Customs Broker Seeks CBP Guidance on Cloud-Based Recordkeeping
CBP should clarify how customs broker recordkeeping requirements apply to the storage of client data on third-party servers, potentially in a foreign country, said a broker in a ruling request dated Jan. 10. Such storage on remote servers, commonly referred to as "the cloud," has become increasingly common and CBP insight is necessary on the issue, said Robert Schott, president of Airschott, in the request. Cloud-based storage seems to be in "apparent conflict" with 19 CFR 111.24, he said.
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CBP should address whether a broker can lawfully use cloud storage and the situations in which that would be allowed, said Schott. The company is facing the "apparently common practice in which greater functionality and efficiency and significantly lowered costs in data storage, processing and access can be achieved by having programs and data 'hosted' on a 'third party' vendor’s server at a remote location." the request said. Although the currently hosts "all data and programs on our own servers, we are being encouraged" by the company's software provider, Cargowise, "to allow our data to be hosted on their servers based in the Chicago area with back-up maintained on servers in Great Britain."
If such cloud-based storage is acceptable, CBP should also weigh in on whether there are required standards for the third-party hosting the data, the request said. Although CBP has previously ruled on the status of "Service Bureaus" within the context of 19 CFR 111.24, it's appears the agency hasn't looked specifically at the data storage question and it's unclear if such storage companies can be considered "Service Bureaus." The regulations in 19 CFR 111.24 say records "pertaining to the business of the clients serviced by the broker are to be considered confidential, and the broker must not disclose their contents or any information connected with the records to any persons other than those clients, their surety on a particular entry, and the Field Director, Office of International Trade, Regulatory Audit, the special agent in charge, the port director, or other duly accredited officers or agents of the United States, except on subpoena by a court of competent jurisdiction."
Email ITTNews@warren-news.com for a copy of the ruling request.