The National Customs Brokers & Forwarders Association of America has presented a long list of measures CBP could take to ease the pain for brokers dealing with the COVID-19 pandemic, with the trade group’s request for a deferral of duty payments (see 2003230025) just one item of many, NCBFAA President Amy Magnus said in an interview March 24. Many of them are requests that CBP delay deadlines -- including, for example, for responses to CF-28 requests for information -- that are harder to meet as clients close their workplaces and operate skeleton staffs, Magnus said.
The National Customs Brokers & Forwarders Association of America is asking members to send letters to their congressional representatives to ask for them to include a change to bankruptcy law in a stimulus package responding to the economic crisis caused by the COVID-19 pandemic. They are asking Congress to include H.R. 2261, the Customs Business Fairness Act, so that when importers go bankrupt, the customs duties they reimbursed brokers for aren't part of 90-day claw-back provisions under bankruptcy law. “We believe that many importers may find the need to file bankruptcy due to the issues surrounding the COVID-19 crisis and the disruption to businesses it has caused,” the trade group said.
Tourism between the U.S. and Mexico is barred, beginning at 11:59 p.m. March 20, and continuing until April 20, but “this temporary alteration in land ports of entry operations should not interrupt legitimate trade between the two nations or disrupt critical supply chains that ensure food, fuel, medicine, and other critical materials reach individuals on both sides of the border,” the U.S. government said in a notice. Individuals engaged in lawful cross-border trade are specifically exempted from the restrictions.
CBP port operations remain unaffected by the response to the COVID-19 pandemic, with commercial traffic remaining steady and cargo flows near normal levels, CBP said on calls held March 19 and 20. But the agency does expect a slowdown in Detroit and Laredo, according to a summary of the March 19 call emailed by the National Customs Brokers & Forwarders Association of America, and the number of trucks crossing the border in San Diego is down 2% to 5% over the past couple of days, CBP’s San Diego field office said on a call March 20.
CBP is looking at allowing extensions for duty payments in light of the ongoing response activities related to the COVID-19 pandemic, the National Customs Brokers & Forwarders Association of America said in a March 19 email, following an industry update call with CBP. The NCBFAA and other industry members recently suggested in a letter that CBP consider such extensions, it said. “CBP understands the major impact this could have and is currently researching to see if the plan is feasible,” the NCBFAA said. “In the meantime, CBP is considering case-by-case deferrals.“
CBP is looking at allowing extensions for duty payments in light of the ongoing COVID-19 pandemic, The National Customs Brokers and Forwarders Association of America said in a March 19 email following an industry update call with CBP. The NCBFAA and other industry members recently suggested in a letter that CBP consider such extensions, it said. "CBP understands the major impact this could have and is currently researching to see if the plan is feasible," said the NCBFAA. "In the meantime, CBP is considering case-by-case deferrals."
As more local shelter-in-place orders are issued in response to the COVID-19 pandemic, brokers and forwarders should examine each order to determine whether their services are exempt, the National Customs Brokers & Forwarders Association of America said in an email. “However, based upon the Order to Shelter in Place issued by the Public Health Officer of Alameda County, California two days ago, it would seem that the activities of forwarders and customs brokers would fall within the exemption provided, as those activities are essential to keep goods moving in commerce,” it said. Exempted services include “shipping services, companies that supply other essential businesses with supplies necessary to operate or that ship goods or services to residences, and companies that are engaged in public transportation,” it said.
As more local shelter-in-place orders are issued in response to the COVID-19 pandemic, brokers and forwarders should examine each order to determine whether their services are exempt, the National Customs Brokers & Forwarders Association of America said in an email. “However, based upon the Order to Shelter in Place issued by the Public Health Officer of Alameda County, California two days ago, it would seem that the activities of forwarders and customs brokers would fall within the exemption provided, as those activities are essential to keep goods moving in commerce,” it said. Exempted services include “shipping services, companies that supply other essential businesses with supplies necessary to operate or that ship goods or services to residences, and companies that are engaged in public transportation,” it said.
Claims that NAFTA was ripped up or that it was just a rebranding are wrong and paying attention to the changes could mean big savings for businesses, said Dickinson Wright Cross-Border Practice Chair Dan Ujczo during a March 17 Global Chamber webinar. Ujczo said that one polymer and chemicals company he talked to saw that changes from NAFTA to the U.S.-Mexico-Canada Agreement “are going to save us $17 million.” He urged businesses that use NAFTA to convene their purchasing, accounting and either in-house customs teams or customs brokers to investigate their supply chains, because he predicted that CBP will pay closer attention to rules of origin, and he said many companies are relying on slapdash rules of origin certificates from suppliers (see 2002190028).
The National Customs Brokers & Forwarders Association of America is canceling its upcoming annual conference, the trade group said by email. “The NCBFAA is still working with the hotel to finalize this matter, but at this time, we will not be holding our Annual Conference in Las Vegas next month,” it said. “We will be refunding all registrants over the upcoming week, and we thank you all for your patience as we work to unravel this event on our back end.” The conference had been scheduled for April 19-22. The Centers for Disease Control recently recommended against any gatherings of more than 50 people until mid-May on account of the COVID-19 pandemic. The NCBFAA said in its message that it is in discussions to hold the annual conference alongside its NCBFAA Educational Institute conference in August in Chicago.