NCBFAA Board of Directors Meeting Minutes
September 18, 2005, Washington, DC
Those in attendance included: President: Federico "Kiko" Zuniga; Vice President: Mary Jo Muoio; Chairman of the Board: Peter H. Powell, Sr.; Executive Vice President: barbara reilly; Area 1 Rep(s): Mark Johnson; Amy Magnus; Area 3 Rep: Kenneth Bargteil; Area 4 Rep(s): John Abisch, Jan Fields; Area 5 Rep(s): Scott Case, Joe Trulik; Area 7 Rep: Shane Garcia; Area 8 Rep(s): Arturo Dominquez; Neto Roser; Area 9 Rep(s): Roger Clarke; Karen West, Senior Counsels: Harold Brauner, Art Litman;Legislative Rep: Jon Kent;Transportation Counsel: Edward Greenberg.
Area Representatives not present: Secretary: John Hyatt; Treasurer: Jeff Coppersmith; Area 2 Rep(s): Cary Weinberg; Gary Klestadt; Area 3 Rep: Joe Meunier; Area 6 Rep(s): Bob Coleman, Jeanne Burns; Area 7 Rep: Billy App; Senior Counsels: William Casey, Michael Dugan, Leonard Shayne, William St. John, Paul Wegener; General Counsel: Harvey Isaacs.
Invited Guests: Marie Armelagos, Chip Bown, Maurine Cecil, Bruce Goodwin, Lee Hardeman, Stew Hauser, Jack Hubbard, Tom James, Scott Larson, Michelle Maslow, George Menendez, Dan Meylor, Robert Perkins, Barbara Pimentel, Myra Reynolds, Gary Ryan.
Welcome – NCBFAA President Federico Zuniga thanked everyone for attending the Board of Directors meeting and welcomed all to the 2005 Government Affairs conference during which they were encouraged to actively participate in the various activities over the next couple of days. He then asked for a motion to elect Ed Greenberg as General Counsel pro-temp, during Mr Isaac’s absence, which was seconded and passed.
Minutes – Area 1 Representative Mark Johnson moved to accept the minutes from June 25 meeting, Area 8 Representative Arturo Dominguez seconded it and the Board approved the minutes as drafted.
Treasurer’s Report – President Zunigareporting on behalf of Treasurer Jeffrey Coppersmith noted that the NCBFAA is in good financial shape and has a reserve cash fund of more than $600,000. The Annual Conference has been very successful, more than $100,000 over budget in each of the last two years. The grandfathering of CCS has also boosted the financial situation with over 900 customs brokers enrolled. Annual Conference Committee Chair Robert Perkins asked whether there would be any greater stratification of principal revenue sources relieving some of the pressure on the Annual Conference as a revenue source. President Zuniga suggested that perhaps one day, the CCS course would replace the Annual Conference as the major contributing revenue source.
Membership Committee – Membership Committee ChairmanBruce Godwin asked for Board approval on 11 new membership applications. Neto Roser moved to accept the applications, Karen West seconded. Discussion of vetting candidate members ensued the Board voted to accept the membership applications. Chairman Goodwin reported that 9,400 promotional letters were sent out last month and he looks forward to reviewing the response. All Board members were sent a list of receivables for unpaid dues members in their districts. They are being asked to follow-up on the 2005 receivables for those delinquent members, since over five follow up calls and invoices have been sent on each. These specific firms have given staff indications that they would like to remain members of NC BAA. Finally, NCBFAA Membership Coordinator Kelly Swearingen has been promoted to Membership and Marketing Director and is implementing a more specific membership plan, working closely with Chairman Bruce Goodwin.
FIATA Conference Report – Area 7 Representative Shane Garcia noted that FIATA had a good conference in Moscow, and still wants the NCBFAA to join. FIATA’s Marco Sangaletti met with Senior Counselor Mike Dugan about this and they engaged in a constructive dialogue regarding the long-standing dues issue. Both Mr. Sangaletti and previous FIATA president, Mr. Issa Baluch would like to attend our April conference.
AAEI – NCBFAA Vice President Mary Jo Muoio reported that it is in the process of redesigning its board and creating an industry advisory counsel. She believes NCBFAA will have a presence on both entities.
Communications Report& FABnet Report – NCBFAA Executive Vice President barbara reilly submitted a written report and pointed out that when the new "e-commerce" platform is processed, the conference registrants will be able to avail themselves of on line payment through Verisign™ for the Annual Conference. She pointed out that Export Pavilion had reduced its activity but solicited local affiliate association support in staffing the booths at the December and June shows. Mary Jo Muoio questioned the hits on our website. and. EVP reilly explained the growth pattern and asked that counsel and committee chairs post more press releases.
NEI Report – NCBFAA Educational Institute Chairs Marie Armelagos and Jan Fields reported that we are close to 1,000-grandfathered customs brokers in CCS. Content for the November CCS introductory course is under review by the Customs Committee reviewers. Administrative work in preparation for the delivery of course material and the awarding of credit is being done, and expected on time, although there is some concern regarding timely "deliverables" by CSCB. Discussion of work product review prior to posting as well as potential eligible course work for the continuing education requirement of the program ensued. Vice President Muoio cautioned against allowing affiliated associations or other sources to supplant NCBFAA as a principal source of points. Jan Fields said that after CCS is up and running there will be a CTS (Certified Transportation Specialist); ms reilly added that another "Business Management" module prepared by Harvard is also being considered.
Annual Conference Committee – Conference Committee Chairman Bob Perkins drew the Board’s attention to the annual conference venue and dates, April 23– 27, a significant departure from the past. The annual conference is gaining in importance as a source of educational opportunities and point accrual for the CCS continuing education requirements. He asked that the board members become more active in soliciting sponsors and exhibitors. Peter Powell is the Sponsorship Program Chairman, and noted that he has done an outstanding job, but could use much more support from the board. Chairman Perkins suggested each member commit to obtain a sponsor or exhibitor, or even work with our local associations to improve their contribution. Chairman Perkins reviewed the draft program. Lila Menendez has volunteered as the Spouse’s Program Chair. Bobby Garcia continues as the Golf Day Chairman and the pricing will be much more affordable this year. The exhibit hall provides greater space and flexibility for set-up, participation and presentation. Area 3 Representative Ken Bargteil reported that we would include two new presentation formats about which he is very excited. He also went over the Thursday program and its philosophy.
Customs Committee Report – Committee Chairman Ken Bargteil provided written report prior to this meeting entitled "BoD, September 18" which reviews activities of the Customs Committee between June 25 and finalization earlier in the week. Reviewed previous day’s meeting which covered customs bond centralization and other bond issues; determination by Customs to eliminate bond rider for payment of duties on PMS on fifteenth working day of the month; Carrier Best Practices; the lack of attention to informed compliance mission; customs broker penalties; C-TPAT Best Practices Paper; ACE development; elimination of clerical error restrictions for administrative refund; CCS review process. The CBP’s policy on CES establishment and tariffs was tabled. He concluded his discussion with the proposed agenda for the Wednesday meeting with CBP.
Affiliated Assn Conference – President Zuniga allowed time for NVOCC Chair Maurine Cecil to promote the October 20-23 WESCCON with has the Area 8 Representative, Arturo Dominquez participating in a roundtable on Thursday. He invited all to the upcoming Texas Brokers & Forwarders Conference. Members of NCBFAA Leadership are expected to attend both functions.
Washington Report – Legislative Representative Jon Kent reported that two legislative weeks ago the Congress was entirely focused on trade and DR-CAFTA, but Hurricane Katrina has completely usurped the legislative agenda. Our issues this year are not "barnburners," but, be that as it may, our participation in the process remains a useful exercise. There may be a bankruptcy bill relating to Katrina that might offer a vehicle for our bankruptcy reform issue; Jon Kent is inquiring in that regard. It is possible that another round of Supreme Court hearings that could draw out the preoccupation of Congress with issues not related to our specific agenda. The current session is likely to continue through November and possibly into December. Secretary Chertoff’s Second Stage review has stalled. Michael Jackson, Deputy Secretary DHS cancelled his scheduled appearance, featuring a speech for new initiatives at a maritime meeting in New York. Jon Kent believes there is still some interest in Congress for the reorganization of DHS. Senators Murray and Collins have an agenda for cargo security, which include aspects not favored by our community, but the issues are not ripe for discussion during our meetings this week on Capitol Hill.
Forwarding Committee Report – NCBFAA Chairman Peter Powell reported on behalf of Committee Chairman William App. The Forwarding Committee is recommending the approval by the board of directors of a bill of lading appropriate for NCBFAA members that has been developed and circulated. It would also be restricted to use by NCBFAA members. With approval, it could be made available onsite or through commercial printers with caveats to non-members. The document will be copyrighted as well. Motion to approve by John Abisch, seconded by Karen West. Ken Bargteil advised that he would abstain from the vote if not provided with an opportunity for prior review of the document. Peter Powell asked to table the matter postpone a vote until after lunch and pending distribution and review of the document.
The next issue discussed in the Committee meeting was carrier antitrust immunity and determined not to become engaged in such a way as it was not likely to have a definitive impact and would impair further progress of the Carrier Best Practices Subcommittee in their engagement with the carriers. He reviewed the scheduled GAC panels. He also discussed the shipper’s association and the FMC’s NSAs. Mr. Powell noted that the FMC has published two items for comment: (1) a Notice of Proposed Rulemaking (NPRM) dealing with NVOCCs entering into a contract with a single shipper and (2) a "notice of inquiry" seeking information relating to these issues. After review, the Committee saw no benefit to comment either for or against these matters. Finally, the Committee discussed a change in the Department of Defense Trade Controls policy, which prohibits a forwarder from filing a license application filing under ITAR; as this will not affect our members. the NCBFAA will not comment. The Annual Conference Forwarding Day agenda is under consideration. Novel approaches are being favored.
Following discussion after lunch, the NCBFAA bill of lading motion passed.
Security Committee – Chairman Powell reported for Committee Chair William Evans that the death knell of Transportation Security Administration was premature because Kip Hawley has reenergized and raised the "capital" of that agency. He also noted that it appears the decision that TSA’s responsibility for secure freight may impinge on the CBP’s initiatives and prerogatives. In addition, he noted that CBP’s is planning on issuing an NPRM in the first quarter of 1996 requiring that the CBP Form 3461 data elements be filed prior to loading. He concluded by noting that the TSA will have an increased role in the country’s security program and is more concerned with suicide bombers rather than weapons of mass destruction (WMDs).
Airfreight Subcommittee Report – Committee Chairman Scott Case reported that a TSA test with air carriers and IACs was scheduled to be discussed in Houston, but was postponed for budget reasons. TSA appears to be proceeding very carefully and perhaps prolonged the process in connection with an NPRM, published about one year ago, relating to IACs; this may be due to close scrutiny by congress and the current political environment.. (Jon Kent supplemented Scott Case’s remarks advising that TSA is concerned with creating a data pipeline for targeting and risk assessment. This parallels CBP’s programs and we have sought assurances that this will not become a second stovepipe requirement for the industry.) TSA will brief our attendees at this GAC on this screening system. TSA has "unplugged" from the CBP targeting program because most of its current focus is on domestic flights. TSA has little understanding of trade practices and our participation has been important in providing industry knowledge. Deloitte Touche is managing program development. The "known shipper" database will be expanded. Peter Powell asked if the database could be accessed by IACs and Scott Case reported that shipper status would only become known through processing the shipment, rather than access.
NVOCC Committee Report – Committee Chair Maurine Cecil touched on several issues including: responsibility for export of refused shipments under the new WPM guidelines, the NCBFAA bill of lading for use by NVOCCs, and the NSA outline form for use by NCBFAA members. She spoke briefly about the Los Angeles/Long Beach experiment with Pier Pass, which has proven to be more successful than anticipated. Transportation Counsel Ed Greenberg added that issues for the Carrier Best Practices Subcommittee and NVOCC would be featured during the FMC presentation at the Government Affairs Conference.
Nominating Committee – FABnet Committee ChairmanGeorge Menendez speaking from notes provided by Committee Chair John James indicated that the Committee is under-funded but on budget, overworked but on schedule, and that there is no smoke emanating from the chimney yet. He called on anyone interested in serving as amember to volunteer and that if anyone had questions to talk amongst themselves.
RAC Report – Area 9 Representative Roger Clarke speaking for Chairman Cary Weinberg reported that the Committee has been discussing the wood packaging materials issue. It was reported that Cary Weinberg has approached FDA regarding snow days as relate to Katrina, but FDA declined. That does not imply that there will not be consideration of Katrina in mitigation if penalties arise. Mary Jo Muoio moved, and seconded by Kiko Zuniga, that NCBFAA comment on a marketing order restricting the timeframe in which Chilean table grapes may be imported. Roger Clarke questioned whether it would be more appropriate to sign onto a position adopted by the importer association. The vote was called, and the motion carried.
Counsel Review Committee – President Zuniga reported that most of the work has been done on drafting the counsel review process. The requirements for transportation counsel will be redrafted to respond to some very good comments made by Ed Greenberg. The initial review will be for general counsel and a 3-person review committee will be appointed to begin in January and finish in April. Lee Hardeman referred to the draft reports provided in advance of the Board of Directors meeting.
PAC Committee – Chairman Shane Garcia acknowledged a learning curve for this issue and asked for support from the Board of Directors. Noted that copies of The One Minute Activist, recommended by our EVP, were available on a first come first served basis.
President’s Report – President Zuniga advised that he participated in several Mexican conferences. There will soon be a North American Customs Brokers Association meeting in Toronto to discuss several new World Customs Organization security initiatives. The Trade Support Network meets next week in Washington, DC. He noted that our strong presence on TSN and through the trade ambassadors has served us well. There will be a COAC meeting in Los Angeles, CA, the first week of October. Kiko Zuniga will assign coordination of member relief to Katrina victims through the APN.
Executive Vice President’s Report – EVP barbara reilly asked that if Board Members receive requests for input, comments or information, to please respond. She reported that the next Board of Directors meeting will be in Las Vegas at Caesar’s Palace. Stewart Hauser asked if non-Board members attended, would they be included in off-site events and she replied most assuredly. To get the special rates available at the J.W. Marriott through NCBFAA, contact Kim O’Beirne.
Vice President’s Report – Vice President Mary Jo Muoioreported in a recent court case litigated by customs counsel Grunfeld, Desiderio, Silverman, Lebowitz & Klestadt was able to limit an importer’s suit against a broker to $50 under our terms and conditions. (They were suing for $70,000.)
New Business – President Zunigasaid that General Counsel has reviewed the specific language drafted by UPS to amend 19 C.F.R. 111.24. Counsel recommending that NCBFAA support the concept but offer substitute language. Discussion followed during which President Zuniga said that our representatives on COAC need board guidance before the next COAC meeting. To facilitate that, President Zuniga offered a motion to acknowledge the issue, not endorse the UPS language, and refer the matter for resolution to the Customs Committee; Roger Clarke seconded the motion. The motion passed.
NY/NJ Foreign Freight Forwarders Association – President Stewart Hauser explained that as past Chairman of the NCBFAA Educational Institute he continues to receive literature for conferences and seminars in logistics management, but without inclusion of customs matters. Stewart Hauser asked whether this represents an opportunity for NCBFAA to become involved. President Zuniga suggested that this is a great segue to CCS and that NCBFAA can certainly benefit from this kind of exposure.
Meeting adjourned at 2 p.m.