83 FR 47931 - Discontinuation of Customs Broker Importer Self-Assessment Pre-Certification Test

DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection

Federal Register Volume 83, Issue 184 (September 21, 2018)

On April 17, 2013, U.S. Customs and Border Protection (CBP) announced a test allowing customs brokers to pre-certify importers for participation in the Importer Self-Assessment (ISA) program. The Customs Broker Importer Self-Assessment Pre-Certification (Broker ISA PC) test was intended to leverage customs brokers' relationships with importers to facilitate and promote importer participation in the ISA program. Unfortunately, there was minimal importer participation in the test; thus, CBP has determined that it is not effective to continue with the Broker ISA PC test. This notice announces CBP's intention to discontinue the test and not to move forward with a permanent Broker ISA PC program.

[Federal Register Volume 83, Number 184 (Friday, September 21, 2018)]
[Notices]
[Pages 47931-47932]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-20581]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Discontinuation of Customs Broker Importer Self-Assessment Pre-
Certification Test

AGENCY: U.S. Customs and Border Protection; Department of Homeland 
Security.

ACTION: General notice.

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SUMMARY: On April 17, 2013, U.S. Customs and Border Protection (CBP) 
announced a test allowing customs brokers to pre-certify importers for 
participation in the Importer Self-Assessment (ISA) program. The 
Customs Broker Importer Self-Assessment Pre-Certification (Broker ISA 
PC) test was intended to leverage customs brokers' relationships with 
importers to facilitate and promote importer participation in the ISA 
program. Unfortunately, there was minimal importer participation in the 
test; thus, CBP has determined that it is not effective to continue 
with the Broker ISA PC test. This notice announces CBP's intention to 
discontinue the test and not to move forward with a permanent Broker 
ISA PC program.

DATES: As of September 21, 2018, the test is discontinued.

FOR FURTHER INFORMATION CONTACT: Lori Mennitt, Acting Chief, Trade 
Compliance Branch, Cargo & Conveyance Security, Office of Field 
Operations, 202-344-3285, [email protected].

SUPPLEMENTARY INFORMATION: 

Background

The Broker ISA PC Test

    On April 17, 2013, U.S. Customs and Border Protection (CBP) 
announced a test in the Federal Register (78 FR 22895) allowing customs 
brokers to pre-certify importers for participation in the Importer 
Self-Assessment program. The primary goal of the test, known as the 
Customs Broker Importer Self-Assessment (ISA) Pre-Certification (Broker 
ISA PC) test, was to leverage customs brokers' relationships to 
facilitate and promote importer participation in the ISA program, 
especially for small and medium enterprises. The Broker ISA PC test 
allowed selected brokers, referred to as ISA pre-certifiers, to pre-
certify importers for the ISA program.
    The ISA program was established in 2002 to enable interested 
importers to voluntarily participate in a program that allows them to 
self-assess their own compliance with customs laws and regulations on a 
continuing basis. See 67 FR 41298 (June 17, 2002). The ISA program is a 
joint government-business trade facilitation partnership program that 
recruits trade compliant companies to build cooperative relationships 
that strengthen trade compliance. It is based on the premise that 
importers with strong internal controls are more likely to achieve a 
high level of compliance with customs laws and regulations; thus the 
program enables CBP to recognize and support importers who have 
implemented such programs. Importers wishing to participate in the ISA

[[Page 47932]]

program submit a complete application package to CBP. CBP then reviews 
the application and begins the vetting process including a risk 
assessment and a determination of the applicant's readiness to assume 
the responsibilities of ISA.
    When the Broker ISA PC test was in operation, importers interested 
in applying to participate in the ISA program had the option of using 
either the Broker ISA PC services (most likely for a fee) of an ISA 
pre-certifier to facilitate participation in the ISA program or the 
importers could continue to apply for participation in the ISA program 
without the services of a pre-certifier. Under the Broker ISA PC test, 
an interested importer who wished to use the services of a pre-
certifier submitted a complete ISA application package to both CBP and 
the ISA pre-certifier whom they selected. If an importer used the 
services of an ISA pre-certifier, the importer noted this at the time 
it submitted its ISA application. The key benefit of using the services 
of an ISA pre-certifier was the facilitation of the ISA application 
process. In the April 17, 2013 Federal Register notice, CBP anticipated 
that the use of an ISA pre-certifier would reduce the time period from 
application to presentation to the ISA Review Board from the average 
processing time for CBP which is between 9 and 12 months to between 90 
and 120 days.

Discontinuation of the Broker ISA PC Test

    CBP announced in the April 17, 2013 Federal Register notice that it 
would review the effectiveness and feasibility of the Broker ISA PC 
test one (1) year after the date of the ISA Pre-Certifiers Orientation 
and that based on the results and lessons learned from the test, CBP 
would determine if the Broker ISA PC would be fully implemented as a 
permanent program.
    While a total of 23 brokers volunteered to participate in the test 
and 9 brokers were selected to participate in the test per the 
guidelines of the notice, the test proved unsuccessful as there was 
little participation from importers. Several importers expressed 
reservations about securing the services of a broker to conduct the ISA 
evaluations and indicated that the broker fees were cost prohibitive. 
Only three (3) importers signed up to be reviewed by the brokers. 
Because of the low participation rate, CBP has determined that the test 
and test program are not effective and has decided to terminate the 
test. As a result, the Broker ISA PC test is discontinued effective 
immediately and the test program will not be implemented as a permanent 
program.
    The discontinuation of the test and the publication of this notice 
will have no effect on the ISA program.

    Dated: September 18, 2018.
Todd C. Owen,
Executive Assistant Commissioner, Office of Field Operations.
[FR Doc. 2018-20581 Filed 9-20-18; 8:45 am]
 BILLING CODE 9111-14-P