Broker breakout - FreightWaves

Home/American Shipper/Broker breakoutAmerican ShipperBroker breakoutFreightWaves Staff·Wednesday, May 25, 2011

Broker breakout

   Not since the 1993 Customs Modernization Act have customs brokers received so much attention from U.S. Customs.    For the past 18 years, the broker industry has mostly operated behind

the scenes of international commerce, diligently clearing imports through Customs' Automated Broker Interface and assisting its clients with compliance. Customs and Border Protection's

primary mission in recent years has dwelled on antiterrorism and border control initiatives largely directed from Capitol Hill.    Brokers, through the National Customs Brokers and

Forwarders Association of America and regional affiliates, have occasionally spoken out when federal regulators have threatened their way of doing business.    There's an estimated 12,000

brokers plying their trade.    Commissioner Alan Bersin, who has become increasingly comfortable in his role as head of Customs, has taken an interest in improving the import process, and

that includes brokers and their activities. He believes there is room for the industry to further modernize, enhance its professionalism, and increase its partnership with the agency. And he

has offered his plans to the brokers in a constructive manner. Bersin doesn't swing a hammer to get his message across.    But as associate editor Eric Kulisch reports in this issue (pages

24-29), brokers can be their own worst enemy by stubbornly resisting change to their day-to-day operations. While those import clearances contribute to the immediate bottom line, especially

during these tough economic times, brokers must consider the future of their business ' five to 10 years down the road.    Most brokers probably won't go for the idea of verifying the

security practices of importers in the Customs-Trade Partnership Against Terrorism. They're not necessarily equipped to do it and worry about the liability exposure. That role might be

better performed by private quality-assurance or inspection services, or large logistics companies.    Yet there's a lot of other stuff in Bersin's proposal that brokers should be able to

buy into.    The time is now for brokers, who are some of the most knowledgeable and trade-savvy individuals, to effect positive change on their industry, accepting the challenge from a

Customs commissioner who is willing to listen and trying to drive trade facilitation for the first time in years.