October 25, 2022
The Customs broker regulations in part 111 of title 19 of the Code of Federal Regulations (19 CFR 111) has been reviewed for several years by the broker community, CBP, and the Commercial Customs Operations Advisory Council (COAC). During this time, CBP has gathered feedback from the trade community through webinars, port meetings, and trade association meetings, aiming to improve transparency and collaboration while modernizing regulations to reflect the role of the broker in today’s environment.
In the April 2016 COAC public meeting, the COAC Broker Regulations Working Group (BRWG), which included participants from the trade community and CBP representatives, made 37 recommendations to modernize 19 CFR 111. The most focused on areas included the following: the evolving role of the broker; confidentially, cybersecurity and record retention; responsible supervision and control and employee reporting; and licensing and permits, which a single, national permit for brokers, as well as electronic process changes were advocated for.
The June 5, 2020 published Notices of Proposed Rulemaking (NPRMs) reflected many of these recommendations and proposed changes. In reponse of proposed changes and public comments, 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:
For more information, please visit https://www.cbp.gov/trade/programs-administration/customs-brokers/modernization.
Crane Trade Services can assist you with questions regarding this matter. For assistance please contact CWTSConsulting@craneww.com.