century customs broker?
How do we get there?
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5. Customs Regulation Modification
• Expanding certain roles of the broker will require the
creation or modification of customs regulations
contained in 19 Code of Federal Regulations (C.F.R) Part
111.
• Federal law requires regulatory analysis for rulemaking
that rescinds or modifies existing rules, or establishes
new requirements.
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6. Executive Order (E.O.) 12866
• Purpose
– Minimize duplication and conflict in federal
regulation
– Ensure that agencies promulgate only regulations
that are required by law, are necessary to interpret
the law, or are made necessary by a compelling
need (such as market failures)
– Include Office of Management and Budget (OMB) in
rulemaking
• Applies to all regulatory actions
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7. Executive Orders 12866 & 13563
• E.O. 13563 supplements and reaffirms E.O. 12866
• Emphasize integrated, innovative, flexible, and
scientific approaches to regulatory development
• Requirements
– Cost-benefit assessment of rule and alternatives,
including retrospective analysis of existing rules
– Notice of rulemaking
– Public and agency engagement
• Advance coordination with potentially affected
parties
• Disclosure of regulatory compliance information
• Public comment period
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8. Regulatory Flexibility Act (RFA)
(5 U.S.C. 601-612)
• Purpose
– To mandate that agencies consider regulatory
alternatives that minimize the impact on small
entities (small businesses, not-for-profit
organizations, and small governmental jurisdictions)
– To advise the public of rules that will have a
“significant economic impact on a substantial
number of small entities” or certify no substantial
impact
• Applies to:
– Any rule subject to notice and comment rulemaking
under the Administrative Procedure Act. 8
9. Economic Analysis
• According to OMB, a good economic analysis should
include the following three basic elements:
1. A statement of the need for the proposed action
2. An examination of alternative approaches
3. An evaluation of the benefits and costs—
quantitative and qualitative—of the proposed action
and the main alternatives identified by the analysis
• CBP encourages input from the trade community to
assist us in our economic analysis
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10. Regulatory Alternatives
• Critical areas of broker regulations overhaul:
1. Bona fides
2. Broker permitting system
3. Continuing education requirements
• We have several preliminary alternatives for bona fides,
broker permitting, and continuing education
requirements.
– These are not firm alternatives; they will likely change
– The goal of sharing these alternatives is to initiate
conversation
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11. Bona Fides Alternatives
1. Require checklist to verify an importer’s power of
attorney (POA). (This is provided in guidance right now).
2. Implement checklists in regulations and disallow POAs
from freight forwarders.
3. Require face-to-face, telephone, or email importer
verification, and disallow POAs from freight forwarders.
4. No regulatory Change
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12. Broker Permitting Alternatives
1. Expand remote location filing (RLF) beyond 01, 03, 06
(excl. drawbacks), 11, 23, etc. entries
2. No place of business required in district, but brokers
need to maintain reasonable supervision and control
over customs transactions through a plan submitted to
CBP
3. Modify/remove geographic permitting areas to the
extent the law allows
4. Expand definition of national permits beyond RLF
5. No regulatory action
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13. Continuing Education Alternatives
1. Require CBP-accredited continuing education
training/courses
2. Adopt the National Customs Brokers and Forwarders
Association of America’s (NCBFAA’s) Certified Customs
Specialists model as standard continuing education
requirement
3. Accept NCBFAA CCS model plus accredit other
continuing education training/courses
4. No regulatory action
• These continuing education alternatives could differ 13
according to “types” of brokers
14. Webinar schedule
Start time is 3pm EDT and will generally be about 90 minutes
http://connect.hsin.gov/rotb/
You do not need to sign up; please join us at the scheduled time
August 23 Continuing education (Part 1)
September 6 Continuing education (Part 2)
September 20 Broker penalties
October 4 Wrap-up and summary of major topics
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15. Questions and Comments
• Send us your questions or comments
• You can email us at
RoleoftheBroker@cbp.dhs.gov
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16. Websites and communication tools
Questions? Comments? Concerns?
Email us at RoleoftheBroker@cbp.dhs.gov
Our trade transformation website:
www.cbp.gov/xp/cgov/trade/trade_transformation/
On this site we’ll have…
– the webinar schedule
– previous webinars posted
– advance questions for the upcoming session
– other information you’d like to have?
Sign up for Trade Updates!
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