Actions resulting from the Commerce Department’s ongoing national security investigation on steel imports could disrupt U.S. import-intensive industries and any remedies should be tailored to specific types of steel, companies said in comments to Commerce (here). Commerce recently posted comments it accepted through May 31 on its Section 232 investigation on steel imports, which would allow the Trump administration to impose tariffs, quotas or other import restraints if the review finds steel imports endanger U.S. national security. Commerce Secretary Wilbur Ross has said the department should finish the examination this month (see 1705240034).
Entry filers must transmit data required by the Food and Drug Administration for stand-alone light-emitting diodes, but don’t have to for finished products that incorporate LEDs as indicator lights, FDA Director of Enforcement and Import Operations Doug Stearn said in a letter to the National Customs Brokers & Forwarders Association of America dated May 25 (here). The NCBFAA had requested clarification of LED reporting requirements in April. Stearn said FDA recently discovered that some LED products, subject to FDA reporting requirements for radiation-emitting electronic products, were not being transmitted to FDA for review.
SCOTTSDALE, Arizona -- The increase in the de minimis value threshold last year seems already to be driving a shift in international trade patterns, said Brenda Smith, executive assistant commissioner for the CBP Office of Trade, during a May 25 interview at the West Coast Trade Symposium. "What we're seeing is significant changes in supply chains," reflected in the growing number of Section 321 entries, she said. For example, one port in Alabama with few CBP officers "is suddenly getting this flood because it's close to a distribution center," she said. Likely, that's a result of container-loads full of under $800 small packages that qualify for de minimis, she said.
Despite the near elimination of an account for ACE development in the proposed fiscal year 2018 budget (see 1705230031), CBP is requesting additional funding for ensuring the system continues to operate smoothly, according to its FY 2018 budget justification (here). The proposed budget includes an “increase of $45.1 million” in FY 2018 for “ACE Core Functionality,” including funding for additional “software sustainment teams.” CBP is also requesting substantial increases in funding required to implement mandates in the Trade Facilitation and Trade Enforcement Act of 2015.
A lack of clarity on "a unique identifier for supply chain operators crossing borders" is limiting the potential for trusted trader programs internationally, CBP Acting Commissioner Kevin McAleenan said during a May 17 speech at the U.S. Chamber of Commerce Global Supply Chain Summit. "We've been working so hard to recognize Authorized Economic Operator programs globally with partners, we've entered into Mutual Recognition Agreements, we're intending to expand them," but "they are not having dramatic operational value for our trade partnership," he said. McAleenan has been pushing to standardize unique identifiers (see 1612020024).
The Pacific Coast Council of Customs Brokers and Freight Forwarders voiced support for the “prompt confirmation” of CBP Commissioner nominee Kevin McAleenan in a May 16 letter to the senators from California, Oregon and Washington. “He has been willing, even eager, to meet with West Coast customs brokers and freight forwarders,” the PCC said. “He has traveled to each of the seaport, airport and the land border crossings through which we facilitate trade. He knows first-hand the impact of CBP in trade facilitation and enforcement, and the need for adequate and well-trained CBP staffing.” It is more essential than ever to provide CBP with the resources and staffing it needs to facilitate international trade flows and enforce trade rules, the PCC said. "While our member customs brokers and freight forwarders are physically located along the Pacific Coast, they are engaged in facilitating legitimate international commerce to all the nation’s border, air and ocean ports of entry," it said.
The directors of the 10 CBP Centers of Excellence and Expertise recently agreed to send copies of forms 28 and 29 to involved customs brokers, the National Customs Brokers & Forwarders Association of America said in an email to members. During discussions between the CEE directors and an NCBFAA subcommittee on April 27, "the Directors agreed that the center teams should send copies to the brokers," the trade group said. "However, until a fully automated method is developed, the Centers committed to sending courtesy copies by mail or email attachment to the broker contact listed in the importer's portal account. All agreed that this would be the most consistent approach." There have been complaints recently that CBP isn't sending courtesy copies of the forms to brokers (see 1703230023). "If you are aware of instances where you are not receiving the copies, the Directors would like to know," the NCBFAA said. CBP didn't comment.
Failure to accurately report data elements required by the Food and Drug Administration’s Foreign Supplier Verification Program could also have compliance implications for customs brokers, Domenic Veneziano, president of Veneziano Consulting, said during a webinar hosted by the National Customs Brokers & Forwarders Association of America on May 12 (here). Brokers that file inaccurate data could be prevented from entering food under FDA’s Voluntary Qualified Importer Program, given that VQIP importers must use brokers that passed their most recent filer evaluation (see 1611100028). As a result, it is “extremely important” that brokers get accurate information from their clients, Veneziano said. A presentation from the webinar is available (here).
International Trade Today is providing a summary of information contained in the Food and Drug Administration’s Foreign Supplier Verification Program final rule and other FDA fact sheets and guidance on the definition of the “FSVP importer” that must comply with the regulations and be identified on entry documentation. Beginning on May 30, 2017, the first of FSVP’s staggered compliance dates (see 1602120038), FSVP importers must begin conducting the activities required by the rule if their supplier:
The high U.S. de minimis level has contributed to an upsurge in overseas distribution centers where higher-value items are broken down into smaller quantities for shipment to the U.S., the National Customs Brokers and Forwarders Association of America said in comments to the Commerce Department on U.S. trade deficits (here). Low reporting standards for de minimis shipments mask the volume of those imports, as the Census Bureau can’t acquire information on those goods, NCBFAA said. This translates to a huge quantity of imports not calculated in the U.S. trade deficit, the association said. Comments from trade groups questioned the validity of the trade deficit as a measure of U.S. economic health and fair trade, while others tied deficits to antidumping and countervailing duty collection issues.