International Trade Today is providing readers with some of the top stories for March 27-31 in case they were missed.
NEW ORLEANS -- The Food and Drug Administration is aware of concerns surrounding Foreign Supplier Verification Program (FSVP) requirements that begin taking effect for food imports on May 30, said Doug Stearn, director of FDA’s Office of Enforcement and Import Operations, during an April 4 panel discussion at the National Customs Brokers & Forwarders Association of America annual conference. As FSVP requirements are rolled out, the agency will be “mindful” of the new challenges faced by the trade community, and is “going to try to work with folks to make sure it is dealt with in a responsible way,” he said.
NEW ORLEANS -- CBP is considering a role for customs brokers to help point out importers that may be skirting antidumping or countervailing duties as part of President Donald Trump's March 31 executive order, National Customs Brokers & Forwarders Association of America President Geoff Powell said during an April 3 panel discussion at the NCBFAA annual conference. CBP wants to get "the brokers' assistance in bonding" and figuring out "how to identify potential AD/CVD companies that are getting around it." CBP will "develop implementation plans to provide security for AD/CVD liability through bonds" within 90 days, the Department of Homeland Security said in a fact sheet about the executive order (here).
The Federal Maritime Commission is issuing a final rule to amend its regulations covering non-vessel-operating common carrier (NVOCC) negotiated service arrangements, the FMC said (here). The rule will become effective May 5, and will allow NVOCCs to amend their service arrangements and immediately bring the changes into effect, as long as they’re written within 30 days before filing the changes with the FMC. Currently, the commission allows implementation of amendments only after they are formally filed with the FMC. The agency approved the final rule in March (see 1703070035).
President Donald Trump will nominate Acting CBP Commissioner Kevin McAleenan for CBP commissioner, the White House said in a March 30 news release (here). McAleenan became acting deputy commissioner in 2013 and ascended to commissioner on an acting basis after Gil Kerlikowske stepped down with the change of administration in January (see 1611090035). Despite McAleenan's long history within CBP's leadership, this will be his first post at the agency to require Senate confirmation, a CBP spokeswoman said.
The Court of International Trade ordered a former customs broker to pay the $30,000 maximum allowable penalty for broker violations of the customs regulations, in a decision issued March 29 (here). Paul Puentes, a Los Angeles-based broker whose license was revoked in 2012 for failure to file a triennial report and pay the associated fee (see 12120527), pocketed Merchandise Processing Fees from a client, failed to file entry summaries or filed them late, and misrepresented the importer of record on entries imported on his own behalf, CIT said.
Importers and brokers that bring in chemicals subject to Toxic Substance Control Act regulations and participate in CBP's expedited release programs can use the Document Image System to submit certification information, CBP said in a CSMS message (here). Recent changes to TSCA regulations that went into effect March 21 (see 1701250080) eliminated the ability to use blanket certifications for imports covered by TSCA, including for participants in the Free and Secure Trade (FAST) and Border Release Advance Screening and Selectivity (BRASS) expedited release programs. Still "the requirement to submit TSCA certification prior to cargo release remains intact" for such programs, it said. "Importers and brokers can meet this requirement by uploading the required certification and certifier information through DIS (code EPA 06), associated to the bill of lading" or "by submitting the certification and certifier information in paper format." The Northern Border Customs Brokers Association raised concerns with the effects of ending blanket certifications on expedited release programs in comments on CBP's proposal last year (see 1609300031).
CBP sees additions of national monthly statements and line-level liquidations among the top recommendations within the agency's simplified processes initiative, said Randy Mitchell, director of the Commercial Operations and Entry Division, during a March 24 webinar sponsored by the National Customs Brokers & Forwarders Association of America. National monthly statements, which would consolidate port-specific entry statements into a single statement, would likely be phased in, he said. Line-level liquidation would be a "longer-term" goal due to some "legal and regulatory factors" involved, Mitchell said. Other "top recommendations" include monthly entry summaries and the elimination of the separate 09 entry type for reconciliation by allowing for Post-Summary Corrections instead, he said.
CBP outlined its recent enforcement work related to antidumping and countervailing duties in an AD/CVD Update for November and December (here). The update includes a look at AD/CVD statistics for fiscal year 2016, during which CBP collected $1.5 billion in cash deposits, up 25 percent over the previous fiscal year and up 200 percent since FY 2014. Also during FY 2016, CBP hit importers with $30.6 million in monetary penalties for fraud or negligence involving AD/CVD violations and identified more than $92 million on AD/CVD discrepancies after a review of 33,000 potential violations, it said. CBP auditors found $14.7 million in AD/CVD discrepancies as part of 89 audits during the year, it said. CBP and ICE also seized 16 shipments worth more than $5.3 million for AD/CVD violations, CBP said. The Centers of Excellence and Expertise continue to play a leading role in AD/CVD enforcement (see 1608030028), with the Base Metals Center recovering in excess of $710,000 in countervailing duties "to date," CBP said. The Pharmaceuticals CEE also followed up on an inquiry from a customs broker about classification and AD/CVD advice for hydrofluorocarbons from China, it said. "Due to a high risk for evasion, the information obtained from the inquiry was used to identify other subject shipments resulting in the recovery of over $1.3 million in undeclared antidumping duties," CBP said.
CBP forms 28 (Request for Information) and 29 (Notice of Action) are increasingly going straight to importers of record and no copy going to customs brokers, customs brokerage CPH Group said in an email (here). "With the CEEs coming into full force it has become more common that Customs Form (CF) 28 and CF 29 go directly to the importer of record, without the broker receiving a courtesy copy," it said. "If you receive either a CF 28 Customs Request for Information and/or CF 29 Notice of Action, it is vital to keep your customs broker in the loop! It's also important to note that the ACE Secure Data Portal allows authorized users to receive and respond to both of these notices." CBP didn't comment.