The Court of International Trade found that New York-based importer NYWL Enterprises is on the hook for over $4 million in unpaid duties and civil penalties after the court found the importer knowingly misclassified its entries of Siamese coaxial cable from China. In an April 16 decision, Chief Judge Mark Barnett ordered NYWL to pay the U.S. $379,665.83 in unpaid duties and a civil penalty of $3.76 million plus post-judgment interest, and costs.” The U.S. had alleged fraudulent violations of 19 USC 1592, which Barnett accepted as true after NYWL failed to defend itself.
U.S.-China Business Council President Craig Allen, former deputy assistant secretary for China in the State Department, said that the Chinese were taken by surprise by how little has changed in the new administration. “There was an expectation between [Donald] Trump and [Joe] Biden, there would be a loosening of technology regulations,” he said, but Commerce Secretary Gina Raimondo has taken steps to tighten export restrictions that affect Huawei, and there have been actions under the new Information, Communications and Telecommunications Services (ICTS) regulations.
The president of the U.S.-China Business Council told an online audience of customs brokers that he sees them as the problem solvers in trade, and that they're going to continue to have plenty of problems to tackle over the next few years. Craig Allen, who spoke to the National Customs Brokers and Forwarders Association of America April 14, said that the U.S.-China relationship, while intensely interdependent economically, is marked by mistrust and antagonism, and “the trend lines are not good.”
Customs modernization legislation should include a requirement for customs brokers, freight forwarders and other filers to “attain and deploy requisite and continuing education providing the capacity to operate in the modern trade environment,” a National Customs Brokers and Forwarders Association of America subcommittee said in a draft report released April 12. The draft white paper comes from the NCBFAA subcommittee working to develop suggestions as CBP comes up with a legislative proposal for customs modernization (see 2011120010). CBP is still in the process of reviewing responses to a proposal for continuing education requirements, though an official said it isn't totally clear that the benefits would outweigh the costs (see 2103250030).
Export Compliance Costs, Awareness Likely to Increase for Aircraft Transactions Following Indictment
Export compliance costs and awareness will likely rise for aircraft transactions due to increased compliance by aircraft sellers following the seizure of 12 aircraft on export violation charges, Vedder Price's David Hernandez said. In an April 5 report, Hernandez looked at the impacts of the indictments of eight individuals charged with drug trafficking and export violation conspiracies, including the owner of Aircraft Guaranty Corporation (see 2103010028). The indictments arose from a series of investigations into the customs export practices of U.S.-based trust companies serving as trustees in aircraft ownership trusts with non-U.S. citizens, called Non-Citizen Trusts.
The Commerce Department will delay a requirement for aluminum import licenses under its new Aluminum Import Monitoring System until June 28, CBP said in a CSMS message sent March 29. “At the request of the Department of Commerce the [Aluminum Import Monitoring] license requirement has been delayed until June 28, 2021,” CBP said. “We have updated ACE to remove the LPC requirement.”
The Commerce Department is delaying a requirement for aluminum import licenses that had been set to take effect March 29, it said in a message on its website. The agency will soon publish a Federal Register notice again pushing back the effective date its agency’s Aluminum Import Monitoring System, which requires importers of aluminum or their customs brokers to submit information in an online portal to obtain an automatically issued license, then to submit the license number with entry summary documentation.
CBP's consideration of the value that would be added with continuing education for customs brokers requirements remains a “work in progress,” said Brenda Smith, CBP executive assistant commissioner-trade, during a March 25 call with reporters. Smith, whose last day before retirement is March 26 (see 2103170057), said CBP received “a lot of comments” and “across the board, there were a number of concerns that were raised that we are going to have to think through whether the value of requiring continuing professional education outweighs” the costs. “We've got some good insight into how we could analyze those costs and benefits,” she said.
Export Compliance Daily is providing readers with the top stories for March 15-19 in case you missed them. You can find any article by searching on the title or by clicking on the hyperlinked reference number.
Vietnam's Ho Chi Minh City Customs Department suspended 114 customs brokers for violations of governing regulations, CustomsNews reported March 12. The 114 brokers, out of more than 400 in the Ho Chi Minh City area, committed a range of violations, most commonly failing to comply with quarterly reporting requirements, the report said. The brokers will be suspended for a maximum period of six months and can be terminated if their violations are not remedied within the six months.