CBP to start broker self-assessment pilot program

CBP to start broker self-assessment pilot program
   U.S. Customs and Border Protection on Monday published a notice announcing plans for a customs broker self-assessment pilot program.
   The program would be based on the importer self-assessment model, a program that has brought in 200 importers representing roughly 20 percent of U.S. imports by value. CBP has been mulling the idea of a broker self-assessment program for a while, but the pilot program is the first tangible proof of the project moving forward. ISA is a voluntary program that allows importers with strong internal controls to self-monitor their compliance with Customs regulations in exchange for exemptions from agency audits and avoiding cargo inspections for trade violations.
   CBP said the goal of the test to let brokers ascertain how well they comply with their requirements for handling customs entries so that Customs can focus on higher-risk trade enforcement issues. Under the program, brokers will improve internal oversight of customs compliance, periodically test those procedures and disclose to CBP any deficiencies discovered through the reviews.
   Dan Baldwin, assistant commissioner of CBP's Office of Information Technology, spoke about the pilot program last week at the National Customs Brokers and Forwarders Association of America conference in Rancho Mirage, Calif., saying the potential benefits for CBP of a broker self-assessment program are large. He said there are 12,000 licensed customs brokers making 25 million entries throughout the year.
   'Forty-five percent of all entries are one-time consignees,' he said. 'That's why I rely on the brokers to give good information. I think brokers are ready for self-assessment and we have a viable model with importer self-assessment.'
   As for the potential benefits for brokers in participating, he pointed to reduced audits and more trust from CBP. He said he realizes there is concern from the broker industry over the financial and time commitments necessary to participate in CBP’s myriad regulatory programs, like the Customs-Trade Protection against Terrorism.
   “The benefits of volunteering with CBP don’t always look enough to justify the investment required,” he said. “Every individual program may seem to be cumbersome, but taken as a whole, they can be beneficial.”
   CBP is looking for four brokers — one large, one medium and two small — to take part in its pilot program, which is expected to last one year. Companies must be C-TPAT members. The application deadline is May 27.
   When asked why CBP was conducting a pilot program rather than just offering a full-fledged self-assessment program from the beginning, Baldwin said 'baby steps is the way to go. Big bang is not the way.'
   He said that CBP, with significant input from the NCBFAA, realizes that brokers are unique and operate in ways that aren't easily categorized.
   'This isn't about fitting everyone in the same jigsaw puzzle,' he said. 'It's about what you all individually do well. It's not about requiring every broker to use the same practices and buy the same software.'
   When Baldwin asked the room how many brokers would be interested in participating in pilot program, not many hands went up. One broker suggested he would want to wait until the program matured and he could see demonstrable benefits to his business. Baldwin said he understood that approach.
   Read the notice here. ' Eric Johnson