CBP’s import scanning should provide more benefits for Customs-Trade Partnership Against Terrorism (C-TPAT) participants and remain risk-based, CBP Commissioner Gil Kerlikowske said Sept. 13. “C-TPAT does need some additional work,” he said during the National Customs Brokers & Forwarders Association of America Government Affairs Conference in Washington. “If you’re a C-TPAT member and you’re valued and you’ve reached those top tiers, we need to enhance the benefits very much there.” Kerlikowske indicated that a risk-based scanning approach would dovetail with providing greater trusted trader benefits, and that such a method would be more realistic and efficient than a congressional mandate requiring all incoming U.S. cargo to be scanned via X-ray, which can be extended every two years with lawmakers’ approval. Department of Homeland Security Secretary Jeh Johnson last notified Congress of such an extension in May (see 1605310028).
CBP will seek to update its bi-annual customs broker licensing exam, the agency said in a notice (here). As long discussed (see 1604220023), CBP plans to "modernize" the exam by allowing for automation, increasing the fee and adjusting the dates, it said. The automated exams will be held at private testing centers "equipped with computers programmed to accommodate the examination while blocking web access," and "administered by professional proctors," CBP said.
The Fish and Wildlife Service will soon begin allowing ACE filing of data required by the agency under an approach that includes several tariff schedule flags with differing filing requirements, said Sheila Einswaller, a senior wildlife inspector at the agency, during the National Customs Brokers & Forwarders Association of America Government Affairs Conference Sept. 12 in Washington. FWS recently announced the beginning its pilot (see 1605040023), but the test is not a “live functioning pilot at this time” as FWS is still working with developers and CBP to get business rules in place. Though the timing of live piloting is still unknown, FWS has completed the exercise of dividing the tariff schedule into four “buckets,” with different data element requirements for each based on how likely it is that FWS data is required for any given 10-digit subheading, she said.
Work continues on a report due to Congress on how CBP can improve importer verifications through customs brokers after the Department of Homeland Security sent it back to CBP following a review, said Jerry Malmo, director of CBP's Commercial Enforcement Division. DHS sent the report back to CBP because it was "too specific on what our plans were," said Malmo, who spoke Sept. 12 at a National Customs Brokers & Forwarders Association of America conference. Still, the agency recently started briefing lawmakers on the report, which was due Aug. 22 as part of the customs reauthorization law's Section 116 (see 1608240026).
CBP is misguided in its proposal to add non-vessel operating common carriers to the definition of importer within the importer security filing (ISF) requirements (see 1607050028), the National Customs Brokers & Forwarders Association of America said in comments to the agency (here). CBP proposed adding importer status to different parties based on whether the shipment involves foreign cargo remaining on board (FROB) or other types of cargo in order to make sure the party with the access to detailed cargo information is responsible for filing an ISF. The NVOCC is "rarely, if ever," the party with best access to the required information, the trade association said.
As implementation of core ACE capabilities nears completion, CBP and the trade community “need to keep an eye on” congressional budgets to make sure the resources are in place for improvements after 2016, said Brenda Smith, executive assistant commissioner of CBP’s Office of Trade, at the National Customs Brokers & Forwarders Association of America Government Affairs Conference on Sept. 12 in Washington. Though completion of core ACE by the Obama administration’s December 2016 deadline is “in the bag,” there is “vast room for improvement,” Smith said. CBP and the trade community need to make sure that ACE is not only the “best of the best” single window in 2016, but continues to be going forward, she said.
The Federal Maritime Commission is working to ensure marine terminal operators don’t charge extra for weighing services provided for verified gross mass (VGM) documentation submitted with shipments to ocean carriers, but carriers have maintained regular cargo movements even when they receive inaccurate or late VGM information, officials said during a conference Sept. 12. Since VGM amendments to the Safety of Life at Sea (SOLAS) Convention took effect July 1, carriers have been flexible with regard to the VGM paperwork they accept, said Jan Fields of John S. James Company in an interview at the National Customs Brokers & Forwarders Association of America conference. “That’s the bottom line,” she said, adding that she expects carriers will take the same perspective and approach moving forward.
Major clothing, footwear and retail companies and trade groups are jointly urging Congress to support Trans-Pacific Partnership implementing legislation later this year, the American Apparel and Footwear Association said in a news release (here). The coalition sent letters to each member of Congress in support of the TPP (here). "For the U.S. footwear, apparel, and travel goods industry – which still face high tariffs and other non-tariff trade barriers across TPP countries – the TPP represents a once-in-a-generation opportunity to reduce costs and open new markets for U.S. brands and retailers," the letter said. The alliance includes Macy's, Target, the National Retail Federation, the Pacific Coast Council of Customs Brokers & Forwarders Associations and the U.S. Fashion Industry Association, among others. "On behalf of our customers, our workers, our partners, and our suppliers – all of whom stand to benefit from the TPP – we urge you to vote yes and support a vote on the TPP implementing legislation this year," the group said. The Obama administration would like to see a TPP vote in Congress in coming months, but there's persistent skepticism as to whether the implementing legislation would be approved (see 1609090013).
CE companies may be among the heaviest hit by the Hanjin Shipping's bankruptcy filing, based on recent data compiled by Datamyne in a blog post. The trade data company used Aug. 1-20 bills of lading for arrivals at U.S. ports and found Samsung and LG to be among the biggest users of the shipping giant.
CBP issued a guidance that lists several possible shipping vessel diversion scenarios related to Hanjin Shipping's bankruptcy filing (here). The agency provided the list "in anticipation of possible disruptions due to Hanjin Shipping vessels or cargo arriving to U.S. ports," it said in a Sept. 2 CSMS message (here). Hanjin's bankruptcy filing (see 1609020011) continues to be a source of uncertainty among industry for goods currently being handled by Hanjin and future shipping rates. The South Korean company filed for U.S. bankruptcy protection under Chapter 15 on Sept. 2 and is expected to take similar steps in other countries soon, The Wall Street Journal reported (here).