Customs Committee Agenda for 4/5/07 Meeting - ncbfaa

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In practice, all records relating to a broker’s customs business are filed as the broker
receives them and/or at the time the broker files the entry. However, solely because of section
163.5(b)(2)(iii), the broker must keep the original of “entry records” for a minimum of 120 days
after release of the imported merchandise, irrespective of the fact that the paper document has
been electronically stored. In essence, this requires that the brokers that have been approved for
electronic storage must also maintain a separate “paper” filing system. Further, because the
period for retention varies, depending upon the extent of the “conditional release” period and/or
whether a redelivery notice has been issued, a broker is precluded from establishing a reliable
schedule for the routine systematic destruction of the original documents. In most cases, the
result is that the broker maintains these records for the entire recordkeeping period set forth
under 19 C.F.R. §163.4.
While customs brokers understand and appreciate the fact that paper “entry records” are
no longer automatically filed with, and maintained by, the Customs Service, the retention of the
original creates an unnecessary burden on our member brokers. Certainly, at the time the
regulations were promulgated, no one could foresee the great strides that would occur in
electronic imaging and storage or the economic and recordkeeping burden this requirement
would cause.
In addition, under amended 19 U.S.C. §1509, the importer is the primary keeper of the
“entry records.” In many instances, the customs broker only receives copies of these documents
from the importer and that is the record that the broker is now required to keep. In a practical
and legal sense, they are “evidence” of the record the broker relied upon in submitting the
entry/entry summary. An electronic image of the documents serves exactly the same purpose.
In view of the above, we request that your office give favorable consideration to
amending the provisions of section 163 to allow for the immediate retention of an electronic copy
of entry records. Enclosed is our suggested language.
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