DOE To Lean on Customs Brokers for Meeting New Energy Efficiency Import Filing Requirements
Customs brokers play a central role in the Energy Department’s plans to require submission of “certifications of admissibility” data elements in the Automated Commercial Environment at time of entry for products such as consumer electronics that are subject to energy efficiency standards (see 1602100012), said DOE officials at a Friday workshop at DOE's Washington headquarters. A key to the agency’s proposal is that it will prompt brokers to ask their importer clients whether products included in a given entry are subject to energy efficiency standards, forcing the importer to consider whether testing and certification are required, the officials said.
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Imports have been a problem area for compliance with energy efficiency standards, said Laura Barhydt, DOE assistant general counsel-enforcement. Most products DOE finds to be noncompliant are imported, she said. Though lacking data or any studies on compliance levels of imported products, she said it's “extremely common” for DOE to buy imported products and find they don’t comply. Many importers are completely unaware of DOE testing and certification requirements, she said.
By requiring the additional data elements, DOE is hoping importers will get “sucked in,” said Barhydt. Customs brokers, who are generally familiar with regulations, would ask their clients questions about a product if it falls under an Harmonized Tariff Schedule number potentially subject to energy efficiency standards. “Right now, these people aren’t asked a question,” she said. DOE is working with Customs and Border Protection (CBP) to set up “multiple webinars and training sessions” to educate customs brokers on the proposal.
DOE expects a “dramatic impact” on importer compliance if the certification requirements are put into place, Barhydt said, saying DOE’s 2011 expansion of the universe of products subject to certification report requirements drove up the level of compliance among domestic manufacturers with energy efficiency standards. “What we expect is, by putting this requirement on imported goods, we’re going to see the same sort of impact,” she said.
Trade groups requested the workshop to explain DOE’s proposal, asking that the agency explain the proposed requirements and noting confusion with what problem the proposed new requirements were meant to resolve. Under the Dec. 29 proposed rule, comments on which are due Feb. 29, filers would have to submit additional data elements in CBP's Automated Commercial Environment for products subject to energy efficiency standards, including a product’s certificate number and, if no certificate is on file, more detailed product information.
According to DOE officials speaking at the workshop, CBP would be only a “conduit” sending the information to DOE, and in most cases wouldn't stop a shipment based on information submitted through the new data elements. The only exception would be CBP stopping shipments that are associated with noncompliant certificate numbers, said Barhydt. DOE would provide a list of the noncompliant certificate numbers to CBP, and CBP would check against the list to determine admissability, she said.
Some representing industry at the meeting questioned the need for the detailed data DOE proposed to require. DOE seems to be placing “a lot of administrative burden on people that are compliant” to let those not in compliance know “that they are missing the boat,” said Dave Gatto, director-compliance at Westinghouse Lighting. DOE could address the issue of whether an importer knows about energy efficiency standards by simply asking whether a product is covered, and if it's certified, he said. The more-detailed data CBP would require for noncertified products, meant to allow CBP to refuse noncompliant imports, may be unnecessary, said Gatto. Dishonest importers would continue to mislead. If someone is intentionally bringing in noncompliant products, “I can’t see how this is going to impact that,” he said.