US Customs recently announced, in CSMS #15-000275, the implementation of the Broker-Known Importer Program (BKIP), an initiative proposed by the National Customs Brokers & Forwarders Association of America (NCBFFA).
The program allows a licensed customs broker to inform CBP, via the filing of an electronic entry, that the importer listed on the entry is known to the broker, and that the broker has advised the importer of their compliance responsibilities under Customs regulations. In addition, the broker will have verified the importer’s grasp of its obligations in areas such as entry declarations, ADD/CVD, IPR, valuation and preference programs, through a questionnaire.
CBP will use this information for purposes of cargo risk segmentation. When a broker identifies an importer who is exercising reasonable care in connection with their imports by checking the BKIP indicator flag on an entry, Customs may adjust that importer’s risk profile in CBP’s targeting system accordingly, even if the importer is not part of the Trusted Trader programs — C-TPAT or ISA. (The BKIP indicator flag for entries has already been deployed as part of ACE.)
BKIP is a voluntary program for both brokers and importers.
- New platform for brokers and importers to discuss compliance obligations
- Potential to increase broker entry accuracy
- Increased compliance knowledge for importer staff
- Improved cargo targeting by CBP at time of cargo arrival
- More information to CBP about importer from a trusted source