The Federal Maritime Commission is closely watching the fallout from the Hanjin Shipping bankruptcy filing (see 1608310038) but the FMC's role is largely observational for the time being, the agency said in a statement (here). South Korea's Hanjin filed for court receivership in recent days, stirring up questions as to the effect on future shipping rates and cargo currently being handled. The FMC "will be vigilant in watching for, and quick to act on, any improper behavior by other carriers and regulated parties (such as marine terminal operators, non-vessel-operating-common-carriers, and freight forwarders) that would constitute violations of the Shipping Act," it said.
Additional data elements required by the Food and Drug Administration for ACE entries are increasing costs and staffing needs for the trade community, companies and trade associations said in comments on FDA’s proposed rule to codify the new requirements (here). FDA’s ACE requirements “represent an economically significant greater burden on the trade community compared to the data required in the previous Automated Commercial System (ACS),” the Express Association of America said (here). One EAA member calculated an increase of 50% in the time required to process an FDA entry in ACE over the time required in ACS, “from 16 to 24 minutes,” the EAA said. “In order to continue to meet the strict delivery deadlines in the express environment for FDA-regulated products, the increased processing time has resulted in a requirement for a 40% increase in staffing for these shipments,” it said.
Hanjin Shipping filed for bankruptcy protection in its home country of South Korea, according to a statement from the South Korea Financial Services Commission (here). The country will seek to maintain Hanjin's existing services through a sale to Hyundai Merchant Marine, the commission said. "In response to the market concern over the shipping sector, one of Korea’s key industries, the government will make sure to maintain the shipping industry’s competitiveness," it said. "Hyundai Merchant Marine (HMM) will acquire Hanjin Shipping’s core assets such as ships, overseas sales network and key work forces to retain Hanjin Shipping’s competitiveness as much as possible." Some U.S. and other countries' ports have stopped Hanjin ships from entering, according to a report from The Korea Times (here).
International Trade Today is providing readers with some of the top stories for Aug. 22-26 in case they were missed.
The Food and Drug Administration is amending its regulations on foreign and domestic drug establishment registration and listing for human drugs, including drugs that are regulated under a biologics license application, and animal drugs. The agency’s final rule (here) sets requirements for all facility registrations to be submitted electronically to FDA, with foreign facilities listing all importers of their covered drugs. Facilities must review and update their registrations annually. FDA’s final rule also makes changes to the National Drug Code (NDC) system.
The Food and Drug Administration should keep as optional in ACE several data elements that can be difficult for import filers to obtain, the National Customs Brokers & Forwarders Association of America said in comments to the agency dated Aug. 22 (here). Though importers know submission of certain data elements, like active pharmaceutical ingredient (API) and intended use, can speed FDA processing of their entries, some filers, particularly in land and air environments, don’t have the information at the time their entries are filed, the NCBFAA said. The trade group’s comments, which also include calls to revise definitions and the way value data is submitted, come in response to FDA’s July 1 proposed rule to codify its ACE requirements (see 1606300020).
CBP recently began briefing lawmakers on the agency's report on how it can improve importer verifications through customs brokers, a congressional staffer said. The report will lay out how best to require foreign nationals to give customs brokers accurate information and allow for brokers to review information held by the government in order to verify an importer, as required under the customs reauthorization law. CBP was required to study and submit a report to Congress on those issues by Aug. 22 (see 1602170074). CBP briefed the House Ways and Means Committee in person on the report, and the Senate Finance Committee anticipates CBP will provide more details soon, congressional staffers said. “It is delayed,” a Senate Finance minority spokesperson said. “We expect an update from CBP soon.” A Ways and Means majority spokesperson also said her committee hasn’t received the report, and referred questions to CBP, which didn’t comment. The law requires that regulations eventually provide "minimum standards for customs brokers and importers, including nonresident importers, regarding the identity of the importer that shall apply in connection with the importation of merchandise." The law doesn't specify timing for such regulations. Senate Finance Committee majority didn't comment.
International Trade Today is providing readers with some of the top stories for Aug. 15-19 in case they were missed.
CBP will soon publish an interim final rule amending its regulations to provide for changes coming to liquidation processes when liquidation is deployed to ACE on Oct. 1, a CBP import specialist said during a webinar Aug. 17. Beginning Oct. 1, CBP will start processing liquidations weekly every Friday, and posting notices of the liquidations electronically to a searchable database on the CBP website. The electronic bulletin notices will replace manual postings at the customs house as legal notice for importers, the import specialist said.
A Chicago-based customs broker faces a lawsuit in federal court filed by a client seeking to recover millions of dollars in antidumping and countervailing duties that the client claims should have been refunded by the broker. Union Pacific filed suit in Northern Illinois U.S. District Court on Aug. 15, alleging Pactrans failed to pass along $5.8 million in AD/CV duty refunds paid by CBP after an AD/CV duty investigation was terminated with no duties imposed. Union Pacific also claims Pactrans failed to pay two months’ worth of AD/CV duties, costing it thousands of dollars more in penalties.