by John Goodrich
 
Dear John:
I've enjoyed reading your articles about trade compliance and other customs matters. I would be interested in hearing your thoughts on how CBP's Simplified Entry Pilot is going to affect employment in the brokerage industry.
As a relatively new licensed broker, I am getting my sea legs in the entry writing department of a national brokerage firm. I've had a chance to read some of the formal congressional reports from U.S. Customs and Border Protection (CBP) outlining this program and with references to redefining the role of the broker and eliminating costly barriers to trade, I'm more than a little concerned that brokerage is going to be just another dead-end career in the future. I mean isn't dealing with the complexities of the customs process precisely why we have our jobs? I guess if you develop sophisticated enough tools and software, the middleman is always apt to get eliminated eventually. Think of what has happened to travel agents, for example. Anyway, we don't all have the experience to get jobs as compliance analysts just yet, so what are all the entry writers/brokers going to be doing in 5-10 years?
Best regards and thanks again for the insightful articles.
Frank Lee Speaking
Dear Frank:
Thank you for your kind remarks. I am flattered, not so much by your comments, but by your confidence that I might be capable of predicting the future. With my ego adequately inflated allow me to confer with my magic 8-ball.
Beware of the government calling anything a simplification. That usually means it will get more complex. Also be wary of anything the government calls a pilot. That means the new and old practices will run in tandem for many years to come. Complexity begets employment.
To date the simplified entry pilot has only begun to simplify the entry and only for a select few. While CBP has heralded the initial pilot as a success, the changes have yet to extend to the entry summary and duty payment process. Remember too that over the past couple of years the keystrokes required for a complete commercial import have only increased. Consider, for example, the additional data burden placed on importers under the ISF (10+2) process.
Will the role of a Customhouse Broker change over the years? Absolutely! Thank heaven for that! The role of the entry writer will not go away, it will evolve. From my perspective the dynamics facing the commercial importer will result in more, not fewer opportunities for brokers.
Consider the following:
The U.S. has implemented three new trade agreements in the past year.
Future massive trade agreements are in the offing such as the Transpacific Cooperation agreement.
CBP is considering allowing brokers to pre-certify importers in the ISA program.
Commercial importers seldom hire or retain the expertise they need over the long term to meet their regulatory obligations. Instead they rely on the expertise of third-party brokers.
Despite the increased popularity and ease of self-filing, many importers will continue to choose to outsource the customs entry process.
New and inexperienced companies are continually emerging generating new opportunities for brokers.
The economy continues to expand in the area of international trade. The pie continues to get bigger.
The government continues to push the expansion of U.S. exporting. This cannot happen without maintaining a correspondingly robust import economy.
As CBP rethinks the role of the broker it is using terminology such as force multiplier. While this term has yet to be defined, I can only imagine it means the broker will have more, not less responsibility.
All of the above represent change, growth and increased complexity in the import process. This means opportunity for the trade community and the brokerage industry.
Your employer has been innovative in responding to the changes in the past and capitalizing on those changes. Yes they have been leaders in automation. Will that marginalize your role inside the company? While your daily tasks may change and productivity expectations rise, I doubt that your job will disappear.
You already know that being a broker is not a get-rich-quick scheme. Neither is it, to use your phrase, "just another dead-end career." As long as there are national borders, there will always be a role for knowledgeable professional intermediaries in the import process. Your challenge will be to remain up-to-date with the changes and, therewith, to continue to provide value to your clients.
Good luck to you.
John D. Goodrich ( Vivian )05 Feb,2013

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