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

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08:30 – Call to order
08:30 – Opening Remarks and Introductions
Welcoming remarks, housekeeping notes and introductions will be made. Note taking
responsibilities will be assigned. A sign-in sheet will be circulated.
08:40 – The Security Filing
At its February 2 nd meeting with Debbie Spero, Jayson Ahern, Michael Mullen, and Sam
Banks, Debbie Spero agreed to provide NCBFAA with the legal basis for CBP’s determination
that activities necessary for the security filing do not involve conducting customs business. The
Customs Committee is anxious to receive this information. NCBFAA has carefully studied this
issue, and as reflected in its comments (see Attachment “A”) on the strawman proposal and
NPRM recommendations, has come to the conclusion that the activities integral to the
construction and transmittal of the security filing inescapably involve the filer in conducting
customs business. The Customs Committee believes it is in the interests of both CBP and
NCBFAA to have an open discussion on this issue and is requesting the participation in this
discussion of the OR&R attorney principally responsible for CBP’s determination in this matter.
Of equal importance to the Customs Committee in this matter are the practical realities of
organizing such a dramatic change of international business practice, and the daunting challenge
of doing so with the least disruption possible of the supply chain and competitive environment.
The Customs Committee would like to devote the balance of time allotted to this agenda item to
explore pitfalls and possible solutions with regard to the data elements, filer qualification,
transmission channels, timing issues, less-than-container-load shipments, corrections,
confidentiality, and consequences.
10:10 – Break
10:30 – 1641 Penalties
Prior to enactment of legislation authorizing Customs to enforce monetary penalties against
customs brokers, codified in 19 U.S.C. 1641(d), Customs and representatives of NCBFAA
collaborated to construct a provision that would provide Customs with a necessary adjunct to
their enforcement powers. In reaching agreement on the new monetary penalty provision
NCBFAA’s principal concern was that the small family businesses that comprised the majority
of its members not face financial ruin by reason of a penalty provision that was intended to be
less momentous than suspension or revocation of the customs broker’s license. There is no
doubt among those who participated in that collaboration that an agreement was reached, and
that the $30,000 limitation was to be the sum total monetary penalty that might be assessed for
all violations prior to notice of penalty.
The good faith that has been the hallmark of collaborations between Customs and the
NCBFAA is a critical element for success as we meet the manifold challenges ahead. CBP’s
current prosecution of multiple $30,000 monetary penalties against an NCBFAA member for
violations all occurring prior to the first notice of penalty has reverberated through our
association. The Customs Committee would like to discuss this matter as a policy issue.
Members of the NCBFAA Large Broker & Forwarder Committee have opened discussions
with Vera Adams on the larger issue of broker compliance and monetary penalties. The theme
of that effort has been to explore means by which the purpose of penalties, i.e., to bring about
better compliance, might be more effectively achieved, in a more efficient regime. It is
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