If you are scheduled to sit for the October 25, 2023 CBLE (Customs Broker License Exam) make sure to bring proper identification. Best of luck but I’m sure you are not relying on luck.

Here is a link with all the details:

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

Compliance is becoming more important for importers and exporters as CBP and BIS ramp 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.

I don’t remember this requirement when I took the CBLE more than 20 years ago. Here is a reminder for candidates to maintain radio silence about the exam until after midnight. Best of luck

https://www.cbp.gov/sites/default/files/assets/documents/2021-Apr/CBLE%20Non-Disclosure%20Agreement_1_0.pdf

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.