Some “high tech” goods of Chinese origin sent to Mexico for minimal handling and then to the U.S. are eligible for USMCA tariff treatment, CBP said in an Aug. 7 ruling. Jose Fierro, an El Paso, Texas, customs broker, requested the ruling less than a week after USMCA entered into force July 1. The broker said that a client “has contracted with a Mexican maquiladora facility to provide certain logistical services” and inquired whether USMCA treatment would apply.
International Trade Today is providing readers with some of the top stories from Aug. 3-7 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
The broader impact of CBP's ruling on unsold low-value goods imported under Section 321 exemptions may be somewhat limited, industry experts said in recent interviews. The ruling (see 2007310036) laid out how the agency determines what entities can be considered a “person” for unsold Section 321 shipments.
The CBP proposal to require brokers to report to the government a client's attempts of illegal activity (see 2008040038) is an “unreasonable responsibility to place on a broker,” the U.S. Chamber of Commerce said in comments. That feeling is shared by several other trade associations that filed in the CBP docket on proposed updates to customs brokers regulations. The idea “shifts a burden that should be placed on the CBP as a law enforcement agency onto the broker instead” and directs brokers to “determine the intention of the noncompliance, error, or omission,” the Chamber said.
CBP opened up registration for the Oct. 8 customs broker license exam, it said in a CSMS message. CBP canceled the exam in April and was considering steps to administer the October exam safely (see 2007170029). The exam will have two sessions, at 8:30 a.m. and 1:30 p.m., CBP said. “Doors will open for the exams, a minimum of 30 minutes prior to the exam.” Seating is first-come, first-served “and due to coronavirus (COVID 19) or other unanticipated events, seating may be limited at certain testing locations.” Registration closes Sept. 8.
The president and part-owner of a jewelry importer will pay $415,000 to settle a False Claims Act lawsuit that alleged his company undervalued entries in an effort to avoid paying duties, the Department of Justice said in an Aug. 3 news release. Anshul Gandhi, resident of New Jersey, admitted as part of the settlement that he knew of the customs fraud, avoiding a more than $7 million judgment entered in New York Southern District federal court that same day.
Full compliance with the CBP proposal to revamp multiple government standards customs brokers are required to meet (see 2006040037) would likely take at least a year to complete, and potentially more, the National Customs Brokers & Forwarders Association of America said in comments filed Aug. 4. The updates would require dramatic changes during an already especially complex time in the industry and the broader economy, it said. Comments in the docket are due Aug. 4.
Some of CBP's proposed changes for the regulations that govern customs brokers (see 2006040037) appear likely result in unexpected problems if not addressed by the agency before the rules are finalized, the Florida Customs Brokers and Forwarders Association said in recently filed comments. “We feel strongly against the concept of a customs broker being a 'force multiplier' from an enforcement perspective and, while we do want to ensure there is 'enhanced compliance,' deputizing brokers, as some of these proposed changes demand, can lead to an unnecessarily conflictive, non-productive broker-importer as well as broker-CBP client relationship,” the trade group said. Comments in the docket are due Aug. 4.
CBP will increase Consolidated Omnibus Budget Reconciliation Act (COBRA) fees by 8.933 percent to adjust for inflation in fiscal year 2021, the agency said in a notice. Affected fees include the merchandise processing fee, vessel and truck arrival fees and the customs broker permit user fee. The Fixing America's Surface Transportation Act, passed in 2015, required that CBP make inflation adjustments and fee limitations when deemed necessary (see 1512040024). CBP increased the fees by 7.167 percent last year (see 1908010021). The fees are effective Oct. 1.
A determination for “whether promulgating new regulations is necessary to better define and enforce Section 321 provisions” is expected this month, the Department of Homeland Security said in a recently released report on the effort to fight intellectual property rights violations. The DHS progress report, released July 16, lists milestones and estimated timing for implementing the broader DHS strategy (see 2001240043). The milestones “focus on immediate actions and short-term deliverables that will create the building blocks for more time-intensive action that may require legislative or regulatory changes,” DHS said.