2008 NCBFAA Annual Report

President’s Report
By Mary Jo Muoio
       As with all enterprises, associations have a core purpose for being that governs the activities they undertake. We all belong to an organization focused exclusively on its members and their businesses. This focus is captured by the tagline "NCBFAA-Clearing The Way For Trade." The National Customs Brokers and Forwarders Association of America works to foster a healthy environment for our businesses and our industries. In fact, all the activity the Association engages in is primarily geared to its single core purpose of clearing the way for trade. Whether trying to remove impediments to trade, mitigating misguided rulemaking, lobbying lawmakers, creating education and business tools, or any of its other endeavors, the Association’s guiding focus is always on clearing the way for trade—indeed clearing the way for our businesses to prosper. Throughout 2008, we had many opportunities to pursue this goal.
       Interacting with, and reacting, to the actions of the trade regulatory agencies always consumes much of our time and efforts - but 2008 was exceptionally active. The Importer Security Filing or 10+2 is a case in point. The NCBFAA has been engaged with this significant measure from day one trying to mold its final form into one that provides improved security for the country and provides opportunity for all segments of our membership. Represented by our Customs Counsel Alan Klestadt and our very active Customs Committee the NCBFAA met with CBP, filed substantial comments, visited Congress, coordinated with other trade associations, and informed our members on the measure. We continue to meet with the regulatory staffs charged with implementing the measure. Before and after it became effective, we offered our own webinars and participated in other programs. We also produced how-to kits intended to facilitate use of the rule by our members--customs brokers, forwarders and NVOCCs.
       Another controversial and challenging issue that confronted us last year was the evolving 100 percent inspection mandate of the Transportation Security Administration (TSA) for air cargo on passenger airlines. The implications of this mandate to our members are not insignificant. Seeking an affordable option and led by our Transportation Counsel Ed Greenberg and Air Freight Subcommittee, we worked with other industry groups and the TSA to develop the concept of a Certified Cargo Screening Facility (CCSF) that will act like a "car-wash" with unscreened cargo going in one door and properly screened cargo coming out the other. This approach is not a panacea for this very complex challenge, but we believe it will help our smaller capitalized member firms stay in the game by permitting them to share the cost of compliance or outsource the screening function.
       Learning last summer about amendments to the Lacey Act, Association counsel and volunteers worked feverishly to mitigate the impact of these measures. Intended to protect endangered plant species, this rulemaking came close to endangering something else--our paperless clearance and remote location filing systems by requiring a paper declaration. Through hard work we successfully contributed to the phased-in automated declaration requirement.
       Being based in DC allows the NCBFAA to represent our members’ interests before Congress either by testifying directly or advising Congressional staff of the ramifications of the bills and laws they draft and amend. It is said that "the devil is in the details" and that is never truer than when Congress rushes to right a perceived wrong without first deliberating the consequences of its actions. That is where our constant monitoring and review of its activity pays off. Our ‘man on the hill’ Jon Kent has been instrumental in divining Congress for proposals with potential to impact our businesses. For example, as a result of this vigilance, we initiated efforts that eviscerated a Consumer Products Safety Commission (CPSC) legislative provision that would have stripped customs brokers of their licenses for importations of toys and other products that violate CPSC rules. I vividly remember receiving a call on my cell from Jon about this alarming development. Ironically, I was in a toy store at the time. 
       In this way, we confront, on your behalf, those issues and challenges that affect the business environment in which you serve your clients. Eliminating or reducing the obstacles that impede your ability to efficiently conduct business is one way that your Associationclears the way for trade. 
       Another way we accomplish our purpose is through the NCBFAA Educational Institute (NEI). It is one thing to have a level, navigable playing field but, unless you know the rules of the game, it is virtually impossible for you to enjoy success. You and your staff must know the requirements of the trade and know them well. In simpler times, one could learn the ropes on-the-job, and though OTJ training is still useful, business today demands better alternatives. To meet these demands Ms. Cindy Allen, an experienced customs broker and CCS and long-time NCBFAA volunteer, joined the NEI to direct all education-oriented activities of the Association.
       NEI offers the membership and others a full program of certifications and knowledge-based opportunities. Throughout 2008, our NEI programs met with great success. We have also significantly upgraded the delivery of our Certified Customs Specialist (CCS) course by converting it to an on-line process. Through the auspices of our partners in the Canadian Society of Customs Brokers (CSCB), we were able to add our course to their existing CCS platform. The flexibility and scalability that this provides our program takes it to an exciting new level that we believe will attract an entirely new generation of logistics professionals.
       With a growing field of Certified Customs Specialists, the NCBFAA has met their need for a wealth of opportunities to accrue the required continuing education units. The Association offers six free case studies so individuals can earn their annual CEU points at no cost. In addition the NCBFAA offers numerous minimally priced webinars. These offerings are all part of the Association’s commitment to this excellent program and to facilitating participation by industry professionals in this worthwhile credential program. The NCBFAA also reviews and accredits a long list of educational opportunities sponsored by other organizations making continuing education accessible to all.
       Although our initial foray into education focused on the customs side, it was always our intent to include an export component to our stable of educational products. In 2008, we did just that with the launch of our Certified Export Specialist (CES) course. Administered by our good friends at GISTNet, the CES certification program is designed to help trade professionals involved in the export industry to become competent and knowledgeable in current export regulations. The coursework is varied and wide-ranging, encompassing all aspects of the trade and challenges individuals to be the best at their craft.
       Currently the CES offers two roads to grandfathering. One allows all those who earned the NCBFAA Certified Ocean Forwarder (COF) certification to become a CES with payment of a registration fee. Alternatively, experienced export personnel may become a CES, provided they have a minimum of 10 years experience with an OTI (Freight Forwarder, NVOCC) or an exporter; submit an application form with company name, contact name and email/phone number for verification along with dates of employment; hold a management position within their current company; provide certification on company letterhead by an officer of the company verifying position/title of applicant; and, pass a required knowledge exam.
       As with the customs program, the CES program requires annual earning of 20 CEU points for an individual to remain certified. This is not a one-time credential but an on-going commitment to knowledge.
       The true measure of the success of these programs is the public recognition they receive. From Congress to Customs to Census, we have had positive endorsements of the programs. Importer bid packages have begun to ask for the number of CCS’s employed. Seminar attendees are asking if programs are CEU recognized by the NCBFAA. Individual resumes and business cards now proudly display the CCS designation. There truly is a need in the industry and the NCBFAA is filling it.
       As you read this Annual Report and other NCBFAA publications throughout the year, I hope you are struck by the volume and scope of projects and issues your Association engages in and influences on your behalf. Its successes are your successes and are only achieved because you continue to support its work with your time and funding. It is the strength that each of you brings to the Association that makes it possible to overcome the challenges all of us face. As I enter the final year of my NCBFAA Presidency I want you to know that I continue to be at your service and will continue to work to the best of my ability to pursue our common interests and common goals. Thank you all for this wonderful opportunity you have afforded me to serve you and our industry. No matter what the challenges are you can be sure that the NCBFAA will continue to clear the way for trade for our businesses. 

• Engaged in efforts that are helping to mitigate the impact of the Lacey Act Amendments to protect old growth forests by requiring a new paper import declaration containing precise sourcing information.
• Persuaded the FDA not to close seven of its 13 labs following NCBFAA Congressional lobbying.
• Participated in ongoing discussions and strategy sessions regarding the development and implementation of ACE.
• Engaged as an ongoing liaison between TSA and our IAC members in regards to the Certified Cargo Screening Program (CSSP).
• Initiated efforts that eviscerated a CPSC legislative provision that would have stripped customs brokers of their licenses for importations that violate CPSC rules.
• Performed ongoing work to improve efforts at meeting the challenges faced by importers, customs brokers and carriers through the NCBFAA’s Joint Ocean Carriers and Ocean Carriers Best Practices Committee.
• Expanded the NCBFAA Educational Institute programs to include the Certified Export Specialist (CES) certification.
• Increased NCBFAA membership to a 112-year all-time high.

       The benefits generated by this voluntary activity are among the major reasons why membership in the NCBFAA is so vital. Without the financial support of our loyal members, we would find it hard to field these teams of activists, who, though they don’t get paid for their work still incur logistic and other expenses that have to be paid. The work of these dedicated professionals improves our industry not only for our members but also for non-members. So if you are a member reading this, thank you for your support and confidence in your Association. And if you know a non-member, I hope you have an opportunity to convince them to recognize the value that membership in this Association brings to our industry at large and how important everyone’s participation in this work is.
       It is indeed a privilege for us to work with these visionary Leaders whether they are the President, Officers, Board of Directors, Committee Chairs, Committee members, or the wise Senior Counsel and Honorary Members. Along with these volunteers, and many more unnamed industry leaders who have also had a quiet leadership role in the NCBFAA throughout the years, they all join together playing a significant role in the industry’s future, as we continue to face the day to day challenges of evolving policies, procedures, economies and technologies. Our learned counsel would be hard pressed to accomplish the work that they do, without the support of you, the members, who indirectly give them the ability to focus on important industry issues and carry the NCBFAA banner from the Committee Meetings to the offices of the federal regulatory agencies and Capitol Hill.
       So on behalf of your NCBFAA Team (barbara, Cindy, Drenda, Kim, Kimberly, Jeff, Maria, Olu, Regina, and Tom), thank you sincerely for your continuing support. 

Ad Hoc Security Committee Report
By William Evans
       The Security Committee continues to participate in the Center for Disease Controls, Quarantine and Border Health Services, Training and Communications Needs Workgroup. CDC personnel, as well as their consultant RTI International, visited Committee-recommended NCBFAA members located on the Northern Border, in Baltimore and in Norfolk, to assess on site the needs of our industry as they relate to training, education, and communications in areas of public health. In addition to NCBFAA, the workgroup consists of CBP, Fish and Wildlife Service, TSA, Department of Agriculture, Airlines Association, In-Flight Medical Services, IATA and the Cruise Lines Association. 
       This group is scheduled to hold its final meeting at the end of March 2009 and CDC will publish its report in June 2009, which we will post on the NCBFAA Website.
       For its part, the Security Committee convened four meetings in 2008. 

Carrier Best Practices Committee Report
By John Hyatt and Daniel Meylor
       During 2008 the Carrier Best Practices Committee of the NCBFAA continued to actively engage the carriers with issues that affect our import/export clients and us in the effort to service those clients. The Committee has finally developed a mission statement, which is herewith reproduced: 

The Joint Carriers and NCBFAA [National Customs Brokers & Forwarders Association of America] Carrier Best Practices Committee was formed to help carriers, Customs brokers, forwarders and NVOCCs understand how their roles and practices affect the service to their mutual customers. The goal of the committee is to establish non-binding best practices for the members of the ocean transportation industry in order to facilitate efficient operations and help international trade flourish. 

       In the past the Committee had developed a Door Delivery Position Paper that could be used by members at their discretion. The Committee has also developed some generally agreed procedures on the handling of overweight containers. In the past year with the flurry of new Federal mandates the Committee has worked with participating carriers to attempt to make the new realities as painless as possible. Although it was agreed that because there was a significant time delay between issuance of an overseas booking number and the actual B/L and due to the narrow time frame with filing ISFs under the 10+2 mandate, having the booking number stand for the eventual B/L seemed to solve the problem.
       But unfortunately, the practice is not uniform between all carriers. Issues such as "ghost bookings" which never materialize and hamper the outward dispatch of real cargoes was addressed and solutions were proposed, such as transference of booking rights. New mandates under electronic AES filings and issues with exempt cargoes not requiring an ITN were also addressed. The "Clean Truck" program at the ports of Los Angles/Long Beach which finally came into effect on February 18, 2009 (after several legal challenges,) will be a front burner issue for the new year as only cargo interests or their legal representatives can "claim" containers discharged even on THRU B/Ls to inland points, when such containers would be normally exempt because of a direct on dock rail transfer.
       This and many other issues on the horizon such as rationalization of carrier services during the economic downturn should make 2009 and interesting year for us all. 

Freight Forwarding/NVOCC Report
By William App, Jr., and Joseph Meunier
       The past year has been extremely busy, as the Forwarding and NVOCC Committees have both dealt with a number of issues that arose from governmental initiatives and separately made strides in streamlining, modernizing and/or easing other regulatory burdens that threaten to unduly burden the numbers of the Association.
       One significant effort that the Committees undertook was to file another petition with the Federal Maritime Commission seeking to eliminate the need for NVOCCs to publish their rate tariffs. In filing that petition, the Association argued that the industry had changed, that tariffs no longer served any valid public purpose, that the FMC had ample authority to grant the exemption, and that there was no valid reason for NVOCCs to continue to bear the substantial costs associated with tariff publication.
       As part of its consensus building process, the Association met with a number of other organizations, including the National Industrial Transportation League, and government agencies, such as the U.S. Department of Transportation, in order to obtain their support. In addition, the Association met with representatives of the steamship lines in the hopes that they would, on this occasion, not oppose the NCBFAA’s petition. Although the FMC has not yet acted on the petition, the NCBFAA’s efforts to build a consensus were extremely successful. Unlike the situation several years ago, on this occasion NVOCCs spoke as a unified industry and every commenting NVOCC supported the initiative. That was also the case as to all the various other organizations and governmental agencies that submitted their own comments. Indeed, the only parties that opposed the petition were three tariff-publishing companies, each of whom was obviously concerned about the loss of revenues. Consequently, the Association hopes that the FMC will agree and grant the relief.
       We reported, last year, that the state of Texas had imposed a gross receipt tax on companies doing business in that state, whether or not they had offices there. As the Texas tax specifically declined to permit forwarders, NVOCCs and brokers from deducting so-called pass-through revenues (i.e., monies advanced to Customs for duties or to carriers for freight charges), the tax would have a significantly adverse effect on many or most intermediaries and brokers doing business in that state. While the Texas authorities have not yet changed their position, the Committees did develop a position and mechanism by which affected parties would likely be able to minimize the amount of tax that would be applicable. And, of course, there is still hope that the Texas authorities will reverse their position on this issue.
       The Committees spent a great deal of time addressing the issues raised by the efforts of the Ports of Long Beach and Los Angeles to enact new container fees that are nominally intended to reduce pollution in the port areas – the so-called "Green Trucks" initiative. As was the case last year, the Committee members met with the FMC Commissioners and other agency officials to explain why the agency should intervene to challenge these actions, and the FMC has taken virtually unprecedented steps to challenge the action of the courts both at the FMC (where the ports sought antitrust immunity for the purpose of collectively establishing such charges) and in the courts. As of the date this report went to press, those litigation efforts were continuing.
       The Committees also continue to meet with Congressman Manzullo concerning a possible legislative effort relating to the submission of shipper export data through the Automated Export System (AES). As we reported last year, Congressman Manzullo proposed that all AES filers be licensed and that the government take over the responsibility to ensure that export restrictions that might exist at any time be built directly into the AES system. We have continued to work with Congressman Manzullo and other congressional leaders, as well as the various involved governmental agencies, in the hopes of both shaping the legislation in the most favorable manner possible and to get it enacted. 
       The NVOCC Committee continued to work closely with the Customs Committee in responding to U.S. Customs and Border Protection’s 10+2 initiative. We helped draft the NCBFAA’s response to CBP’s proposed rules and have continued to work, now that the final rules are out, to clarify questions and make the procedures workable.
       Members of the Committees have continued to work with the Carrier Best Practices Committee, which involves members of both the Association and the steamship line and rail industries, with the goal of eliminating as many operational problems that arise from regulatory initiatives and carrier business practices as possible. Among the issues discussed during the past year have been implementation of mandatory AES, ACE Ocean E-Manifest, Overweight Container requirements, 10+2 ISF requiring B/L number at time of booking, inconsistent accessorial fees, CAAP (Clean Air Action Plan), reduction of booking lead times, Long Beach/CA ports’ Green Truck initiatives and related California legislation, earlier arrival notices, bill of lading amendments and more flexibility on detention/demurrage/per diem issues.. These efforts continue to achieve positive results both in increasing efficiency and reducing the incidence of inappropriate and unnecessary claims that the carriers have previously made against NVOCCs and brokers for issues such as demurrage and detention charges.
       In addition, the NVOCC Committee has been keeping the membership informed of its efforts both through the routine publications that come out at least weekly as well as through the use of webinars. In that regard, that Committee held webinars in August and October that related to the various issues on its agenda, both of which included a very productive Q&A session between the members and the moderators.
       The Forwarding Committee has continued to monitor the various U.S. and foreign government investigations of airlines and forwarders with respect to antitrust issues that arise out of the movement of ocean and air cargo. As part of this, the Committee has provided the membership with guidance concerning the possible participation of air forwarders in the settlement of the civil class action suit that is pending against Lufthansa. The Committee expects to be in a position to provide similar advice over the coming year as other airlines enter into settlements of the numerous class action suits that are still pending.
       The Forwarding Committee worked closely with the NCBFAA Educational Institute to develop and nurture an extensive Certified Export Specialist certification program. The online course, which began in October of 2008, is geared towards freight forwarders and NVOCCs with complete coverage of required knowledge in these fields. The CES program has been praised as one of the most comprehensive programs available in our industry. The course class will complete this year and testing for those qualified to grandfather as a CES will begin in April 2009. For more information, please see the NEI report.
       inally, the Committees also had the opportunity to meet with President Obama’s transition team in late November 2008 in order to discuss the Association’s views about the future of maritime regulation. Among the points that we made were the following:

• The FMC’s internal policy guidelines should be amended so as to provide advice or policy changes through rulemaking or other administrative proceedings, rather than through ad hoc enforcement actions;
• The FMC’s Alternative Dispute Resolution Office should be expanded and given additional authority to resolve disputes;
• The monetary penalty for violations in which there have been no significant adverse consequences should be substantially reduced;
• The FMC itself should either administratively remove burdensome and inefficient regulatory requirements (such as NVOCC tariff publication) or seek appropriate statutory authority from Congress as may be necessary;
• The basis on which any antitrust immunity can be given to the steamship lines and ports should be substantially limited.

       The Committees look forward to continuing their work during 2009 and invite all members either to directly participate in their activities or to take advantage of the opportunity to raise any issues that appear to be of general industry concern. 

Air Freight Subcommittee Report
By Scott Case
       The Air Freight Subcommittee is grateful for the support that we have received from the Executive Committee, the Board of Directors and our Transportation and Legal Counsels over the course of this past year. As of this writing and in advance of the 2009 Annual Conference, the global economy has contracted significantly.
       While we feel the issues we report are repetitive in nature, the ongoing evolution of regulation in the arena of cargo security is what consumes our time, energy and resources.
       In 2009, Indirect Air Carriers (IACs) have had to deploy new cargo security programs. The changes to these programs are the first in a number of years and sought to improve on the patchwork of directives, which had been put into place. This new program seeks to work in conjunction with the other parties who are also regulated by TSA through their programs and harmonize the intersection points. 
       Under a law passed by Congress, 50 percent of cargo on board passenger aircraft needed to be screened at a level commensurate with baggage as of February 1, 2009. The level jumps to fully 100 percent in August 2010. To meet this threshold, TSA has had to engage the private sector to participate and shoulder a portion of the screening burden from the air carriers. Thus was born the Certified Cargo Screening Program (CCSP).
       TSA’s thought is that engaging with the largest IACs who tender ULD cargo to the airlines, and having cargo screened prior to buildup at their warehouse, would reduce the workload for the airlines when the target dates arrived. This cargo must also be screened at the piece level, meaning that under most circumstances, cargo tendered, skidded or banded would need to be unpacked and screened at the lowest possible level.
       A pilot program was announced which provided funding to large companies to underwrite a portion of the expenses to acquire and test this technology in their companies. Your association fought hard with TSA and engaged several government resources including the Small Business Administration to seek participation for small and medium sized companies. While we were unable to make headway in adding funds to the program for additional participants, we made our point and TSA is considering the size and available resources of most IACs into consideration as they move forward.
       Private companies or groups of companies who are not IACs now have the opportunity to become a Certified Cargo Screening Facility (CCSF). Think of this as a "car-wash" approach wherein unscreened cargo comes in one door and properly screened cargo goes out the other. While simple in theory, this approach requires a significant investment of time and capital to operate. The technology list of eligible equipment only contains "recommended" items but nothing is mandated. This elevates the risk that if a threat vector changes and renders the technology obsolete, there is another costly round of new technology acquisition and deployment that must take place.
       The cost for acquisition also must account for maintenance (think of service contracts on printers, copiers, etc.) as well as consumables. Finally, there must be properly trained staff to operate the machines and pass the necessary security screening thresholds.
       There are external groups who believe that this should be the responsibility of the government and are seeking legislation to make the government responsible for cargo screening as they are for passenger baggage. Unlike passenger baggage, cargo comes in far more shapes, sizes, types and densities than luggage and no single technology exists that works for everything. Screening boxes of consumer electronics is different than screening boxes of live animals or perishable farm produce or drums of chemicals. It is this misunderstanding of the "magic box" concept that has proven difficult for the industry to articulate and convey to the traveling public, especially in light of strong statements made by some Members of Congress.
       And while the government could not have foreseen it, the biggest factor is that this is adding cost to the supply chain at a time when rates and volumes are, for the moment, in decline. There are those who argue that security should come at any cost. However, at some point, does the amount of cost added to a product render it no longer suitable for transport by air? Does it move to another modality, such as truck, or do people look at integrators as a way to avoid the need for security because it’s not as regulated? Much as Customs balances the twin pillars of security and trade so must their sister agency TSA evaluate the realities as well.
       Under the new Administration everyone is waiting to see what signals are sent about how security should look and how much funding should be available to the private sector for it. Certainly we hope to find some way to assist our members in acquiring the technology necessary to compete against larger enterprises and maintain a secure supply chain. We also hope for further collaboration and cooperation between CBP and TSA. While both reside under the umbrella of DHS, there have been some glaring examples of stove piping that are counterproductive to both agencies’ overall missions.
       Looking forward, your Air Freight Subcommittee looks to continue our engagement with TSA and through the Secure Alliance for Forwarding Endeavors (SAFE) partnership with the Airforwarders Association. We are committed to insuring that the requirements of cargo security do not cause undue hardship and create an unequal playing field among service providers. At all times we welcome the feedback, membership and participation of our members and if someone feels that they have something to contribute to the committee and would like to participate on an ongoing basis, please contact NCBFAA staff with your interest and we will reach out to you immediately. 

Membership Committee Report
By Bruce Goodwin
       Throughout 2008, the NCBFAA was constantly working towards increasing our membership and because of the tireless effort of our executive committee, board of directors, membership and Washington DC office, we have experienced the best year in the Association’s history. Our numbers jumped nearly 13 percent from 757 this time in 2007/08 to 854, to-date, for 2008/09. We are always striving to increase membership and keep retention of existing members at a maximum.
       2009 has been a year that we haven’t seen since the "MOD Act" years. We have had the First Sale Rule, the Lacey Act, 10 + 2 and new AES regulations. Our lobbying efforts have persuaded FDA not to consolidate by closing labs nationally, are involved in dialog regarding the Customs Reauthorization Bill, influenced discussions regarding the need and form of any amendment to 1641 related to customs broker license suspension or revocation and also worked to secure renewal of GSP. Our Executive committee and Association committees spend numerous volunteer hours away from their businesses to testify before various congressional committees/sub committees, CBP and other government agencies. We have created a bond between TSA and IAC members so that we are invited to "sit at the table" on matters of cargo security. We are also still working hard on seeking exemptions for NVOCCs from publishing tariffs. Through all of this, we have created and expanded the NEI with the CCS & CES programs. It is Membership and membership dollars that fuel this NCBFAA train.
       In the upcoming year, as it is every year, it is our goal to surpass last year’s membership increase. We intend to show companies that are not currently members, why they need to join and that, in this difficult economic climate, the value received from membership far outweighs the cost. The way we do business is forever changing and it is vital that members of the international logistics community belong to an Association that is going to work on their behalf.
       The NCBFAA appreciates all of your efforts, all of your input and all of your comments. As we always say:  

"Stay Involved If You Already Are And 
Get Involved If You're Not Yet Involved" 

NCBFAA Educational Institute Report
By Darrell Sekin 
       2008 was a challenging but fruitful year for the NCBFAA Educational Institute (NEI). We operated for vital part of the year without an NEI Director, but are happy to report that in December of 2008 Ms. Cindy Allen, a licensed customs broker and one of our own active members has joined us as the new NEI Director. Despite the setbacks incurred over the year, we were able to accomplish several key deliverables through the hard work of the NEI committee volunteers. 
       The NEI was able in 2008 to launch the first Certified Export Specialist (CES) course. The CES course is an on-line course designed for those who have been in the export field for over one year. We anticipate that this will become a valuable education tool for the association for years to come, and fully expect the course to become the premier online export educational program for the entire trade community. We currently have 120 students enrolled in the CES course.
       Another significant accomplishment was the successful transition of our current Certified Customs Specialist (CCS) course to an on-line course offering. Our valuable partners in the Canadian Society of Customs Brokers (CSCB) assisted us with the transition on-line onto their existing CCS platform. This enables the NEI to more easily keep our content fresh and to produce a better product with up to date technology for our students. The first CCS on-line course kicked off on January 5, 2009. We currently have a little over 200 students enrolled in the CCS course.
       We have had great success in 2008 with our webinars and case studies. We were very fortunate to have dedicated volunteers Art Litman and Bob Perkins prepare the case studies and quiz material on behalf of the NEI, a role that they have agreed to continue in 2009. Many satisfactory comments on the case studies were received and we look forward to continued success with this program.
       With Cindy as its director, the NEI is now poised to be a significant provider of education for the import and export communities and expected to contribute significantly to the NCBFAA bottom line.
       With two premier online courses established, the NEI has focused on the establishment of valuable webinars in the Third Thursday program focused on import topics, our soon to be announced First Thursday program to focus on export issues, and the continued delivery of hot topic webinars as needed based on regulatory issues. Due to the importance of our counsel, especially in the times of swift regulatory challenges, and the value of access to these important resources for our members, the NEI is announcing at the annual conference a quarterly member’s only webinar – the NCBFAA Attorney Advantage. Featuring Alan Klestadt, Ed Greenberg, and Jon Kent this webinar will allow the membership to be updated on the important work that these dedicated resources perform for the association on a daily basis.
       A key component of the NEI is the continued outreach to our membership and beyond regarding the importance of training in this uncertain economy. In 2009 the NEI will be reaching out to other associations to partner in educational efforts. These partnerships will allow the NCBFA to highlight the importance of our member’s services in the supply chain and generate additional revenue for the NEI to support continued efforts.
       The NEI and its staff are continually thankful for the support and contributions of the NEI committee and the dedicated volunteers who have ensured its success through multiple transitions. 

Drawback Committee Report
By Michael V. Cerny
       During 2008, the Drawback Committee continued to work with CBP and industry leaders through the Trade Support Network to revise drawback statutes and regulations in an effort to streamline drawback procedures under the new Automated Commercial Environment. Over the past six years, members of the Drawback Committee have been actively involved with the Customs Trade Support Network. The TSN Drawback Subcommittee developed a consensus drawback reform statute raising drawback claims to the entry summary line item level similar to the way that petroleum drawback is done under 19 USC 1313(p). Under the proposed law, products and components of the same 8-digit HTS code would now be considered identical. The proposed law would also greatly promote automation and enhance the ability of drawback to take advantage of developments available in ACE.
       During 2008, members of the committee worked with Jon Kent and staff at the House Ways & Means Committee addressing the language of an existing bill in the House, as well as consulting with Senate Finance on a similar, proposed measure in the Senate. Unfortunately, Washington’s focus on the financial crisis resulted in little movement on most trade legislation, including the drawback bill. The committee is encouraged by the continued enthusiasm for this legislation in both Senate Finance and House Ways & Means, as well as with Customs. We expect a renewed effort to pass this legislation. The committee will continue to work with Mr. Kent, Customs and congressional staff towards passage of this legislation in the new Congress. 
       The goal of the committee will be to continue our leadership on drawback issues, to keep our members informed of proposed changes, and to solicit comments from our members regarding important developments. The Drawback Committee members and its Chairman remain available to discuss these issues, or any other issue related to drawback, with interested members of NCBFAA. All members of NCBFAA with interest in drawback are encouraged to attend our meetings and conference calls.