ITT Q&A with Amy Magnus of A.N. Deringer
As a new feature, International Trade Today will periodically feature a Q&A with a customs industry professional. Our interviewee for the inaugural Q&A is Amy Magnus, Director of Customs Affairs & Compliance at A.N. Deringer. Magnus is heavily involved within the customs world and served several different roles within customs broker trade associations, at both national and regional levels. Magnus also worked for CBP for 18 years before joining the private sector. Some of the questions and answers have been slightly edited.
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Has the recent increase to CBP's enforcement of Importer Security Filing (ISF or 10+2) had much effect on doing business? If so, how?
Thus far, CBP continues to take a measured approach to enforcement, so we have not been adversely affected yet. Most brokers have been working with their clients to bring them into compliance for several years now, and most importers have heeded the message, worked with their brokers, and have systems in place to comply. As long as CBP continues to review each circumstance before issuing liquidated damages or possibly penalties, particularly reviewing the importer’s past ISF compliance history, and stays away from issuing liquidated damages or penalties for minor infractions, then I don’t expect a compliant importer to have too much to worry about.
Beyond some of the traditional customs-focused operations, what other responsibilities have brokers taken on in recent years?
Brokers have always assisted their clients in a variety of ways that go well beyond customs-focused operations. Most importers are focused on ensuring their shipments are delivered timely, and to assist them, brokers find themselves involved in a myriad of issues including foreign export rules, other government agency import and possibly export requirements, transportation and logistics, warehousing and insurance coverage to name a few. Our customers are looking for more and more value; they expect us to stay abreast of new and emerging requirements, notifying our clients of impending rules and regulation changes, and offering premier IT solutions. Understanding and transitioning our accounts to ACE is one example of a new requirement brokers have to prepare them for CBP’s mandates.
Should the broker exam be easier or harder?
I don’t like this question. It’s not whether it should be harder or easier, it’s about whether the test tests whether an individual is ready and capable of representing an importer in the tricky business of importing or exporting. A broker has to do more these days than just read regulations and understand them, or figure out the proper classification of a product. Brokers also have many more tools available to them than paper copies of the regulations and the tariff book. I do think the test should be reworked, and CBP has reached out to NCBFAA to assist which I think is the best news regarding the test I’ve heard in 30 years.
There's been discussion of CBP requiring 40 hours of continuing education every three years for customs brokers. Does that seem like an appropriate standard?
Most brokers I know do far more training, they have to stay current. So, as a minimum, 40 hours should not cause any problems for those brokers out there who really care about their business and their clients.
How do you see the job changing as CBP moves to a more virtual environment, particularly within the CEEs?
We all need to make sure our IT is ready to move files via secure imaging for starters. The good news about CEEs is that we can expect a more uniform treatment for our customers. What we need to figure out, and what we don’t want to lose is the “bi-directional” education that has taken place since I started in this industry. For years, brokers and Customs employees have worked side by side sharing information, discussing shipments, and sharing learning. I don’t want that to be lost because I think it adds value to both sides. Maybe this can be done in a virtual environment, and I sure hope it can.
Do you participate in any CBP pilot programs? Has it/have they been valuable?
Our company always volunteers for CBP pilot programs because it gives us a chance to work closely and directly with CBP officials and helps us shape our own future. It’s hard to complain about what CBP is doing when they’ve given us a chance to pilot and participate with them, and we decline their offer. CBP does listen to us, and has been responsive to us as we’ve participated in the pilots with them. We have gained and learned from our experiences and hopefully, we’ve helped shape programs as a result of our participation.
With the recent emphasis on intellectual property issues, have you had any problems bringing in branded merchandise?
Though we haven’t had any problems, we do understand that the problem is real. We all need to take a close look at our procedures and make sure we know with whom we are doing business. Most brokers have some type of procedure to review a potential client, maybe it’s a credit check, or some internet research, or some other process as good brokers do not want to deal with bad players. This is another area ripe for “partnership” with CBP. If CBP and NCBFAA commit to working together, we can come up with ideas about how to reduce the likelihood of this type of illegal activity.
Frankly, there is no limit to what we can achieve when CBP and brokers work closely together in a trusting relationship. We have the same goal when it comes to facilitating legitimate trade.