U.S. Customs and Border Protection (CBP) announced changes to Part 111, Chapter 19 of the U.S. Code of Federal Regulations (CFR) will take place October 18, 2022, with the publication of two Final Rules: “Modernization of the Customs Broker Regulations” (87 FR 63267) and “Elimination of Customs Broker District Permit Fee” (87 FR 63262) with an effective date of December 19, 2022. The new Final Rules modernize customs broker operations by aligning regulations with contemporary business practices, allowing for greater efficiency in the customs broker process.
“The publication of these Final Rules represents the culmination of a lengthy review of the customs broker regulations by CBP, the Commercial Customs Operations Advisory Committee (COAC) and the broker community,” said CBP’s Office of Trade Executive Assistant Commissioner AnnMarie R. Highsmith. “The modernized customs broker regulations were designed to reflect the contemporary business environment and to enable customs brokers to meet the challenges of the modern operating environment.”
The new Final Rules modernize operations by including changes to broker fees and an expansion of the forms of accepted payment to include electronic options. In order to recoup a portion of the costs associated with licensing, CBP is raising customs broker license application fees for all applicants. CBP will also update and modernize broker reporting and the Automated Commercial Environment capabilities in the broker account portal to align with the new regulations.
“Customs brokers are an integral part of the U.S. and international trade communities. CBP collaborated with the trade community on key recommendations, including a single, national permit for brokers and enhanced electronic processing capabilities, which have been addressed in the modernized customs broker regulations,” Highsmith said. “The updated regulations highlight CBP’s efforts to provide customs brokers with the tools they need to effectively operate in the current business environment while preserving robust U.S. trade operations.”
Within the new national framework, district permits will be eliminated. All customs brokers currently operating with only a district permit will be automatically transitioned to a national permit before the Final Rule effective date. CBP has diligently designed a national permit transition process that will ensure no lapse in permit activity for customs brokers impacted by this process. Licensed customs brokers who already hold a national permit will not be affected.
Additional changes in the updated regulations address the rules for license and permit requirements, cyber security breaches, and redefine record keeping and other customs broker duties and responsibilities.
For more information and resources on the regulation changes, visit https://www.cbp.gov/trade/programs-administration/customs-brokers/modernization. To read the complete Final Rules, visit Elimination of Customs Broker District Permit Fee and Modernization of the Customs Broker Regulation.