CBP's Revised Form 5106 Nears OMB Approval; Section 321 ABI Pilot Coming in 2019, Leonard Says

PALM SPRINGS, Calif. -- CBP’s revised Form 5106 importer ID requirements are currently getting “final approvals” from the Office of Management and Budget and should be coming “sooner rather than later,” said John Leonard, executive director for CBP Trade Policy and Programs, on Oct. 19. The majority of brokers don’t have to be too worried about the changes, seeing that most compliant brokers are already meeting the revised requirements anyway, Leonard said, speaking at the Western Cargo Conference.

The revised framework will concentrate on the initial power of attorney process, including meeting in person, getting current government-issued identification, and verifying whether the importer actually exists. Its debut would follow an initial, abortive attempt that ended with the withdrawal in 2017 of proposed requirements that elicited concerns among the trade community, including Social Security and passport numbers for each importer’s company officers (see 1706020010).

“I can only imagine calling General Electric’s chairman for a copy of his passport,” said Richard Wortman of Grunfeld Desiderio. The first proposed revision had a lot of information that would have been difficult to obtain for a lot of brokers. “That’s going to be a balancing act,” he said.

One thing that would help is a formal write-up from CBP that lays out its policy for meeting the requirements of Form 5106 and whether that also satisfies the closely related Section 116 bona fides requirements under the Trade Facilitation and Trade Enforcement Act, said Vince Iacopella of Alba Wheels Up. CBP will put out a policy that is “as clear as possible,” not just on the 5106 but also other processes, Leonard responded. CBP will work with brokers “to make sure it makes sense and brokers can realistically comply. We’ll be very transparent,” he said.

During the panel discussion, which focused on TFTEA, Leonard also gave an update on CBP’s work around Section 321 filing. The agency will begin a pilot in calendar year 2019 to test filing under its new Type 86 entry type for de minimis shipments in the Automated Broker Interface. The new entry type will require a 10-digit Harmonized Tariff Schedule number, and will give filers of low value entries a way to comply with partner government agency requirements (see 1802130035). Both Type 86 and the revised Form 5106 are among the areas for which CBP has dedicated new funding for ACE development (see 1809240020).