Background on Customs Broker Modernization Regulations Changes
The Customs broker regulations in part 111 of title 19 of the Code of Federal Regulations (19 CFR 111) have been subject to review by the broker community, CBP, and the Commercial Customs Operations Advisory Council (COAC) for several years. During this time, CBP solicited feedback from the trade community through webinars, port meetings and trade association meetings, aiming to promote transparency and collaboration while modernizing regulations to reflect the role of the broker in today’s business environment.
In the April 2016 COAC public meeting, the COAC Broker Regulations Working Group (BRWG) made 37 recommendations to modernize 19 CFR 111. The COAC BRWG included participants from the trade community and CBP representatives. BRWG Recommendations focused on the following areas: the evolving role of the broker; confidentiality, cybersecurity and record retention; responsible supervision and control and employee reporting; and licensing and permits. Included in those recommendations were a proposed single, national permit for brokers, as well as electronic process changes.
The two Notices of Proposed Rulemaking (NPRMs), published June 5, 2020, reflected many of these recommendations and proposed changes to align the broker regulations with contemporary business practices in the electronic environment. Considering the proposed changes and public comments received in response to the NPRMs, CBP published two Final Rules on October 18, 2022, Modernization of the Customs Broker Regulations (87 FR 63267) and Elimination of Customs Broker District Permit Fee (87 FR 63262). These rules modernize the customs broker regulations and provide resource optimization for both industry and CBP and will update compliance requirements to protect revenue and strengthen CBP’s knowledge of importers.
Key changes in the Final Rules include:
Creating a new term and definition for "Processing Center"
Transitioning to a national permit framework
Increasing license application fees and expanding forms of payment
Codifying that U.S. customs business is conducted within the U.S. customs territory
Revising regulations regarding the broker/client relationship
Updating the responsible supervision and control oversight framework
Strengthening cyber security and records requirements
Modernizing broker reporting and the electronic data interface (ACE) capabilities through the broker account portal
Changing broker exam and licensing processes Read More→
https://www.cbp.gov/trade/programs-administration/customs-brokers/modernization
