Category Archives: Nuts & Bolts

Countdown to Exam Day

If you are scheduled to sit for the CBLE (Customs Broker License Exam) on April 23rd your preparations have most likely included practice exams as well as a deep dive into the HTS tariff and customs regulations. Not to mention blood, sweat, and tears.

Let me suggest also reviewing the notifications on the CBP website so that you don’t have an unexpected complication on exam day. The notifications include details about Covid restrictions, reference materials allowed, and ID/Proof of Citizenship requirements. There are separate sections for remote and in-person test takers.

You will find the info under this link:

https://www.cbp.gov/trade/programs-administration/customs-brokers/license-examination-notice-examination/cble-registration-information

Look for the heading It’s Exam Day !

Best of luck on April 23rd!

Who’s Responsible?

Most roadblocks to implementing an ECP (Export Compliance Program) are self-imposed. The project stalls while management procrastinates. The process certainly must start with management commitment. As has been reported, 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), is legally liable for any violations.

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. Shipment screening 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, 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.

Exporting Due Diligence

Customs delays in other countries are problematic for exporters, requiring a lot of time and effort to resolve. One of my recent posts considered 3 common causes of customs delays: vague or incomplete descriptions, questionable valuations, and lack of IOR contact info on commercial invoices. These items are easily fixed. The real complexity in international trade is due to the many different regulations applying to destination countries.

Best practices in exporting include due diligence and research when shipping to a country for the first time. The Country Commercial Guides published by the International Trade Administration are an excellent no cost starting point. Here is the link:

https://www.trade.gov/country-commercial-guides

Contact mitch@adhoclogistics.com for assistance.

LinkedIn Post and Comment

https://www.linkedin.com/posts/mike-smiszek-5437231_the-us-customs-broker-license-exam-tips-activity-7302049943609823232-SrUg?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAGVD3UBu7RY4T4x68-aqSLyiBDvybv-4A0

https://www.linkedin.com/feed/update/urn:li:activity:7302049943609823232?commentUrn=urn%3Ali%3Acomment%3A%28activity%3A7302049943609823232%2C7302057652304375808%29&dashCommentUrn=urn%3Ali%3Afsd_comment%3A%287302057652304375808%2Curn%3Ali%3Aactivity%3A7302049943609823232%29

Time to Hit the Links

No, I’m not referring to golf, but using links as a logistics term. For exporters there is significant risk in becoming overly reliant on a single freight forwarder or LSP (Logistics Service Provider). Supply chain audits and best practices make it clear that diversifying LSPs can help mitigate disruptions, improve service, and possibly reduce costs.

Logistics is tactical in support of supply chain strategy, so must be able to adapt to the planned diversification. The textbook terms nodes and links are descriptive in logistics and supply chain discussions. Nodes are fixed locations such as factories and distribution centers. Links are Logistics Service Providers (LSPs) which connect the nodes from pick up (first mile), through line-haul operations (middle mile), to end user delivery (last mile). The links include ocean and air carriers, freight forwarders, truck lines, integrated parcel systems, customs brokers, and possibly 3PLs. It is easier to change links than nodes. However, if diversification is to reduce supply chain disruptions, both nodes and links must be strengthened.

New LSPs must be evaluated for their export compliance and ability to perform first mile, middle mile, and last mile operations. Details matter. Failure to review documentation, for example, can cause customs delays. New LSPs can make or break supply chain strategy. Consider their services as “value adds” rather than just cost. Consistent performance is more important than rates when new links are utilized in your supply chain.

Diversifying any supply chain requires time, a complete project plan, upper management commitment, and attention to detail.

We can help you work with the links. Contact mitch@adhoclogistics.com for assistance.

How Tough is the CBLE?

Registration for the April 23, 2025 Customs Broker License Exam (CBLE) opened on February 10th. The exam is notoriously difficult to pass so, if you plan to sit for it, don’t procrastinate. You have a little more than 60 days to prepare and you will need them all.

The CBLE pass rates were 24% in October 2024, 13% in May 2024, and 34% in October 2023. In previous years the rates were typically less than 15%.

For comparison purposes, the pass rate for the 2023 bar exam in the US was about 58%. Most law students take the exam shortly after completing three years of law school, however, while CBLE candidates may have been out of school for some time.

CPA- Certified Public Accountant and CFA- Chartered Financial Analyst exam pass rates vary by section but are usually around 50-60%.

Reach out to the Customs Broker Exam Assistance Group on LinkedIn for support and study tips.

https://www.linkedin.com/groups/12862151

Avoid Customs Limbo

I often hear from frustrated exporters about shipments “stuck” in customs. The shipments may include critical parts needed for an equipment or plant shutdown, expensive high tech components not generally carried in inventory, or medical instruments for hospitals. Delayed orders also mean delayed payments, which gets everyone’s attention. Most exporters rely on their freight forwarders to review the documentation of their shipments. However, details can be easily overlooked, so here are a few best practices for exporters to check before tendering shipments to forwarders.

The data used in customs entries comes primarily from the commercial invoice for the transaction. All countries have different, and sometimes obscure, customs regulations. It is true, however, that most delays are caused by a few commercial invoice errors or omissions.

Commodity descriptions should answer the questions: What is it? What is it made of? What is it used for? Use plain language which can be understood by anyone. Avoid trade names, brand names, or part numbers in the description. These can be added below the description or to the packing list if needed. If using a harmonized code consider entering only the first 6 digits, which are universal. All countries apply their own last 4 or 6 digits.

Value for customs may appear to be questionable for the commodity being shipped. The customs agencies in the destination country need to make sure that duty rates are accurate and will hold up the shipment if in doubt. Make sure that your commercial invoice reflects the correct transaction value and that you can clearly justify the valuation method.

Importer of record (IOR) contact info is often lacking on the commercial invoice. Customs in the importing country will not contact the exporter if they have questions or issues. If they are unable to contact the IOR the shipment will go into storage. Make sure you include recipient name, address, phone number, and e mail address on your CI as well as complete customs broker contact info.

Contact mitch@adhoclogistics.com  for immediate assistance.

Got Service?

As all logistics professionals know, problem solving is a big part of the job. My clients are mostly small or medium sized firms working with minimal staffs, so I frequently assist them in resolving service issues. I have shared my thoughts about customer service in previous posts. AI is adding a new way of interacting with supply chain partners and can be an efficient way to transmit info. Information is plentiful and, for me, transmitting info is not the issue. Ultimately, clients of LSPs need someone to take responsibility and actually solve the problem without passing the buck.

We engage with a variety of providers including freight forwarders, carriers, integrators, and customs brokers. Most have automated systems for efficiency and cost control purposes. When looking for a status update or answer to a simple question these systems are fine. Self service can be frustrating, though, when the problem is not easily described, and is of no use for more complex issues. Information is easier to get than action.

The ability/authority to solve problems is what defines great customer service. Reaching a human being in customer service requires patience and many times that person is simply reading from a script. If I haven’t been able to solve the problem on-line then I need someone with the ability and authority to resolve the issue.

LSPs, don’t force your clients to dump problems on their account rep or e mail the CEO. A few key people in customer service roles with the authority to fix problems on the spot will earn you a lot of customer loyalty.

Agree?