Industry License Renewals Customs Broker Triennial Status Report

• Industry License Renewals

Customs Broker Triennial Status Report and Fee When is the status report due to Customs? Ø Federal regulations specify that the triennial status report is due by February, every three years, starting from 1985; therefore, future triennial status reports will be due: 2015, 2018, 2021, etc. Is there a grace period for filing late? • • No, reports are accepted January 01 through February 28 of the year due. Licenses will be suspended on March 01 st if not filed Where should report be filed Ø To the director of the port who delivered the license to the broker • Reports should NOT be filed with Headquarters and will be considered unfiled if received by HQ.

Customs Broker Triennial Status Report and Fee Individual Ø Every license issued to an individual requires a status report and fee - $100. 00 each • No specific form is required – CBP provides a sample form Corporation Ø A status report is required for every Corporation, Limited Liability company, Association or Partnership • Each district must present a current employee list Regulations found in 19 CFR 111. 30

IAC – Indirect Air Carrier Ø Considered an Air Freight Forwarder Ø Regulated by the Transportation Security Administration (TSA) • Program considered sensitive secured information Ø Maintains a current Indirect Air Carrier Standard Security Program (IACSSP) – Renewed annually Ø Renew Security Threat Assessment (STA) within the TSA Portal every 5 years Ø Update changed information within thirty days Ø Pass spot inspection Regulations found in 49 CFR Part 1548

FMC - Federal Maritime Commission Regulates Ocean Transportation Intermediaries (OTIs) Ocean Freight Forwarder A person that serves as an agent of the shipper to arrange ocean cargo transportation from the US and provides or processes the documentation incidental to the ocean shipment Regulations found in 46 CFR 515 NVOCC (Non-Vessel Operating Common Carrier One that does not operate vessels, but provides carriage of international ocean cargo by issuing Bills of Lading for the move. The NVOCC is Carrier to the Cargo Owner and Shipper to the Master Carrier

FMC - Federal Maritime Commission Ocean Transportation Intermediary Ø License ending in 1 = January 5 = May 8 = August 2 = February 6 = June 9 = September 3 = March 7 = July 0 = October 4 = April Ø Second to last number 1 -2 -3 2017 2020 2023 4 -5 -6 2018 2021 2024 7 -8 -9 -0 2019 2022 2025, etc.

FMCSA – Federal Motor Carrier Safety Administration Motor Carrier is assigned a USDOT number and is required to complete a biennial report even when nothing has changed Ø Biennial Report due § § USDOT Number ends in 1=January, 2=February, 3=March…… 0=October USDOT Number next to last number is even = due even years; odd = due odd years Ø Failure to file • Deactivation of USDOT authority • Penalties up to 1, 000 per day, not to exceed 10, 000 Regulations found in 49 CFR Parts 365 - 371

FMCSA – Federal Motor Carrier Safety Administration Ø Motor Carrier of Property – Asset based carrier • • Provides carriage using self propelled vehicles - owned rented or leased Issues Bills of Lading Is assigned a USDOT number – required biennial report Is responsible for freight loss or damage Ø Freight Forwarder – Domestic – non-asset based carrier • • Provides carriage with a FMCSA licensed carrier Issues Bills of Lading Is assigned an FF number - updates only when there are changes Is responsible for freight loss or damage Ø Broker of Property • • Arranges carriage with a FMCSA licensed carrier Does not issue bills of lading or take physical possession Is assigned a MC number - updates only when there are changes Not normally responsible for freight loss or damage

FMCSA – Federal Motor Carrier Safety Administration If you -------- you might be a carrier Ø have “too much control” over the inland move Ø refer to carriers as your “partners” in marketing materials or on your website Ø request that the carrier assign named drivers to your load Ø identify yourself as the carrier on the bill of lading or allow the carrier to affix your name on the bill of lading Ø instruct the driver to call the broker first if an incident occurs Ø claim you have “control over all aspects of the operations”

• THANK YOU

OCEAN FREIGHT FORWARDER & NVOCC LICENSE UPDATE SYSTEM NCBFAA Conference, April 4, 2017

Ocean Transportation Intermediaries (OTIs) License Updates • WHO? – All 4, 823 licensed OTIs – Ocean Freight Forwarders and NVOCCs • WHEN? – Updated once every 3 years – date is based on your license number • HOW? – No Fee – Online – Notices from the FMC via email to the email address on file – Approximately 150 license updates per month - phased-in over three years – A licensee can designate a third party to complete the update on their behalf so long as the third party is an FMC Practitioner or an Attorney – Email notification will be sent directly to the OTI. Tariff Publishers will also receive notifications for their NVOCC clients.

When is a license updated? Last & Next to Last Digits of the LICENSE NUMBER determine the month & year of update FMC License number ending in: 1 2 3 4 5 6 7 8 9 0 Next to Last Digit of FMC License 1, 2, 3 4. 5. 6 7, 8, 9, 0 Must file by last day of: January February March April May June July August September October Year of Update 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 The OTI list found on the FMC website has the specific date for each license update. http: //www 2. fmc. gov/oti/

Ocean Freight Forwarders and NVOCCs LICENSE UPDATE SYSTEM STATUS • The system was launched on March 2, 2017 • NCBFAA Education Institute (NEI) webinar March 15, 2017 – available on the NCBFAA website • Email addresses will be used for all FMC official notifications • 148 Licensees received email notices on March 2 • The first license was updated within 5 minutes • 30 licenses were updated on during the first 3 -days • 55 licenses were updated during the first two weeks. • 3 “error messages” encountered and resolved • 2 undeliverable email notices – both resolved

Ocean Transportation Intermediaries (OTIs) Ocean Freight Forwarders and NVOCCs • Messages will be sent to the primary email address on file until the license update is completed. – 150 days prior to the license update deadline a “test message” is sent – about 10% of these messages are “undeliverable” – 90, 60, 30, & 15 days prior to the license update deadline (to the OTI & Tariff Publisher) – On the date of the license update deadline (to the OTI & Tariff Publisher) – 15 days past the deadline (to the OTI & Tariff Publisher) – 30 days past the deadline a notice of intent to revoke the license will be sent – If you are not receiving these emails check your junk mail first – then contact the FMC at oti@fmc. gov or (202)523 -5843

Ocean Transportation Intermediaries (OTIs) Ocean Freight Forwarders and NVOCCs • The OTI email notification(s) will contain – USERNAME – PASSWORD – LINK TO THE LICENSE UPDATE SYSTEM • Upon receipt of this email message the OTI will be able to log on to the system. The update should be completed no later than the date shown on the FMC website. The OTI can designate a third party to complete the update.

Ocean Freight Forwarders and NVOCCs Not a License Update • The License Update System will not process changes to the following: – Legal Name – Trade Name(s) – added, deleted, changed – Qualifying Individual – Business Structure – Corp, LLC, Sole Proprietorship – Sole Proprietorship ownership • The system will redirect you to the FMC 18 application • Over 10% of licensees contacted for an email address required the FMC 18 application

MISSING INFORMATION?

Ocean Freight Forwarders and NVOCCs Missing information? • The License Update System pulls information from multiple FMC databases – Registered Persons Index (RPI) – manually updated by the FMC staff – FMC 1 (Tariff) – as electronically submitted by OTI – FMC 18 (License application) – as electronically submitted by OTI • Some OTIs have never submitted electronic application(s) with the FMC • The License Update System may not prepopulate the following: – Branch Offices – Officers – Ownership • To the best of my knowledge and belief, it is true, correct, and complete – Please complete all sections

Ocean Freight Forwarders and NVOCCs Looking forward • All notifications via email • Self Service • E-Bonds – No more paper – Character perfect bonds – Address match • Updating the OTI list on the FMC website – Branch Offices – Website link to each OTI – Other suggestions?

QUESTIONS? oti@fmc. gov or (202)523 -5843 cjohnson@fmc. gov or (202)523 -3960

SUPPLEMENTAL SLIDES IF TIME PERMITS / TO ANSWER QUESTIONS

User Name Password Link to System

External User – Email Notification For NVOCCs ONLY – the Tariff Publisher will receive notifications But no action can be taken by the publisher until designated by the OTI To: Tariff Publisher via email NAME OF OTI COMPANY 123 MAIN STREET CAPITAL CITY, CA 91234

External User Login - Form 18 OTI License Renewal Login User Name: Password: Reset Password For any questions contact us at OTI@fmc. gov or telephone #202 -523 -5843.

External User View with multiple entities Click on the OTI to be updated The Status may be Current, Assigned, or Submitted An external user, such as a third party filer or an entity with multiple licenses, will see all of “their” entities listed. Click on the entity to be processed.

External User – Initial Questions Legal Name / Qualifying Individual / Trade Names / Structure / Ownership If the answer is YES to any of these questions a “change application” is required before renewal A legal name change due to marriage or any other reason is not a change If any question is answered “yes”, click here and proceed to the change application If all questions are answered “no” Click here

External User Third Party Assignment CLICK ONE OF THESE TWO BOXES View or Edit License Renewal Request Third Party to Complete Renewal The OTI can view only before deciding to self renew or to assign to a third party, but once third party is selected the renewal is locked to the OTI

External User Requesting a Third Party to complete the license update Request Third Party Complete Renewal Firm Name: Contact Email: Telephone Number: Your third party may already be preapproved for renewals. Ask your third party if they have an email address they normally use with FMC systems (i. e. FMC 1, FMC 18). If the email address associated with our systems is entered here the approval should be automatic.

External User - Email Notification Confirmation of Designation of Third Party OTI INC. OTIS SMITH, JR. 8062 CLOVER WAY GARDEN PARK, CA 90990

External User Notification received by Third Party

External User- Update View 1. Name of Corporation & 2. Trade Names CAN NOT BE UPDATED AS PART OF THE LICENSE UPDATE PROCESS These fields are “greyed out” and can not be updated. Changes to these fields require a “change application”

External User – Update View 3. Address / 4. Contact Person OTIS SMITH OTIS@OTISSHIPPING. COM WWW. OTISSHIPPING. COM The email address entered here will be used for all FMC official notifications and must be for the licensee NOT a third party.

External User – Update View 5. Mailing Address (if different) / 6. Phone / 7. Business Type & TIN Sole Proprietorship LLC LLP Corporation Drop down selection

External User – Update View 8. Officers and Owners / 9. Affiliations / 10. Branch Offices ADD, EDIT, OR DELETE AN OFFICER, AFFILIATION, AND/OR BRANCH OFFICE

External User – Update View Certification the information is correct Save Draft Save Work & Return later Submit Ready to go Quit Leave without saving

External User License Update Successfully Submitted

External User License Update Accepted

QUESTIONS? oti@fmc. gov or (202)523 -5843 cjohnson@fmc. gov or (202)523 -3960