Snyder• 1stUS Army Retired/Veteran Advocate/Logistics Careers/Mentoring President, Troops2Logistics.org, Board Member LTNA.org

Had an excellent conversation today with Mitch Kostoulakos, LCB, of Ad Hoc Logistics. Mitch has been in the customs compliance arena for over 20 years and is also a former Army Reservist. Mitch has offered to provide his expert guidance to our veteran candidates interested in becoming Licensed Customs Brokers and/or Export Compliance Specialist.

On behalf of the veteran community of Troops2Logistics.org, we thank Mitch for his support!

Mitch Kostoulakos, LCB  

Thanks Scot…enjoyed our conversation and learning about your mission

From the CBP website

Customs Brokers License Exam Information

The bi-annual Customs broker license exam (CBLE) was administered on October 8, 2020 resulting in a 37% pass rate prior to appeal decisions.  The electronic exam was held nationwide at over 120 testing locations.

This is a much higher pass rate than for previous exams.

Here is one of the questions from the Entry section of the exam. Answer below.

17. The importation to the United States of cats, dogs, and monkeys are subject to Foreign Quarantine Regulations of which agency(s) ________?

A. United States Fish and Wildlife Service

B. Custom and Border Protection Agriculture

C. United States Public Health Service

D. Animal Plant Health Inspection Service

E. All of the Above

Answer: C

Customs Broker License Examination

Announcement – Remote Proctored Exam Delivery Option

The next Exam will be held on Wednesday, April 21, 2021. Exam Registration will open on February 22, 2021 and close on March 22, 2021.

U.S. Customs and Border Protection (CBP) is offering a remote proctored exam delivery option for the April 21, 2021 Customs Broker License Exam (CBLE) available to a limited number of examinees. 

Check the CBP website for details

Trademow #InternationalTrade is very crucial in global economy. In this article, we share what is #globaltrade, its importance, how it works, its impact & barriers to growth, and if you should trade! Read more here: http://bit.ly/2ZcAdcR

Mitch Kostoulakos, LCB  Licensed Customs Broker, International Logistics Consultant

Well written and informative article

The last year has brought major changes in how business is conducted between logistics service providers (LSPs) and their clients. Here is what I wrote in a post just 18 months ago about managing carrier relationships:

LSPs, especially motor carriers, make extensive use of “customer entertainment” to gain and retain market share. Lunches, dinners, and sporting events are a big part of the job for carrier representatives. …..Business lunches can be productive for both parties. Clients should have an agenda with a few discussion points. Remember, as with any meeting, if you don’t have an agenda you are subject to someone else’s…… Expensive dinners and sporting events are much less productive from a business perspective. Food and drink becomes the main event.  The game takes precedence at sporting events.….In summary manage your carrier relationships, Don’t let your providers “reward” you for your business. It makes it much more difficult to change providers or negotiate new deals.

In the last year entertainment and face to face sales calls have been limited. Most interaction between LSPs and clients is via Zoom or other remote methods. This no doubt makes the carrier rep’s job more difficult. The relationship must now be built on adding value and problem solving instead of entertainment. In other words the relationship becomes more professional and a little less personal. While the client may not enjoy as many lunches or dinners, negotiations and accountability may be easier.

As an independent consultant and Licensed Customs Broker my most frequent client requests are for classification help. While some commodities are easy to classify, most require research and interpretation. Here is an example of an easy one with no research or interpretation needed:

9506.69.2040 Baseballs

Here is one which is more challenging and time consuming:

8532.10.00 00 Fixed capacitors designed for use in 50/60 Hz circuits and having a reactive power handling capacity of not less than
0.5 kvar (power capacitors)

There are 3 ways to classify: 1) self classify, 2) consult with commodity manufacturer, 3) request rulings from CBP (imports) or BIS (exports).

HTS and Schedule B best practices include checking and confirming commodity classifications at least annually starting with a few universal principles:

Classification is subjective- tariff schedules do not necessarily keep up with technology

Customs definitions can differ from industry definitions

Different interpretations exist between countries and also between ports within the same country

The basic components of a best in class process are:

Break down items from universe into groups

Research- even if you think you know the correct classification  

Identify necessary info needed for classification such as materials, dimensions, intended use, etc

Documentation- needed to support your determination

Automation- implementing a software classification tool will improve efficiency and productivity

On-going maintenance and monitoring for changes in HTS binding rulings and in your products is essential

Supporting documentation includes:

spec sheets, drawings, photos

info requests from engineers, scientists, chemists, etc

HTS chapter and section notes that apply to your product

explanatory notes

informed compliance publications

customs rulings that apply to your product

record keeping (5 years)

contact mitch@adhoclogistics for immediate assistance.