Report on the NCBFFA Board Meeting

Brenda Custer Espeleta, Flexport Inc.

NCBFAA Report continues:

Committee Reports
Transportation

Looking for comments on Commissioner Dye’s report on demurrage and detention – please make them personal. Due Oct 31.
Looking to change NCBFAA’s Ts&Cs. Comments due to Ed Greenberg

Customs

Type 86 entry testing
Comments on IOR POA Vetting due Oct 15
NCBFAA suggestion that CTPAT Tier 1 & 2 should not need to be vetted by CHB

COAC

COAC rules can’t talk about what is currently in discussion stage at COAC

TSN

Trade Leadership Council (TLC) is good to get on
There is a big gap between funding for ACE and costs for ACE. CBP considering new fees.
Join TSN, your voice is heard by CBP in this group

RAC

Expanding relationship with other OGA, other than FDA
FDA’s set up is the blueprint for the other OGA’s
FDA Food Safety enforcement coming down.
APHIS will be mandatory

Legislative Committee

Bankruptcy Bill – 12 congressmen are sponsoring. It is the number 1 focus on the hill this GAC.

GAC

150 paid attendees, 21 are first timers

NEI

Goal is to increase professionalism of industry
Bulk rates are offered for sending multiple people
GTEC was a great success
Aim is to be educational institute of this industry

Annual Conf

April 19 to 22^nd Vegas, Red Rock
More new faces on panels
Program under review
Registration open Nov 1
“Luck vs Risk: What Drives your Compliance Program?”

Next NCBFAA Board Meeting is in Savannah, Embassy Suites – Jan 25^th

GAC Notes

Customs Committee

Change made in ACE for Liquidation Notices- brokers won’t get a copy
Phyto certs originals still need to be filed
Where is CBP on the NCBFAA ACE Punch List?
ACE Summary has gone down in recent weeks – NCBFAA asks that all immediately get a snow day if it goes down for 4 hours or more.
It would be good to get a list of all PGA’s that have hold authority on a shipment – Customs says to look at the CATAIR or ITDA website.
Sec 321 and 86
- Entry type 86 – consignee must designate the CHB, it needs to be authorized by an interested party to that transactionCBP- Mitchell says it’s an entry so a POA is needed unless broker puts it in own name. Also all type 86 with PGA’s are considered Customs Business and a POA must be obtained from IOR

Sec 321 is not Customs Business and no POA is needed. Also can’t order redelivery without a bond. No bond is needed on Sec 321

ISF Penalties are not consistent across all ports, CBP knows this and is trying to get them aligned.
CEE’s
- CBP does not see any drastic changes
- Want to compile metrics to see if IOR compliance has improved with the CEEs
- Are giving predictive analytics to CEEs for Informed Compliance with brokers
- Challenged like everyone on China 301 Exclusions after the entries are filed (PSCs). Workload is very high.
- NCBFAA says some CEE’s immediately issue CF29 not CF28s
- Multiple PSCs on an entry are a challenge. CBP tends to immediately liquidate once they review (even when filer did not request accelerated liquidation) and this is causing issues on large entries where aother line item may need to be corrected.
- PSCs are to auto liquidate as filed unless CBP unsets the flag to liquidate. Some CEEs unset the flag and then never act so entry liquidates as originally entered.
ACE Portal – Brokers should keep their contact info current as CBP is using ACE to find out whom to reach out to when there are issues
Electing an Entry Date – is a DIS letter required if certifying for cargo release from entry summary? - Probably not legally but continue to do so to avoid issues.
Known issue- the team number is not being returned by ACE (seems to stem from an ACE Liquidation change that was uploaded). CBP is aware and will be fixing.
OR&R – pending ruling on location of backup servers storing Customs Brokerage data. Currently with electronic records (if original records) must be on US soil and first back up must be on US soil. Regs did not state ALL backup records must be on US soil.
Regarding special duties (232,301, etc) to determine duty calc dates- some say date of import, some say date of entry (meaning you can elect entry date on these). Refer to CSMS on 232 duty calc.
21^st Century 5 Pilars – John Leonard (look online)

Looking at Entry Process, want to do away with two part (3461 & 7501) make it one step. Requires statutory changes

Blockchain has been a good study – NAFTA Certs. Has many more applications. It allows instant access to source of any data on a document. Helpful on country of origin. Was well liked by CBP and test broker.
CHB’s should embrace Blockchain

eComm – looking at how to govern/regulate the platforms (Amazon, Wayfair, etc). They are not just pass through parties

9 volunteers (platforms/carriers/express/brokers) for 321 (extra) Data Pilot.
PGA’s aren’t engaged in the pilot

3. Data Sharing & Access Need seamless sharing with all parties via single window.
4. Intelligent Enforcement – how to use analytics to get to bad actors and use machine learning. CBP is outsourcing the analytics with a Silicon Valley company.
5. Revise Recordkeeping & Penalties. Current process is too slow. And ‘parking tickets’ not helpful to CBP or violator.
6. (John added this one) Funding- get more than a year at one time. Note that the MPF fees do not go to CBP, rather the general fund. Looking into a new fee.

Exports

new Export Manifest to be required soon. This is CBP info not Census (AES is Census). CBP needs this in advance to help with targeting, finding bad actors
Export Manifest required 24 hours prior to lading onboard for export from US
NVOCC’s will need to file, are testing right now.
Carrier bond to cover (not the truck)
NVOCC files for HBL, Carrier files for MBL
COAC group and TSN group working on this as well

Next Trade Symposium is in Anaheim, CA Mar 10 & 11^th.


Report on the NCBFFA Board Meeting Brenda Custer Espeleta, Flexport Inc. NCBFAA Report continues: Committee Reports Transportation Looking for comments on Commissioner Dye’s report on demurrage and detention – please make them personal. Due Oct 31. Looking to change NCBFAA’s Ts&Cs. Comments due to Ed Greenberg Customs Type 86 entry testing Comments on IOR POA Vetting due Oct 15 NCBFAA suggestion that CTPAT Tier 1 & 2 should not need to be vetted by CHB COAC COAC rules can’t talk about what is currently in discussion stage at COAC TSN Trade Leadership Council (TLC) is good to get on There is a big gap between funding for ACE and costs for ACE. CBP considering new fees. Join TSN, your voice is heard by CBP in this group RAC Expanding relationship with other OGA, other than FDA FDA’s set up is the blueprint for the other OGA’s FDA Food Safety enforcement coming down. APHIS will be mandatory Legislative Committee Bankruptcy Bill – 12 congressmen are sponsoring. It is the number 1 focus on the hill this GAC. GAC 150 paid attendees, 21 are first timers NEI Goal is to increase professionalism of industry Bulk rates are offered for sending multiple people GTEC was a great success Aim is to be educational institute of this industry Annual Conf April 19 to 22^nd Vegas, Red Rock More new faces on panels Program under review Registration open Nov 1 “Luck vs Risk: What Drives your Compliance Program?” Next NCBFAA Board Meeting is in Savannah, Embassy Suites – Jan 25^th GAC Notes Customs Committee Change made in ACE for Liquidation Notices- brokers won’t get a copy Phyto certs originals still need to be filed Where is CBP on the NCBFAA ACE Punch List? ACE Summary has gone down in recent weeks – NCBFAA asks that all immediately get a snow day if it goes down for 4 hours or more. It would be good to get a list of all PGA’s that have hold authority on a shipment – Customs says to look at the CATAIR or ITDA website. Sec 321 and 86 Entry type 86 – consignee must designate the CHB, it needs to be authorized by an interested party to that transactionCBP- Mitchell says it’s an entry so a POA is needed unless broker puts it in own name. Also all type 86 with PGA’s are considered Customs Business and a POA must be obtained from IOR Sec 321 is not Customs Business and no POA is needed. Also can’t order redelivery without a bond. No bond is needed on Sec 321 ISF Penalties are not consistent across all ports, CBP knows this and is trying to get them aligned. CEE’s CBP does not see any drastic changes Want to compile metrics to see if IOR compliance has improved with the CEEs Are giving predictive analytics to CEEs for Informed Compliance with brokers Challenged like everyone on China 301 Exclusions after the entries are filed (PSCs). Workload is very high. NCBFAA says some CEE’s immediately issue CF29 not CF28s Multiple PSCs on an entry are a challenge. CBP tends to immediately liquidate once they review (even when filer did not request accelerated liquidation) and this is causing issues on large entries where aother line item may need to be corrected. PSCs are to auto liquidate as filed unless CBP unsets the flag to liquidate. Some CEEs unset the flag and then never act so entry liquidates as originally entered. ACE Portal – Brokers should keep their contact info current as CBP is using ACE to find out whom to reach out to when there are issues Electing an Entry Date – is a DIS letter required if certifying for cargo release from entry summary? - Probably not legally but continue to do so to avoid issues. Known issue- the team number is not being returned by ACE (seems to stem from an ACE Liquidation change that was uploaded). CBP is aware and will be fixing. OR&R – pending ruling on location of backup servers storing Customs Brokerage data. Currently with electronic records (if original records) must be on US soil and first back up must be on US soil. Regs did not state ALL backup records must be on US soil. Regarding special duties (232,301, etc) to determine duty calc dates- some say date of import, some say date of entry (meaning you can elect entry date on these). Refer to CSMS on 232 duty calc. 21^st Century 5 Pilars – John Leonard (look online) Looking at Entry Process, want to do away with two part (3461 & 7501) make it one step. Requires statutory changes Blockchain has been a good study – NAFTA Certs. Has many more applications. It allows instant access to source of any data on a document. Helpful on country of origin. Was well liked by CBP and test broker. CHB’s should embrace Blockchain eComm – looking at how to govern/regulate the platforms (Amazon, Wayfair, etc). They are not just pass through parties 9 volunteers (platforms/carriers/express/brokers) for 321 (extra) Data Pilot. PGA’s aren’t engaged in the pilot 3. Data Sharing & Access Need seamless sharing with all parties via single window. 4. Intelligent Enforcement – how to use analytics to get to bad actors and use machine learning. CBP is outsourcing the analytics with a Silicon Valley company. 5. Revise Recordkeeping & Penalties. Current process is too slow. And ‘parking tickets’ not helpful to CBP or violator. 6. (John added this one) Funding- get more than a year at one time. Note that the MPF fees do not go to CBP, rather the general fund. Looking into a new fee. Exports new Export Manifest to be required soon. This is CBP info not Census (AES is Census). CBP needs this in advance to help with targeting, finding bad actors Export Manifest required 24 hours prior to lading onboard for export from US NVOCC’s will need to file, are testing right now. Carrier bond to cover (not the truck) NVOCC files for HBL, Carrier files for MBL COAC group and TSN group working on this as well Next Trade Symposium is in Anaheim, CA Mar 10 & 11^th.
CBFANC Newsletter - copy of October 2019 - Info Expeditor