On March 19th, 2023, the United States Customs and Border Protection (CBP) released a fact sheet regarding 19 C.F.R. §111.32, which outlines the requirements for customs brokers to maintain records. This release aims to provide clarity to customs brokers regarding the necessary record-keeping procedures to ensure compliance with the relevant regulations.
Customs brokers are individuals or firms that act as intermediaries between importers and the CBP. They facilitate the importation process by ensuring that all necessary documentation is submitted to the CBP and that any applicable tariffs or fees are paid. As part of their responsibilities, customs brokers are required to maintain certain records to ensure compliance with federal regulations.
Under 19 C.F.R. §111.32, customs brokers must maintain records for a minimum of five years. These records must include all documents related to the importation process, including commercial invoices, bills of lading, and customs declarations. Additionally, customs brokers must maintain records of any communication with clients and the CBP, including emails and other electronic communications.
The fact sheet released by the CBP provides further guidance on the specific requirements for maintaining these records. It emphasizes the importance of accurate and complete record-keeping, noting that failure to maintain these records can result in penalties and fines.
The fact sheet also highlights the importance of maintaining proper security measures for these records. Customs brokers must ensure that these records are secure and protected from unauthorized access, theft, or damage. This includes implementing procedures to backup and safeguard electronic records.
Identity Protection
The CBP is required by law to protect the confidentiality of any trade-related information that is obtained in the course of their duties, including information obtained from customs brokers. This means that the CBP will not disclose the identity of a customs broker to any third party without the broker’s consent or a court order.
Additionally, the CBP has established procedures to safeguard confidential information, including records maintained by customs brokers. These procedures include limiting access to confidential information only to those employees who have a need to know the information and who have undergone background checks and security clearance
The CBP has the authority to request records from customs brokers and may review those records as part of their regulatory and enforcement functions. However, customs brokers can rest assured that their identity will be protected by the CBP.
Confidentiality remains of utmost importance. The CBP is required by law to protect the confidentiality of any trade-related information that is obtained in the course of their duties, including information obtained from customs brokers. This means that the CBP will not disclose the identity of a customs broker to any third party without the broker’s consent or a court order.
Additionally, the CBP has established procedures to safeguard confidential information, including records maintained by customs brokers. These procedures include limiting access to confidential information only to those employees who have a need to know the information and who have undergone background checks and security clearances.
While the CBP has the authority to request records from customs brokers and review those records as part of their regulatory and enforcement functions, customs brokers can be assured that their identity will be protected by the CBP, and that the CBP has established procedures to safeguard any confidential information obtained in the course of their duties.
Furthermore, the fact sheet notes that customs brokers must make these records available to the CBP upon request. Failure to provide these records can result in penalties and fines, and may also result in the suspension or revocation of the customs broker’s license.
Recordkeeping and Compliance
Overall, the release of this fact sheet by the CBP provides important guidance for customs brokers on the necessary record-keeping procedures to ensure compliance with federal regulations. By emphasizing the importance of accurate and complete record-keeping, as well as proper security measures, the CBP is taking steps to ensure the integrity of the importation process and protect the interests of all parties involved.
It is important to note that the CBP has the authority to request records from customs brokers and may review those records as part of their regulatory and enforcement functions. However, customs brokers can rest assured that their identity will be protected by the CBP.
All reporting is not limited to only customs offenses. Fraud and criminal acts carried out against the U.S. government that involves a broker are also included. A broker cannot file anything that is misleading or false.
Conclusion
Although the CBP has the authority to request records from customs brokers and review those records as part of their regulatory and enforcement functions, customs brokers can be assured that their identity will be protected by the CBP, and that the CBP has established procedures to safeguard any confidential information obtained in the course of their duties.
