Continuing The Proposal For Customs Broker Continuing Education – International Law

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Continuing The Proposal For Customs Broker Continuing Education – International Law

On October 28, 2020, the U.S. Customs and Border Protection (CBP) released an advance notice on the proposed training regime for individually licensed customs brokers. After CBP received comments and feedback from retailers, CBP published a Notice of Proposed Rulemaking (NPRM) on this proposal on September 10, 2021.

Many of the proposals in the NPRM of September 10 are the same or similar to last October; however, a major change has been made to the number of hours of training required by customs agents. The hours were reduced from 40 to 36 hours over the three-year period.

According to CBP, “It could be a burden on the customs brokerage community (especially individual brokers who operate as small businesses or who work for small businesses) in excess of 36 hours per three year period, and a lower requirement would not be enough to ensure that individual brokers Stay informed of changes in customs and related laws “

The rest of the proposed provisions may be the same as they were on October 10, but the difference is that CBP has made few small changes after receiving public contributions. Customs brokers can expect the NPRM to be closer to reality.

Training reports and certification

With a few small exceptions, further training would be required by all individually licensed brokers. These are brokers who have voluntarily suspended their licenses and individual brokers who have not held their license for an entire 3 year period at the time the triennial report is due. If an individual restores their suspended license, the education requirement will count towards the remainder of the three-year period.

There is no training requirement for corporations or partnerships approved as customs brokers.

In its proposal, CBP requires customs brokers to report and certify that they have complied with the training requirement when they submit their triennial report. The report can be made online or in writing. A detailed report on the completed training is not required. Instead, brokers would keep detailed records showing completion of training requirements. This contains:

  • The date of training
  • The name of the provider or host
  • The dates visited
  • The number of hours accrued
  • If in person, the place of the training
  • Any documents from the provider about the registration and completion of the training

The latter can include receipts, copies of training materials, and certificates of completion.

The customs broker would keep these records for a minimum of three years after the three-year period expired. CBP would be authorized to request the training materials and either view them in person or request copies to be sent.

If a broker did not report and certify their education, CBP would take a progressive disciplinary approach. The first CBP would notify the person of the non-compliance and give them 30 days to submit training materials and a revised three-year report. If the broker has not completed the training, they must do so and then submit records with a corrected report.

If the broker does not respond within 30 days, CBP would suspend the broker’s license. However, CBP would give the person an additional opportunity to complete and report the training. If the broker did not comply within 120 days, the license would be suspended without prejudice.

Should the Broker falsify the training materials or provide false or misleading information, CBP could suspend or revoke the Broker’s license under Part 111.53 of the Regulations.

Qualification training

Training opportunities can be provided from either or both of two sources. The first would be training offered by CBP. Training from other US government agencies would also count if relevant to the CBP business. For example, a meeting on food import regulations offered by the Food & Drug Administration would count towards training hours. Training offered by non-governmental parties such as schools, firms and organizations would only count if offered by an accredited provider. Accreditation would be done by CBP recognized accreditors. As described in the October 10th NPRM, accreditors would be selected using the information request and quote request methodology set out in the Federal Acquisition Regulations. CBP would not pay the selected accreditors, but the accreditors could charge providers for accreditation services.

The accreditors would have to meet a number of requirements. They include:

  • At least one key official with a customs broker license
  • Knowledge of customs and other related laws and regulations
  • Professional references
  • CVs of key personnel
  • Description of the process for receiving, processing and approving an accreditation application

CBP does not intend to limit the number of accreditors selected.

CBP does not grant credit for writing books or articles, or reading books or articles on customs matters. However, CBP will credit licensed brokers for the time they spent preparing training or presentations. Licensed Individuals will receive one hour credit for every 60 minutes they have spent preparing, with a maximum of 12 hours per three year reporting period. Any licensed speaker or lecturer must obtain approval from a CBP-selected accreditor before preparation time can be counted.

In the NPRM CBP, the main objectives for the accreditation program were set:

  1. Multiple accredited accreditors that enable competition and keep costs at market levels without creating a monopoly;
  2. An open and transparent application process; and,
  3. One option for small businesses such as B. Law firms specializing in customs law and non-profit organizations such as B. Business associations to become accredited accreditation bodies.

Comments and next steps

Members of the trade have 60 days from the date of the announcement (09/10/2021) to submit written comments. Comments will be submitted online through the portal at www.regulations.gov. Cite document number USCBP 2021-0030.

After that, CBP will read and respond to the comments and likely post a proposed rule in the federal register. Retailers will also have an opportunity to react to this. The final step will be a final rule which requires the final regulations to go into effect and licensed brokers to adhere to the rules. This will take a while, but it looks like it’s going to happen.

The content of this article is intended to provide general guidance on the subject. Expert advice should be sought regarding your specific circumstances.