[Federal Register Volume 77, Number 58 (Monday, March 26, 2012)]
[Proposed Rules]
[Page 17367]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-7223]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

19 CFR Part 111

[USCBP-2010-0038]
RIN 1651-AA80


Permissible Sharing of Client Records by Customs Brokers

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security.

ACTION: Withdrawal of notice of proposed rulemaking.

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SUMMARY: This document withdraws a notice of proposed rulemaking, 
published in the Federal Register on October 27, 2010, that proposed 
amendments to the Customs and Border Protection (CBP) regulations that 
would allow brokers, upon the client's consent in a written 
authorization, to share client information with affiliated entities 
related to the broker so that these entities may offer non-customs 
business services to the broker's clients. Although the proposed rule 
was prepared in response to a request from a member of the broker 
community seeking to allow brokers to share clients' information for 
marketing purposes, there was opposition to the proposal from brokers 
due to the condition on sharing the information that CBP included in 
the document to protect importers' proprietary information. The notice 
is being withdrawn to permit further consideration of the relevant 
issues involved in the proposed rulemaking.

DATES: Effective March 26, 2012, the proposed rule published October 
27, 2010, (75 FR 66050), is withdrawn.

FOR FURTHER INFORMATION CONTACT: Anita Harris, Chief, Broker Compliance 
Branch, Trade Policy and Programs, Office of International Trade, (202) 
863-6069.

SUPPLEMENTARY INFORMATION: 

Background

    On October 27, 2010, Customs and Border Protection (CBP) published 
a notice of proposed rulemaking in the Federal Register (75 FR 66050) 
pertaining to the obligations of customs brokers to keep clients' 
information confidential. The proposed amendment would allow brokers, 
upon the client's written consent, to share client information with 
affiliated entities related to the broker so that these entities may 
offer non-customs business services to the broker's clients. The 
proposed amendment would also allow customs brokers to use a third-
party to perform photocopying, scanning, and delivery of client records 
for the broker. These proposed changes were intended to update the 
regulations to reflect modern business practices, while protecting the 
confidentiality of client (importer) information. The comment period 
ended on December 27, 2010.
    CBP received public comment on the proposed rulemaking. The 
majority of commenters expressed concern that the proposed rule did not 
serve the interests of the importing public. Specifically, there was 
opposition to the proposal from brokers due to the condition on sharing 
the information that CBP included in the document to protect importers' 
proprietary information.

Withdrawal of Notice of Proposed Rulemaking

    CBP is withdrawing the notice published in the Federal Register (75 
FR 66050) on October 27, 2010, pending further consideration of the 
relevant issues involved in the proposed rulemaking.

    Dated: March 21, 2012.
David V. Aguilar,
Acting Commissioner, U.S. Customs and Border Protection.
[FR Doc. 2012-7223 Filed 3-23-12; 8:45 am]
BILLING CODE 9111-14-P