December 19, 2022

CBP Publishes Modernized Customs Broker Regulations

Final Rule Effective Date: Modernized Customs Broker Regulations 19 CFR 111

The Modernization of the Customs Broker Regulations (87 FR 63267) and Elimination of Customs Broker District Permit Fee (87 FR 63262) Final Rules went into effect on December 19, 2022.

Key changes in the Final Rules that are now in effect include:

Transitioning to a national permit framework
Changing broker fees and expanding forms of payment
Transitioning broker reporting capabilities from Legacy ACE Portal to the Modernized ACE Portal
Establishing that customs business is conducted within the U.S. customs territory and requiring brokers to designate a knowledgeable point of contact
Revising the broker/client relationship requirements
Updating responsible supervision and control oversight requirements
Strengthening cyber security and records requirements

Please visit CBP’s Customs Broker Modernization Regulation dedicated webpage for more information on the regulations. The Office of Trade’s Broker Management Branch will continue to engage with the public and the trade community to maintain transparency during the implementation of the new regulations. Read thefull text of the Modernization of the Customs Broker Regulations Final Rule and full text of the Elimination of Customs Broker District Permit Fee Final Rule.

Questions regarding this message should be sent to: Broker Management Branch, Office of Trade at brokermanagement@cbp.dhs.gov.

Crane Trade Services can assist you with questions regarding this matter. For assistance please contact CWTSConsulting@craneww.com.

October 21st, 2022

CBP Publishes Modernized Customs Broker Regulations

U.S. Customs and Border Protection (CBP) announced changes to Part 111, Chapter 19 of the U.S. Code of Federal Regulations (CFS) 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) and will be fully executed on December 19, 2022. The new Final Rules will help modernize customs broker operations by aligning regulations with contemporary business practices, which allows 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.”

Modernizing operations in the new Final Rules will include changes to broker fees, an expansion on the forms of payments accepted, including electronic options, broker reporting, and the Automated Commercial Environment capabilities in the broker account portal to align with the new regulations. CBP will be raising customs broker license application fees for all future applicants in order to recoup a portion of the licensing fees.

“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.”

District permits will now be eliminated and permits are moving to a national framework. All customs brokers who are currently only operating with a district permit will be automatically transitioned to a national permit before the Final Rule effective date and all who already hold a national permit will not be affected. CBP has diligently designed a national permit transition process that will ensure no lapse in permit activity for those who will be impacted by this process.

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.