CBP may face a legal challenge of its decision not to allow accelerated payment on drawback claims filed under the Trade Facilitation and Trade Enforcement Act until it issues its TFTEA drawback regulations (see 1801260036), said a customs lawyer and a drawback consultant speaking during the International Trade Update conference on March 9 in Washington.
A U.S. cigar distributor may have committed import violations and be liable for more than $3 million in unpaid excise taxes even though it did not act as importer of record on the underlying shipments, the Court of International Trade said in a March 7 decision. Denying Good Times’ motion to dismiss the case, partly because Maverick actually imported the cigars, CIT found that Good Times may have controlled the transaction and fraudulently “introduced” the goods in violation of 19 USC 1592.
More than 100 industry associations called on labor and port leadership at East Coast ports to return to the negotiating table “as soon as possible,” calling a recent “breakdown in negotiations” on a labor contract extension deeply concerning, in a letter dated March 2. A labor contract extension between the International Longshoremen’s Association and the United States Maritime Alliance “will provide supply chain stakeholders with the certainty they need for their operations,” while failure to reach a deal could see newly won business at East and Gulf Coast ports return to the West Coast, “where a long-term contract is in place,” said the letter, signed by the American Association of Exporters and Importers, the National Customs Brokers & Forwarders Association of America, the U.S. Fashion Industry Association and the National Retail Federation, among others. “Some industries will begin implementing contingency planning as early as this spring to ensure that cargo is not disrupted during peak shipping season in the fall,” it said. “In the absence of negotiations, those contingency plans will definitely affect business at East and Gulf Coast container terminals.”
The National Customs Brokers & Forwarders Association of America recently called on CBP to address several holes that still remain in ACE. “While CBP has made great strides over the last few years in development of ACE, we are still in need of additional critical development to make ACE functional,” the trade group said in a white paper. An attached “Priority List” lays out the specific needs of the trade community and where CBP is in addressing them. The group raised similar issues in a Feb. 9 letter to Brenda Smith, executive assistant commissioner in the CBP Office of Trade, obtained by International Trade Today
CBP looks set to take a wide open approach to electronic filing of Section 321 entries, with a “range of options” that allow filers to “do whatever works best for their business model,” said Michael Mullen, executive director of the Express Association of America, in an interview. Clearance off manifest would likely continue, using an item descriptor to identify cargo, with electronic filing expanded to other modes. CBP will also likely allow Section 321 entries in the Automated Broker Interface using the 10-digit Harmonized Tariff Schedule number, Mullen said.
The Generalized System of Preferences, which expired at the end of last year, had its first move toward renewal Feb. 8, as the chairman and ranking member of the House Ways and Means Committee introduced a bill that would extend the program for three years, the committee said in a press release. "When enacted, the bill introduced today will extend the program through December 31, 2020, and retroactively extend benefits to covered imports that have been made since the program lapsed," the release said.
CBP will not use accelerated payment for processing claims under the new drawback procedures until the associated regulations become final, Sandler Travis' Michael Cerny, who chairs the Trade Support Network’s drawback working group, said in a blog post. The agency is required to begin accepting drawback claims under the Trade Facilitation and Trade Enforcement Act as of Feb. 24 and is in the process of issuing associated rules. "Claimants filing for drawback under the more advantageous TFTEA provisions will have to wait months, if not longer, to obtain their refunds," Cerny said.
The Food and Drug Administration on Feb. 24 posted a new chapter of its draft guidance document on human food preventive controls regulations, detailing requirements for supply chain programs for human food products that in some cases may be applicable to importers. Under the supply chain provisions, facilities that manufacture or process ingredients from outside suppliers must use approved suppliers and appropriate supplier verification activities, including on-site audits and record reviews of their suppliers. FDA’s draft guidance includes information and illustrative examples on who is subject to supply chain program requirements and what activities they must conduct.
There were few, if any, early impacts to trade processing over the weekend following the federal government shutdown, trade association leaders said Jan. 22. Geoff Powell, president of C.H. Powell and the National Customs Brokers & Forwarders Association of America, said by email he has "not heard of any issues at this time." CBP was scheduled to provide a briefing to industry leaders on Jan. 22 regarding the shutdown while legislators continued efforts to resolve the government funding impasse through a short-term continuing resolution. Congress is expected to pass a funding bill that would end the shutdown on Jan. 22.
CBP is currently awaiting guidance from the Alcohol and Tobacco Tax and Trade Bureau (TTB) before it can implement recent excise tax cuts for beer, wine and distilled spirits that took effect Jan. 1, CBP officials said on their biweekly ACE call Jan. 18. CBP still hasn’t made any updates to tax rates in the Automated Broker Interface to reflect the changes, enacted as part of broader tax legislation at the end of 2017 (see 1712220024).