A Federal Maritime Commission (FMC) proposed rulemaking will inhibit job creation, national economic growth and increase regulations, National Customs Brokers and Forwarders Association of America (NCBFAA) Vice President Geoffrey Powell said in testimony on Sept. 10 (here). The testimony was delivered to the Committee on Transportation and Infrastructure Subcommittee on Coast Guard and Maritime Transportation during a hearing on maritime transportation regulations. Powell said the rulemaking, on regulations for Ocean Transport Intermediary (OTI) licensing and financial responsibility requirements would increase regulatory costs on the segment of the maritime industry referred to as ocean transportation intermediaries.
Two brothers who both worked in law enforcement agencies were arrested Sept. 5 for allegedly conspiring to export high-powered weapons from the U.S. to the Philippines, said U.S. Immigration and Customs Enforcement (ICE). Rex Maralit, a New York City police officer, and Wilfredo Maralit, a CBP officer in Los Angeles, participated in a scheme to smuggle assault rifles, sniper rifles, pistols and firearm accessories to the Philippines for sale to overseas customers. ICE said a third brother residing in the Philippines, Ariel Maralit, was also involved and had “identified customers and sought the assistance of his brothers” to purchase and ship the weapons. The brothers responded to customer orders by locating weapons advertised on firearms-brokering websites and arranged to buy the guns through dealers in the U.S. They then “disassembled the weapons and smuggled them out of the United States in disguised shipments,” ICE said.
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Nike's new trademark suit against a freight forwarder raises new questions about liability of service providers for counterfeiting violations, industry lawyers said. While the dispute began as one of a string of trademark cases against customs brokers, Nike expanded the lawsuit in August to directly allege counterfeiting by City Ocean. The forwarder has since moved to dismiss the case, and some lawyers agree that Nike’s arguments are threadbare at the moment. But the lawyer who first brought City Ocean into the case as a third party defendant says the forwarder, and CBP as well, should have noticed the allegedly counterfeit shipments were not as advertised.
Chairman Mario Cordero discussed proposed changes to Federal Maritime Commission (FMC) regulations for Ocean Transport Intermediaries during an Aug. 22 address to members of the Los Angeles Customs Brokers & Freight Forwarders Association (LACBFFA). Cordero said the proposed changes to the FMC’s OTI regulations under the proposed rulemaking (see 13082122) could make the FMC’s “regulatory process more efficient” by “improving transparency” and adapting to changing industry conditions.
The Eastern New York U.S. District Court dismissed on Aug. 30 an importers’ claim that Panalpina fraudulently induced it to enter into a contract for customs brokerage and freight forwarding services. Michael Kearnis, formerly president of Pinnacle Interior Elements, said Panalpina’s misclassification of Pinnacle’s wood flooring, and subsequent failure to fix the problem, amounted to going back on Panalpina’s promises of a seamless supply chain. Magistrate Judge Ramon Reyes ruled that Panalpina’s errors were at most a breach of contract, and did not amount to fraudulent inducement to sign the contract in the first place, because the broker and forwarder intended to fulfill the contract when it was signed.
The Federal Motor Carrier Safety Administration (FMCSA) provided some questions and answers outlining new financial and licensing requirements to be implemented under the Moving Ahead for Progress in the 21st Century Act (MAP-21). The Q-and-A, a response to many requests from motor carriers and transportation companies, does not mention customs brokers specifically, but does discuss the responsibilities of freight forwarders under the regulations. There's been ongoing concerns as to how the legislation would apply to customs brokers (see 13041101), despite assurance from the National Customs Brokers and Forwarders Association of America that the bill's language exempts most work done by customs brokers (see 12070325).
International Trade Today is providing readers with some of the top stories for Aug. 26 - Aug. 30 in case they were missed.
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Pharmaceutical and trade groups urged FDA to tread lightly as it puts in place new requirements for drug importers under the Food and Drug Administration Safety and Innovation Act (FDASIA). The National Customs Brokers and Forwarders Association of America (NCBFAA), American Association of Exporters and Importers (AAEI), and the Pharmaceutical Research and Manufacturers of America (PhRMA) each submitted comments in favor of an FDA definition of importer that recognizes that trade services firms like customs brokers can’t be responsible for compliance. They also said FDA should be careful not to impose new data submission requirements that are too onerous. AAEI and PhRMA pushed FDA to establish a trusted drug importer program based on the Customs-Trade Partnership Against Terrorism (C-TPAT), and NCBFAA cautioned against a repeat of the U.S. agent dilemma caused by FDA’s foreign food facility registration requirements.