NCBFAA Board of Directors Meeting Minutes

NCBFAA Board of Directors Meeting Minutes January 14, 2006 Las Vegas, NV

Those in attendance included: President Federico "Kiko" Zuniga; Vice President Mary Jo Muoio; Secretary John Hyatt; Treasurer Jeff Coppersmith; Chairman of the Board Peter H. Powell, Sr.; Executive Vice President Barbara Reilly; Area 1 Rep(s): Mark Johnson; Amy Magnus; Area 2 Rep(s): Cary Weinberg; Gary Klestadt; Area 3 Rep(s): Kenneth Bargteil, Joe Meunier; Area 4 Rep: Jan Fields; Area 5 Rep(s): Scott Case, Joe Trulik; Area 6 Rep: Bob Coleman; Area 7 Rep(s): Billy App, Shane Garcia; Area 8 Rep(s): Arturo Dominquez; Neto Roser; Area 9 Rep(s): Roger Clarke, Karen West; Senior Counsel: Harold Brauner, Mike Dugan, Art Litman; Legislative Rep: Jon Kent; Transportation Counsel: Edward Greenberg. Area Representatives not present: Area 4: John Abisch, Area 6: Jeanne Burns Invited Guests: Marie Armelagos, Bruce Goodwin.

Welcome: NCBFAA President Federico Zuniga thanked everyone for attending the Board of Directors meeting, then asked for introductions. President Zuniga acknowledged Ed Greenberg as General Counsel pro tem, in the absence of Mr. Harvey Isaacs. Minutes: President Federico Zuniga motioned to accept the minutes from the September 18 meeting; Board endorsed the minutes as drafted. Treasurer’s Report: NCBFAA Treasurer Jeff Coppersmith referenced appropriate financial documents distributed, addressing two points; treasurer’s report for last year and budget figures, adding that the financials are not yet finalized. 2005 highlights. More revenue and fewer expenses than anticipated. Membership dues have increased 10 percent; collection is approximately 28k less than goal and about 24k less than previous year due to mergers. Discussion on other specific accounts followed and the Board approved the proposed budget for 2006 unanimously. Membership Committee: Membership Committee Chairman Bruce Goodwin asked for Board endorsement of new members. Area 7 Representative Billy App moved to accept applications, Area 8 Representative Arturo Dominguez seconded. Chairman Goodwin introduced the question of the status for Affiliated Association President who is not a member. Area 6 Representative Bob Coleman contended that membership benefits should be extended. President Zuniga advised that Article 6, section (2)(b) of bylaws permits the President to invite guests to board meetings, and invitations had been extended long ago. Area 1 Representative Mark Johnson questioned whether the president would pay member or non-member registration for Annual Conference. President Zuniga referred the issue to by-laws committee. Chairman Goodwin stated there is an issue where locals deducted the count of non-NCBFAA members when paying dues to NCBFAA. Membership committee reported that they voted to collect dues against total membership in the Affiliated Association without regard to NCBFAA status and to keep the Board aware of developments. APN Report: NCBFAA Executive Vice President barbara reilly reported that the APN unanimously voted to move its breakfast at the Annual Conference to a lunch. Other APN events will include participation at the First Timers Reception, the Monday Annual Meeting, a Monday luncheon presentation with the Board and an ASAE speaker on Volunteer participation at the local and national level, and the Tuesday luncheon presentation with a VP of a Hotel Management company. FIATA Conference: Area 7 Representative Shane Garcia noted that administrators are taking more control. Next year’s meeting will be in Vancouver. Discussion followed by Art Litman and Mike Dugan on membership and President Federico Zuniga avowed the matter should still be pursued and to ask for a bottom line. AAEI: President Federico Zuniga asked Area 2 Representative Cary Weinberg to act as a liaison to AAEI, since Mary Jo Muoio was no longer on the AAEI Board. Communications Report & FABnet Report: NCBFAA Executive Vice President barbara reilly reported NCBFAA Communications Director Tom Mathers still needs press worthy items. President Zuniga asked that a promotional video be produced. Proposition was put to the board of a 6k expenditure for video. Motion by Area 7 Representative App seconded by NCBFAA Secretary John Hyatt, vote carried. NEI Report: President Zuniga restated the goals of the CCS program. NCBFAA Educational Institute Co-Chairs Marie Armelagos and Jan Fields reported that the customs committee or appointees reviewed the CCS content. To date 64 people have signed up for the class. It was noted that a membership dues discount of $15 per renewal would be allowed for firms paying for a minimum of 10 CCS renewals. A search will commence for an Educational Director and a continuing education point-earning scheme will be devised. Attendance at this conference is worth up to 20 points for roll-over to 2007 CCS renewal qualification. barbara reilly reported that over 1,500 CCS qualifications have been conferred through grandfathering. President Zuniga has asked NCBFAA members for at least one CCS applicant per firm, and has extended a $300 discount. President Zuniga proposed reciprocity allowing U.S. and Canadian applicants to enroll in each other’s CCS programs by virtue of their fulfillment of CCS qualifications in their home country, and in lieu of one year’s experience in the other country. Area 3 Representative Ken Bargteil moved to pass motion; Area 8 Representative Arturo Dominguez seconded. The motion passed unanimously, with a caveat proposal by Marie Armelogas that it applies only to Canada at this time. Annual Conference Committee: Annual Conference Committee Chairman Bob Perkins reported the Sponsorship Cmte lead by Peter Powell is halfway to the budgeted sponsorship commitment level, spouse program and golf outings are alluring. Peter Powell encapsulated the TSA Tabletop Exercise. Discussion followed concerning target audiences and again all Board members were asked t o assist with support of this event. Customs Committee Report: A written report dealing with the matters discussed at Custom committee meeting on Sept. 21 was distributed prior to the meeting. Area 3 Representative Bargteil brought the Board up to date with a sampling of items from his desk covering the period of Sept 21 to Jan 13. Following the Sept 21 meeting, the committee became aware of dissent regarding several parts of the proposed drawback amendments slated for inclusion in the Miscellaneous Trade Bill. The TSN Revenue Committee approved the legislative language for trade requirements without objection and referred the matter to both the CBP Legal Policy Group and the TSN Legal Policy Committee. The NCBFAA and CBP are working jointly to get the measures through the legislative process. A small group of drawback brokers have organized in opposition to proposed legislation, the Coalition for Drawback Equity. The arguments in favor of its passage are that it is essential for the implementation of ACE trade requirements; it will greatly simplify drawback based on substitution by replacing tortured concepts of commercial interchangeability with a simple 8- digit Harmonized tariff match, and it will facilitate a robust market in drawback goods. Continued controversy may necessitate the use of an alternative legislative vehicle. Discussion of the CCS course review and acknowledgement of the role of colleagues in bringing important matters to the attention of the committee followed. Chairman Bargteil reminded CBP of its pledge to provide 90-day notice of ACS changes requiring programming. In addressing bond centralization challenges the Committee was able to persuade CBP to drop its demand for customs brokers to file a copy of the client power of attorney when canceling a bond. Chairman Bargteil mentioned that many customs attorneys have been counseling filers to take great care in declaring MID’s on textile shipments. With the elimination of the Textile Declaration and change of rules on October 5 regarding the MID to be declared in connection with entry of textiles, the risk of penalty assessment against the customs broker increased considerably. Chairman Bargteil noted that CBP not only lacked authority to require a reimbursement statement at entry of antidumping goods, but they could not require it’s filing at all. The caveat is that if a reimbursement statement is not filed, the antidumping duty should be doubled at liquidation. CBP’s desire for entry-level data prior to vessel loading and the use of ABI to acquire it was addressed. There followed general questions and answers. Washington Report: Legislative Representative Jon Kent reported that NCBFAA maintains to work with the ITDS Board of Directors in enrolling OGA’s. Byrd Amendment is in the House for its final agreement. Should pass in this session of the house. NCBFAA has joined a coalition for GSP renewal. Diminutive interest on the Hill to take up bankruptcy issues at this point in time. NCBFAA Senior Counselor Mike Dugan asked about 100 percent examination of air cargo. Legislative Representative Kent responded that the TSA is committed to top risk based inspections. Forwarding Committee Report: Committee Chairman Billy App thanked membership for its support in wake of the hurricane. NCBFAA Transportation Counsel Ed Greenberg advised the Board that in New York customs broker (forwarders) are being charged for workman’s comp claims filed by truckers without coverage. The problem will be addressed to membership, along with general liability issues, in the Monday Morning eBriefing. Second issue relates to the best practices for exports. National Electronics Distributors Association is interested in developing best practices with NCBFAA. Chairman App has appointed a subcommittee, (Herman Amsz, Geoff Powell, and Bob Coleman) to look at a revocation of the antitrust immunity to carriers. President Zuniga asked what prompted it. Counsel Greenberg replied that there is an initiative in Europe to revoke carrier antitrust immunity. Airfreight Subcommittee Report: Subcommittee Chairman Scott Case reported the subcommittee met with John McGowan of the TSA and there is a delay on the committee’s agenda. He also added that as confirmed by the AFA Liaison committee’s report, the Air Forwarders Association has expressed interest in working with NCBFAA again. Security Report: Peter Powell reported we are continuing to work with the government on these issues. RAC Report: Area 9 Representative Roger Clarke reported that the Committee has been discussing the wood packing material (WPM) matter. Vice President Muoio moved that NCBFAA comment on a marketing order restricting the timeframe in which Chilean table grapes may be imported. President Zuniga seconded. The motion carried Nominating Committee: Committee will be asking Affiliated Associations to make Board of Director nominations. Vice President Muoio has been nominated to succeed Kiko Zuniga as President, with Jeff Coppersmith as Vice President, Geoff Powell as treasurer and Darrell Sekin as Secretary. Kiko Zuniga has been nominated for the Chairman of the Board. Counsel Review Committee: Area 3 Representative Bargteil reported for Committee Chairman Lee Hardeman. All suggestions should be assigned to Chairman Hardeman and will be kept in confidence. Affinity Program Study: President Zuniga asked NCBFAA Chairman Peter Powell to study the concept and report to the Board. An Affinity Program should be mission related, should not be available elsewhere; the vendor must be reputable, and there should be benefits for both the membership and the association. OCR has been accepted for this program. President Zuniga reopened the previous Board of Directors decision for consideration. Discussion followed and issues rose about preceding Affinity Programs. Chairman Powell said that general counsel has reviewed the liability issue and it will not be a problem. President Zuniga discussed the issue by pointing out the difference between an affinity program that generates revenue and preferred providers where benefits go to the member firms. President Zuniga then called the question. Two opposing votes, motion carried. Director Bargteil then introduced a proposal by Avalon to be considered as a preferred vendor and moved that they be recognized as a non-exclusive preferred vendor. Discussion followed and a point was made that we needed to study this program and obtain guidelines. President Zuniga called the question. 8 in favor, 10 against; motion failed. President Zuniga charged COB Powell to produce standards for establishing preferred vendors, and the Board responded by providing President Zuniga permission to discuss the program with Roanoke again. PAC Committee: Committee Chairman Shane Garcia solicited for board support. President’s Report: President Zuniga recognized the NCBFAA Committees for their vigorous work with special recognition to Jan and Marie for bringing the CCS Introductory Course to fruition. Senior Counselor Art Litman and NCBFAA President Zuniga will be attending the IFCBA meeting in Brussels, which will be focusing on security. Vice President’s Report: Vice President Mary Jo Muoio reported the customs broker $50 per entry limit of liability has been sustained in a recent court case litigated by customs counsel Grunfeld, Desidero, Silverman, Lebowtiz & Klestadt. New Business: Nominating Committee Chairman James asked if NCBFAA could do anything to aid our New Orleans members. Area 7 Representative App stated that he would let the Board of Directors know in future when it might be of help. Mike Dugan underscored Area 7 Representative App’s comments about the devastation and difficulties being faced by the residents of New Orleans and advised that he believes Paul Wegener, who has contributed more to this Association than anyone else, lost everything, and has decided to retire. He urged that NCBFAA recognize his contribution, and Kiko Zuniga said that he would see it is done at the Annual Conference. Area 5 Representative Scott Case filed a nominating petition for the Area 5 Director position. EVP Report: Executive Vice President Barbara Reilly stated the NCBFAA will be distributing materials for the Annual Conference. The Membership Directory will close soon and also be distributed to CCS candidates. Suggestions for future conference venues are invited as RFPs were presently being reviewed for 2008-10. Las Vegas Hyatt that the Exec Committee would be visiting is only 17 miles away from the strip, and a potential consideration if budget is appropriate. Area 8 Director Arturo Dominguez thanked barbara reilly and NCBFAA for their attendance and support at the recent statewide conference in Laredo. Adjournment: Motion to adjourn made and seconded, motion carried.