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Federal Register / Vol. 86, No. 173 / Friday, September 10, 2021 / Proposed Rules TABLE 2LICENSING HISTORY FROM 20152020
Total licenses 47

Year
Corporate licenses
Individual licenses
2015
2016
2017
2018
2019
2020 48

770
653
580
558
464
187

16
21
16
27
15
7

754
632
564
531
449
180

Total

3,212

102

3,110

Based on an average rate of decline of 12 percent in the number of individual licenses issued, CBP would likely issue 1,754 new individual licenses over a 6year period of analysis from 20212026
see Table 3, though not all of those license holders would be required to complete continuing education during the 6-year period of analysis. Each of these new individual license holders would need to comply with the terms of
the proposed rule once it is in effect and they have completed their first triennial report. All 13,822 individual brokers active at the time the rule is implemented would be required to complete continuing education from February 1, 2021February 1, 2024.49 In 2024, the 1,045 individual brokers who CBP projects would receive licenses from 20212023 would need to begin complying with the terms of the
proposed rule. Brokers who receive licenses in 20242026 would not need to comply with the proposed rule until after their first triennial reporting cycle, which would fall outside of the period of analysis. In total, therefore, CBP
estimates that 14,867 brokers would be required to abide by the rule in the six years from 2021 to 2026.

TABLE 3PROJECTED LICENSES ISSUED FROM 20212026
Total licenses issued
Year 2021
2022
2023
2024
2025
2026

Corporate licenses
Individual licenses
New licenses affected by the rule

408
358
315
276
243
213

13
12
10
9 8
7

394
346
304
267
235
206

0
0 0
1,045
0 0

Total

1,812

59

1,754

1,045

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Totals may not sum due to rounding.

Although the majority of active individual brokers would be required to complete continuing education under the proposed rule, feedback from the broker community indicates that many brokers already complete the amount of continuing education that would satisfy this requirement.50 Many companies that employ brokers provide and require in-house training and continuing education. Both independent brokers and brokers employed by brokerages often attend government-sponsored
webinars, as well as trade conferences and symposia, which would qualify as continuing education under the terms of the proposed rule. Many brokers also pursue professional certifications like the National Customs Brokers and Freight Forwarders Association of Americas NCBFAA Certified Customs Specialist CCS and Certified Export Specialist CES.51 Under the baseline, or the world as it is now, these brokers likely would be in compliance with the proposed rule and, assuming similar
activities if a continuing education requirement is imposed, would not incur new costs under the new requirements, except for new reporting costs.
Overall, CBP estimates that approximately 60 percent of individual brokers already pursue continuing education and would be in compliance with the rule.52 CBP bases this estimation on several factors. First, the NCBFAA estimates that approximately 4,456 brokers hold a CCS or CES in 2020, representing 29 percent of total
47 CBP sometimes issues licenses that are later suspended or terminated either voluntarily or as a penalty. This table includes all licenses issued in these years that remain active as of 2021, as only holders of an active license would need to abide by the terms of the rule.
48 The number of licenses applied for and issued in 2020 was significantly lower than in previous years due to the effects of the COVID19 pandemic and related closures and delays. CBP excluded this year from calculations of growth rates due to its anomalous nature. 2021 may also be affected similarly, but CBP cannot predict to what extent.

49 The exact timing of the requirement will vary depending on when the final rule goes into effect, and the requirement will be prorated based on the time left until the triennial report is due. For the purposes of this analysis, we estimate the costs for the hypothetical period from 20212027.
50 Feedback was provided in the form of public comments on the ANPRM. Additional feedback was provided in various meetings and discussions between CBP personnel and customs brokers, as well as at trade conferences and meetings of the Task Force for Continuing Education for Licensed Customs Brokers, a part of the COAC. See II.E.
Development of the Proposed Continuing Broker Education Requirement, above.

51 We included both brokers qualifying as CCS
and CES in our analysis as the coursework for both has significant overlap and is relevant to customs business.
52 CBP requested information about the proportion of individual brokers already complying with the rule in the ANPRM. Although CBP did not receive specific information in the public comments, several commenters said they would be compliant and believed that significant numbers of other brokers would be as well. Many also noted that their companies require their broker employees to complete continuing education.

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