Welke Customs Brokers USA cannot pay unlicensed sales representatives by commissions for brokerage services sold, CBP said in a Nov. 30 ruling. Welke USA (WUSA) and sister company Welke Customs Brokers Ltd. in Canada (WCAN) both employ separate sales forces, but were considering a change to the sales structure, CBP said. WUSA sought CBP input on whether the company may pay sales commissions and if WCAN can solicit business on behalf of WUSA.
CBP is currently considering deregulatory efforts that include revenue modernization, updating the customs regulations to account for e-bond functionality in ACE, free-trade zone modernization and bonded warehouse modernization, it said in a document released ahead of the Commercial Customs Operations Advisory Committee meeting previously scheduled for Dec. 5. Other deregulatory efforts will focus on the liquidation process and updating regulations for ACE functionality, CBP said.
A coalition of almost 150 trade groups -- including multiple customs broker groups -- sent a letter to President Donald Trump Nov. 27 warning that the tariffs levied so far are damaging exports and that consumers will be bearing the brunt of additional tariffs, if they come. The letter notes that exports subject to retaliatory tariffs have dropped by 26 percent as of September, compared to September 2017, and that businesses paid more than $5.6 billion in tariffs in October, a more than 70 percent increase from October 2017. "Mr. President, we urge you to capitalize on your upcoming meeting with President Xi to reach an agreement that addresses China’s unfair trade practices and policies in order to remove the 2018 tariff increases, forgo the January 2019 tariff increase and avoid an additional round of tariffs on the remaining $267 billion worth of everyday consumer products and manufacturing inputs," wrote the coalition, which is known as Americans for Free Trade. "Millions of American farmers, business owners, companies, workers, and families are counting on you to make a deal."
CBP posted an updated version of its Frequently Asked Questions for Importer Security Filing with information from the agency's ISF changes that took effect May 14 (see 1804110010). Among other things, the FAQs now include a section on ISF-5 filings. CBP's final rule expanded the definition of "importer" for foreign cargo remaining on board (FROB). "For FROB cargo, the ISF Importer is the carrier or the [non-vessel operating common carrier (NVOCC)]; for [Immediate Exportation (IE) or Transportation and Exportation (T&E)] in-bond shipments, and goods to be delivered to [a Foreign-Trade Zone], the definition of ISF Importer includes the goods’ owner, purchaser, consignee, or agent such as a licensed customs broker," CBP said.
The National Customs Brokers & Forwarders Association of America promoted Tom Mathers from communications director to deputy director for special projects, NCBFAA said in an announcement. Austin Miller, who was assistant director of communications, moved to the communications director position Mathers vacated. Also, Drenda Williams was promoted from administrative supervisor to deputy director for membership.
Express shippers are troubled by a footnote that suggests the U.S. could lower its de minimis rate for NAFTA partners (see 1811060010) and ask that it be removed, said Michael Mullen, executive director of the Express Association of America, during a Nov. 15 U.S. International Trade Commission hearing. Mullen also said the fact that the taxes and duties levels are separate means the $40 Canadian and $50 for Mexico will be the operative de minimis amounts. That Canadian level "is among the lowest in the world," Mullen said, adding that Mexico already offers simplified duties and taxes above $50 and $117, so the administration needs to make sure the pact does not make things worse.
The following lawsuits were filed at the Court of International Trade during the week of Nov. 5-11:
CBP is delaying the final transition date in ACE for moving customs brokers to national permits by one year until August 2020, it said in an updated deployment schedule posted to its website. The agency is also delaying the scheduled deployment date for certain Generalized System of Preferences fixes by several months, from December 2018 to March 2019, CBP said. The updated schedule no longer includes scheduled deployments for a vessel agent account type, which would have allowed payment of maritime processing fees online, or non-intrusive inspection program related improvements, which were set to modernize the entrance and clearance process in the truck environment using the Multi-Energy Portal imaging system (see 1809240020). Finally, CBP set a concrete deployment date of Feb. 9 for its upcoming ACE Form 5106 input process and unique identifiers for the Centers of Excellence and Expertise. A September version of the schedule had said they’d be deployed in February 2019.
International Trade Today is providing readers with some of the top stories for Nov. 5-9 in case they were missed.
The Port of New York/Newark issued a Nov. 9 notice on the importance of validating powers of attorney "prior to transacting Customs business on behalf of the principal." Ensuring the validity of each POA allows brokers to join CBP "on the national security frontlines in verifying the data used to screen what enters this country," Port Director Adele Fasano said. "In addition to security, the broker's own professional business interest and continuing obligation to demonstrate 'reasonable care' require verification of the POA grantor's identity and legal authority (position in a company or partnership) to enter into a POA. CBP has successfully pursued administrative penalties as well as criminal prosecution against brokers who fail to obtain valid POAs."