Congress seems unlikely to provide dedicated funding for new ACE development in upcoming appropriations legislation, according to industry officials. Still, CBP may be able to funnel operations and maintenance resources to ACE development, said one industry observer. While the end to funding for new programming isn't unexpected (see 1609140034), the shift is closer to becoming a reality as the Senate and House aim to pass final Department of Homeland Security appropriations legislation by late April, industry and congressional officials said recently.
International Trade Today is providing readers with some of the top stories for Feb. 27 - March 3 in case they were missed.
CBP has not shelved an update to customs broker regulations, an agency spokeswoman said. “CBP is not delaying work on amending the broker regulations," she said. The National Customs Brokers & Forwarders Association of America recently said in an email to members that the update to 19 CFR Part 111 is on hold indefinitely (see 1702270015). "We anticipate that the Notice of Proposed Rulemaking regarding other modernizations of the broker regulations will be placed into review this year," the spokeswoman said.
CBP’s long awaited rewrite of the Part 111 customs broker regulations is currently in the drafting process at the agency’s Office of Regulations and Rulings, said Jerry Malmo, director of the CBP Civil Enforcement Division, at the March 1 meeting of the Commercial Customs Operations Advisory Committee. Malmo’s division, which is the “policy office for the broker regulations,” has taken the 37 recommendations previously issued by the COAC (see 1604250011) and, “to the extent that we could or decided we were able to,” incorporated them into a policy statement it has given to the regulations office, he said. The regulations office then takes the policy direction “in formulating the regulations,” he said. The National Customs Brokers & Forwarders Association of America recently said the Part 111 rewrite is on hold “indefinitely” and the proposal won’t be seen until at least 2018 (see 1702270015).
CBP posted a list of frequently asked questions for customs brokers (here). The FAQs include sections on general information, the triennial status report, and trade names and corporations. Among the issues CBP addresses in the FAQs are how to obtain a customs brokerage license, what happens when a broker fails to submit a triennial report and the ability to transfer an individual's broker license to a corporation.
CBP officials recently told the Customs Committee of the National Customs Brokers & Forwarders Association of America that the long-discussed update to regulations governing customs brokers likely will not take place this year, the NCBFAA said in an email to members. CBP informed the committee that "our ongoing effort to modernize the regulations governing customs brokers has been put on hold indefinitely by CBP," according to the NCBFAA. Some previously expected a regulatory proposal to come in 2016 (see 1610190018).
Despite size characteristics of a tote bag, "hobo" bags with short straps can be classified as a handbag, CBP said in a Jan. 30 ruling (here). The ruling follows a further review of protest from Target Customs Brokers for Target General Merchandise regarding the classification of a women's hobo bag on three entries in 2013. CBP liquidated the entries as tote bags under subheading 4202.92.4500, which covers a travel, sports or similar bag. CBP often looks to the size of a bag to differentiate between tote bag and handbag classifications in subheading 4202.22 (see 1611020020).
International Trade Today is providing readers with some of the top stories for Feb. 13-17 in case they were missed.
CBP recently "discovered that ACE may be increasing the number of late file cases due to a glitch," a CBP spokeswoman said. The National Customs Brokers & Forwarders Association of America first mentioned the issue in a Feb. 13 email to members. CBP told the NCBFAA that it "is investigating the increase in 'late payment' penalties being issued," according to the trade group. "The Fines, Penalties, and Forfeitures (FP&F) field offices have been notified to thoroughly research liquidated damages claims before issuing to ensure that systems-caused late files are not subjected to claims," the NCBFAA said. "CBP will also review previously issued penalties and where warranted, cancel."
A New York-based customs brokerage reached a settlement with Nike in a trademark infringement case, agreeing to strict requirements for validation of powers of attorney as a condition of the settlement. Alto Customhouse Brokers agreed to pay $25,000 to Nike, and validate all future powers of attorney it receives from importers, including by way of notarization, phone calls and checking government-issued IDs. Under the settlement, filed Feb. 10 but still subject to approval by the New Jersey U.S. District Court, Alto agreed to not willfully import or assist in the importation of any goods bearing counterfeit Nike trademarks, and to investigate and confirm the power of attorney before conducting customs business on a client’s behalf.