NCBFAA Board of Directors Meeting
New Orleans, LA
January 23, 2016

Those in attendance included: President Geoffrey C. Powell; Chairman of the Board Darrell Sekin, Jr.; Vice President Amy Magnus; Treasurer Scott Larson; Secretary William S. App, Jr; Executive Vice President barbara reilly; Area 1 Reps: MaryAnn Comstock, Amy Slavko; Area 2 Rep: Matt Brauner, Howard Woltmann; Area 3 Rep: Michelle Francis;; Area 4 Rep: Donna Mullins; Area 5 Reps: Marie Armelagos; Area 6 Reps: Anne Marie Bush, Victoria Lane; Area 7 Rep: Melzie Wilson; Area 8 Reps: Angelica Quintanilla, Rodolfo Delgado; Area 9 Reps: Maurine Cecil, Daniel Meylor

Senior Counselors: Jeffrey Coppersmith, Mary Jo Muoio, Federico Zuniga (also NCBFAA staff), General and Transportation Counsel Edward Greenberg; Legislative Representative Jon Kent; Customs Counsel Alan Klestadt

Board Members not in Attendance: Area 4 Rep: Kathleen Carlton; Area 5 Rep: Merit Tremper; Area 7 Rep Kathy Murray

Committee Chairs/ Members / Guests: Cindy Allen, Kristi App, Gerald Becnel, Michael Cerney, Roger Clarke, MaryAnn Comstock, Karen Damon, Leah Ellis, Jan Fields, Shane Garcia, Bruce Goodwin, Paulette Kolba, Page Morgan, Bob Perkins, Rich Roche, Rene Romero, Mark Shacklette, and Joe Trulik.

NCBFAA Staff: Kim O’Beirne, Ken Bargteil

Welcome: President Geoffrey Powell asked Legislative Representative Jon Kent to lead the assemblage in the Pledge of Allegiance. General Counsel Ed Greenberg then read the anti-trust guidelines that all need to be aware of during Board discussions. Following the introductions, President Powell welcomed all and thanked the local Association for an extremely warm New Orleans welcome, and introduced the local NOLA President Kristi App to say a few words about the gift bags distributed and local surroundings pre-Mardi Gras. He then turned meeting over to Secretary App.

Secretary’s Report: Secretary William App solicited a motion to approve first the September 27 Board meeting minutes and then a resolution to accept the Special December 10 Meeting minutes as filed. Motions to accept both sets of minutes as presented were made, seconded and approved unanimously.

Treasurer’s Report: Treasurer Scott Larson reviewed income versus budget through December 31. Despite expectations, membership revenue was slightly down but NCBFAA is addressing that and although Annual Conference attendance was a little off, the lower expenses was offset by the effect of the diminished income for registration as anticipated. The NEI and the Membership Directory contributed over budget as well. Bottom line is that expenses were higher than income. Operational expenses versus budget continue to fluctuate within normal tolerances though some meetings, MIS and personnel costs are higher due to some recent administrative decisions. The higher MIS costs due to NEI LMS/AMS integration costs and, despite higher personnel costs, lower administrative expenses worked as an offset. NEI G-TEC and RAC seminars increased their expenses but Membership’s payment to ExWorks for truck vetting service was below expectations. Board meeting budget is higher due to increased projections anticipated for food and travel expenses to locations for Board Meetings. Balance of committees’ expenses was in line with budgeted amounts. NCBFAA entered 2015 with a negative balance and revenues were slightly down due in part to unexpected expenses in covering some aggressive but necessary activities to assist marketing in the membership department. Treasurer noted plan for voting on the 2016 budget by late February. Motion to accept report was seconded, and following discussion, passed unanimously.

Nomination Committee Report: Chairman Jeffrey Coppersmith announced that the current Officers slate has been re-nominated for the 2016-2018 term.

Transportation (OTI/NVOCC/Airfreight/OCBP) Report: Chair Janet Fields announced the Committee’s intent to write a SOLAS White Paper as well as draft a comment letter on an anticipated BIS NPRM on penalties and processes that will mirror OFAC rules. The Committee feels that this proposal has elements that would be harmful to forwarders and wants to make BIS aware of them. This initiative will include efforts to enroll others in commenting.

COAC / Trade Facilitation / BIEC / ITDS-TSN: Vice President Amy Magnus discussed COAC noting the One USG Group efforts on ACE implementation involving picking and choosing what to enforce at startup as well as the work of the Role of the Parties group. Cindy Allen reiterated that CBP would not back off the February 28 date and noted that despite carve outs, she expects major issues during the initial days of implementation will make for an ugly process. Discussion of simple window impetus, limiting migration to certain business lines, need to for dual systems in business, submission of timely recommendations, continuing fluidity of program specs, disingenuous characterization by CBP of level of their personnel’s training, leave RLF in ACS, limited training of diminished number of ABI client representatives, need to comment to CBP officials and legislators, ongoing lines of communications with CBP Headquarters, incentive for PGAs to work with industry, blame being laid on industry by CBP for challenges, volunteers feeding information to members, added costs of preparing for ACE implementation, need for detailed contingency and transition plans should ACE implementation go awry, participation rate levels, and private CBP conferences with vendors indicating what will and will not go live on the 28th were noted. President Powell went over BIEC developments and activity, especially as they relate to ACE.

RAC Committee: Chairman Roger Clarke cited his written report and referred to a recent Committee strategy meeting. He discussed the results of that meeting, which are included in his report to the Board. Legislative Representative Kent commented on low level of communication between PGAs and industry, especially FDA. Vice President Magnus commented on her participation in the RAC retreat and encouraged sharing results with others. Chairman Clarke solicited input from anyone involved in one or more of the pilots.

Legislative / PAC / GAC: Legislative Representative Jon Kent reported nothing going on the Hill since passage of transportation bill, Customs bill being held hostage to squabble over internet tax provision with passage up in the air, and little Senate interest in jeopardizing Senate Republicans in election battles with controversial votes which affects movement of TPP legislation. Lot of potential in the House as Speaker wants to move aggressively. Mr. Kent spoke about the Legislative Committee, chaired by Charles Riley, and its role in expanding the scope NCBFAA political activity as well as its need for volunteers. GAC Committee Chair Jerry Becnel noted success of GAC and called on all present to spread the word about volunteering when they get back to their offices.

ASAPRA / IFCBA / NACBA Meeting: President Powell reported on attending with NEI Director Federico Zuniga ASAPRA’s meeting in Panama and the NCBFAA’s decision to join ASAPRA. He noted a subsequent meeting at the NCBFAA HQ office with CAREEM Representatives and EVP reilly. They want a closer relationship with NCBFAA and spoke of ongoing activity between both organizations, and delivered an agreement Counsel is currently reviewing. Chairman Darrell Sekin reported on IFCBA relationship with NCBFAA and indicated that international customs brokers have similar challenges to those of American customs brokers. He noted scheduled attendance at the IFCBA Annual Conference in Shanghai in May.

Customs Committee Report: Committee Chair Mary Jo Muoio highlighted the group’s Rule 111 work in conjunction with COAC and the various areas, such as permitting, customs business, responsible supervision and control, employee responsibility, etc., involved. She also addressed continuing education and an either/or proposal involving choosing between an annual test or satisfying a set number of continuing education points. She noted the concept of getting powers of attorney from unlicensed parties as one of the issues they would focus on. She encouraged anyone with concerns about the Rule 111 controversy to articulate them to CBP while the window of opportunity is open. With respect to ACE, it is the Customs Committee’s opinion that President Powell continues the ongoing dialogue with CBP. She cited the need to push CBP for readiness and accountability as well as PGA committed involvement to the regular ACE strategy calls. Subsequent discussion revealed that broker confidentiality is also an ongoing topic and the CBP is open to continuing education requirements.

Annual Conference Committee Report: Committee Chair Shane Garcia discussed upcoming event, citing higher interest and registrations to date. He described some of the scheduled events and details associated with those events. He also explained this year’s schedule is mixing up the customs and forwarding sessions to encourage greater attendance during the day, and EVP reilly concluded the report by adding some basic analytics and reminders.

Membership Development and Retention Programs: Membership Committee Chair Bruce Goodwin read the names of 19 new firms applying for membership. Following the reading of the names, a motion was solicited, seconded and approved for the following members:

Regular Member

Air & Sea International

Gold Coast Shipping & SGF Fright, LLC

ISS BROKERAGE SERVICES INC

Landstar Global Logistics Mexico Operations

LMJ International Logistics

Mercury Business Services, Inc.

North American General Agents, Inc.

Paul D Rodriguez, CHB

PMK International LLC

Premier Customhouse Brokers Inc.

RCS Logistics Inc.

Transcarveca USA Corp, dba TeamFreight Forwarding Company

Uni-Trade Brokers

Affiliate Members

Allied Machine & Engineering Corporation

Global Training Center

Integrity International Trade Consulting LLC

Moore McLean Corporate Insurance Ltd.

OWI SPECIALIZED, INC.

PayAnyBiz

After the vote, Chairman Goodwin announced that the NCBFAA had exceeded the 1,000 member mark and summarized what members get out of membership, and asked that everyone offer a toast to exceeding that mile stone. He also reported on the Membership Task Force Committee work on the issue of regular member definition and announced that a policy would be forthcoming at the April Board meeting. Concerns expressed over the policy’s effect on, and possible implications for, current member status followed by extensive discussion of what the By-Laws define as a member.

Communications Report: President Powell announced the initiative of a marketing effort designed to gain new members and ensure the NCBFAA is perceived accurately in the industry. Communications Director Tom Mathers provided a brief overview of the planned marketing initiative intended to increase membership, reinforce member loyalty, and raise brand awareness. EVP reilly explained the underlying philosophy behind this undertaking. President Powell plugged the value of using the new Ex Works product to limit liability and pointed out that a campaign to market it would be initiated.

Affiliated Presidents Network: Chair Michelle Francis reported that the APN continues its monthly calls with main focus of late being ACE. Also on the agenda has been the future role of the Affiliated Associations in the face of CEEs growing influence and diminution of port centric activity. She concluded her presentation with an invite to all who are interested to join in on the monthly calls.

NEI Report: NEI Committee Chair Ken Bargteil addressed expanded role of the new LMS Logistics EI, noting the number of products and services being facilitated by that platform. He then highlighted the key activities and work products of the various subcommittees and work groups. He reiterated his call for volunteers to help with the work of the NEI, especially with review of the master program and the accreditation effort. He reported that work on program accreditation is continuing. He noted that the “Troops to Trade” campaign continues to gain traction and is bringing in veteran clients to the NEI program. In addition, he indicated that the ongoing NEI logo controversy is being clarified and solutions are in the offing. NEI Director Zuniga announced the Troops to Trade agreement with WiseTech to enhance both the program and the Logistic EI offerings. He also reported that planning is underway for the 2016 G-TEC event, which is open to all interested in attending. He concluded with an announcement of the 2016 CCS and CES scholarship winners.

Management / Communications / Marketing Report: EVP reilly encouraged APNs to get their info into the 2016 Membership Directory, committee chairs to get their Annual Report info in, and she described the expanded MMeB distribution as well as its more timely availability through expanded weekend coordination hours. Solicited input from APNs for NCBFAA to distribute more broadly. She addressed the current marketing initiative, citing the recently concluded survey to be tabulated and available in February, and thanked those who participated.

There being no further business, the meeting adjourned at 5:30, and everyone was reminded of the location of the River Room where the local Int’l Freight Forwarding & Customs Brokers of New Orleans Association and the Maritime Association hosted a wonderful Reception to all in attendance.