I recently posted about CBLE (Customs Broker License Exam) results including a link for appealing specific questions.

https://www.cbp.gov/trade/programs-administration/customs-brokers/how-appeal

From the CBP website: The applicant must submit a compelling argument why his or her answer is correct or why the appealed question has no possible correct answer.

We are well within the 60 day period for first appeals, but let me suggest a different strategy. If you are considering an appeal you are most likely very close to a passing grade and hoping to gain a reversal on a small number of incorrect answers.

In fact it is very difficult to gain additional points upon appeal, and preparing a compelling argument is time consuming. I know many brokers who have passed the exam on a second attempt. So, since you came close to passing the exam on May 1st, a better use of your time would be to begin preparing to pass the October exam instead of appealing your recent score.

I’m happy to discuss exam strategies. Contact mitch@adhoclogistics.com.

If you are a Canadian importer or NRI (Non-Resident Importer) you will want to keep up to date on CARM . Many US exporters act as Non-Resident Importers in Canada. A Non-Resident Importer is a business located outside of Canada that ships goods to customers in Canada and assumes responsibility for customs clearance and other import-related requirements.

The launch date for CARM has been pushed back to October 21, 2024. To register contact your Canadian Customs Broker or access the Client Portal on the CBSA website.

https://ccp-pcc.cbsa-asfc.cloud-nuage.canada.ca/en/auth/login

As a reminder, the Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) project is a multi-year digital initiative that will change how CBSA collects duties and taxes for goods imported into Canada. Through CARM, the CBSA will modernize and streamline the process of importing commercial goods.

The Government of Canada has amended the Order that brings into force the final legislative changes for the Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) digital initiative. These legislative amendments, and associated regulations, will now come into force on October 21, 2024. On this day, CARM will be made available to trade chain partners as it will become the official system for the collection of duties and taxes for goods imported into Canada.

Geek: “a person who has excessive enthusiasm for and some expertise about a specialized subject or activity”. Many compliance folks proudly refer to themselves as Geeks.

Demand for compliance professionals has never been higher, as LinkedIn users can readily see. Companies of all sizes and in all industries realize that being in compliance means fewer supply chain disruptions. At the very least compliance is good risk management. Think of it as insurance.

You may be looking to add a logistics or compliance pro to your staff and, understandably, want to make a good selection. In the meantime, let me suggest training your shippers in some export compliance basics. I have always warned that compliance should not be left to a busy shipping department; the factors are complex and need to begin early in the order cycle. However, a few hours of training is a good investment, enabling shippers to spot possible export violations before shipments leave your dock. It will also allow your new professional to focus on more strategic matters and hit the ground running.

Our copyrighted presentation “Exporting for Smart People” will provide your staff with upgraded skills and knowledge.

Contact mitch@adhoclogistics.com for more info.

In January I posted about the BIS website re-design and noted the difficulty in reading and interpreting the CCL.
https://lnkd.in/eZYtirAa

This month I am updating parts lists for a couple of clients and finding that the new interactive EAR does make it easier to navigate the CCL. The links to ECCN categories in the CCL and CCL Index are a time saver. The paragraph format for each ECCN is an improvement over the old chart style.

The EAR, like all regulations, will never be interesting reading. However, I see the new format as an improvement. BIS has a button on the lower right of their homepage asking what can be improved. Don’t be shy!

The May 1, 2024 CBLE (Customs Broker License Exam) resulted in a 13% pass rate prior to appeal decisions. Previous pass rate information is listed below. The exam and answer key are posted on the CBP website.

Congratulations to all who passed! You are now eligible to go through the application process, background check, and fingerprinting to obtain your license. The process can be lengthy, so be patient.

Many brokers have needed more than one try, so don’t be discouraged if you came up short. If you want to challenge any of the questions here is the link explaining how to appeal.

https://www.cbp.gov/trade/programs-administration/customs-brokers/how-appeal

Pass Rate Information

The May 1, 2024 CBLE resulted in a 13% pass rate prior to appeal decisions.

The October 25, 2023 CBLE resulted in a 34% pass rate prior to appeal decisions.

The April 26, 2023 CBLE resulted in a 5.5% pass rate prior to appeal decisions. 

The October 26, 2022 CBLE resulted in a 11.1% pass rate prior to appeal decisions. 

In the 19th Century boilerplate meant rolled steel templates used to make boilers and the printed matter on the plates.

Today, the term boilerplate refers to standardized text, copy, documents, methods, or procedures that may be used over again without making major changes to the original. Boilerplate is commonly used for efficiency and to increase standardization in the structure and language of written or digital documents.

Traders when was the last time you reviewed your Commercial Invoice for accuracy or updates? Chances are it has been quite a while, given the more immediate challenges in logistics today. The same question applies to documents produced by your freight forwarder. Checking your CIs for accuracy is a best practice and can help reduce customs delays. Reviewers with “fresh eyes” are an even better idea.

While there is no universal standard format for commercial invoices, including the following key elements will help reduce customs delays and entry mistakes:

Description of goods – Vague or incomplete descriptions are the most common cause of customs delays. Avoid trade names, brand names, jargon. What is it? What is it made of? What is it used for?

Recipient or Importer of Record contact info- customs delays are often prolonged by slow communication between CBP and importers or between exporters and customs agencies in other countries. Make sure phone and e mail info is spelled out on the CI.

Invoice Number, Page Numbers – Avoids confusion for entries with multiple CIs or CIs with multiple pages.

Country of Origin– Best to use ISO country codes.

Related/Not Related parties

Incoterms and currency- these are elements of the sales contract. Indicate version of Incoterms (2010, 2020) as all parties may not be aware of updates.

Harmonized tariff code to the 6 digit level– if unsure best not to include this info.

Summary of Value- must include IV Invoice Value. Can also include NDC Non Dutiable Charge (subtractions), AMMV Add to Make Market Value (additions), NEV Net Entered Value (bottom line- dutiable).

Signature and Date

For immediate assistance contact mitch@adhoclogistics.com

To all who sat for the May 1st CBLE (Customs Broker License Exam) you may now have your weekends back. I know from experience that you are feeling both relief that the exam is over and anxiety about your results. CBP advises that you will be notified of your score in 2-3 weeks. The pass rate for the previous two exams was 34% for October 2023 and 5.5% for April 2023.

I sometimes advise prospective candidates and would be interested in hearing your impressions of the May 1st exam.

I have always advised clients that export compliance equals good risk management. Furthermore, compliance functions should be viewed as value adds rather than as a cost center. Whether or not a formal ECP (Export Compliance Program) is implemented, there are a number of best practices that are essential for any company involved in international trade.

As noted in recent posts, compliance is often a “back burner” project for several reasons including: Don’t know where to start, lack of C-level commitment, reluctance to allocate resources, too small to worry about compliance, no previous problems, or just plain inertia.

While the ROI for export compliance will vary for individual firms, we can identify an overall value proposition easily surpassing the costs involved in implementing a program.

Risk Management– avoid the cost of fines and penalties which can reach $1 Million for criminal violations. Think of compliance as insurance.

Save Time/Save Money– export compliance means less re-work or follow up of requests for information from customers, government agencies, or forwarders.

Make Money/ Grow the Business- basic competence in exporting enables expansion to international markets. Compliance problems will cause customs delays and be an impediment to growth.

Enhance the Brand– similar to ISO certification and C-TPAT, an ECP demonstrates professionalism. Show customers and prospective customers that you know what you are doing.

Let’s get started!

Contact mitch@adhoclogistics.com for help with export compliance.

I recently posted about common self-imposed roadblocks to implementing an ECP (Export Compliance Program). The process certainly starts with management commitment. As noted CBP and BIS are ramping up enforcement activities. Potential clients admit that they have allowed compliance to fall through the cracks or, after some initial steps, moved it to the “back burner”. The reasons for this are usually other priorities, cost, insufficient staffing, or belief that the business is too small.

One of my first questions for the client is “Who is responsible for compliance in the organization?” If they rely on their Customs Broker or LSP (Logistics Service Provider) I advise that these providers are good resources but that the client, as IOR (Importer of Record) or EOR (Exporter of Record), bears ultimate responsibility for compliance.

Sometimes compliance has been assigned to the shipping department or to an administrative staffer. While I can help with best practices and training, this is a poor arrangement. Compliance must be a front end process starting with order entry. Shippers are under pressure to get orders out the door. Administrative staffers have multiple responsibilities and may lack specific knowledge.

In house compliance professionals are often given responsibility without authority. Further, they may be at mid or lower management levels, or in the wrong chain of command. With or without a formal ECP (Export Compliance Program), compliance professionals must have the authority to place holds on questionable exports without being overruled by sales, finance, or supply chain. Well written protocols for resolving issues and releasing holds require C-level or legal approval.

All of the above illustrates the importance of compliance independence. This may mean reporting to the CEO, COO, or legal department in order to remove pressure from other groups.

So once again; “Who’s responsible?”

Contact mitch@adhoclogistics.com for immediate assistance.