CBP Proposes Changes to In-Bond Procedures

On February 22, 2012, U.S. Customs and Border Protection published a notice of proposed rulemaking that offers various changes to the procedures for transporting imported merchandise in-bond. The primary changes include the following:

• Eliminating the paper in-bond application (CBP 7512);
• Requiring carriers or their agents to file the in-bond electronically;
• Requiring additional information on the in-bond application including the six-digit HTS number, if available;
• Establishing a 30-day maximum time to transport in-bond merchandise between United States ports, for all modes of transportation except pipeline;
•   Requiring carriers to electronically request permission from CBP before diverting the in-bond merchandise from its intended destination port to another port; and
• Requiring carriers to report the arrival and location of the in-bond merchandise within 24 hours of arrival at the port of destination or port of export

Comments must be submitted by April 23, 2012.  Comments can be submitted by one of the following methods. 

• Federal eRulemaking Portal: http://www.regulations.gov. Docket number USCBP-2012-0002

• Mail: Border Security Regulations Branch, Office of Regulations and Rulings, U.S. Customs and Border Protection, Mint Annex, 799 9th Street NW., Washington, DC 20229. Remember to include the docket number.

Click HERE to read the full notice in the Federal Register.

U.S. – South Korea FTA Effective March 15

U.S. Trade Representative Ron Kirk announced that the U.S.-Korea FTA will take effect on March 15, 2012.   Originally signed in 2007, the agreement was delayed by various concerns.  On March 15, duties will be eliminated on 65 percent of agricultural goods and 80 percent of industrial products imported into Korea from the U.S. 

CBP Posts Notice of Customs Broker Exam – April 2, 2012

The Customs Broker Exam will be given on Monday April 2, 2012.  CBP automated the CBP 3124E “Application for Customs Broker License Exam,” which must be completed in order to take the exam.  The application and the $200 exam fee must be submitted online by Noon Eastern Standard Time on March 5, 2012.  Click HERE to access the automated application.

Applicants requesting accommodations under the Americans with Disabilities Act should send supporting documents by 5 p.m.  Eastern Time on March 5, 2012.  Documentation may be sent via email to Everett.Burns@dhs.com, by FAX to 202-863-6540 or by mail to

U.S. Customs and Border Protection
Office of International Trade
Broker Compliance Branch
1400 L Street NW
Washington, DC 20229-1143

Applicants for the exam must be a U.S. citizen, 18 years of age, and is not an officer or employee of the U.S. Government on the date of the exam. 19 CFR 111.13(b)

Applicants must provide their own reference materials.  Click HERE to view the list of references required for the exam and other instructions.   Please note that the references include the 2011 version of the Harmonized Tariff Schedules without supplements and the April 1, 2011 version of Title 19 of the Code of Federal Regulations.

Examinees may use any written reference material; however, the use of electronic devices (i.e. cell phones, iPads, laptops, etc.) are prohibited during the exam.   

CBP Gives "Extra" Credit

After a C-TPAT validation, companies are provided a report with required and recommended actions and a score.  Participants are then required to make changes and submit responses to CBP.  The question then becomes whether the participant can improve the original score by making the changes.   In response from suggestions from the trade, CBP made some changes to the process. Participants get additional credit for some of the changes they make.  Here are some of the highlights.  

1. Recommendations are treated differently than Actions Required.   Participants are asked if they have implemented the recommendation.  The answer  of Yes or No is required without additional details.  That’s great, but don’t be tempted to fill in the Yes answer without being able to demonstrate if asked.
2. Actions Required and Recommendations are treated differently on the Validation Response page.
3. The trade will be given credit for actions taken on the actions.     If the partner implements some of the recommendations listed on the validation report, they will receive additional points, which will increase the total score. 
4. Partial points awarded for Actions Required and Recommendations that are resolved during the Response Process.
5. Partners awarded full credit for all Best Practices
6. CBP will not adjust scores for previous responses.

Click HERE to review the information on the CBP website.