1. IMPLEMENTATION GUIDE Broker Known Importer Program

2. The Broker Known Importer Program is an NCBFAA initiative accepted by CBP. BKIP is focused on the unique relationship between a customs broker and importer clients. This program allows a customs broker to inform CBP that the importer on an entry is known to the customs broker and that the customs broker has advised the importer of their compliance responsibilities pertaining to the customs regulations. CBP can consider this relationship when conducting cargo risk segmentation.

3. The BKIP will institute a process whereby licensed customs brokers can voluntarily indicate on an entry-by-entry basis that the importer is known to them. This referral will give CBP information about importers and will be used by CBP for cargo risk segmentation. This indicator will also inform CBP that the importer is aware of the customs regulations applicable to importers even though they may not have chosen to participate in other Trusted Trader programs. ACE functionality for the transmission of the BKIP indicator was deployed in January, 2015 which will allow brokers to flag known importer participants at entry.

4. Participation in BKIP brings value to all parties involved. It creates a framework and discipline where brokers and clients talk about their import programs in the context of import regulations. These conversations increase the importer’s compliance understanding and enhance the communication between broker and client. It is anticipated that this interaction between the importer and the broker will enhance entry accuracy and lead to the discovery of additional business opportunities for the broker. Importers will also benefit from the knowledge and the strengthened relationship with their broker.

5. With the BKIP indicator factoring into CBP’s cargo risk segmentation, the importer will also benefit from improved cargo targeting by CBP at the time of arrival. CBP benefits by obtaining additional information about the importer from a trusted source.

6. BKIP was designed to be easily implemented by brokers. Here’s what you need to do. Identify Known Importer Clients Review your existing client base and create an implementation plan for clients you will implement with first  Existing clients could be sorted a variety of ways including volume, closeness of relationship, longevity of client contacts, etc. Review your current process for new clients and add the BKIP to your onboarding process  Individual factors will determine when you choose to go execute the process and transmit the indictor per client Contact target clients, explain the program and determine their interest  Develop list of clients with whom you will proceed

7. BKIP was designed to be easily implemented by brokers. Here is what you need to do. Document that the Client is Known to you  Adopt the NCBFAA interview guide or develop a similar guide  Review the interview guide with the client  Record the responses, date, participants  Retain records  Establish a timeline for periodic review  Assemble internal records which evince the relationship you have with the importer and prove that you have discussed import regulations and compliance with the client  Retain records  Establish a timeline for periodic review  Get approval [or refusal] from the client to commence transmission of the BKIP indicator

8. BKIP was designed to be easily implemented by brokers. Here is what you need to do. Initiate entry indicator transmissions  Meet with your ABI software vendor to ensure that they have programmed the BKIP indicator  Determine internal process for when you intend to transmit or not transmit the indicator  Add the BKIP indicator to your internal entry audit program

9. Broker Known Importer Interview Guide Antidumping and countervailing duties Binding Rulings Bonds Classification Country of origin and marking CTPAT Documents required to make entry Drawback

10. Broker Known Importer Interview Guide Duty payments Free-trade programs Import history Other government agencies Reconciliation Right to make entry Trademark and/or copyright certification Valuation

11. Broker Known Importer Evaluation Plan The BKIP evaluation plan will be conducted to evaluate the risk-segmentation value gained to CBP through the BKIP indicator Will be conducted in three phases  Near-term  Mid-term  Long-term The BKIP evaluation plan will test the effectiveness of the program and highlight the anticipated mutually positive outcomes of the program for both CBP and the trade community.