It’s unclear whether U.S.-Canada Free Trade Agreement (CFTA) provisions related to drawback, certificates of origin and import relief measures would spring back into force if the U.S. withdraws from NAFTA, according to a recent Q&A posted by the National Customs Brokers & Forwarders Association of America. NAFTA Implementation Act Section 107 states that some CFTA provisions will remain suspended until the suspension itself is terminated. This could mean that those suspensions would, by default, remain active in any post-NAFTA world, even though Canada and the U.S. formally agreed through a January 1993 exchange of letters to broadly suspend the operation of CFTA when NAFTA took effect, with the suspension “to remain in effect for such time as the two governments are Parties to NAFTA,” the NCBFAA said.
Freight forwarders that transfer funds to customs brokers from importers for payment to CBP are not performing "customs business," CBP said in a Sept. 6 ruling. CBP issued ruling HQ H258556 in response to a ruling request from Terra Nova Trade Services, a licensed customs broker. As long as the freight forwarder isn't involved in the actual calculation of the customs duties, CBP said, the freight forwarder is allowed to play an intermediary role. Terra Nova, through its lawyer George Tuttle, also sought CBP's input on the required power of attorney (POA) for such transactions.
The government of Canada recently issued the following trade-related notices as of Oct. 18 (some may also be given separate headlines):
A transitional period for customs after the United Kingdom formally leaves the EU "must be agreed as soon as possible," a group of trade associations from a wide range of industries said in an Oct. 18 news release. The groups -- including the World Shipping Council, The European Community Association of Ship Brokers and Agents, and the European Association for Forwarding, Transport, Logistics and Customs Services -- "strongly urge EU and UK negotiators to put legal certainty and predictability for business and trade at the top of their negotiating agenda." The UK proposed some customs arrangements over the summer that got some EU pushback (see 1708150042). An EU task force offered a position paper on the issue last month (see 1709150037).
RANCHO MIRAGE, Calif. -- Any two-track solution to Section 321 filing in both the Automated Broker Interface and the Automated Manifest System must have the same data requirements in each, customs brokers said during a panel discussion at the Western Cargo Conference on Oct. 13. Requiring a more detailed data set, while maintaining the current stripped-down data elements in AMS, would mean filers would be incentivized to continue clearing Section 321 entries off the manifest, the brokers said.
An iPhone case that includes a separate screen that shows information like photos, boarding passes and maps from the phone sent through a Bluetooth connection isn't classified based on the Bluetooth capability, Customs and Border Protection said in an Aug. 3 ruling that was recently released. CBP responded to an advice request from a customs broker for popSLATE Media, which makes the case. The company told CBP it believes the cases are best classified based on radio transceivers as the agency classified the Apple Watch and other "smartwatches" (see 1606280059). CBP disagreed, saying "the most prominent feature" is the image display screen. That classification has a 2.6 percent duty rate. We couldn't reach popSLATE Friday.
An iPhone case that includes a separate screen that shows information like photos, boarding passes and maps from the phone sent through a Bluetooth connection isn't classified based on the Bluetooth capability, Customs and Border Protection said in an Aug. 3 ruling that was recently released. CBP responded to an advice request from a customs broker for popSLATE Media, which makes the case. The company told CBP it believes the cases are best classified based on radio transceivers as the agency classified the Apple Watch and other "smartwatches" (see 1606280059). CBP disagreed, saying "the most prominent feature" is the image display screen. That classification has a 2.6 percent duty rate. We couldn't reach popSLATE Friday.
An iPhone case that includes a separate screen that shows information like photos, boarding passes and maps from the phone sent through a Bluetooth connection isn't classified based on the Bluetooth capability, Customs and Border Protection said in an Aug. 3 ruling that was recently released. CBP responded to an advice request from a customs broker for popSLATE Media, which makes the case. The company told CBP it believes the cases are best classified based on radio transceivers as the agency classified the Apple Watch and other "smartwatches" (see 1606280059). CBP disagreed, saying "the most prominent feature" is the image display screen. That classification has a 2.6 percent duty rate. We couldn't reach popSLATE Friday.
RANCHO MIRAGE, Calif. -- CBP is working on a standardized process for customs brokers to vet their importer clients' powers of attorney, said Julia Peterson, chief of CBP's broker management branch, at the Western Cargo Conference (WESCCON) on Oct. 13. Every importer will be required to provide the same information, and every broker required to vet the same information, which should “level the playing field” and diminish or eliminate “broker shopping,” Peterson said.
Sterling Footwear is liable for gross negligence related to unpaid customs duties due to misclassification on hundreds of footwear entries, the Court of International Trade ruled in a Oct. 12 decision. CIT Judge Mark Barnett specifically avoided a decision on the liability of Sterling's CEO and majority shareholder, Alex Ng. The Justice Department sought a summary judgment on Ng's culpability but because some of the facts involved remain in dispute, Barnett didn't decide that issue.