There's a consensus that CBP's Proof of Concept (POC) for blockchain using NAFTA and CAFTA certificates of origin showed that the technology deserves further consideration, said Emily Beline, senior attorney at FedEx, which participated in CBP's test through the company's customs brokerage, FedEx Trade Networks. Despite the enthusiasm, it's clear there are also many regulatory and legal issues that will need exploration, some of which were discussed in CBP's assessment of the POC (see 1903060043). Beline and others discussed blockchain as part of a March 8 panel at the International Trade Update at the Georgetown University law school (see 1903070025).
CBP’s planned deployment of its new electronic Form 5106 on March 16 will cause “unnecessary hardship for the trade” as a result of a lack of testing and training and some issues surrounding the planned hard cut-off for the old process, the National Customs Brokers & Forwarders Association of America said in a letter to CBP dated March 8. Announced by CBP in February (see 1902200040), the new deadline does not leave adequate time for programming, testing and training, and a gap in availability could make life difficult for brokers, especially on the northern border, the NCBFAA said.
As part of its Customs Modernization and Tariff Act, the Philippines’ Department of Finance has created post clearance audit functions for the country's Bureau of Customs and announced a new prior disclosure program, which allows companies to minimize their penalties for errors and omissions on import documentation, according to a recent PricewaterhouseCoopers alert. Post-clearance audits can include audits of importers, customs brokers, agents and “all other parties engaged in the customs clearance and processing functions,” according to the notice. Auditors can also review all export- and import-related records “required to be kept by law,” the notice said. The prior disclosure program, the notice said, allows the Philippines’ Bureau of Customs commissioner to consider previous disclosures of errors and omissions in goods declarations by importers “as a potential mitigating factor in determining penalties.” All disclosures must contain "the errors and payment of deficient amounts of duties, taxes and penalties."
Failure to provide the Canada Border Services Agency with proof of origin upon request, corrections to origin declarations, or reports of diverted goods are among customs compliance violations that will face steeper penalties starting in April, the CBSA said in a March 5 notice. The CBSA previously said it planned to increase the Administrative Monetary Penalties for trade compliance violations (see 1903040034), but had not provided details on the changes.
Mexico’s Tax Administration Service’s legal support office recently clarified that, for advance clearance ocean shipments, the identifiers “DA” and “FR” should be declared to SAT, the Latin American Confederation of Customs Brokers (CLAA) said in a March 1 circular to its members. That last identifier is for operations for which the exchange rate date is prior to arrival, which is the case for advance clearance shipments because SAT requires advance duty payment, CLAA said.
A freight forwarder locked in a legal battle with Nike continues to fight despite a July 2018 court ruling that found it liable for trademark infringement (see 1807200026). City Ocean Logistics is “exhausting all possible means of overturning” the New Jersey U.S. District Court’s order, “including seeking ‘an interlocutory appeal … in the event that its motion for reconsideration is denied in whole or in part,’” Nike said in a brief filed Feb. 27. That court order had found City Ocean and a customs broker, Eastern Ports, liable for trademark infringement related to shipments of counterfeit Nike sneakers for which they arranged entry and transportation. The court said the arrangement of transportation and creation of documents related to the shipments constituted the “use in commerce” of the trademarks under the Lanham Act, ordering Eastern Ports to pay $240,000 in damages. Nike now seeks to file an amended complaint and conduct discovery on the amount of damages it should receive from City Ocean.
Better sharing of data about companies with poor compliance history was among the changes cited as possible improvements during CBP's March 1 forum focused on creating a new customs framework (see 1812200003). "I'm challenged with antidumping to reach out to my importers when there's a new case to alert them of things that should be happening," said Lisa Gelsomino, CEO of Avalon Risk Management. "And while customs brokers do that too, we are all dealing with so many challenges in the supply chain today, the more that we can help people comply the better off we are and the better off CBP is."
Americans for Free Trade, a coalition of more than 150 trade associations, sent a letter to the White House Feb. 27 offering praise for the pause in escalations of tariffs on Chinese goods and asking that an agreement be reached that takes all tariffs away. "It is our hope that this momentum will build in the weeks ahead and lead to a final deal that addresses structural issues in China, removes tariffs on both sides, and eliminates trade uncertainty facing American businesses and farmers," they wrote. "Our coalition represents every part of the U.S. economy, including manufacturers, farmers and agribusinesses, retailers, technology companies, service suppliers, natural gas and oil companies, importers, exporters, and other supply chain stakeholders. Collectively, we support tens of millions of American jobs through our vast supply chains." Customs brokers and apparel, travel goods, furniture and jewelry importers were among those who signed the letter.
Platinum Equity agreed to acquire Livingston International for an undisclosed amount, the companies said in a Feb. 21 news release. Livingston, which is based in Toronto, Canada, "holds the distinction of being Canada’s largest customs broker and third-largest entry filer in the United States," the companies said. “With Platinum’s support, we will continue to execute on our customer-centric growth strategy, which focuses on offering best-in-class customs brokerage, trade compliance and logistics services to more than 30,000 businesses in the U.S., Canada and around the world,” Livingston CEO Dan McHugh said.
The following customs broker's license and all associated permits are revoked for failure to "employ at least one qualifying individual," CBP said in a notice.