Duty deferral provisions within NAFTA should be left out of any updated deal, the National Customs Brokers & Forwarders Association of America said in comments to the U.S. trade representative (here). Under NAFTA, some products processed in the U.S. "require a special deferral entry to be filed with duty payment to CBP" when exported to Canada or Mexico, the group said. "This special entry and duty payment would not apply if the same shipment were exported to any other country outside of NAFTA" and therefore "hinder U.S. exports to Mexico and Canada," the group said. The NCBFAA comments were in response to a USTR request for public input on how it should update NAFTA.
The October customs broker’s license examination is scheduled for Wednesday, Oct. 25, CBP said in a notice (here). While usually scheduled for the first Monday in October, "to avoid concerns related to the commencement of the federal government’s 2018 fiscal year, CBP has decided to change the regularly scheduled date of the examination," CBP said. The exam typically consists of 80 multiple-choice questions, with a score of at least 75 percent required to pass.
An importer’s conduct in a court case does not affect the amount of penalties that should be assessed for tariff misclassification, the Court of International Trade said in a decision issued June 7 (here). Although the government had sought $324,540 in penalties from Horizon Products International for the importer’s negligent misclassification of its plywood imports in a duty free tariff subheading, CIT instead authorized half that. A “significant penalty” was warranted for “slow-playing the Government,” but failure to cooperate in a court case should instead be addressed by other means, it said.
Actions resulting from the Commerce Department’s ongoing national security investigation on steel imports could disrupt U.S. import-intensive industries and any remedies should be tailored to specific types of steel, companies said in comments to Commerce (here). Commerce recently posted comments it accepted through May 31 on its Section 232 investigation on steel imports, which would allow the Trump administration to impose tariffs, quotas or other import restraints if the review finds steel imports endanger U.S. national security. Commerce Secretary Wilbur Ross has said the department should finish the examination this month (see 1705240034).
Entry filers must transmit data required by the Food and Drug Administration for stand-alone light-emitting diodes, but don’t have to for finished products that incorporate LEDs as indicator lights, FDA Director of Enforcement and Import Operations Doug Stearn said in a letter to the National Customs Brokers & Forwarders Association of America dated May 25 (here). The NCBFAA had requested clarification of LED reporting requirements in April. Stearn said FDA recently discovered that some LED products, subject to FDA reporting requirements for radiation-emitting electronic products, were not being transmitted to FDA for review.
SCOTTSDALE, Arizona -- The increase in the de minimis value threshold last year seems already to be driving a shift in international trade patterns, said Brenda Smith, executive assistant commissioner for the CBP Office of Trade, during a May 25 interview at the West Coast Trade Symposium. "What we're seeing is significant changes in supply chains," reflected in the growing number of Section 321 entries, she said. For example, one port in Alabama with few CBP officers "is suddenly getting this flood because it's close to a distribution center," she said. Likely, that's a result of container-loads full of under $800 small packages that qualify for de minimis, she said.
Despite the near elimination of an account for ACE development in the proposed fiscal year 2018 budget (see 1705230031), CBP is requesting additional funding for ensuring the system continues to operate smoothly, according to its FY 2018 budget justification (here). The proposed budget includes an “increase of $45.1 million” in FY 2018 for “ACE Core Functionality,” including funding for additional “software sustainment teams.” CBP is also requesting substantial increases in funding required to implement mandates in the Trade Facilitation and Trade Enforcement Act of 2015.
A lack of clarity on "a unique identifier for supply chain operators crossing borders" is limiting the potential for trusted trader programs internationally, CBP Acting Commissioner Kevin McAleenan said during a May 17 speech at the U.S. Chamber of Commerce Global Supply Chain Summit. "We've been working so hard to recognize Authorized Economic Operator programs globally with partners, we've entered into Mutual Recognition Agreements, we're intending to expand them," but "they are not having dramatic operational value for our trade partnership," he said. McAleenan has been pushing to standardize unique identifiers (see 1612020024).
The Pacific Coast Council of Customs Brokers and Freight Forwarders voiced support for the “prompt confirmation” of CBP Commissioner nominee Kevin McAleenan in a May 16 letter to the senators from California, Oregon and Washington. “He has been willing, even eager, to meet with West Coast customs brokers and freight forwarders,” the PCC said. “He has traveled to each of the seaport, airport and the land border crossings through which we facilitate trade. He knows first-hand the impact of CBP in trade facilitation and enforcement, and the need for adequate and well-trained CBP staffing.” It is more essential than ever to provide CBP with the resources and staffing it needs to facilitate international trade flows and enforce trade rules, the PCC said. "While our member customs brokers and freight forwarders are physically located along the Pacific Coast, they are engaged in facilitating legitimate international commerce to all the nation’s border, air and ocean ports of entry," it said.
The worldwide WannaCry ransomware attack affecting hundreds of thousands of computers in about 150 countries gave more urgency about how to address malware's spread. It will reinforce discussions about basic cyberhygiene practices and education and automatic security software updates, experts told us. They added that WannaCry will likely just reinforce the direction of U.S. government policymaking on cybersecurity issues.