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U.S. Broker-Known Importer Program Offers Another Option to Expedite Shipments
Sandler, Travis & Rosenberg Trade Report Aug 14, 2015
U.S. Customs and Border Protection has announced the implementation of the Broker-Known Importer Program, which offers an additional avenue to enhance the sharing of trade intelligence between importers and brokers and between the trade community and CBP. With a limited number of importers expected to avail themselves of the Importer Self-Assessment and Trusted Trader programs, BKIP offers a way for CBP to use the importer-broker relationship to further identify reputable importers and thus narrow the field of actors on which it focuses its enforcement resources. However, it is unclear at this point exactly how CBP plans to use the BKIP and whether many brokers will participate.
Under this voluntary program, licensed customs brokers work with their importer clients to review in greater depth their import programs in the context of import regulations. A review should cover issues such as antidumping and countervailing duties, intellectual property rights, classification and valuation, free trade agreements and preference programs, country of origin, marking and supply chain security as well as documentation and information requirements for customs clearance, recordkeeping and drawback. Brokers may not rely on reviews conducted by other brokers and must redo their reviews periodically. Reviews are thus expected to result in increased compliance understanding on the part of importers as well as improved entry accuracy.
The broker uses an electronic indicator on the entry (functionality that has already been deployed in the Automated Commercial Environment) to signal to CBP that the importer is known to the broker and that the review has taken place. This indicator will factor into CBP’s cargo risk segmentation, which may improve the importer’s risk profile in CBP’s targeting system and thus help expedite shipments at the time of arrival. Additional benefits under this program may also be extended to importers in the future.
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