Program Overview Pat Fosberry – President April 17, 2014.

Program Overview

Pat Fosberry – PresidentApril 17, 2014

http://www.ncbfaa.org/

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 LAWCan 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-2014-

02-06/html/2014-01176.htm



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)



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

correctedSaturday, 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 1-

1-15 Legislative – Jon Kent

No progress in Congress GSP stalled

BOD Elections – Kathy Carlton, Miami, FL reelected Area 4 Rep 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


Monday, April 7, 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:

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


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

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 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


20. Domesti c

or Foreign

(D/F)

22. Quanti ty

in Schedule

B / HTS Uni ts

23. DDTC

Quanti ty and DDTC

Unit of Measure

24. Shipping Weight

(in ki los )

25. ECCN, EAR99

or USML Category No.

26. SME

Indicator (Yes or No)

(Applies to DDTC only)

13. State of Origin:

14. Country of Ultimate Destination:

11. Routed Transaction: 12. Related Party Indicator:

9. USPPI EIN (IRS) Number:

10. USPPI Reference#:

8. Intermediate Consignee Name & Address:

30: DDTC Applicant Registration Number:

INSTRUCTIONS TO FORWARDER:

6. Ultimate Consignee Name and Address: 7. Ultimate Consignee Type:

40. USPPI Telephone No.:

32 Check here i f there are any remaining non-l i censable Schedule B / HTS Numbers that are va lued $2500.00 or less and that do not otherwise require AES fi l ing.

33 Check here i f the USPPI authorizes the above named forwarder to act as i ts true and lawful agent for purposes of preparing and fi l ing the Electronic Export Informati on ("EEI") in accordance with the laws and regulati ons of the Uni ted States .

34. I certi fy that the s tatements made and a l l informati on conta ined herein are true and correct. I unders tand that civi l and crimina l pena lti es , including forfei ture and sa le, may be imposed for making fa l se and fraudulent s tatements herein., fa i l ing to provide the requested informati on or for violati on of U.S. laws on exportati on (13 U.S.C. Sec . 305: 22 U.S.C. Sec. 401, 18 U.S.C. Sec 1001, 50 U.S.C. app. 2410).

41. Check here to validate Electronic Signature. Electronic signatures must be typed in all capital letters in Box 36 in order to be valid.

38: Title: 35. Printed Name of Duly authorized offi cer or employee:

36. Signature: 39: Date: 37. USPPI E-mail Address:

21. Schedule B / HTSUS Number and

Commercial Commodity Descripti on

(For Vehicles : VIN/Year, Make, Model and Vehicle Ti tle Number

are required)

27. Export License Number,

Li cense Excepti on Symbol , DDTC Exempti on Number, DDTC ACM No.

or NLR

28: Va lue at the Port of Export (US Dol lars )

29: Li cense Va lue by Item

(i f appl i cable) (US Dol lars )

31: Eligible Party Certification

2. USPPI Address Including Zip Code:

Select one:

15. Hazardous Material: Reserved for Future Use

17. Entry Number:

16. In-Bond Code:

18. FTZ Identifier:19. TIB / Carnet?

SHIPPER'S LETTER OF INSTRUCTIONS (SLI) - "MODEL" Password: SLI3. Freight Location Company Name:1. USPPI Name: 5. Forwarding Agent:

4. Freight Location Address (if diffferent from box #2):

Non-RelatedYes No

Yes No

Other/Unknown

Direct Consumer

RelatedNoYes

ResellerGovernment Entity

Yes No


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



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



FMCSA: MAP21

Words on a document will not prevent you from being sued Delivery Advice templates presented Domestic Working Group Agenda

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



Wednesday, April 9, 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



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’



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.)



Centers of Excellence and Expertise (CEE’s) 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)



Centers of Excellence and Expertise (CEE’s) Account Based

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


Centers of Excellence and Expertise (CEE’s) Prepare - Identification of accounts assigned to CEE’s

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 – [email protected]; 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

mailto:[email protected]



Keynote Lunch with CBP Commissioner Kerlikowski

Admitted he is not fluent in the role of the brokerTouched base on ACE, ITDS, Exports, and most issues

brokers are facingRelies on his team to inform him of broker issuesVery complimentary of Custom Brokers



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



ACE Completion Dates for Key Ace Functionality – Vince Iacopella, Janell

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



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


Program Overview Pat Fosberry – President April 17, 2014.

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Transcript of Program Overview Pat Fosberry – President April 17, 2014.