Hobby Lobby Stores reached a $3 million settlement with the Justice Department over improper imports of Iraqi artifacts, the U.S. Attorney's Office for the Eastern District of New York said in a July 5 news release (here). The "ancient clay artifacts originated in the area of modern-day Iraq and were smuggled" into the U.S., DOJ alleged in the civil complaint, filed on July 5 (here). The shipping labels "falsely described cuneiform tablets" as tile “samples,” DOJ said. The company must hire customs counsel and customs brokers as part of the settlement.
The Port of Seattle and the Base Metals Center of Excellence and Expertise will hold a seminar on "Steel Identification, Classification and Trade Law" on Aug.16 and 17, CBP said in a June 28 public bulletin. The seminar, which will include presentations from technical, commercial and legal experts from the industry, is meant to "increase the knowledge level" for government officials and customs brokers, it said. This seminar program "has been significantly modified, revised and restructured from previous seminar," it said.
CBP issued a final rule (here) that largely adopts the updates to the customs broker exam that the agency proposed last year (see 1609130032). The changes will help "modernize" the exam by allowing for automation, increasing the fee and adjusting the dates, it said. In response to some comments on the proposal (see 1611170030), CBP said it would maintain the ability to administer special licensing exams outside of the designated dates and would schedule exams for the fourth Wednesday, rather than Monday, in April and October.
The Federal Communications Commission will consider at its July 13 meeting permanently ending the Form 740 requirements for importing radio frequency devices, the agency said (here). "This requirement has become increasingly outdated and burdensome in light of current importation and marketing practices, the information otherwise collected by CBP itself, and the wealth of information available online," the FCC said. "The Order would also modify Commission rules to clarify the compliance requirements related to imported devices and to provide additional flexibility in certain cases." The FCC order needs approval by the agency and could still be modified. If approved, it would go into effect following publication in the Federal Register.
CBP recently updated its Centers of Excellence and Expertise Trade Process Document on responsibilities and procedures for filers, importers and brokers, it said June 28 (here). The updated document reflects the full implementation of the 10 CEEs and regulatory changes that codified the CEEs in a December interim final rule (see 1612190014), as well as changes to electronic filing procedures that have resulted from CBP’s rollout of ACE since the last version of the document was released in 2014. Changes include a statement that the CEEs will provide courtesy copies by mail or email of Requests for Information (CBP Form 28) and Notices of Action (CBP Form 29) to the broker contact listed in the relevant importer’s portal account. The National Customs Brokers and Forwarders Association of America said CBP officials agreed to notify brokers in late April (see 1705150011). The updated document also recommends that, though the trade community may submit prior disclosures to either a port or one of the CEEs, filers should only send the prior disclosure to one location. “CBP has internal procedures to route the prior disclosure to the proper Center team for collaboration, review and action with [Fines, Penalties & Forfeitures]."
CBP is currently in the midst of drafting regulatory requirements for broker validation of importer powers of attorney, said Julia Peterson, chief of CBP’s broker management branch, during a June 26 webinar. Required by the Trade Facilitation and Trade Enforcement Act of 2015, the new regulations will have to pass muster with the Trump administration executive order requiring the repeal of two regulations for every one issued, but “I think we have a path,” Peterson said. Though she couldn’t give a date, there’s a “good shot” the proposed regulations could be available in the next six to nine months, Peterson said.
AUSTIN, Texas -- CBP Acting Commissioner Kevin McAleenan will raise the need for a worldwide unique facility identifier when he travels to Brussels in early July for a meeting of the World Customs Organization policy council, Valerie Neuhart, acting director of CBP’s Office of Trade Relations, said on June 21. McAleenan will be joined in the effort by representatives from Canada and Mexico, who have also been in discussions with CBP about harmonizing unique facility identifiers, she said, speaking during a panel discussion of upcoming ACE priorities at the American Association of Exporters and Importers annual conference.
Duty Deferral Entry Requirements, de Minimis Alignment Deserve Attention in NAFTA Talks, NCBFAA Says
Duty deferral provisions within NAFTA should be left out of any updated deal, the National Customs Brokers & Forwarders Association of America said in comments to the U.S. trade representative (here). Under NAFTA, some products processed in the U.S. "require a special deferral entry to be filed with duty payment to CBP" when exported to Canada or Mexico, the group said. "This special entry and duty payment would not apply if the same shipment were exported to any other country outside of NAFTA" and therefore "hinder U.S. exports to Mexico and Canada," the group said. The NCBFAA comments were in response to a USTR request for public input on how it should update NAFTA.
The October customs broker’s license examination is scheduled for Wednesday, Oct. 25, CBP said in a notice (here). While usually scheduled for the first Monday in October, "to avoid concerns related to the commencement of the federal government’s 2018 fiscal year, CBP has decided to change the regularly scheduled date of the examination," CBP said. The exam typically consists of 80 multiple-choice questions, with a score of at least 75 percent required to pass.
An importer’s conduct in a court case does not affect the amount of penalties that should be assessed for tariff misclassification, the Court of International Trade said in a decision issued June 7 (here). Although the government had sought $324,540 in penalties from Horizon Products International for the importer’s negligent misclassification of its plywood imports in a duty free tariff subheading, CIT instead authorized half that. A “significant penalty” was warranted for “slow-playing the Government,” but failure to cooperate in a court case should instead be addressed by other means, it said.