PowerPoint Presentation

Program Overview

Pat Fosberry PresidentApril 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 LAWCan eliminate E&O coverage & COGSA defense, attorney feesNVOCC Committee (Rich Roche)Demurrage review Winter delays = big windfalls for carriersChassis shortage discussionPushing for elimination of tariffsSaturday, April 5, 2014Transportation Committee Meeting

Logistics Committee (Melzie Wilson)FMCSA MAP 21 Details at sessionDomestic Moves Best Practices Committee Merit TremperApproved new Delivery Order to carriers for door shipments suggested formsExport Compliance Committee Paulette KolbaUSPPI Responsibility Information Sheet on NCBFAA website (Publications & Resources)Shippers 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.htmSaturday, April 5, 2014Customs Committee MeetingITDSList detailing data, documents, etc.Part 111 RewriteOR&R 111.24 Confidentiality Does not allow broker to share info with transport companyEmployee reportingContinuing educationExam reformQuestion order, complexity of questions, questions on practical issuesNCBFAA to submit 30 questions to CBP for each examNCBFAA opposes proposed change to online ( no books)

Saturday, April 5, 2014Customs Committee MeetingBroker Known Importer ProgramConcept Paper & Questionnaire Draft being made availablePermitsSplit support NCBFAA represents companies, not the individual licenseGrass Roots letter by Donna Mullins availableNCBFAA will have position paper by June 21ACECloud filing Is this legal under current regulations? (Foreign server???)Post Summary Corrections CBP has visibility of original and correctedSaturday, April 5, 2014Board of Directors MeetingAudit Committee Marie Armelagos Reviews all functions of NCBFAAMembership Bruce Goodwin - Over 940 membersNEI Ken Bargteil Volunteers needed LMS purchased, operating by 1-1-15Legislative Jon KentNo progress in CongressGSP stalledBOD Elections Kathy Carlton, Miami, FL reelected Area 4 RepPresident Geoff Powell, CH Powell, BaltimoreVice President Amy Magnus, AN Derringer, Port Champlain, NYSecretary Billy App, JW Allen, New Orleans, LATreasurer Scott Larson, MOL Logistics, Chicago, ILSaturday, April 5, 2014NCBFAA 2014 Annual Meeting PermitsWith the ability of all entry types to be done via RLF next year, current permit regulations will become obsoleteIf 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 companyOne licensed broker per officeOne licensed broker per areaOne licensed broker per number of entriesOne licensed broker per employees (total or those doing customs business)NCBFAA will pole its members with specific questionsNCBFAA to present white paper by next BOD meeting June 21 in DetroitNCBFAA to present final proposal by GAC September 14-16

Monday, April 7, 2014eBond is Coming: How will It Work?All will be required to be filed in ACE in November, 2015eSTBs will be required to be filed in ACE effective January 3, 2015All bonds entered by the SuretyBroker sends eSTB data to SuretySurety sends approved bond to CBPCBP accepts and notifies Surety & brokerBroker transmits entry in ACEACE matches entry data with bond data; entry is releasedContinuous bonds are entered in same platform as nowRevenue stream for brokers should not be affectedBond issuance available 24/7Monday, April 7, 2014Export Regulatory UpdateAES moved to ACEVisibility & PGA connectionsFTR Regulations now in effectUltimate Consignee TypeLicense ValuePort Departure/Option 4 (10 to 5 days)Port of Export180 days Informed Compliance (October 2, 2014)AEI PilotUSPPI Information SheetShippers Letter of InstructionTuesday, April 8, 2014

USPPI Responsibility Information Sheet

FMC: Where Are We?Chairman Cordero addressed for 1.5 hours.NPRM issues are being reviewed. More business-friendly set of OTI rulesItems that have economic impart on OTIs will not be in final rulesAttention will be on OTIs operating unlawfullyTuesday, April 8, 2014FMCSA: MAP21

The difference between a Motor Carrier, Freight Forwarder and Property BrokerMotor carrier is comparable to a steamship line (owns trucks, issues BOLs)Freight Forwarder is comparable to an NVOCC (does NOT own trucks, issues BOLs)Property Broker is comparable to an international freight forwarder (does NOT issue BOLs)NCBFAA is reviewing to determine if adding clauses to Terms & Conditions can add extra protectionTuesday, April 8, 2014FMCSA: MAP21

Words on a document will not prevent you from being suedDelivery Advice templates presentedDomestic Working Group AgendaForm/Bill of Lading suggestions when acting as AgentTraining suggestions & recordkeeping best practicesCertificates (Insurance, HazMat, TSA Compliant)ContractsList of motor carrier vetting software companies will be providedTuesday, April 8, 2014Broker Known Importer Program (BKIP)

Custom Broker collects information on importerEntry can be flagged that importer is a known importer to the brokerResult in possible lower targeting scores for the importerBroker NOT certifying them or verifying what they say is correct, just that the conversation has taken placeSpecific list of questions being supplied by CBPNCBFAA will be distributing this list

Wednesday, April 9, 2014Revisions to Broker RegulationsConfidentiality 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 businessContinuing Education Requirements (Sykes, CBP)40 hours over 3 yearsLow/No cost; No travelEmployee 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 employeeWednesday, April 9, 2014Revisions to Broker RegulationsBroker Freight Forwarder RelationshipImporter Bona Fides Place burden to ImporterAllow direct communication between Broker & Importer (modify 19 CFR 111.36)Validating Importers (Bona Fides)CBP interested in creating requirements amendment of 19 CFR 141Updating regulations will protect Brokers (IPR, Identity Theft, etc.)Wednesday, April 9, 2014Centers of Excellence and Expertise (CEEs)1 - Pharmaceuticals, Health & Chemicals New York, NY2 - Agriculture & Prepared Products - Miami, FL3 - Automotive & Aerospace Detroit, MI4 - Apparel Footwear & Textiles San Francisco, CA5 - Base Metals Chicago, IL6 - Petroleum, Natural Gas & Minerals Houston, TX7 - Electronics Los Angeles, CA8 - Consumer Products & Mass Merchandising Atlanta, GA9 - Industrial & Manufacturing Materials Buffalo, NY0 - Machinery Laredo, TXTeam 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, 2014Centers of Excellence and Expertise (CEEs)Account BasedPartnered accounts & CEE VolunteersRoll up IR numbers under one accountProcess all lines by one CEE regardless of HTS#All automated entry types processed by CEEProtests and inquiries should go to CEETransaction by TransactionTariff break out by scope of industryWednesday, April 9, 2014Centers of Excellence and Expertise (CEEs)Prepare - Identification of accounts assigned to CEEsAccount notificationCST TeamCST Codes (CSMS# 14-000033)Changes to HTS NumbersExpansion of CEEs (Pharma, Electronics, Petroleum)Engage CEE assigned accounts and the CEEsCommunicate CBP issues, entry info requests, trends, Post Entry questions/concernsDocument submission IT/Software solutions, Exercise caution over documents providedDevelop communication standards with CBP XXXCEE003@broker.com; CEE to publish listRefine & Improve Trade Process Document, Exceptions to centralization, Internal auditsGet involved and stay involvedBroker should encourage importers to apply to CEEsBWG Broker Working Group work through local associations and NCBFAAKeynote Lunch with CBP Commissioner KerlikowskiWednesday, April 9, 2014Admitted 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 BrokersACEBrenda Smith CBP, Executive Director, ACE Business OfficeAble to facilitate CEEs, Exports, Manage by AccountACE Capacity OverviewPre-Arrival Manifest (80%)Arrival Cargo Release (75%)Post Release Entry Summary (65%)Exports (55%)PGA Integration FDA, APHIS/Lacey Act (50%)Single WindowPGA 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 filingNovember 1, 2015 Electronic cargo release and related entry summary filingOctober 1, 2016 All remaining electronic portions of the CBP cargo processWednesday, April 9, 2014ACECompletion Dates for Key Ace Functionality Vince Iacopella, JanellApril, 2014 Cargo Release for all modesJanuary, 2015 Import & export manifest for all modesJuly, 2015 All entry typesOctober, 2016 All development completeDoes your company have a plan with their IT company?BenefitsSurvivabilityPaperSimplified 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 levelDont Wait MigrateACE Transition Toolkit available on the NCBFAA websiteWednesday, April 9, 2014Enforcement Through Trade TransformationRich DiNucciCompliance and accuracy through CEEsImprovements in targeting5106 New forms will help targetingBKIP will help process & CBPConfidentiality still will be an issue under current regulationsClient will complete 5106 via app on ACE and submit direct to CBPBrokers can submit on behalf of importer IF they are willing to accept liabilityCompliance is a two-way discussion; Enforcement is one-wayWho 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