CBP’s recent delay of some mandatory use dates for the Automated Commercial Environment elicited a sigh of relief from the trade community, but much work remains to ensure a smooth transition, said customs brokers and software developers in recent interviews. The new staged approach, with deadlines in February and July 2016, gives the trade the time it needs to successfully migrate to ACE. However, familiar problems with quota-related entry types and still-unreleased software requirements by CBP and other agencies will remain hurdles to be overcome as ACE implementation continues over the coming year.
Despite the recent delay in required use dates for the Automated Commercial Environment (see 1509010017), CBP will still only allow one day for live testing of several entry types, according to a new agency deployment schedule (here). The 11 entry types that may include quota merchandise -- including foreign-trade zone and warehouse entries and withdrawals -- will not be deployed until Feb. 27, according to the schedule.
International Trade Today is providing readers with some of the top stories for Aug. 24-28 in case they were missed.
CBP made some major changes in its timeline for requiring use of the Automated Commercial Environment, allowing for Automated Commercial System filing several months beyond the original mandatory use date, the agency said Aug. 31 (here). The original Nov. 1 deadline will now begin a "transition period" where use of ACE is "encouraged," with more ACE requirements phased in through July. The changes came in response to a number of industry concerns recently lodged with CBP (see 1507290066 and 1507150063), as well as shifts in resources related to the move to ACE for Air Manifest (see 1506110007). CBP said it still plans to finish the ACE transition by Oct. 1, 2016 (here), ahead of the completion of the International Trade Data System by the end of 2016, as required by a 2014 White House executive order (see 14021928).
Mark Hirzel recently left DHL Global Forwarding due to a corporate restructuring. Hirzel, formerly DHL’s Customs Consultancy Manager, will stay on as president of the Los Angeles Customs Brokers and Freight Forwarders Association for the time being, and will remain active in the Pacific Coast Council of Customs Brokers and the Legislative Committee of the National Customs Brokers & Forwarders Association of America, he said. Hirzel is the second high-profile customs compliance employee to depart DHL Global Forwarding due to the restructuring in recent months. Cindy Allen, former DHL head of customs brokerage, left for the same reason in July (see 1507170018). DHL Global Forwarding did not immediately comment.
The Food and Drug Administration should allow for distinctions between major and minor mistakes within the filer/customs broker evaluation when considering Voluntary Qualified Importer Program eligibility, said the National Customs Brokers & Forwarders Association of America. The FDA should also improve its data collection and create an agency rulings system before the VQIP is implemented, said the NCBFAA in comments to the agency on VQIP (here). Other commenters (here) included the American Association of Exporters and Importers (here), the Grocery Manufacturers Association (here) and the European Union (here).
A Canadian drug distributor and several of its high-ranking employees face years in prison and at least $78 million in forfeited proceeds from a scheme to smuggle unapproved drugs in to the U.S., according to an indictment unsealed on Aug. 7 by the Montana U.S. District Court. CanadaDrugs.com and its CEO Kristjan Thorkelson, as well as several affiliated companies and their executives and sales managers, are being charged with conspiracy, smuggling and money laundering, with potential prison sentences ranging up to 20 years.
Deputy secretaries from several federal agencies will soon consider revising the required use dates for some Automated Commercial Environment capabilities, said Geoff Powell, president of the National Customs Brokers & Forwarders Association of America in an Aug. 14 email. "In speaking with the Department of Homeland Security (DHS) last week, we were advised that Deputy Secretaries from several Departments will soon be discussing the ACE path forward, and understand that the White House will be making a decision in the coming weeks on whether to modify CBP's current transition plan," he said. CBP said on July 30 it had not formally recommended a delay to the ACE timelines (see 1507300004).
The plateaued participation in the Customs-Trade Partnership Against Terrorism (C-TPAT) program has prevented it from reaching its full potential, leading some to question the viability of this program if CBP doesn't resolve these issues, said industry executives involved in the program. While the obstacles to participation vary for each company, there are several universal disincentives for both smaller and larger companies, said several C-TPAT consultants. Still, some remain optimistic about the future of C-TPAT as CBP adds new features and foreign recognition increases.
Thirty-five House lawmakers are on board with a bill introduced recently that would force non-resident foreign manufacturers to register agents in the U.S. to cover import liability. Those lawmakers, which are mostly Democrats, now co-sponsor the Foreign Manufacturers Legal Accountability Act of 2015, HR-3304 (here). Rep. Matt Cartwright, D-Pa., introduced the legislation on July 29 (see 1507290049). The bill now sits with the House Commerce, Ways and Means and Agriculture committees for consideration.