Here is a link to my latest Passages blog post

https://www.shippingsolutions.com/blog/how-to-determine-value-for-u.s.-customs

Connor Helm Ocean Procurement Manager – Indian Subcontinent | Licensed Customs Broker

Hey Pete – under 30 licensed customs broker chiming in 👋. The high cost of the training courses are a huge barrier. Luckily my company sponsored me to take the test and paid for all expenses while also providing a raise in pay. That is how you incentivize young people to become LCBs. Alternatively schools like our alma maters should have a full credit elective that ends with you taking the exam. Each maritime academy has a business program full of students eager to separate themselves from traditional business students.

I also challenge the common saying that the brokers exam is harder to pass than the bar.. lawyers study for 3 years to take that test while many people sit for the brokers exam with little prep and less formal education.

Mitch Kostoulakos, LCB Ad Hoc Logistics LLC, Int’l Logistics Consultant/Licensed Customs Broker

Connor Helm Excellent point about the bar exam. I have no doubt that it is difficult even after 3 years of law school. Passing rates are reasonable though. Maybe a better comparison would be other license exams such as CPA.

Mitch Kostoulakos, LCB commented on this

Pete Mento•Commercial Director @ DSV | US Licensed Customs

Been a while since I poked the bear, but I’m fresh from a trip from DC and annoyed. We have a Customs Broker crisis. It’s only getting worse because of demographics. I’d like to challenge U.S. Customs and Border Protection to release some simple age statistics in tiers. What are the breakdown, by age of current license holders in the US? Assuming there are ACTUALLY around 13,000 still kicking around (I question the validity of that number), Then tell us how many are over 70, between 50 and 69, between 35 and 49 and under 34. You have that data since you have our SSNs. I’ll do some Good Will Hunting math with actuary tables and tell you, roughly how many are probably retiring and leaving this earthy plane (I love math and I have no life) Then I’ll make assumptions on the number not actually working on thier license (that number will disgust you). THEN – we look at how many take the test a year, pass it and pass the background check and get the ticket. I’m willing to bet it’s an upside down number. Want to fix it? It’s so easy…Apprenticship programs under the guidance of brokers and a system that requires time working in areas of the industry to learn the trade/Trade – then a test based more on practical knoweldge and less on repetitive questions. Being a Customs Broker is a financially and intellectually rewarding career. Stop making it so ridiculously hard to be one with your poorly conceived test. I’d also like to challenge our professional associations to help us bring more people into our tribe instead of looking for ways to monetize the new mandatory training hours. Unless we do something about this there won’t be anyone to train. Thanks for coming to my TED talk. I’ll be selling merch on your way out….#morebrokers…see more

Mitch Kostoulakos, LCB Ad Hoc Logistics LLC, Int’l Logistics Consultant/Licensed Customs Broker

Excellent post Pete… I am in favor of continuing ed for LCBs. My thoughts on the CBLE:
1) Can anyone name another licensing exam with such low pass rates? I doubt it. Its is easier to pass the bar exam.
2) LCBs take a look at the April 2023 exam and see if you think you could pass it.

Here is one of the easier questions from the April 2023 CBLE (Customs Broker License Exam). What’s your answer?

52. Which of the following is a TRUE statement regarding the principles governing the
    classification of goods in the tariff schedule?
    A) For legal purposes, the Harmonized Tariff Schedule’s (HTS) table of contents,
    alphabetical index, and title of sections, chapters and sub-chapters are of equal
    weight to the terms of headings, relative section or chapter notes, and the General
    Rules of Interpretation in classifying goods under the tariff schedule.
    B) For legal purposes, under the governing principles for the classification of goods
    in the tariff schedule, the Harmonized Tariff Schedule (HTS) Explanatory Notes
    are required to be applied, unless the HTS headings or notes otherwise require.
    C) For legal purposes, the HTS General Rules of Interpretation (GRI) principles are
    applied in any sequence as long as all the GRIs are applied in classifying goods in
    the tariff schedule.
    D) For legal purposes, the classification of goods in the subheadings of a heading
    shall be determined according to the terms of those subheadings and any related
    subheading notes with the understanding that subheadings at any level are
    comparable.
    E) For legal purposes, classification is determined according to the terms of the
    headings and any relative section or chapter notes, while the table of contents,
    alphabetical index, and titles of sections, chapters and sub-chapters are provided
    for ease of reference.

Customs Brokers are often asked for “quick classifications”. In fact, it may be possible to quickly find plausible codes for clients’ commodities; but that can be malpractice by the broker. Compliance adds value through attention to detail, established protocols, oversight, and documentation. HTS classification is the first step in both export and import compliance.

Proper classification includes HTS lookup, GRI (General Rules of Interpretation) review, checking both chapter and additional notes, as well as CROSS (Customs Rulings Online Search System). For some commodities it may be necessary to consult with a subject matter expert in engineering, purchasing, or manufacturing for details about the item.

This is the procedural aspect of classification, but there is more. Most listings require interpretation of the tariff language based on experience. Finally, the process needs to be documented for future reference and parts lists updated.

Here is an example of an easy classification with no research or interpretation needed:

9506.69.2040 Baseballs

Here is one which is more challenging and time consuming:

8532.10.0000 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).

For accurate classification help contact mitch@adhoclogistics.com.

Did you know? The dollar symbol, $, is used by more than 20 countries around the globe, including the United States, Australia, New Zealand, Canada, and Hong Kong.

Currency designation is required information on Commercial Invoices. If your transaction is in US dollars indicate USD on the CI. The dollar sign alone is not sufficient and will most likely cause a delay in customs.

Mitch Kostoulakos, LCB Ad Hoc Logistics LLC, Int’l Logistics Consultant/Licensed Customs Broker

Rate shopping is not negotiating. It leads to inconsistent service, miscommunication, dissatisfied customers, and re-work. There will always be a lower rate out there. Practice due diligence in your meetings with LSPs and negotiate from a position of strength. However, it is a good business practice to obtain quotes for first time, large, or complicated moves. Use these quotes as a starting point with your current providers and possibly others.

Lizbeth Rodriguez-Johnson

Did you know that individuals who are admitted as refugees or granted asylum in the United States are U.S. persons under the ITAR? Following its issuance in April 2023 of guidance on how to avoid immigration-related discrimination when complying with export controls, DOJ continues its effort to enforce these legal requirements. This new case should serve as a reminder to ensure your company’s HR practices and export compliance program are in line with applicable legal requirements.

Mitch Kostoulakos, LCB Ad Hoc Logistics LLC, Int’l Logistics Consultant/Licensed Customs Broker

Good reminder that compliance needs upper management oversight. A C-level compliance officer would mitigate the risks of separate HR and Export Compliance silos.