International Trade Today is providing readers with some of the top stories for Feb. 13-17 in case they were missed.
CBP recently "discovered that ACE may be increasing the number of late file cases due to a glitch," a CBP spokeswoman said. The National Customs Brokers & Forwarders Association of America first mentioned the issue in a Feb. 13 email to members. CBP told the NCBFAA that it "is investigating the increase in 'late payment' penalties being issued," according to the trade group. "The Fines, Penalties, and Forfeitures (FP&F) field offices have been notified to thoroughly research liquidated damages claims before issuing to ensure that systems-caused late files are not subjected to claims," the NCBFAA said. "CBP will also review previously issued penalties and where warranted, cancel."
A New York-based customs brokerage reached a settlement with Nike in a trademark infringement case, agreeing to strict requirements for validation of powers of attorney as a condition of the settlement. Alto Customhouse Brokers agreed to pay $25,000 to Nike, and validate all future powers of attorney it receives from importers, including by way of notarization, phone calls and checking government-issued IDs. Under the settlement, filed Feb. 10 but still subject to approval by the New Jersey U.S. District Court, Alto agreed to not willfully import or assist in the importation of any goods bearing counterfeit Nike trademarks, and to investigate and confirm the power of attorney before conducting customs business on a client’s behalf.
A company that sold Nicaraguan cheese in transit before entry cannot claim Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) benefits on the cheese because it is not the importer, even though it is still listed as importer of record on entry documentation, the Court of International Trade said in a recent decision (here).
Recently introduced bills meant to realign executive trade authorities with Congress appear unlikely to progress quickly, if at all, interviews with a senator and trade analysts indicated. The bills follow some recent debate over the legal authority the executive branch has to make tariff changes (see 1612150045 and 1611150035). Sen. Mike Lee, R-Utah, on Jan. 20 introduced S. 177, the Global Trade Accountability Act (here), which would make all executive branch trade actions, including tariff raises and reductions, subject to congressional approval. Rep. Morgan Griffith, R-Va., on Jan. 24 introduced H. Con. Res. 14, “Reclaiming Congress’s Constitutional Mandate in Trade Resolution,” which initiates planning for a shift of Office of the U.S. Trade Representative functions and responsibilities to Congress (here).
A new clause in NYK Line's bill of lading terms and conditions involving the verified gross mass (VGM) amendments to the Safety of Life at Sea (SOLAS) seems "inappropriate and contravenes" U.S. law, the National Customs Brokers & Forwarders Association of America said in a Feb. 3 filing with the Federal Maritime Commission (here). The NCBFAA specifically objects to the addition in clause 15 of the terms (here) that say the shipper is responsible for weighing costs and must provide the VGM for each container by a deadline established by a terminal or NYK. The clause also says NYK can reject a container "at its sole option" if no VGM is provided by the deadline and that the carrier won't be liable for any costs related to a rejection. The controversial VGM requirements went into effect last year (see 1607010041), though there's been little public controversy around the updated SOLAS since.
The FCC will advance broadcasters closer to a new standard by considering a draft NPRM in docket 16-142 on ATSC 3.0 at commissioners’ Feb. 23 meeting, Chairman Ajit Pai announced Thursday. The FCC also will consider a draft order in docket 13-249 that would remove the 40-mile limit on where FM translators can be placed by AM stations. Though both items are still on circulation, Pai released the full text of the items as part of a “pilot program” intended to increase FCC transparency, he said. (see 1702020051).
Licensed customs brokers can't pay a referral fee to an unlicensed third party that promotes the brokers' services if the fee is tied to entry transactions, CBP said in a Dec. 29 ruling (here). Welke Customs Brokers USA sought a Customs ruling on whether it could enter into such an arrangement with two local non-profits. Brokers are barred from paying out commissions to unlicensed parties that are a percentage of a fee paid for broker services, the agency said.
The updates to the Harmonized Tariff Schedule that took effect Jan. 1 (see 1701050035) and changed the HTS codes for multilayered wood flooring don't affect the applicability of antidumping orders on such products from China, the International Wood Products Association said in a Jan. 26 email. Antidumping orders are based on the written language of the scope and any HTS codes provided "aren't directly associated," the IWPA said. Even so, "a number of brokers are apparently running into problems because the ACE system hasn’t been updated to recognize the new entry codes," the trade group said. Asked about the issue, CBP told the IWPA "ACE will accept entry lines filed with HTS numbers that are not yet in the AD/CVD case reference file HTS tab," according to the IWPA. "Filing the entries as such WILL NOT create a reject. An informational message is all that will be sent back to the broker. It will allow entry as a type 03 with the case number added. If no case number is added then it will not allow a type 03 entry."
The Consumer Product Safety Commission’s recently ended e-filing alpha pilot went relatively smoothly, but expansion of e-filing to more entries could drastically increase costs, pilot participants said during a meeting with Consumer Product Safety Commission officials on Jan. 26 (here). Required data was mostly easy to obtain, but the manual process most used during the ACE pilot for entering data in CPSC’s data registry and tying it to entries will become burdensome as filing expands. Customs brokers at the meeting said the pilot went well. However, the complex disclaimer process CPSC anticipates using means the commission will need to be careful about the scope of its PGA message set, participants said.