U.S. Customs and Border Protection to Establish Customs Broker Self-Assessment Pilot Program

U.S. Customs and Border Protection (CBP) recently announced in the Federal Register the creation of a new Broker Self-Assessment (BSA) pilot program.

The BSA pilot program, which in many ways will be similar to the Importer Self Assessment (ISA) program, is intended to allow customs brokers to determine how well they comply with customs requirements, provide recognition and support to participating brokers and facilitate legitimate trade so that CBP can focus on higher-risk enforcement issues.

To participate in the BSA pilot program a customs broker must:

• have been licensed for at least five years;
• be a member of the Customs-Trade Partnership Against Terrorism (C-TPAT) program;
• operate through the Automated Broker Interface and the Automated Commercial Environment;
• possess a broker national permit;
• maintain records demonstrating the accuracy of CBP transactions;
• maintain and update internal controls and test them periodically based on risk;
• regularly adjust and improve its internal control system;
• voluntarily disclose to CBP any deficiencies;
• maintain an audit trail linking financial records to entries filed with CBP; and
• have documented policies and procedural manuals relating to CBP business.

Applications to participate in the pilot program must be submitted to CBP by May 27, 2009. CBP will select a limited number of participants that are representative of key sectors of the brokerage community or whose structure and processes present potential challenges.

CBP has not yet indicated the types of benefits that customs brokers will receive for participating in this program.

CBP intends to review the BSA pilot program within one year after its effective date to measure its effects and achievements and recommend whether the BSA program will become permanent.