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.
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.
The directors of the 10 CBP Centers of Excellence and Expertise recently agreed to send copies of forms 28 and 29 to involved customs brokers, the National Customs Brokers & Forwarders Association of America said in an email to members. During discussions between the CEE directors and an NCBFAA subcommittee on April 27, "the Directors agreed that the center teams should send copies to the brokers," the trade group said. "However, until a fully automated method is developed, the Centers committed to sending courtesy copies by mail or email attachment to the broker contact listed in the importer's portal account. All agreed that this would be the most consistent approach." There have been complaints recently that CBP isn't sending courtesy copies of the forms to brokers (see 1703230023). "If you are aware of instances where you are not receiving the copies, the Directors would like to know," the NCBFAA said. CBP didn't comment.
Failure to accurately report data elements required by the Food and Drug Administration’s Foreign Supplier Verification Program could also have compliance implications for customs brokers, Domenic Veneziano, president of Veneziano Consulting, said during a webinar hosted by the National Customs Brokers & Forwarders Association of America on May 12 (here). Brokers that file inaccurate data could be prevented from entering food under FDA’s Voluntary Qualified Importer Program, given that VQIP importers must use brokers that passed their most recent filer evaluation (see 1611100028). As a result, it is “extremely important” that brokers get accurate information from their clients, Veneziano said. A presentation from the webinar is available (here).
International Trade Today is providing a summary of information contained in the Food and Drug Administration’s Foreign Supplier Verification Program final rule and other FDA fact sheets and guidance on the definition of the “FSVP importer” that must comply with the regulations and be identified on entry documentation. Beginning on May 30, 2017, the first of FSVP’s staggered compliance dates (see 1602120038), FSVP importers must begin conducting the activities required by the rule if their supplier:
The high U.S. de minimis level has contributed to an upsurge in overseas distribution centers where higher-value items are broken down into smaller quantities for shipment to the U.S., the National Customs Brokers and Forwarders Association of America said in comments to the Commerce Department on U.S. trade deficits (here). Low reporting standards for de minimis shipments mask the volume of those imports, as the Census Bureau can’t acquire information on those goods, NCBFAA said. This translates to a huge quantity of imports not calculated in the U.S. trade deficit, the association said. Comments from trade groups questioned the validity of the trade deficit as a measure of U.S. economic health and fair trade, while others tied deficits to antidumping and countervailing duty collection issues.
CBP won't be able to accept drawback claims filed in ACE under the revised processes that come from the Trade Facilitation and Trade Enforcement Act when they take effect on Feb. 24, 2018, the National Customs Brokers & Forwarders Association of America said in a May 9 email. The agency lacks the funding to complete the TFTEA-related programming and "CBP believes that it needs a full year to program all agency requirements," according to the NCBFAA. Still, CBP is expected to finish necessary regulatory changes by the statutory deadline, even if ACE isn't ready for the TFTEA changes.
Weeks out from the first compliance date for new requirements under the Foreign Supplier Verification Program on May 30, confusion persists among the trade community as to what must be done to comply and who is required to do it. Despite pleas from the NCBFAA for a “soft landing” (see 1705020041), the Food and Drug Administration has so far not explicitly indicated a policy of enforcement discretion, though agency officials have agreed to be “mindful” of the rule’s impact on industry (see 1704040024). Given the rule’s complexity and past experience, FDA will likely take a lenient approach, using the initial compliance period for education, though particularly egregious cases could see early enforcement.
Concern is deepening over “widespread misunderstanding and confusion” among importers about the Food and Drug Administration’s upcoming Foreign Supplier Verification Program requirements, the National Customs Brokers & Forwarders Association of America said in a May 1 letter to FDA Director of Enforcement and Import Operations Doug Stearn. “Absent an interim ‘soft landing’ for FSVP entry data by the FDA, we fear disruption at the border for food shipments after May 30,” the date many importers must first begin complying with the new regulation (see 1602120038), the NCBFAA said.
Acting CBP Commissioner Kevin McAleenan met with National Customs Brokers & Forwarders Association of America President Geoffrey Powell and NCBFAA lobbyist Jon Kent last week to discuss ACE, the trade group said in a May 1 email to members. Among the topics discussed were "ACE Post CORE," the Border Interagency Executive Committee and "the ACE Downtime Policy," the NCBFAA said. Powell also met with Valerie Neuhart, acting director of CBP’s Office of Trade Relations, "to discuss NCBFAA's role at the Customs Trade Symposium," and with Jeff Nii, director of the CBP Interagency Collaboration, to discuss the BIEC and partner government agency data requirements, it said. Stuart Schmidt, compliance manager at UPS Supply Chain Solutions and a member of the NCBFAA Customs Committee, also attended, the association said.