Attachment 2(a)
Customs Broker Permits
Purpose
The purpose of this webinar is to create discussion within the customs brokerage community on the subject of customs broker permits and the current district permit scheme as well as the national permit scheme. With the impending completion of ACE and full expansion of RLF there are potentially significant changes that can and will take place in relation to permits and possibly to the need for individual licenses that back those permits.
There are those in our industry who feel that the current system needs to change because it does not fit current modern business practices and there are also those who feel the current system should remain the same. Likewise there are those who feel nothing should be done, just let the market place and eventual full blown ACE/RLF dictate what happens.
Regardless of how one feels, the fact is that we the licensed customs brokers need to be the party who determines the direction of our own futures.
While there is no immediate threat of something happening within the next 6 months or maybe not even the next 12 months, there is urgency from the aspect that we as an industry need to get out in front of this issue and be the ones guiding this discussion and eventually engaging and directing CBP in the discussion. If we do not take control of the agenda quickly others, who do not know our business as we do, will take control for us and we will be forced to live with whatever they come up with.
Meeting
To this end a group of association leaders came together for a full day meeting on March 5th to discuss customs broker permits. There was representation from every area of the association and every size of customs brokerage firm.
Concerns
The areas of concern were the possible fate of the individually licensed broker under the national permit (where only 1 license is required to support a national permit) and the effect that might have overall on compliance and the professionalism of the industry. Of course under the current district permit scheme we are required to have an individual license backing each district permit within which we operate.
Other concerns were around the concept of “supervision and control” and our responsibilities as licensed brokers to insure the supervision and control for customs business conducted under our licenses. How under a national permit scheme can we insure compliance with supervision and control?
Possible Schemes
Ratio System –
Where there is a licensed broker required for X number of persons in a firm who are conducting “customs business”
Geographical-
A permit and license for that permit would be required for each of the old (7) customs regions or possibly some other geographical arrangement, in which a firm operates.
Variation of Old –
Variation of the old system that existed prior to the current permit scheme of requiring 2 licensed corporate officers to back a corporate license.
Office by Office-
Requiring an individual license for each office that a firm operates.
As one can see each of these ideas has both merits and detractions. It is certainly not to say that these are the only schemes that may be out there.
The purpose of this webinar has not been to convince anyone that anyone of these ideas is right or wrong, but rather to hopefully encourage discourse and look at and discuss these ideas as well as any others that come up.
We will have a unique opportunity for those attending our annual conference this year, especially during the town hall session on Monday morning, to discuss this major issue of permitting. I do not expect that we will find a final solution yet as this needs quite a bit discussion. I would ask, particularly all of you who are attending the conference, to give this some serious thought over the next few days so that we can have thoughtful discussion at the conference. For those who will not be able to attend the conference please be sure to voice your thoughts to your board of director representative, customs committee representative or any of the officers. We will likewise setup a NCBFAA mailbox that you can send in your thoughts.
The time has come for us the customs brokerage community to take possession of this discussion and to move it forward.