Additional broker verifications on importers
According to this Federal Register notice, CBP is proposing amendments to the current broker verification regulations, and WOW!, it’s going to be a lot of additional work for the broker. This proposed amendment will require customs brokers to collect certain information from importers to enable the broker to verify the identity of an importer.
CBP believes this additional scrutiny will help to prevent fraud and impede the creation of shell companies by importers looking to evade CBP laws.
The following information is what CBP is suggesting, at minimum:
- The client’s name;
- For a client who is an individual, the client’s date of birth;
- For a client that is a partnership, corporation, or association, the grantor’s date of birth;
- For a client that is a partnership, corporation, or association, the client’s trade or fictitious names;
- The address of the client’s physical location (for a client that is a partnership, corporation, or association, the physical location would be the client’s headquarters) and telephone number;
- The client’s email address and business website;
- A copy of the grantor’s unexpired government-issued photo identification;
- The client’s Internal Revenue Service (IRS) number, employer identification number (EIN), or importer of record (IOR) number;
- The client’s publicly available business identification number (e.g., Data Universal Numbering System (DUNS) number, etc.);
- A recent credit report;
- A copy of the client’s business registration and license with state authorities; and
- The grantor’s authorization to execute power of attorney on behalf of the client.
The comment period is open to the public until October 15th, 2019 and may be submitted through the Federal eRulemaking Portal here.
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