NCBFAA Leadership Updates Coming Soon
            The Annual Conference reflected numerous new administration changes, so first, we want to take a moment to officially congratulate Mr. Darrell Sekin Jr., of DJS International Services, Inc., on being elected the new NCBFAA President, along with the new Board Members and Officers. It's a good time to also thank past President, and new Chairman, Jeffrey Coppersmith, of Coppersmith, Inc. Global Logistics, for his dedicated support as NCBFAA President from 2010-2012.  

          On that note, other changes have also occurred with regards to Committee members and chairs, so expect to see numerous modifications and updates this week on the NCBFAA Website. Please be patient as we gather all of the lists we are expecting to receive from the various Committee Chairs. With leadership changes come new ideas and potential new open positions on committees, so we encourage all of our members to get involved in their Association when the call for volunteers is made!

Highway Bill Provision Threatens Customs Brokers, Indirect Air Carriers With Additional Regulation
       A House-Senate conference will begin negotiations on Highway Transportation legislation at their first scheduled meeting on May 8. The conferees have until June 30 to sort out their differences or Congress will be forced to pass yet another extension. 
      NCBFAA members are concerned about a broadly worded provision in the Senate highway bill aimed at transportation property brokers in domestic commerce, which could ensnare customs brokers and indirect air carriers in new regulatory requirements.
     The provision requires anyone who arranges for transportation of cargo in domestic commerce to be licensed by the Federal Motor Carrier Safety Administration, pay fees, purchase a substantial bond and be subject to penalties. Although it is aimed at unregulated domestic property brokers, in its current form, the provision would also apply to customs brokers and indirect air carriers by virtue of our responsibility to initiate or complete the international movement of cargo.
     Earlier this year, NCBFAA worked with House members and transportation associations to hammer out revised language to exclude customs brokers and indirect air carriers from FMCSA regulation, except to the extent that our members act as property brokers in the arrangement of purely domestic-to-domestic surface transportation. NCBFAA is seeking to replace the Senate language with the House negotiated language during the House-Senate conference committee.
     The New York/New Jersey Foreign Freight Forwarders Association, Inc. took a lead role in taking this message to key participants in this debate, sending letters and arranging meetings with Senator Lautenberg (D-NJ), chairman of the Subcommittee on Surface Transportation and Merchant Marine, and two conferees: Senators Chuck Schumer (D-NY) and Bob Menendez (D-NJ). 
     NCBFAA also joined with the Air Forwarders Association (AFA) in a letter to House members of the conference committee, telling the conferees that customs brokers and indirect air carriers are already "subject to significant federal regulation, including substantial bonding requirements."
     The joint letter urged conferees to accept the House compromise language, explaining that: "Imposing another layer of federal regulation, including additional bond requirements, represents a very real economic threat to our members. At this point in a fragile economic recovery, new costs on forwarders and customs brokers, who are already operating on small margins, will further harm the industry and devastate small operators."

Important Changes to Government Officials’ Ability to Attend Conferences

     Outraged by the General Services Administration (GSA) spending scandal that broke a couple of weeks ago, the House and Senate separately passed legislation Thursday that imposes new spending limits and reporting requirements for all government employees attending meetings and conferences.

Although the event that triggered the congressional scrutiny was a GSA-sponsored employee training conference that took place in Las Vegas in 2010, several of the provisions passed by both chambers yesterday appear to extend to non-government conferences as well, including those held by for-profit companies, trade associations, professional societies, charities, foundations and other private sector organizations. 
     The bills would limit the number of conferences federal agencies can hold annually and the amount agencies can spend on each event -- no more than $500,000.

     More relevant to the private sector, however, the provisions also:

     Cap non-military spending to attend conferences at 80 percent of fiscal 2010 levels, 

     Limit the number of government employees who can attend international conferences, and

     Limit participation by federal agencies to one conference sponsored by an organization per year.

     This last provision could be interpreted to mean, for example, that if an agency employee attends one conference held by an association, no one else from that agency could attend any other events held by that association for the remainder of the fiscal year.

     The language also requires agencies to post online at the beginning of each quarter a report on each conference for which the agency paid travel expenses during the preceding three months. The report is to include itemized expenses paid by the agency; the primary sponsor of the conference; the location of the conference; copies of any speeches or presentations given; and the total cost of any conference that had government speakers.

     All of these provisions have broad implications for associations and other sponsors of conferences that include government speakers or attendees, and could discourage the necessary dialogue between government employees and the private sector.

     The language that applies to conference spending is identical in both chambers, but was attached to two very different bills. The House added the provision to the Digital Accountability and Transparency Act, known as the DATA Act, which would establish uniform reporting standards for federal spending and set up a single website where interested parties can research how all federal agencies and departments spend federal funds. That bill, including the provisions limiting travel to conferences, passed the House on voice vote yesterday afternoon.

     The Senate attached identical language restricting conference spending to the postal reform bill that it cleared yesterday 62-37, also by voice vote.

     The House version of postal reform has cleared the House Oversight and Government Reform Committee, but has not yet been brought to a floor vote. There is also a version of the DATA Act that has been introduced in the Senate, but that bill has not passed that chamber yet either.

     ASAE is concerned about the new restrictions on conference spending and the potential overreach into conferences sponsored by associations and other non-governmental organizations. As we obtain more information about the provisions and the intent of Congress in this area, we will share it with the association community. 

Ace Shared Reports Now Available for Trade
     ACE users now have the ability to share customized reports with any user of their ACE Portal account. Your account shared folder is located in the ACE Portal under the “Public Folders, Shared Reports, Trade” folder. This folder is automatically generated by ACE and will reflect your top account name followed by the ACE ID number. Any reports posted to this folder can be viewed by all users within your account who have access to reports and will not be visible by other accounts. CBP recommends you first save reports to your “Personal Folder” to maintain a clean copy, and then copy the report to the “Shared Reports” folder.
     Please reference CBP’s CSMS 12-000146 containing the “Shared Reports Information Notice”, which provides step-by-step instructions for using the new shared reports functionality.

USDA Announces New Safeguards to Protect Consumers from Foodborne Illness

     The U.S. Department of Agriculture today announced a series of prevention-based policy measures that will better protect consumers from foodborne illness in meat and poultry products. These measures will significantly improve the ability of both plants and USDA to trace contaminated food materials in the supply chain, to act against contaminated products sooner, and to establish the effectiveness of food safety systems.

     "The additional safeguards we are announcing today will improve our ability to prevent foodborne illness by strengthening our food safety infrastructure," said USDA Under Secretary for Food Safety Dr. Elisabeth Hagen. "Together, these measures will provide us with more tools to protect our food supply, resulting in stronger public health protections for consumers."

     The policy measures include the following:

     USDA's Food Safety and Inspection Service (FSIS) intends to implement new traceback measures in order to control pathogens earlier and prevent them from triggering foodborne illnesses and outbreaks. FSIS is proposing to launch traceback investigations earlier and identify additional potentially contaminated product when the Agency finds E. coli O157:H7 through its routine sampling program. When FSIS receives an indication of contamination through presumptive positive test results for E. coli, the Agency will move quickly to identify the supplier of the product and any processors who received contaminated product from the supplier, once confirmation is received. This proposed change in policy gives FSIS the opportunity to better prevent contaminated product from reaching consumers. Learn more about the traceback proposed change in policy.

     FSIS is implementing three provisions included in the Food, Conservation and Energy Act of 2008 (the 2008 Farm Bill). The new regulations, published as a Final Rule and directed by Congress, require establishments to prepare and maintain recall procedures, to notify FSIS within 24 hours that a meat or poultry product that could harm consumers has been shipped into commerce, and to document each reassessment of their hazard control and critical control point (HACCP) system food safety plans. Learn more about the Farm Bill provisions.

     FSIS is announcing the availability of guidance to plants on the steps that are necessary to establish that their HACCP food safety systems will work as designed to control the food safety hazards that they confront. This process, called "validation," enables companies to ensure that their food safety systems are effective for preventing foodborne illness. This notice announces that the draft guidance document is available for comment. Learn more about HACCP validation draft guidance.

In the past two years, FSIS has announced several measures to safeguard the food supply, prevent foodborne illness, and improve consumers' knowledge about the food they eat. These initiatives support the three core principles developed by the President's Food Safety Working Group: prioritizing prevention; strengthening surveillance and enforcement; and improving response and recovery. Some of these actions include:

     Performance standards for poultry establishments for continued reductions in the occurrence of pathogens. After two years of enforcing the new standards, FSIS estimates that approximately 5,000 illnesses will be prevented each year under the new Campylobacter standards, and approximately 20,000 illnesses will be prevented under the revised Salmonella standards each year.

     Zero tolerance policy for six Shiga toxin-producing E. coli (STEC) serogroups. Raw ground beef, its components, and tenderized steaks found to contain E. coli O26, O103, O45, O111, O121 or O145 will be prohibited from sale to consumers. USDA will launch a testing program to detect these dangerous pathogens and prevent them from reaching consumers.

     Test and hold policy that will significantly reduce consumer exposure to unsafe meat products, should the policy become final, because products cannot be released into commerce until Agency test results for dangerous contaminants are known.

     Labeling requirements that provide better information to consumers about their food by requiring nutrition information for single-ingredient raw meat and poultry products and ground or chopped products.

Public Health Information System, a modernized, comprehensive database about public health trends and food safety violations at the nearly 6,100 plants FSIS regulates.
Audio: Under Secretary Elisabeth Hagen, Press Conference (May 2, 2012)

ACE and the Document Image System (DIS)

     Via DIS, the trade community has the ability to electronically send images of specific CBP and Participating Government Agency (PGA) forms and supporting information to CBP via the Electronic Data Interchange (EDI) in lieu of conventional paper methods. These documents will be stored in the DIS and made available for CBP and PGAs for review, acceptance or rejection. Specific CBP, APHIS, EPA and NOAA forms and commercial documents are supported in the current phase of DIS.  Please refer to the Federal Register Notice (77 FR 20835) for the specific forms supported. Capabilities within the DIS are available to ACE entry summary filers and for ACE entry summaries only. This includes ACE entry summaries certified for release.
     As a general rule, DIS may only be used to transmit documents for ACE Entry Summaries in response to an electronic request; unsolicited document submissions are not allowed. For purposes, however, of PGA forms and invoices/packing lists that are associated to ACE entry summaries certified for cargo release, the trade may submit the required documentation without a prior request by CBP or the PGA.  In such cases, all imaged documents must be submitted when the entry summary is filed.

Contact your Client Representative for additional information on participating in the DIS test. 

ACE April 2012 Trade Account Owner Update Available

     The April 2012 Trade Account Owner Update was issued via CSMS 12-000155 and the Spanish version via CSMS 12-000156.  The update contains information important for all ACE Portal users.  This month’s update features articles on the Document Image System, Shared Reports, an update on the status of e-Manifest: Rail and Sea as well as other information and tips.  The URL to view all messages is: http://apps.cbp.gov/csmshttp://nemo.cbp.gov/ace_online.
     In addition to the WBT, the guide titled “Running ACE Reports for all Importer, Broker and Surety Trade Users” provides step-by-step instructions for running, modifying and saving ACE reports. The URL is:  http://www.cbp.gov/xp/cgov/trade/automated/modernization/ace_welcome/ace_reports/ 
     Reminder:  ACE Reports Web Based Training – The web-based training (WBT) on ACE reports, “ACE Reports for the Trade Community”, is available and posted at

LLUSCBA Chairman Jose David Gonzalez Testified at Congressional Hearing
     On May 1, customs broker and Chairman of the Laredo Association, Jose D. Gonzalez, testified at a field hearing held by the Subcommittee on Border and Maritime Security (House Homeland Security Committee). The hearing was chaired by Rep. Michael McCaul and ranking minority member Henry Cuellar. 
Mr. Gonzalez' testimony focused on several important southern border issues including the need for additional personnel, the value of non-intrusive scanning, and C-TPAT.  A central point to his testimony however was his assertion that the accuracy of the data used by CBP to assess risk depends on who files that data. The answer, not surprisingly, is that a licensed customs broker can be relied upon to provide the government reliable information better than others.
            You can read a brief summary of his presented testimony below:
1)      Reexamine the role of the customs broker and its ability to increase the accuracy of data used by CBP for targeting (thus implying that in-bonds and ISF filings should be "customs business");
2)      Reconsider CBP's policy of immediately suspending C-TPAT partners before a though investigation;
3)      Provide additional non-intrusive mobile scanning units (x-ray) now and to provide fixed scanning units at each primary booth in the future when the technology allows for faster scans;
4)      Provide additional personnel to fully utilize the infrastructure improvements to the primary booths, secondary express, and exit gate improvements at WTB.
     His written testimony and the archived video of the congressional hearing is available on the following webpage.

AFA and NCBFAA Heads Send Letter to Congress Concerning the New Transportation Bill
     Airforwarders Association Executive Director Brandon Fried and NCBFAA President Darrell Sekin have sent a joint letter to John Micah, Chairman of the House Transportation & Infrastructure Committee concerning the upcoming transportation bills being passed in the House and Senate.
See below for the full text:
 
Chairman Mica:
     The Airforwarders Association (AFA) and the National Customs Brokers and Forwarders Association of America (NCBFAA) write to encourage a thoughtful, comprehensive and quick conference between the House and the Senate as you enter negotiations on a final multi-year transportation bill.
     We applaud your efforts to forge a compromise between the House and Senate bills. As this process begins, we are compelled to bring a critical issue to your attention that must be addressed in conference to protect American small business and the health of the freight forwarding and customs broker industry. The issue of concern relates to an overly broad amendment to the Federal Motor Carrier Safety Act (FMCSA) which would subject air freight forwarders and customs brokers to federal licensing and bonding requirements directed at domestic property brokers.
     During consideration of H.R. 7, the American Energy and Infrastructure Jobs Act, extensive negotiations led to a compromise provision that was added to the manager’s amendment. The compromise narrows the scope of this FMCSA provision so that it achieves its intended objective (regulation of domestic property brokers) while exempting indirect air carriers and customs brokers in international commerce, who already are subject to significant federal regulation, including substantial bonding requirements. The compromise amendment was non-controversial and had the support of the Transportation and Infrastructure Committee, as well as outside industry associations. Unfortunately, this language was not included in H.R. 4348, which is now going to conference with the Senate. 
     Meanwhile, the Senate-passed transportation bill, S.1813, includes the original FMCSA amendment with its duplicative regulation over indirect air carriers and customs brokers handling international movements of cargo.
      As the House moves to enter pre-conference negotiations, it is critical to our members that this provision be stricken from S.1813 and replaced with the industry compromise language previously agreed upon by the Transportation and Infrastructure Committee in H.R. 7.
     Imposing another layer of federal regulation, including additional bond requirements, represents a very real economic threat to our members. At this point in a fragile economic recovery, new costs on forwarders and customs brokers, who are already operating on small margins, will further harm the industry and devastate small operators.
     Congress has spent months crafting a package of legislation to promote jobs, reduce burdensome regulations on business and restrict government overreach into the marketplace. If this provision were to find its way to the President’s desk, it would shutter small businesses, kill jobs and weaken the logistical capacity we need to spur economic growth. We ask that you maintain this change through conference and preserve the exemption for indirect air carriers   and customs brokers.

     We look forward to working with you and your fellow conferees throughout this process. We are available to answer any questions you may have on this important issue.

NEI Committee Taking New Members

     It is the intention of the NEI Chairman to reconstitute the NEI Committee. If you are motivated to serve in the interests of continuing education and enhancement of professionalism and expertise in our chosen field, please volunteer to participate in the activities of our NEI. Volunteers should provide their name, NCBFAA area, company name, job title, email and postal address, office and cell phone numbers. Also indicate your areas of interests: CCS and/or CES; and Subcommittee preference: Content, Administration, Policy.

     The NEI Committee needs to broaden its base of volunteers; there is much work to be done, and we need smart, motivated and committed volunteers. Your timely response will be received before end of business May 24th. Please respond to this notice even if you have already indicated your interest to the Chairman before now. Send your response to memb@ncbfaa.org.

Thank you,

Ken Bargteil, NEI Chairman

 

Important NEI Information for Members and Non-Members 

     CCS Course Registration Now Open - Registration for the July-December CCS course is now available. Students with at least one year of experience in the U.S. import industry, or current Canadian CCS holders who want to expand their base knowledge are welcome to apply. Applications will be accepted through May 31; the course will begin in early July and run through the end of the year. Please read through all of the program details  before applying. Application and registration information can be found here.
If you have any questions about the course or your eligibility, please contact NEI Education Coordinator Cecilia Ferrara at nei@ncbfaa.org or (202) 466-0222.
     Individual CES Course Blocks - Whether you are a grandfathered CES who wants to brush up on their expertise or a newbie who is looking to gain some insight into the export industry, we have an exciting and exclusive opportunity for you! The CES course material is now being offered in individual blocks, so you can pick and choose the material that is most pertinent to your professional needs. With topics ranging from U.S. Export Controls to Carrier Liability, Cargo Insurance and Claim Procedures, we are certain there is something for everyone. While everyone is welcome to participate in this educational offering, only CCS and grandfathered CES students can receive credit for these blocks (some restrictions apply). Please contact nei@ncbfaa.org with any questions!
     NCBFAA’s GISTNet Offerings – The NCBFAA has “partnered” with GISTnet to offer a number of their courses related to international trade and cargo transportation. For those certified in either the CCS or CES programs, participation in these courses is another venue for acquiring the CEUs needed for renewing certification. Specific areas of interest currently available include: Cargo Transportation-General; Customs Broker Topics; Dangerous Goods; Export/Import-General; Supply Chain Security; and U.S. Export Compliance. Click here for more information on these offerings.
     POA Handbook “Using a Power of Attorney - The Third Edition” is still available. After reviewing this must have for any broker, the NCBFAA Legal Counsel determined no changes are foreseen in the immediate future. This Third Edition POA Handbook contains significant updates including recent changes to the Power of Attorney form and the importer security filing as well as an updated compilation of CBP rulings on powers of attorneys. Issues addressed in the Third Edition of the Handbook include broker/forwarder relationships and POA validation bringing the publication into line with current industry practice. If you wish to order multiple copies, please contact the Educational Institute at 202-466-0222 or email education@ncbfaa.org.
     Certified Export Specialist (CES) Certification Program - Designed to help trade professionals involved in the export industry become competent and well informed in current export regulations, the CES program will provide you with numerous opportunities for honing your professional skills while continuing to stay up with the rapidly changing marketplace within which OTI/Freight Forwarders function. The available coursework is varied and wide-ranging, encompassing all aspects of the trade.
Ongoing enrollment for the CES Course is available now! Cost: $650.00 per member participant; $1,250 per non-member participant.
To register please follow the steps below:
  • Go to the NCBFAA's homepage: http://ncbfaa.org/
  • Select the Educational Institute tab
  • Select Certified Export Specialist (CES) Certification Program
  • Select CES Application and Registration
  • Follow the steps for application and registration

Complete payment information

If you have any questions, please contact NEI by email or phone at (202) 466-0222.

Calendar of Events

2012

 

 

Please distribute this Monday Morning eBriefing to key people in your main and branch offices. The Monday Morning eBriefing is compiled by NCBFAA officers and staff; Customs Counsel Alan Klestadt, Esq; Washington Representative Jon Kent; Transportation and General Counsel Edward Greenberg, Esq; and Cindy Thomas. Questions? Send e-mail to staff@ncbfaa.org.