Program Overview
Pat Fosberry – President
April 17, 2014
Transportation Committee Meeting
 FMC ANPRM (General Counsel Ed Greenberg)
 FMC is reviewing 80+ comments, and is making adjustments (but not
sharing yet)
 Amicus issue (NVOCC released shipment without BOL)
 10.D.1 Violations = Single error can mean a VIOLATION OF LAW
 Can eliminate E&O coverage & COGSA defense, attorney fees
 NVOCC Committee (Rich Roche)
 Demurrage review – Winter delays = big windfalls for carriers
 Chassis shortage discussion
 Pushing for elimination of tariffs
Saturday, April 5, 2014
Transportation Committee Meeting
 Logistics Committee (Melzie Wilson)
 FMCSA – MAP 21 – Details at session
 Domestic Moves Best Practices Committee – Merit Tremper
 Approved new Delivery Order to carriers for door shipments
suggested forms
 Export Compliance Committee – Paulette Kolba
 USPPI Responsibility Information Sheet on NCBFAA website
(Publications & Resources)
 Shipper’s Letter of Instruction form on NCBFAA website (Publications
& Resources)
 Routed Export Transaction NPRM - http://www.gpo.gov/fdsys/pkg/FR-201402-06/html/2014-01176.htm
Saturday, April 5, 2014
Customs Committee Meeting
 ITDS
 List detailing data, documents, etc.
 Part 111 Rewrite
 OR&R 111.24 – Confidentiality – Does not allow broker to share info with
transport company
 Employee reporting
 Continuing education
 Exam reform
 Question order, complexity of questions, questions on practical issues
 NCBFAA to submit 30 questions to CBP for each exam
 NCBFAA opposes proposed change to online ( no books)
Saturday, April 5, 2014
Customs Committee Meeting
 Broker Known Importer Program
 Concept Paper & Questionnaire Draft being made available
 Permits
 Split support – NCBFAA represents companies, not the individual
license
 Grass Roots letter by Donna Mullins available
 NCBFAA will have position paper by June 21
 ACE
 Cloud filing – Is this legal under current regulations? (Foreign
server???)
 Post Summary Corrections – CBP has visibility of original and
corrected
Saturday, April 5, 2014
Board of Directors Meeting
 Audit Committee – Marie Armelagos – Reviews all functions of NCBFAA
 Membership – Bruce Goodwin - Over 940 members
 NEI – Ken Bargteil – Volunteers needed – LMS purchased, operating by 11-15
 Legislative – Jon Kent
 No progress in Congress
 GSP stalled
 BOD Elections – Kathy Carlton, Miami, FL reelected Area 4 Rep
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President – Geoff Powell, CH Powell, Baltimore
Vice President – Amy Magnus, AN Derringer, Port Champlain, NY
Secretary – Billy App, JW Allen, New Orleans, LA
Treasurer – Scott Larson, MOL Logistics, Chicago, IL
Saturday, April 5, 2014
NCBFAA 2014 Annual Meeting – Permits
 With the ability of all entry types to be done via RLF next year, current permit
regulations will become obsolete
 If CBP had a solution, it would have already been put into place.
 NCBFAA must present guidelines for the re-write of the regulations.
 NCBFAA represents companies, not individual license holders.
 Most large brokers support a licensed broker in every office (FedEx, UPS, K&N)
 Suggestions:
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One licensed broker per company
One licensed broker per office
One licensed broker per ‘area’
One licensed broker per number of entries
One licensed broker per employees (total or those doing customs business)
 NCBFAA will pole its members with specific questions
 NCBFAA to present white paper by next BOD meeting – June 21 in Detroit
 NCBFAA to present final proposal by GAC – September 14-16
Monday, April 7, 2014
eBond is Coming: How will It Work?
 All will be required to be filed in ACE in November, 2015
 eSTB’s will be required to be filed in ACE effective January 3,
2015
 All bonds entered by the Surety
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Broker sends eSTB data to Surety
Surety sends approved bond to CBP
CBP accepts and notifies Surety & broker
Broker transmits entry in ACE
ACE matches entry data with bond data; entry is released
 Continuous bonds are entered in same platform as now
 Revenue stream for brokers should not be affected
 Bond issuance available 24/7
Monday, April 7, 2014
Export Regulatory Update
 AES moved to ACE
 Visibility & PGA connections
 FTR Regulations now in effect
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Ultimate Consignee Type
License Value
Port Departure/Option 4 (10 to 5 days)
Port of Export
180 days Informed Compliance (October 2, 2014)
 AEI Pilot
 USPPI Information Sheet
 Shipper’s Letter of Instruction
Tuesday, April 8, 2014
USPPI Responsibility Information Sheet
SHIPPER'S LETTER OF INSTRUCTIONS (SLI) - "MODEL"
1. USPPI Name:
3. Freight Location Company Name:
2. USPPI Address Including Zip Code:
4. Freight Location Address (if diffferent from box #2):
6. Ultimate Consignee Name and Address:
7. Ultimate Consignee Type:
Password: SLI
5. Forwarding Agent:
8. Intermediate Consignee Name & Address:
Select one:
Direct Consumer
Government Entity
Reseller
Other/Unknown
9. USPPI EIN (IRS) Number:
13. State of Origin:
10. USPPI Reference#:
14. Country of Ultimate Destination:
11. Routed Transaction:
12. Related Party Indicator:
Yes
No
Related
15. Hazardous Material:
Non-Related
16. In-Bond Code:
17. Entry Number:
Yes
No
Reserved for Future Use
18. FTZ Identifier:
19. TIB / Carnet?
Yes
No
INSTRUCTIONS TO FORWARDER:
20.
Domes ti c
or
Forei gn
(D/F)
21.
Schedul e B / HTSUS Number a nd
Commercial Commodi ty
Des cri pti on
(For Vehi cl es : VIN/Yea r, Ma ke,
Model a nd Vehi cl e Ti tl e Number
a re requi red)
22.
Qua nti ty
in
Schedul e
B / HTS
Uni ts
30: DDTC Applicant Registration Number:
32
23.
DDTC
Qua nti ty
a nd DDTC
Uni t of
Mea s ure
24.
25.
26.
27.
Shi ppi ng ECCN, EAR99
SME
Export Li cens e Number,
Wei ght
or USML
Indi ca tor
Li cens e Excepti on
(i n ki l os ) Ca tegory No. (Yes or No) Symbol , DDTC Exempti on
(Applies to
Number, DDTC ACM No.
DDTC only)
or NLR
28:
Va l ue a t the Port of
Export (US Dol l a rs )
31: Eligible Party Certification
Yes
29:
Li cens e Va l ue by Item
(i f a ppl i ca bl e)
(US Dol l a rs )
No
Check here i f there a re a ny rema i ni ng non-l i cens a bl e Schedul e B / HTS Numbers tha t a re va l ued $2500.00 or l es s a nd tha t do not otherwi s e requi re AES fi l i ng.
33
Check here i f the USPPI a uthori zes the a bove na med forwa rder to a ct a s i ts true a nd l a wful a gent for purpos es of prepa ri ng a nd fi l i ng the El ectroni c Export
Informa ti on ("EEI") i n a ccorda nce wi th the l a ws a nd regul a ti ons of the Uni ted Sta tes .
34. I certi fy tha t the s ta tements ma de a nd a l l i nforma ti on conta i ned herei n a re true a nd correct. I unders ta nd tha t ci vi l a nd cri mi na l pena l ti es , i ncl udi ng forfei ture a nd s a l e, ma y
be i mpos ed for ma ki ng fa l s e a nd fra udul ent s ta tements herei n., fa i l i ng to provi de the reques ted i nforma ti on or for vi ol a ti on of U.S. l a ws on exporta ti on (13 U.S.C. Sec . 305: 22
U.S.C. Sec. 401, 18 U.S.C. Sec 1001, 50 U.S.C. a pp. 2410).
35. Printed Name of Duly authorized officer or employee:
36. Signature:
37. USPPI E-mail Address:
41.
38: Title:
39: Date:
40. USPPI Telephone No.:
Check here to validate Electronic Signature. Electronic signatures must be typed in all capital letters in Box 36 in order to be valid.
FMC: Where Are We?
Chairman Cordero addressed for 1.5 hours.
NPRM issues are being reviewed.
More business-friendly set of OTI rules
Items that have economic impart on OTI’s will not be in
final rules
Attention will be on OTI’s operating unlawfully
Tuesday, April 8, 2014
FMCSA: MAP21
 The difference between a Motor Carrier, Freight Forwarder
and Property Broker
 Motor carrier is comparable to a steamship line (owns trucks, issues BOL’s)
 Freight Forwarder is comparable to an NVOCC (does NOT own trucks, issues
BOL’s)
 Property Broker is comparable to an international freight forwarder (does
NOT issue BOL’s)
 NCBFAA is reviewing to determine if adding clauses to Terms
& Conditions can add extra protection
Tuesday, April 8, 2014
FMCSA: MAP21
 Words on a document will not prevent you from being sued
 Delivery Advice templates presented
 Domestic Working Group Agenda
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Form/Bill of Lading suggestions when acting as Agent
Training suggestions & recordkeeping best practices
Certificates (Insurance, HazMat, TSA Compliant)
Contracts
 List of motor carrier vetting software companies will be
provided
Tuesday, April 8, 2014
Broker Known Importer Program (BKIP)
 Custom Broker collects information on importer
 Entry can be flagged that importer is a known importer to
the broker
 Result in possible lower targeting scores for the importer
 Broker NOT certifying them or verifying what they say is
correct, just that the conversation has taken place
 Specific list of questions being supplied by CBP
 NCBFAA will be distributing this list
Wednesday, April 9, 2014
Revisions to Broker Regulations
 Confidentiality of Client Records 19 CFR § 111.24
(Reynolds, JSJ)
 “Relating to the Customs business of a broker” 19 CFR § 1641(f)
 UPS case – CBP ruled that any records is considered Customs business
 Continuing Education Requirements (Sykes, CBP)
 40 hours over 3 years
 Low/No cost; No travel
 Employee Reporting 19 CFR § 111.2(a)(2)(ii)(A), 111.28(b),
111.30(d)(1)
 Report all employees or just those doing Customs business?
 CBP looking at limiting definition of ‘employee’
Wednesday, April 9, 2014
Revisions to Broker Regulations
 Broker – Freight Forwarder Relationship
 Importer Bona Fides – Place burden to Importer
 Allow direct communication between Broker & Importer (modify 19 CFR §
111.36)
 Validating Importers (Bona Fides)
 CBP interested in creating requirements – amendment of 19 CFR § 141
 Updating regulations will protect Brokers (IPR, Identity Theft, etc.)
Wednesday, April 9, 2014
Centers of Excellence and Expertise (CEE’s)
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1 - Pharmaceuticals, Health & Chemicals – New York, NY
2 - Agriculture & Prepared Products - Miami, FL
3 - Automotive & Aerospace – Detroit, MI
4 - Apparel Footwear & Textiles – San Francisco, CA
5 - Base Metals – Chicago, IL
6 - Petroleum, Natural Gas & Minerals – Houston, TX
7 - Electronics – Los Angeles, CA
8 - Consumer Products & Mass Merchandising – Atlanta, GA
9 - Industrial & Manufacturing Materials – Buffalo, NY
0 - Machinery – Laredo, TX
Team Number - 0 (Signifies CEE) # (Internal#) 7 (Identified CEE)
Partnership Division (CTPAT, CEE Volunteers)
Validation & Compliance Division (Importers not partnered)
Enforcement Division (trademark, patent, health & safety, ADCVD)
Wednesday, April 9, 2014
Centers of Excellence and Expertise (CEE’s)
 Account Based
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Partnered accounts & CEE Volunteers
Roll up IR numbers under one account
Process all lines by one CEE regardless of HTS#
All automated entry types processed by CEE
Protests and inquiries should go to CEE
 Transaction by Transaction
 Tariff break out by scope of industry
Wednesday, April 9, 2014
Centers of Excellence and Expertise (CEE’s)
 Prepare - Identification of accounts assigned to CEE’s
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Account notification
CST Team
CST Codes (CSMS# 14-000033)
Changes to HTS Numbers
Expansion of CEE’s (Pharma, Electronics, Petroleum)
 Engage – CEE assigned accounts and the CEE’s
 Communicate – CBP issues, entry info requests, trends, Post Entry questions/concerns
 Document submission – IT/Software solutions, Exercise caution over documents
provided
 Develop communication standards with CBP – XXXCEE003@broker.com; CEE to publish
list
 Refine & Improve – “Trade Process Document”, Exceptions to centralization, Internal
audits
 Get involved and stay involved
 Broker should encourage importers to apply to CEE’s
 BWG – Broker Working Group – work through local associations and NCBFAA
Keynote Lunch with CBP Commissioner Kerlikowski
 Admitted he is not fluent in the role of the broker
 Touched base on ACE, ITDS, Exports, and most issues
brokers are facing
 Relies on his team to inform him of broker issues
 Very complimentary of Custom Brokers
Wednesday, April 9, 2014
ACE
 Brenda Smith – CBP, Executive Director, ACE Business Office
 Able to facilitate CEE’s, Exports, Manage by Account
 ACE Capacity Overview
 Pre-Arrival Manifest (80%)
 Arrival Cargo Release (75%)
 Post Release Entry Summary (65%)
 Exports (55%)
 PGA Integration – FDA, APHIS/Lacey Act (50%)
 Single Window
 PGA Message Set (EPA & FSIS in pilot in certain ports)
 Interoperability Web Service (IWS)
 Document Image System (DIS)
 May 1, 2015 – Mandatory for all electronic manifest filing
 November 1, 2015 – Electronic cargo release and related entry summary filing
 October 1, 2016 – All remaining electronic portions of the CBP cargo process
Wednesday, April 9, 2014
ACE
 Completion Dates for Key Ace Functionality – Vince Iacopella, Janell
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April, 2014 – Cargo Release for all modes
January, 2015 – Import & export manifest for all modes
July, 2015 – All entry types
October, 2016 – All development complete
Does your company have a plan with their IT company?
Benefits
 Survivability
 Paper
 Simplified Release (Quicker release, CBP more time to clear cargo before arrival)
Operations must be covered under regulations, thus the new updates to Part 111 (Agile Policy)
Still issues with posting release on the House BOL level
Don’t Wait – Migrate
ACE Transition Toolkit available on the NCBFAA website
Wednesday, April 9, 2014
Enforcement Through Trade Transformation
 Rich DiNucci
 Compliance and accuracy through CEE’s
 Improvements in targeting
 5106 – New forms will help targeting
 BKIP will help process & CBP
 Confidentiality still will be an issue under current regulations
 Client will complete 5106 via app on ACE and submit direct to CBP
 Brokers can submit on behalf of importer IF they are willing to accept
liability
 Compliance is a two-way discussion; Enforcement is one-way
 Who do we contact if there is a cargo hold – port or CEE? CEE is first point of
contact.
 ITDS should allow more agency cooperation (EPA example in New York)
 Training carriers, CFS, etc. – Paperless inbond example
Wednesday, April 9, 2014