WEBVTT 00:00:41.000 --> 00:00:50.650 >> Good afternoon. I'm Latoria Martin with CBP's office of webinar on the modernization of Broker Regulations 00:00:50.650 --> 00:01:00.650 111. Before we begin we'd like to let everyone know that this presentation is being recorded. 00:01:00.650 --> 00:01:08.678 All attendees are muted and may not share audio or video during the webinar. However, you may 00:01:08.678 --> 00:01:13.970 submit your questions in the chat box. If you remember closed captioning during the live event or 00:01:13.970 --> 00:01:20.366 when viewing at a later date and time, you may enable the feature by selecting the CC icon in the 00:01:20.366 --> 00:01:30.211 lower right-hand corner of your screen. Now I would like to pass it over to Ms. Sharolyn McCann. 00:01:30.211 --> 00:01:36.630 >> Sharolyn McCann: Thanks, Latoria, and good morning and good afternoon, everybody. I see that 00:01:36.630 --> 00:01:42.850 our participant list is creeping up there to about 930, and we're really excited to be chatting 00:01:42.850 --> 00:01:46.847 with you today, so thank you for your time. 00:01:46.847 --> 00:01:57.530 As Lato ria said, I'm Sharolyn McCann, director of CP's, trade revenue and -- (audio low) today we 00:01:57.530 --> 00:02:04.150 are hosting a webinar focused on the broker modernization regulations. So as I presume everybody 00:02:04.150 --> 00:02:12.570 here knows, our broker regulations are found in title 19 of the code Of Federal Regulations 00:02:12.570 --> 00:02:19.942 section 111 which we refer to as 19 CFR 111. We published a notice of proposed rule making which 00:02:19.942 --> 00:02:29.134 we will refer to as the NPRM, notice Of Proposed Rule Making, on the proposed updates to these 00:02:29.134 --> 00:02:32.255 broker regulations two years ago in June of 2020. 00:02:32.255 --> 00:02:39.306 We have adjudicated all the comments that were received in response to the NPRM and we've taken 00:02:39.306 --> 00:02:45.727 into consideration the concerns and the questions that have been raised in those comments. 00:02:45.727 --> 00:02:54.422 As we'll review in a slide shortly, CBP has drafted the final rule, which, when published, will 00:02:54.422 --> 00:03:00.322 finalize the updates to the broker regulations. The final rule is currently under review with the 00:03:00.322 --> 00:03:05.167 Department of the Treasury and the Department of Homeland Security. 00:03:05.167 --> 00:03:13.350 So our objective in conducting today's webinar is to refamiliarize our trade stakeholders with the 00:03:13.350 --> 00:03:22.187 proposed regulatory changes included in the NPRM, in the NPRM, I'm going to say that more slowly, 00:03:22.187 --> 00:03:24.595 in advance of the final rule publication. 00:03:24.595 --> 00:03:31.226 We will published guidance. We will conduct additional webinars when the final rule is published. 00:03:31.226 --> 00:03:39.058 So as such, for today's webinar we are not able to provide information on the final rule itself, 00:03:39.058 --> 00:03:45.902 nor are we able to speculate when it may be published. And as such, I ask the participants to 00:03:45.902 --> 00:03:51.539 refrain from submitting questions in the chat on those topics. 00:03:51.539 --> 00:03:58.818 That said, we are confident that the information we are presenting today is tremendously valuable 00:03:58.818 --> 00:04:04.422 and will serve to refresh our trade partners on the changes proposed to the broker regulations 00:04:04.422 --> 00:04:11.039 with more information to come at the time of publication of the final rule. 00:04:11.039 --> 00:04:19.478 So, what we're going to cover today, we're going to cover the broker regulation timeline and not 00:04:19.478 --> 00:04:25.430 the estimated publication date, but really where we are in the process of getting to those 00:04:25.430 --> 00:04:31.422 finalized broker regs. We will cover a summary of the proposed changes, that is the refresh that 00:04:31.422 --> 00:04:38.614 we're talking about. We'll cover broker guidance and resources. And we will also cover our plan 00:04:38.614 --> 00:04:46.650 for transitioning those brokers who only have a district permit or district permits to a national 00:04:46.650 --> 00:04:53.582 permit. And we'll cover Q&A with any time remaining, and I presume we'll have plenty of time 00:04:53.582 --> 00:04:57.499 remaining for your questions that you're entering in the chat pod. 00:04:57.499 --> 00:05:05.374 So if we can jump to the next slide, I would love to introduce to you all the members of the team 00:05:05.374 --> 00:05:12.146 who are working on this. The broker management branch is letted by Melba Hubbard, who is our 00:05:12.146 --> 00:05:21.958 branch chief other members include Jeanine Delgado and Chris Ha who are both international trade 00:05:21.958 --> 00:05:27.382 specialists and will be speaking on today's webinar. We also have as members of the broker 00:05:27.382 --> 00:05:39.954 management branch Hanna around, Heather Cheshire, Marsha Clark, Kimberly Mac and (). We have in 00:05:39.954 --> 00:05:49.670 this slide the broker management contact info, brokermanagement@CBP.dhs.gov. I also wanted to 00:05:49.670 --> 00:05:56.486 take this opportunity to introduce a key member of our 111 team and that is Ms. Claudia Bernhardt 00:05:56.486 --> 00:06:02.678 who is an attorney with our Office of Trade, Regulations and Rulings. Claudia is a critical 00:06:02.678 --> 00:06:08.530 member of our team with vast knowledge on the NPRM and Claudia is also participating in today's 00:06:08.530 --> 00:06:10.947 webinar. 00:06:10.947 --> 00:06:18.286 So with that, Latoria, we can advance to the next slide and just give a visual on a statement that 00:06:18.286 --> 00:06:24.586 I made earlier on where we are in the rule making process. So we talked about the NPRM being 00:06:24.586 --> 00:06:30.738 published two years ago in June of 2020. Comments were submitted. CBP has adjudicated those 00:06:30.738 --> 00:06:40.943 comments. We have drafted the final rule, and that final rule is currently with DHS and the 00:06:40.943 --> 00:06:45.298 Department of the Treasury. Next steps will be final rule publication in the Federal Register and 00:06:45.298 --> 00:06:53.642 we will have a delayed final rule effective date. So those are the next steps that we are laying 00:06:53.642 --> 00:06:55.150 out. 00:06:55.150 --> 00:07:01.754 So with that quick introduction, I would like to turn the webinar over to Jeanine Delgado of our 00:07:01.754 --> 00:07:20.847 broker management branch. Jeanine. 00:07:20.847 --> 00:07:34.802 >> Jeanine Delgado: Yes. I forgot to unmute. Thank you, Sherry. As Sherry mentioned my name is 00:07:34.802 --> 00:07:35.186 Jeanine Delgado, I am an international trade specialist with the broker management branch and 00:07:35.186 --> 00:07:40.843 today I'm going to review some of the key changes proposed in the NPRM. 00:07:40.843 --> 00:07:53.118 Oh, I'm sorry. Tori, can you advance the slide, please. So there are more proposed changes in the 00:07:53.118 --> 00:08:00.830 NPRM than what we are going to review in this hour. Our focus is on some of those key changes we 00:08:00.830 --> 00:08:06.299 think you will -- you are most interested in that we've proposed. 00:08:06.299 --> 00:08:16.258 I do recommend that you all take time to review the NPRM language to refamiliarize yourself with 00:08:16.258 --> 00:08:20.371 what CBP is proposing in the published NPRM. 00:08:20.371 --> 00:08:27.158 So in the next few slides I'm going to cover these NPRM components, establishing one national 00:08:27.158 --> 00:08:33.234 permit for each broker; the broker fee changes and electronic payment; the broker reporting and 00:08:33.234 --> 00:08:40.190 electronic data interface; customs business in the U.S. territory and knowledgeable point of 00:08:40.190 --> 00:08:46.998 contact; the broker/client relationship; responsible supervision and control requirements; and 00:08:46.998 --> 00:08:51.631 cyber security and records requirements. 00:08:51.631 --> 00:09:04.495 Tori, can you advance, please. So, under the one national permission for each broker, the NPRM 00:09:04.495 --> 00:09:11.298 proposes to eliminate the district permit and transition to a single permit framework, that's the 00:09:11.298 --> 00:09:17.038 national permit, that will operate at the national level within the customs territory of the 00:09:17.038 --> 00:09:24.250 United States. It's also proposing to eliminate the need for brokers to request permit wavers and 00:09:24.250 --> 00:09:30.146 maintain district offices. Obviously, because without a district permit, there's no need to 00:09:30.146 --> 00:09:38.219 request a waiver and no need to maintain an office in a district. 00:09:38.219 --> 00:09:46.990 Under the -- and I'll cover the plan that we have put together for this transition in a later 00:09:46.990 --> 00:09:48.995 slide. 00:09:48.995 --> 00:09:56.773 The broker fee changes and electronic payment, the NPRM proposes to increase the license 00:09:56.773 --> 00:10:05.950 application fee for individual and organizations to better align with CBP's processing expenses. 00:10:05.950 --> 00:10:12.566 CBP conducted a fee study which demonstrated that CBP's costs are significantly greater than the 00:10:12.566 --> 00:10:19.656 current license application fees we're collecting. Those are the $200 fees per application. So 00:10:19.656 --> 00:10:27.642 CBP is proposing to increase the fees to $300 for an individual license and $500 for an 00:10:27.642 --> 00:10:37.446 organization license application, to recover some of those costs. CBP also proposes to expand 00:10:37.446 --> 00:10:46.882 payment options to include electronic fee payment. This would expand on our current use of the 00:10:46.882 --> 00:10:53.662 ECPP portal to collect additional broker fee types beyond what we're currently collecting through 00:10:53.662 --> 00:11:02.891 the portal, which is the exam application fee and the trinial status fee. 00:11:02.891 --> 00:11:09.106 Under broker reporting and electronic data interface, the NPRM is proposing the use of CBP-approved 00:11:09.106 --> 00:11:19.582 EDI systems for a number of broker reporting activities. CBP is proposing allowing the broker to 00:11:19.582 --> 00:11:26.878 report through a portal, ACE portal account, point of contact information for the broker, 00:11:26.878 --> 00:11:33.142 designated recordkeeping contact information for the broker, the broker's change of address 00:11:33.142 --> 00:11:41.630 information and the proposal would also codify the current accepted practice of reporting your new 00:11:41.630 --> 00:11:44.923 and terminated employees through the portal. 00:11:44.923 --> 00:11:56.116 Next slide, please. Under the customs business in the U.S. territory and the knowledgeable point 00:11:56.116 --> 00:12:03.650 of contact, CBP is proposing that customs business be conducted within the customs territory of 00:12:03.650 --> 00:12:08.310 the United States. That would codify the current practice that we have in place requiring customs 00:12:08.310 --> 00:12:12.835 business to be within the U.S. customs territory. 00:12:12.835 --> 00:12:20.758 And in the second bullet, the NPRM propose to require that brokers designate a knowledgeable point 00:12:20.758 --> 00:12:27.326 of contact to be available to CBP during and outside of normal business hours to be able to 00:12:27.326 --> 00:12:38.178 respond to customs business issues. This proposal also includes maintaining a current POC 00:12:38.178 --> 00:12:42.135 information with CBP. 00:12:42.135 --> 00:12:52.950 Under The Broker/client Relationship, CBP is proposing requiring brokers to obtain a customs power 00:12:52.950 --> 00:12:59.066 of attorney directly from the importer or record or drawback claimant and not via a freight 00:12:59.066 --> 00:13:04.790 forwarder. This proposal is intended to ensure that the brokers have a direct relationship with 00:13:04.790 --> 00:13:11.678 that importer of record and to clarify that the freight forwarder cannot be a barrier to the 00:13:11.678 --> 00:13:15.331 broker/client communications. 00:13:15.331 --> 00:13:22.094 CBP also proposes to require brokers to report when the broker terminates -- I'm sorry -- when 00:13:22.094 --> 00:13:26.518 brokers terminate representation of their client as a result of determining that the client is 00:13:26.518 --> 00:13:32.966 attempting to defraud the U.S. Government or otherwise commit to any criminal act against the U.S. 00:13:32.966 --> 00:13:34.983 Government. 00:13:34.983 --> 00:13:43.262 And then the last bullet, the NPRM proposes CBP to require brokers to advise the client on the 00:13:43.262 --> 00:13:49.298 proper corrective action required in cases where noncompliance, error, or omission is identified 00:13:49.298 --> 00:13:56.259 by the broker and require the broker to retain a record of that communication with the client. 00:13:56.259 --> 00:14:09.122 Next slide, please. Okay. So under Responsible Supervision and Control, CBP is proposing 00:14:09.122 --> 00:14:14.655 requiring brokers to submit a supervision plan with a national permit application that would 00:14:14.655 --> 00:14:21.046 detail how the entity intends to exercise responsible supervision and control over its customs 00:14:21.046 --> 00:14:27.298 business. CBP is also proposing to update and add factors related to responsible supervision and 00:14:27.298 --> 00:14:36.734 control to reflect the transition to a national permit framework. We currently have ten factors 00:14:36.734 --> 00:14:43.906 and the number would increase in the proposal. And CBP proposes requiring brokers to employ a 00:14:43.906 --> 00:14:49.390 sufficient number of licensed brokers to ensure responsible supervision and control over their 00:14:49.390 --> 00:14:53.295 customs business. 00:14:53.295 --> 00:15:01.842 Under Cyber Security and Records Requirements, CBP is proposing requiring brokers to maintain their 00:15:01.842 --> 00:15:06.994 broker records, including electronic records, within the U.S. customs territory. Records 00:15:06.994 --> 00:15:14.354 maintenance within the U.S. has already been addressed in a 2020 ruling, and the NPRM proposes to 00:15:14.354 --> 00:15:21.423 codify our practice and expectations. 00:15:21.423 --> 00:15:32.858 In this last bullet, CBP would require brokers to notify CBP when there has been a breach of 00:15:32.858 --> 00:15:42.791 electronic or physical broker records and provide the compromised importer of record numbers. 00:15:42.791 --> 00:15:49.666 So that, those are the main points we wanted to bring to your attention that are in the NPRM. Once 00:15:49.666 --> 00:15:58.343 the final rule is published, we will provide more information on the changes. 00:15:58.343 --> 00:16:06.414 What I'd like to do next is move on to Chris Ha, my colleague, who is going to talk about some of 00:16:06.414 --> 00:16:12.614 the resources CBP is developing to support our communications to the trade when that final rule 00:16:12.614 --> 00:16:18.915 does publish. 00:16:18.915 --> 00:16:26.874 >> Chris Ha: My name is cla, international trade Ha pecialisted from Chris I'm going to go over 00:16:26.874 --> 00:16:33.630 few next slides with you. Resources for brokers, we have developed a dedicated web page for 00:16:33.630 --> 00:16:45.538 information on the modernization of customs broker regulations, 19 CFR 111, if you go to CBP.gov 00:16:45.538 --> 00:16:51.278 and modernization of customs broker regulations that's going to take you to the 111 dedicated 00:16:51.278 --> 00:16:58.290 page. On the dedicated web page we have uploaded information such as overview of modernization of 00:16:58.290 --> 00:17:03.918 broker regulations, some of the highlights of the purpose change that CBP recommended, and 00:17:03.918 --> 00:17:13.202 overview of national permit transmission processes. We include links to NPRM for modernization of 00:17:13.202 --> 00:17:20.670 the customs broker regulations and eliminates of custom brokers fee which were published in 2020. 00:17:21.291 --> 00:17:30.406 We've been working with developing education -- topical issues, side by side regulation comparison 00:17:30.406 --> 00:17:37.126 chart which highlight differences between the current regulations and -- FAQs and other 00:17:37.126 --> 00:17:44.142 information to support regulatory changes. All these documents and information will be found at 00:17:44.142 --> 00:17:53.426 that 111 dedicated web page once the final rule is published. We will also share with you webinar 00:17:53.426 --> 00:18:00.166 information and slide views through the webinars through that dedicated web page. We are going to 00:18:00.166 --> 00:18:05.882 leave the link to the web page in the chat for you and we strongly recommend visiting the web page 00:18:05.882 --> 00:18:07.751 when you get a chance. 00:18:07.751 --> 00:18:18.330 Next slide, please. So broker guidance we are working on developing customs broker guidance, the 00:18:18.330 --> 00:18:23.743 document's official name is customs of broker guidance for the trade community. The guidance is 00:18:23.743 --> 00:18:31.202 aligned with the current CBP policies and practices at both Headquarters and the field offices it 00:18:31.202 --> 00:18:38.278 reflects the regulations changes incorporated in 19 CFR 111 Final Rule. The guidance covers 00:18:38.278 --> 00:18:46.006 various topics from customs of broker tests to broker license and process, national permit, 00:18:46.006 --> 00:18:51.270 triannual report process and so on. The guidance contains some sample forms and documents that 00:18:51.270 --> 00:19:04.358 CBP used in communication with the trade. The guidance also contains some CBP Headquarters 00:19:04.358 --> 00:19:06.854 rulings on various broker-related topics and issues. Once the final rule is published we will 00:19:06.854 --> 00:19:14.722 upload this guidance document at the 111 dedicated web page at CBP.gov. You did not miss the 00:19:14.722 --> 00:19:21.014 publication of guidance document because we will send out a CSMS message to notify you of the 00:19:21.014 --> 00:19:26.602 publication of final rule and guidance documents. And the CSMS message will include the link to 00:19:26.602 --> 00:19:42.831 the place where the guidance document will be saved and found. So please stay tuned. 00:19:42.831 --> 00:19:51.495 I'll turn it over to Jeanine. 00:19:51.495 --> 00:20:03.226 >> Jeanine Delgado: Tori, could you go to the next slide, please. Okay. So I'm going to give you 00:20:03.226 --> 00:20:11.351 some rundown on the national permit transition process. So in the NPRM, CBP has proposed that we 00:20:11.351 --> 00:20:19.070 would provide guidance to those brokers with only a district permit explaining the process to 00:20:19.070 --> 00:20:23.104 transition their district permit to a national permit. 00:20:23.104 --> 00:20:29.118 So we've -- the broker management branch has been working on developing that process and I want to 00:20:29.118 --> 00:20:35.667 give you some information about how we expect that process to work. 00:20:35.667 --> 00:20:44.134 So currently, we have about 400 brokers that are operating throughout the nation with only a 00:20:44.134 --> 00:20:51.046 district permit. They do not have a national permit. Our plan is to transition this pool of 00:20:51.046 --> 00:20:59.126 brokers to a national permit sometime between the publication date and the effective date of the 00:20:59.126 --> 00:21:08.443 final rule, so that this pool of brokers will have a national permit which mirrors their current 00:21:08.443 --> 00:21:12.503 district permit set up and ready to go. 00:21:12.503 --> 00:21:19.182 The current district permits for those, that pool of brokers, will remain active until the final 00:21:19.182 --> 00:21:25.850 rule effective date. And, of course, the ACE national permit programming is in place. To set up 00:21:25.850 --> 00:21:33.194 the national permit, CBP will be using the broker's current district permit information. So that 00:21:33.194 --> 00:21:39.110 national permit will mirror the district permit and it will be sitting pending, waiting until it 00:21:39.110 --> 00:21:41.799 needs to come into use. 00:21:41.799 --> 00:21:48.566 Each broker that's transitioned to a national permit will be notified that their pending national 00:21:48.566 --> 00:21:56.014 permit has been created and they'll be given an opportunity to provide CBP with any address or 00:21:56.014 --> 00:22:05.590 permit qualifier information updates that's needed for that document or that permit. CBP will be 00:22:05.590 --> 00:22:15.367 sending out more information on this process once we are ready to begin creating the transition. 00:22:15.367 --> 00:22:25.658 And that's the extent of that piece I have for you. I think we are now available for questions. 00:22:25.658 --> 00:22:38.623 Tori, if you want to move on to the last slide. And I'll hand it over to Melba. 00:22:38.623 --> 00:22:42.254 >> Melba Hubbard: Good afternoon, everybody. This the Melba Hubbard with the broker management 00:22:42.254 --> 00:22:52.238 branch, and we do have some questions in the chat. Keep in mind, if you do want to ask a 00:22:52.238 --> 00:22:57.319 question, please provide it in the chat. 00:22:57.319 --> 00:23:14.139 Our first question, will there be more -- a more clear determination of what customs business is? 00:23:14.139 --> 00:23:17.435 >> Claudia, do you want to take it. 00:23:17.435 --> 00:23:21.346 >> Claudia Bernhardt: I can start, and if you want to add, that works as well. So I guess the 00:23:21.346 --> 00:23:28.966 short answer is I think no. There's already a clear definition in the stattout as you all know, 00:23:28.966 --> 00:23:38.034 1641 and 19 CFR, we have a regulatory definition in 111.1, 19 USC for the stat oo tuit and there 00:23:38.034 --> 00:23:46.094 has been a ruling with a very in-depth analysis of what customs business covers in a 2017 ruling 00:23:46.094 --> 00:23:51.594 and I can put the ruling number in the chat if necessary. And then otherwise, it really is a 00:23:51.594 --> 00:24:00.310 case-by-case assessment depending on the scenario, and as you all know brokers can always request 00:24:00.310 --> 00:24:04.518 a ruling if there is a specific situation that is not covered by those definitions and the 00:24:04.518 --> 00:24:16.919 requester needs an answer on Jeanine, if you want to add in I go. 00:24:16.919 --> 00:24:18.051 >> No. That was perfect. 00:24:18.051 --> 00:24:25.171 >> Our second question, will we receive a copy of the slides after the webinar is over today? 00:24:25.171 --> 00:24:32.642 That's the second question. And I would like to say the information that we're providing from 00:24:32.642 --> 00:24:41.814 today's webinar is listed on our CBP.gov broker page and we would invite you to look at this 00:24:41.814 --> 00:24:45.615 information on CBP.gov. 00:24:45.615 --> 00:24:53.258 All right. Third question, good question, do any of the planned changes affect self-filing 00:24:53.258 --> 00:25:03.590 importers? I'm not sure if Chris or Jeanine want to take that question. But again, the question 00:25:03.590 --> 00:25:13.491 is do any of the planned changes affect self-filing importers? 00:25:13.491 --> 00:25:19.454 >> That is a good question and I'm going to say that they don't directly affect a self-filing 00:25:19.454 --> 00:25:26.194 importer because these are section 111 pertains to brokers, but they might have an effect on 00:25:26.194 --> 00:25:34.122 self-filing for importers only in that, for instance, brokers who have a breach of their records 00:25:34.122 --> 00:25:41.394 would need to report that to CBP, which would impact a -- well, actually it wouldn't if you're a 00:25:41.394 --> 00:25:45.347 self-filing importer, so I just misspoke there. 00:25:45.347 --> 00:25:52.746 So it's -- at this moment I can't call out anything specifically that will affect a self-filing 00:25:52.746 --> 00:25:56.587 importer in this regulatory change. 00:25:56.587 --> 00:26:00.043 >> Melba Hubbard: All right. Thank you, Jeanine. 00:26:00.043 --> 00:26:02.379 >> Jeanine Delgado: So that was a long no. 00:26:02.379 --> 00:26:07.698 >> Melba Hubbard: Thank you. All right. Next question. We have some good questions here. Will 00:26:07.698 --> 00:26:15.416 CBP maintain a national database of broker license numbers for research by importers to determine 00:26:15.416 --> 00:26:24.099 current license status? 00:26:24.099 --> 00:26:31.462 >> Jeanine Delgado: CBP does publish the brokers that are actively transacting customs business, 00:26:31.462 --> 00:26:39.518 meaning brokers with permits are published both locally at the port level. They are available and 00:26:39.518 --> 00:26:48.934 they are available on our website for viewing. We do not publish all licenses that have been 00:26:48.934 --> 00:26:56.002 issued to everyone nationally. But if they're transacting customs business, that is publicly 00:26:56.002 --> 00:27:00.067 available. 00:27:00.067 --> 00:27:08.046 >> Melba Hubbard: All right. Thank you, Jeanine. The next question, for compliance purposes 00:27:08.046 --> 00:27:29.235 should we confirm our electronic records are stored in servers that are in the U.S. territory? 00:27:29.235 --> 00:27:34.778 >> Jeanine Delgado: I believe you should be reading the ruling that I mentioned, and I'm going to 00:27:34.778 --> 00:27:56.014 find the number here. The ruling number is Headquarters ruling 2868. I believe that discusses 00:27:56.014 --> 00:28:02.658 electronic records held by third-party providers for the broker. And those should be within the 00:28:02.658 --> 00:28:20.391 United States. 00:28:20.391 --> 00:28:26.518 >> Melba Hubbard: All right. Our next question, how much time is there between publication date 00:28:26.518 --> 00:28:32.279 and effective date of the final rule? 00:28:32.279 --> 00:28:43.779 >> Jeanine Delgado: We expect that the time frame will be somewhere between 30 and 60 days. 00:28:43.779 --> 00:28:55.746 >> Melba Hubbard: All right. Thank you. Okay. I'm looking to see. Okay. Here's the next 00:28:55.746 --> 00:29:05.170 question. For those already on a national permit, will we just remain and how do we submit our 00:29:05.170 --> 00:29:14.100 responsible supervision plan? 00:29:14.100 --> 00:29:18.247 >> Jeanine Delgado: I'm sorry, Melba, can you repeat that question for me? 00:29:18.247 --> 00:29:24.690 >> Melba Hubbard: Absolutely. For those already on a national permit with, I think they mean with 00:29:24.690 --> 00:29:33.303 a national permit, will we just remain, and how do we submit our responsible supervision control? 00:29:33.303 --> 00:29:39.346 If I can support right here, I think those details will come out with the final rule, but please, 00:29:39.346 --> 00:29:46.954 Claudia or Jeanine, jump in and provide any other additional details you might want to add there. 00:29:46.955 --> 00:29:50.622 >> Claudia Bernhardt: Just maybe to add, I think the first time you read the question maybe I 00:29:50.622 --> 00:29:56.546 misheard, you talked about the supervision plan, and we did propose in the NPRM, if that was the 00:29:56.546 --> 00:30:04.274 question, the NPRM that for someone who's applying for a national permit, a supervision plan would 00:30:04.274 --> 00:30:10.754 be -- would be an additional document to be submitted. So what we proposed is at the time of 00:30:10.754 --> 00:30:21.218 national permit application. So for someone who is -- someone currently has a national permit to 00:30:21.218 --> 00:30:26.426 provide that supervision plan, but with the final rule there will be guidance included in the 00:30:26.426 --> 00:30:40.499 final rule and on CBP's website on how current national permit holders would have to go about. 00:30:40.499 --> 00:30:51.424 >> Melba Hubbard: Okay. Thank you, Claudia. Next question, will the national permit be one time 00:30:51.424 --> 00:30:56.951 or annually? 00:30:56.951 --> 00:31:02.778 >> Jeanine Delgado: The national permit will operate how our current national permit operates. So 00:31:02.778 --> 00:31:12.154 brokers apply for a national permit. We grant the national permit, and annually the broker owes a 00:31:12.154 --> 00:31:21.254 user fee; however, that permit remains active as long as you submit your user fee until such time 00:31:21.254 --> 00:31:33.003 as you choose to cancel it or, you know, if there were a revocation action that took place. 00:31:33.003 --> 00:31:38.158 >> Melba Hubbard: Okay. And I do see a number of questions here a couple of times, I see a really 00:31:38.158 --> 00:31:48.350 good question regarding the license broker, you know, ratio to staff. And those details will 00:31:48.350 --> 00:31:53.978 certainly will be provided at the final rule. That's not something that we can, you know, provide 00:31:53.978 --> 00:32:00.378 numbers today. But we are very happy to hear those questions because it kind of helps us to 00:32:00.378 --> 00:32:07.419 focus, you know, our guidance. So I appreciate those, definitely appreciate those questions. 00:32:07.419 --> 00:32:21.262 Let me look and see if we have any additional questions. All right. Next question. Will the new 00:32:21.262 --> 00:32:30.638 rule detail requirements regarding continuing education, CEUs, I'm assuming that means continuing 00:32:30.638 --> 00:32:37.615 education units for the individual brokers. 00:32:37.615 --> 00:32:42.542 >> Claudia Bernhardt: So I will take that question. The final rule will cover only proposals from 00:32:42.542 --> 00:32:51.070 the NPRM. There was a proposal for continuing education that was published separately by CBP and 00:32:51.070 --> 00:32:58.367 CBP will separately adjudicate comments that were received on those and will publish and final 00:32:58.367 --> 00:33:04.610 rule that corresponds with that NPRM. So this final rule will only cover the topics that we 00:33:04.610 --> 00:33:15.983 propose changes to for new regulations that we proposed from the NPRM from 2020. 00:33:15.983 --> 00:33:21.211 >> Melba Hubbard: And I do have someone who asked, Jeanine, if you could reshare the ruling 00:33:21.211 --> 00:33:26.718 number. I didn't quite catch it, so I'm sorry, I didn't get that written down. But if you could 00:33:26.718 --> 00:33:33.068 reshare that ruling number for I believe the U.S. territory requirement. 00:33:33.068 --> 00:33:41.911 >> Jeanine Delgado: Headquarters ruling 292868. 00:33:41.911 --> 00:33:55.860 >> Melba Hubbard: All right. Thank you very much. Someone asked here if we could please repeat 00:33:55.860 --> 00:34:04.715 the new triennial fee. I don't know if it was the triennial fee, but it was the fee increase. 00:34:04.715 --> 00:34:10.227 >> Jeanine Delgado: There is no fee increase for triennial, so there is no triennial fee increase. 00:34:10.227 --> 00:34:17.331 That remains 100, that is $100. The proposal, the NPRM proposes to increase the individual 00:34:17.331 --> 00:34:28.750 license application fee, processing fee, from 200 to $300, and the corporate or organizational 00:34:28.750 --> 00:34:43.883 license application fee from 200 to $500. Those are the only proposed fee amount changes. 00:34:43.883 --> 00:34:58.418 >> Melba Hubbard: Okay. Thank you, Jeanine. Let's see here. If there are any additional 00:34:58.418 --> 00:35:08.838 questions, okay. Next question. Does the NPRM address the requirement for annual training needs 00:35:08.838 --> 00:35:22.795 to maintain a broker's license; if not, what is the latest on this? I can repeat that. 00:35:22.795 --> 00:35:28.953 >> Jeanine Delgado: I think Claudia just answered that piece. So the continuing education NPRM. 00:35:28.953 --> 00:35:33.866 >> Claudia Bernhardt: Yes. Anything related to training, continuing education, CBP covered in the 00:35:33.866 --> 00:35:40.534 NPRM that was published this year, I believe, last year. I'm not as familiar with that one. It 00:35:40.534 --> 00:35:51.803 is not covered in this final rule. There will be a separate final rule. 00:35:51.803 --> 00:35:56.962 >> Melba Hubbard: All right. A number of people have requested the ruling. We did repeat that 00:35:56.962 --> 00:36:12.866 ruling number. That ruling number 292868, Headquarters ruling 292868, just to make sure everybody 00:36:12.866 --> 00:36:20.647 got it. 00:36:20.647 --> 00:36:40.311 All right. Next question. Can brokers contract people in Mexico to prepare entries? 00:36:40.311 --> 00:36:42.855 >> Claudia Bernhardt: Go ahead, Jeanine. 00:36:42.855 --> 00:36:48.870 >> Jeanine Delgado: That would be considered customs business and that cannot be done outside of 00:36:48.870 --> 00:36:52.431 the U.S. 00:36:52.431 --> 00:36:53.551 >> Melba Hubbard: Okay. Thank you. 00:36:53.551 --> 00:37:00.090 >> Claudia Bernhardt: I was only going to add, if it's very fact-specific, I think the general 00:37:00.090 --> 00:37:07.762 answer Jeanine provided, but if they're fact-specific to a certain scenario, then it depends and 00:37:07.762 --> 00:37:16.947 the broker would have to request a ruling if it's something that needs to be decided. 00:37:16.947 --> 00:37:21.554 >> Melba Hubbard: Okay. Here's kind of a follow-up question, I think and I think we kind of 00:37:21.554 --> 00:37:28.898 answered it. But the question is, when importers handle their own customs business tasks, does 00:37:28.898 --> 00:37:38.410 that also need to be done within the customs territory of the U.S.? I would say yes, but I'll let 00:37:38.410 --> 00:37:47.751 the panel answer that question. Any further comments on -- 00:37:47.751 --> 00:37:53.086 >> Jeanine Delgado: I don't know that yes is the answer and I'd recommend that that -- yeah, 00:37:53.086 --> 00:38:03.858 that's not a question that we can answer on this webinar. I don't think the importers are -- 00:38:03.858 --> 00:38:11.558 importers are not subject to the same rules that brokers are in that regard, so I cannot -- I 00:38:11.558 --> 00:38:19.578 can't give an answer on that today. Let's find out who that is and we can certainly provide them 00:38:19.578 --> 00:38:21.867 an answer after this. 00:38:21.867 --> 00:38:31.162 >> Melba Hubbard: Okay. Happy to do that. Okay. Let's see a number of people did ask again for 00:38:31.162 --> 00:38:37.515 the ruling number. Okay. That's good, somebody typed it in the chat. 00:38:37.515 --> 00:38:45.154 Okay. Next question. Does the new regulations clarify transmitting data to CBP from a foreign 00:38:45.154 --> 00:38:54.498 country? I think that's one we're going to have to chew on, maybe some additional details. 00:38:54.498 --> 00:38:56.983 Anybody want to -- 00:38:56.983 --> 00:39:03.142 >> Jeanine Delgado: That's similar to what Claudia and I just spoke to. You know, if you're 00:39:03.142 --> 00:39:08.398 transmitting your data from a foreign country to customs, that means probably you're transacting 00:39:08.398 --> 00:39:15.478 customs business in a foreign country which is generally not allowed. If you have a specific 00:39:15.478 --> 00:39:26.327 scenario that you would like to seek our decision on, please -- please submit it for a ruling. 00:39:26.327 --> 00:39:34.098 >> Melba Hubbard: Okay. Thank you, Jeanine. Okay, next question. Will our local permit be 00:39:34.098 --> 00:39:39.819 terminated? 00:39:39.819 --> 00:39:53.370 >> Jeanine Delgado: So if -- you know, the NPRM proposal to transition to a single national permit 00:39:53.370 --> 00:40:02.630 occurs, then once CBP has ensured all brokers have been transitioned, that pool of brokers I 00:40:02.630 --> 00:40:10.346 talked about has been transitioned to a national permit and the final rule is in place and the ACE 00:40:10.346 --> 00:40:15.942 programming is in place, CBP intends to shut down or turn off or cancel, however you want to call 00:40:15.942 --> 00:40:28.083 it, all local permits, correct. They will become defunct. 00:40:28.083 --> 00:40:39.462 >> Melba Hubbard: All right. Thank you, Jeanine. Okay. I do want to acknowledge this question, 00:40:39.462 --> 00:40:44.442 it may be one we have to take back, but I will provide this question. The next question is, what 00:40:44.442 --> 00:40:51.770 will be the guidelines to determine criminal activity and fraud as opposed to possible mistakes? 00:40:51.770 --> 00:41:05.906 And that might be one we need to take back, but I did want to acknowledge that question. Any 00:41:05.906 --> 00:41:09.535 comments from the panel or should we take that back? 00:41:09.535 --> 00:41:15.170 >> Claudia Bernhardt: I think, Melba, you're right, we will take that back. If similar questions 00:41:15.170 --> 00:41:21.466 or comments were received with this question to the NPRM, then it has also been addressed in the 00:41:21.466 --> 00:41:27.934 final rule. And if additional guidance we believe is necessary, then this will also be provided 00:41:27.934 --> 00:41:46.747 once the final rule is published. 00:41:46.747 --> 00:42:01.066 >> Melba Hubbard: I think it's Jamie K, how would a broker request to keep electronic records, any 00:42:01.066 --> 00:42:03.602 changes on this new rule? I'm not quite sure what you mean by your question. If you could maybe 00:42:03.602 --> 00:42:10.170 rephrase your question. Maybe if one of the panelists -- I'm not sure. The question is, how 00:42:10.170 --> 00:42:16.958 would a broker request to keep electronic records, any changes on this new rule? I'm not quite 00:42:16.958 --> 00:42:24.507 sure what that means, but please type in -- retype your question. We'll be happy to answer it if 00:42:24.507 --> 00:42:24.983 we can. 00:42:24.983 --> 00:42:30.126 >> Jeanine Delgado: So I will say there are no changes to the section, I think it's -- I should 00:42:30.126 --> 00:42:35.298 know this off the top of my head, section I think 163 recordkeeping requirements, there are no 00:42:35.298 --> 00:42:51.074 changes to that section. So do I have 163 right? Yes, I do. So if that's what you're referring 00:42:51.074 --> 00:42:59.383 to, request for alternate methods of storage, that remains the same. 00:42:59.383 --> 00:43:13.994 >> Melba Hubbard: Okay. Thank you, Jeanine. All right. Scanning. I do have another question 00:43:13.994 --> 00:43:21.642 here, I'm not really sure what the acronym means. But it says will U.S. VI brokers be out of a 00:43:21.642 --> 00:43:29.855 job? USVI is not in customs territory. Is that Virgin Islands? 00:43:29.855 --> 00:43:38.018 >> Jeanine Delgado: Yes, that's U.S. Virgin Islands. That, Claudia, maybe you could speak to that 00:43:38.018 --> 00:43:51.214 perhaps. These regulations apply to customs brokers within the U.S. customs territory, including 00:43:51.214 --> 00:43:56.203 Puerto Rico. 00:43:56.203 --> 00:43:59.954 >> Claudia Bernhardt: I am not sure. I'd like to take that question back and provide an answer 00:43:59.954 --> 00:44:02.431 later. 00:44:02.431 --> 00:44:20.486 >> Melba Hubbard: Okay. Thank you. All right. Let's see. All right. Let's see. A couple of 00:44:20.486 --> 00:44:42.166 comments about the ruling number let me see if there's any additional questions here. Here's a 00:44:42.166 --> 00:44:47.039 question. Let's see where we are on time. Okay, we're good for time. 00:44:47.039 --> 00:45:08.150 Is billing for customs entry considered customs business? So it might depend on who's being 00:45:08.150 --> 00:45:10.431 billed, but I'll leave that for the panel. 00:45:10.431 --> 00:45:19.154 >> Jeanine Delgado: There is a section about customs -- there is a section in 111 on billing. I 00:45:19.154 --> 00:45:26.030 believe -- if you're not going to send the bill -- if the broker is not sending the bill directly 00:45:26.030 --> 00:45:37.651 to the importer of record, the importer of record has to have agreed to a waiver for that. 00:45:37.651 --> 00:45:46.130 >> Melba Hubbard: All right. Thank you, Jeanine. Here is a good question from Tracy. Will going 00:45:46.130 --> 00:45:59.918 to a national permit effectively do away with remote location filing? So basically, how will the 00:45:59.918 --> 00:46:06.442 national permit affect RLF filing process? 00:46:06.442 --> 00:46:12.430 >> Jeanine Delgado: That is a very good question. So everything now basically is remote location 00:46:12.430 --> 00:46:27.678 filing. So some aspects of remote location filing become moot. I don't have anymore information 00:46:27.678 --> 00:46:37.038 on that at this point, but we will have some information coming out later when we have a final 00:46:37.038 --> 00:46:46.263 rule in place. 00:46:46.263 --> 00:46:54.878 >> Melba Hubbard: Okay. Thank you, Jeanine. Next question -- oops, a little blurry here. Let's 00:46:54.878 --> 00:47:07.986 see. Has the issue of confidentiality between a broker -- okay. I'm sorry. Let me start over. 00:47:07.986 --> 00:47:14.358 Has the issue of confidentiality between a broker and a data processing cloud host been addressed 00:47:14.358 --> 00:47:21.068 in the new regulations? 00:47:21.068 --> 00:47:26.446 >> Jeanine Delgado: I would suggest -- again, we can't talk about anything in the new regulations, 00:47:26.446 --> 00:47:36.487 but I would recommend that you read the NPRM to see what is discussed in there. 00:47:36.487 --> 00:47:41.830 >> Claudia Bernhardt: And I would add, if this was a question that was included in one of the 00:47:41.830 --> 00:47:48.010 public comments in m response to the publication of the NPRM, then we did address such questions 00:47:48.010 --> 00:48:00.991 in the final rule. 00:48:00.991 --> 00:48:10.462 >> Melba Hubbard: Okay. Let's see. All right. Somebody was nice enough to post customs business 00:48:10.462 --> 00:48:31.699 definition, thank you. There's some of the same questions regarding the ruling. 00:48:31.699 --> 00:48:40.410 Okay. Here's a question. I think we're probably going to have to take this question back. The 00:48:40.410 --> 00:48:47.426 question is, is ISF and inbound filing considered customs business meaning they must be filed 00:48:47.426 --> 00:48:53.558 within the U.S. only regardless if they are assigned to a broker or freight forwarder. That's 00:48:53.558 --> 00:48:59.094 kind of a long question and I can repeat that. It might be something that we definitely need to 00:48:59.094 --> 00:49:01.371 take back. 00:49:01.371 --> 00:49:07.450 >> Jeanine Delgado: Well, I can say that inbound and ISF filing is not considered customs 00:49:07.450 --> 00:49:21.950 business. Carriers and freight forwarders can filed inbound and ISF can be filed other than by 00:49:21.950 --> 00:49:25.299 the customs broker and the importer. 00:49:25.299 --> 00:49:39.194 >> Melba Hubbard: All right. Thank you, Jeanine. Okay, next question. Will brokers still be 00:49:39.194 --> 00:49:56.734 managed locally even though there is no longer a district permit? That's the next question. So I 00:49:56.734 --> 00:50:04.507 can repeat that. I lost the question. 00:50:04.507 --> 00:50:15.698 >> Claudia Bernhardt: A note from me, in the final rule we will discuss on how CBP is going to be 00:50:15.698 --> 00:50:25.014 handling all national permit holders and there will be information in time for anyone who needs to 00:50:25.014 --> 00:50:32.099 adjust to have that information available. 00:50:32.099 --> 00:50:42.122 >> Melba Hubbard: Thank you, Claudia. Thank you. Okay. Next question. Regarding the published 00:50:42.122 --> 00:50:48.590 list of brokers, it seems this list is only updated every couple of years. Is there a reason why 00:50:48.590 --> 00:50:56.618 this isn't actively updated with new broker information as it changes? I can kind of take this 00:50:56.618 --> 00:51:03.098 one. We kind of -- well, I shouldn't say kind of. Our goal is to update our broker list on 00:51:03.098 --> 00:51:12.062 CBP.gov quarterly. Occasionally we don't quite hit it on the mark, but certainly we do try to do 00:51:12.062 --> 00:51:25.795 quarterly updates for the broker list. 00:51:25.795 --> 00:51:30.482 >> Jeanine Delgado: And if they are talking about the filer code list, I'm not sure if that's it, 00:51:30.482 --> 00:51:36.014 they are correct in that it's being -- it has been in the most recent years been updated every two 00:51:36.014 --> 00:51:36.571 years. 00:51:36.571 --> 00:51:38.711 >> Melba Hubbard: Oh, two years. Okay. 00:51:38.711 --> 00:51:44.962 >> Jeanine Delgado: That's the filer code list that we publish publicly, which literally just 00:51:44.962 --> 00:51:52.899 lists the filer code and the associated entity name. 00:51:52.899 --> 00:52:13.446 >> Melba Hubbard: Thank you for that clarification. All right. Let's see. So there are a number 00:52:13.446 --> 00:52:21.630 of questions on the POA process, requirements from the broker. I just wanted to mention we do see 00:52:21.630 --> 00:52:30.382 those questions in there. Those questions will definitely be addressed in the final rule. Those, 00:52:30.382 --> 00:52:40.001 the details will be provided at that time. So today's comments were about the NPRM and we 00:52:40.001 --> 00:52:44.310 definitely want to -- I should say we definitely want to acknowledge those questions are here. So 00:52:44.310 --> 00:52:49.023 we do appreciate your comments and your input. 00:52:49.023 --> 00:52:56.867 So again, it helps us to focus our information. So we will be addressing those issues in the final 00:52:56.867 --> 00:53:04.755 rule. 00:53:04.755 --> 00:53:09.390 >> Jeanine Delgado: Yes. We'll address them in our information on our public-facing website after 00:53:09.390 --> 00:53:19.639 the final rule publishes and before it's effective. 00:53:19.639 --> 00:53:27.442 >> Melba Hubbard: And I see we are getting close to time, but I do have one question that I want 00:53:27.442 --> 00:53:38.870 to throw out to the panelists. So the next question here is how the brokers will be managed at 00:53:38.870 --> 00:53:48.730 the centers. So the question is, can you discuss how brokers will be managed via the center. 00:53:48.730 --> 00:53:53.503 Well, it says "C's" but the center. 00:53:53.503 --> 00:54:01.258 >> Jeanine Delgado: Yeah. I think that answer Claudia already gave a couple minutes ago that, you 00:54:01.258 --> 00:54:12.538 know, the final rule will provide additional information from what the NPRM currently says. We'll 00:54:12.538 --> 00:54:19.446 provide additional information in the final rule on that and, of course, also on our public-facing 00:54:19.446 --> 00:54:21.227 website. 00:54:21.227 --> 00:54:38.530 >> Melba Hubbard: I think we have time for one or two additional questions. Let me see here. I 00:54:38.530 --> 00:54:43.942 believe this would be customs business. The question is, would customs business include 00:54:43.942 --> 00:54:51.678 responding via e-mail to import specialists and responses to CF-28s and 29s, which are requests 00:54:51.678 --> 00:55:02.742 for information and actions taken. So the question is whether those activities qualify as customs 00:55:02.742 --> 00:55:30.783 business. Anyone on the panel want to take that question? 00:55:30.783 --> 00:55:46.791 >> Claudia Bernhardt: If you can save it, we can take it back. 00:55:46.791 --> 00:56:01.682 >> Melba Hubbard: Okay. I think we have time for one, one more question. I do see a few someone 00:56:01.682 --> 00:56:08.578 did ask if we could show the slides again. Unfortunately, we are out of time. I don't think we 00:56:08.578 --> 00:56:15.807 can get through the slides again. I'm trying to see if they're -- 00:56:15.807 --> 00:56:20.346 >> Jeanine Delgado: I do want to say, I think, Melba, you already said this, but the information 00:56:20.346 --> 00:56:30.846 on the slides that we just presented, most of that information is on our dedicated web page that 00:56:30.846 --> 00:56:40.222 is on the modernization of the customs broker regulations that is available now on CBP.gov. So 00:56:40.222 --> 00:56:53.519 you can certainly go there to see pretty much all the information that we have on the slides. 00:56:53.519 --> 00:57:06.922 >> Melba Hubbard: Okay. We do have just a couple minutes left, so I do want to make sure I turn 00:57:06.922 --> 00:57:10.670 it over to our, any of our panelists for closing remarks and our director, Sharolyn McCann, for 00:57:10.670 --> 00:57:20.539 any last minute comments, ending comments, rather. 00:57:20.539 --> 00:57:27.767 >> Sharolyn McCann: Before I jump in, any of the panelists have additional comments for closing? 00:57:27.767 --> 00:57:35.654 >> Claudia Bernhardt: I guess I will say, and I know it's repetitive, but any public comments CBP 00:57:35.654 --> 00:57:40.455 received in response to the NPRM have been looked at and reviewed, we've been taking them into 00:57:40.455 --> 00:57:44.546 consideration and they will be discussed and addressed in the final rule. Any concerns you 00:57:44.546 --> 00:57:49.894 address there will be -- will be addressed in the final rule. And as the other panelists have 00:57:49.894 --> 00:57:54.182 mentioned before, we will have sufficient -- or more than sufficient -- you know, lots of guidance 00:57:54.182 --> 00:58:00.666 that will be coming out once the final rule is published and there will be enough time for brokers 00:58:00.666 --> 00:58:08.182 to read through those new changes that will be coming and adjust, make any adjustments that are 00:58:08.182 --> 00:58:16.563 needed to their business. Thank you. 00:58:16.563 --> 00:58:22.490 >> Sharolyn McCann: Well said, Claudia. Thank you. And thanks, everybody. I appreciate your 00:58:22.490 --> 00:58:28.458 time. Webinar and presentation will be posted on CBP.gov. Much more information to come. We 00:58:28.458 --> 00:58:36.402 appreciate the dialogue with everyone as a refresh, again, on the proposed changes in the NPRM for 00:58:36.402 --> 00:58:43.646 our broker regulations. And, you know, once we get closer to publication, once we get to 00:58:43.646 --> 00:58:48.882 publication, we will have a host of guidance available and follow-up webinars, and so we look 00:58:48.882 --> 00:58:51.715 forward to your ongoing participation. 00:58:51.715 --> 00:58:56.822 Many thanks for the questions. We will follow up on those that we can answer. And we will work -- 00:58:56.822 --> 00:59:04.690 I did see a question on this -- we will work to get FAQs posted on CBP.gov for everyone's 00:59:04.690 --> 00:59:10.167 visibility for the questions that we are able to answer in advance of the final rule publication. 00:59:10.167 --> 00:59:15.286 All right, everyone. Thanks very much for your time. And enjoy your afternoon and your week end. 00:59:15.286 --> 00:59:18.835 Thank you. 00:59:18.835 --> 00:59:20.835 [Concluded]