Trade attorney warns brokers to guard themselves in trade agreement applications
Heather Litman, a Los Angeles attorney who advises on U.S. Customs and Border Protection issues, told attendees at the Western Cargo Conference in Monterey Friday that customs brokers need to be diligent in making sure their customers apply for the correct claims under the United States’ seven free trade agreements. The consequences of not doing so are increased risk to the broker.
“Brokers are the first line of defense,” Litman said. “If there’s a problem, the importer is going to say, ‘The broker told me this.’ You have to evaluate where you are with the importer. Remember, the importer is getting a deal. Customs wants to be sure they’re worthy of that gift.”
Litman said that something as simple as making sure brokers and importers know why they’re applying for a certain trade benefit is important.
“You need to know why your importers are applying for a particular claim,” she said. “Did they just hear that everything from Australia is free now?”
She also said brokers should be selective in the business they accept.
“Think about the types of risks you’re exposing yourself to,” she said. “If a billion dollars is riding on a filing for electronic parts, do you want to take on all that risk to get $150 for the filing? Ask for background data on exporters. It may seem like a lot of work, but you don’t want to be facilitating your customers applying for the wrong claim.”
Trade attorney warns brokers to guard themselves in trade agreement applications
