Monday, February 7, 2011

Should Experience Be Required to Obtain a Customs Broker License?

Beware: This topic might stir up a little controversy and debate!

Every now and then, I see an article or question about someone wanting to start a new customs brokerage office. These eager entrepreneurs either are contemplating the upcoming Customs Broker Exam (CHB Exam) or have recently passed it. The person continues to explain that they do not have any experience and would like some advice. For those of us who have been in the business a few years or so, our immediate response is “get some experience first.” However, a newly licensed entrepreneur might not be thwarted by that advice. Technically, someone who passes the CHB Exam can open his or her own customs brokerage business without any prior experience. This thought scares me, but then again, I’m not a huge risk taker.

Should CBP require a certain amount of experience or education prior to issuing a license? Let us look at some of the other professions that require licensure for a little guidance and compare with the requirements for becoming a Licensed Customs Broker.

Customs Brokers
Requirements for becoming a licensed customs broker include:

• Passing the Customs Broker License Exam
• submitting the license application with appropriate fees
• being a U.S. citizen and at least 21 years old
• not being a current employee of the Federal Government.


Pharmacists
Requirements for becoming a pharmacist include:

• completing at least two years of pre-pharmacy courses in college;
• graduating from a four-year pharmacy program;
• completing an internship; and
• passing a state licensing exam.


Accountants
Requirements for becoming an accountant include:

• completing a bachelor's degree; and
• majoring in accounting.

Requirements to become a certified public accountant (CPA) include:
• completing a five-year, 150 credit hour accounting program (awards a bachelor's or master's degree);
• having public accounting experience; and
• passing the Uniform CPA Examination.


Truck Drivers
Requirements for becoming a heavy truck driver include:

• completing a high school diploma or GED;
• being at least 18 years old (intrastate driving) or 21 years old (interstate); and
• obtaining a commercial driver's license (CDL), which requires passing written and practical tests.
• Although formal training is not mandated, most drivers learn skills through formal programs offered by specialized schools that offer certificates or diplomas. Some states may require completion of a basic truck-driving training program to obtain a commercial driver's license. Many people work in other related jobs such as driving light trucks, operating equipment or unloading trucks before becoming heavy truck drivers. Once hired, they may work with an experienced driver for a short time and receive additional training.


Plumbers
Requirements for becoming a plumber include:

• completing a high school diploma or GED;
• completing classroom course work;
• completing on-the-job training; and
• passing a state or local licensing exam.

High School/ GED    CollegeExperienceExam/License
Customs BrokerNoNoNoYes
 PharmacistYesYesYesYes
Accountant/CPAYesYesYesYes
Truck DriverYesNoNoYes
PlumberYesNoYesYes

After reviewing these jobs, you will notice that they require some combination of education, examination and experience. Of the five jobs requiring a license, the Customs Broker is the one with the least requirements. To become a Licensed Customs Broker, it is not necessary to have any experience or specialized training. Does this give potential licensees unrealistic expectations that they can run a brokerage business just from passing the exam? Should Customs and Border Protection or some other regulatory organization require additional experience or education before issuing the CHB license? Weigh in on this important issue by taking the blog poll and submitting your comments!

1 comment:

Anonymous said...

I think a license can be issued if a person passes the test. However, before that person can open a broker business and be the licensee for the office, that person would have to have at least five years of experience. Another license I hold is the CPS, Certified Professional Secretary. While I have been grandfathered in such that I don’t have to re-take the exam every six years or so, there were experience requirements to even taking the exam. You had to have a combination of either a college degree, some college and several years of experience (I can’t remember the breakdown), or five years of experience and be a certain age. So there was a serious component of experience with that licensure as well.



I find it ludicrous that someone would want to take the exam without any experience and then go open a business – in whatever field is being discussed. Taking care of the importing function is only a part of having a brokerage business; there’s the truly “business” side of things, too – payroll, business expenses like electricity, building rent or mortgage, insurance, etc. etc.