Bee On Trade

Responsible Supervision and Control


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Understanding the Impact of the Customs Modernization Act

What impact did the Customs Modernization Act have on commerce?

The implementation of the Customs Modernization Act by CBP had a significant impact on commerce, particularly with the introduction of "informed compliance" and "shared accountability."

How does "informed compliance" and "shared accountability" work in CBP compliance?

"Informed compliance" and "shared accountability" require cooperation between the trade community, importers, and brokers. Importers are responsible for using reasonable care, while brokers must exercise responsible supervision and control.

What happens if responsible supervision and control are not applied?

CBP can impose hefty fines on brokers if audits reveal a lack of responsible supervision and control based on the degree of non-compliance.

Requirements for Responsible Control and Supervision

What are the requirements for responsible control and supervision according to CBP?

  • Education: Broker staff must receive the necessary education.
  • Written Directives: Distribution of written directives and instructions to broker workers.
  • Business Volume and Nature: Consideration of the broker's business volume and nature.
  • Rejected Customs Transactions: Monitoring the percentage of rejected customs transactions.
  • Regulatory Knowledge: Maintaining current versions of CBP regulations, the US Harmonized Tariff Schedule, and CBP publications.
  • Personal License: Availability of a broker with a personal license to confer with the broker's staff as needed.
  • Supervisory Trips: How frequently a broker with an individual license makes supervisory trips to a branch office without an individual licensee on staff.
  • Audits and Evaluations: The regularity of an individually licensed broker's audits and evaluations of customs transactions.
  • District Permit: The level of involvement of an individually licensed broker who meets the requirements for the district permit in the management of the brokerage.
  • Ownership Stake: Anything suggesting that a broker who is independently licensed has a genuine stake in the way a broker operates.

Ensuring CBP Compliance for Brokers and Importers

How can brokers and importers ensure CBP compliance?

Brokers must adhere to CBP's requirements for responsible supervision and control, while importers are accountable for using reasonable care in their customs transactions.

What are the consequences of non-compliance with CBP regulations?

Non-compliance with CBP regulations can result in hefty fines for brokers, making it crucial for both brokers and importers to meet the requirements for responsible control and supervision.

Where can I find detailed information about CBP compliance regulations?

You can find detailed information about CBP compliance regulations in Title 19 CFR Part 111.1.

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