Federal prosecutors filed a civil complaint against a garment importer, its executive and a clothing wholesaler for an alleged customs duty evasion scheme, the U.S. Attorney's Office for the Southern District of New York said in a Sept. 23 news release (here). The importer, Yingshun Garments, "avoided paying millions of dollars in customs duties" by undervaluing garments on false invoices, the USAO said in the complaint (here). The complaint was the result of an investigation by CBP and ICE's Homeland Security Investigations, ICE said (here).
Angela Collins of Willson International was elected chair of the Canadian Society of Customs Brokers at the CSCB National Conference on Sept. 26. The previous chair, Kim Campbell of mkmarin trade services, remains on the CSCB board in the position of immediate past chair.
NIAGARA ON THE LAKE, Ontario -- With protectionism dominating discussion of trade in the U.S. presidential election, customs brokers throughout North America face uncertainty as to the fate of cross-border flows, said leadership of broker groups from the U.S., Canada and Mexico at the Canadian Society of Customs Brokers National Conference Sept. 27. Given how connected the three countries are, promises of higher tariffs, a border wall and a renegotiation of the terms of NAFTA from Republican candidate Donald Trump seem far-fetched, said Antonio Vidales, president of the Mexican brokers group CAAAREM. Campaign promises often differ from what happens when a candidate assumes office, he said. Nonetheless, Mexican brokers are worried, given the high volume of trade between the two countries.
CBP is “well on the way” to implementing the majority of requirements of the Trade Facilitation and Trade Enforcement Act (TFTEA) by the end of 2016, CBP Commissioner Gil Kerlikowske told members of the House Ways and Means Trade Subcommittee during a Sept. 27 hearing (here). Still, "despite our best efforts" CBP is "delinquent in some areas of the deadlines,” he said. “But we’re working diligently in putting all of that into place.” Kerlikowske said he and his colleagues will keep Congress informed of the agency’s progress through the end of 2016.
CBP should develop a separate "Section 321 module" for brokers to allow for easier manifest release requests on low-value imports regulated by other agencies, the Express Association of America said in comments to CBP (here). The comments were in response to CBP's regulatory changes to the de minimis value threshold (see 1608250029), a provision of the Trade Facilitation and Trade Enforcement Act (TFTEA) of 2015. Among other questions, CBP sought information on how it should approach the "release from manifest" process, commonly known as a Section 321 procedure, for goods under the new $800 de minimis level when the manifest doesn't include information required by other agencies. Unlike express couriers, customs brokers currently cannot electronically designate Section 321 clearances via manifest (see 1605160030).
CBP expanded the Agricultural Marketing Service's Partner Government Agency message set ACE pilot (see 1508050019), CBP said in a CSMS message (here). "All customs broker and self-filers who submit AMS-regulated products at the Ports of L.A./Long Beach, Miami, and Philadelphia are now eligible to join the AMS pilot and begin submitting the AMS PGA message set through ACE/ITDS," CBP said.
A recent Federal Maritime Commission proposal to allow a grace period of 30 days after an agreement is reached before non-vessel operating common carriers (NVOCCs) have to file amendments to NVOCC service arrangements (NSAs) would provide “much needed flexibility,” the National Customs Brokers & Forwarders Association of America said in comments to the FMC (here). Currently, NVOCCs have to closely monitor vessel rate and surcharge changes so they can immediately file amendments that incorporate any changes, it said. The FMC proposed the change on Aug. 22 (see 1608220032). However, the NCBFAA “continues to believe that the NSA essential terms publication and filing requirements do not serve a legitimate purpose,” it said. “So, while allowing for the retroactive filing of amendments is certainly a step in the right direction; complete elimination of this requirement for NSAs is warranted," it said. The trade association also called on FMC to allow "NRAs to include non-rate economic terms, including but not limited [to] credit and payment terms, rate methodology, surcharges, minimum quantities, forum selection and arbitration clauses," it said. "Allowing for incorporation of these terms would enable NVOCCs to negotiate and memorialize a complete transaction in a convenient, rational and transparent manner."
International Trade Today is providing readers with some of the top stories for Sept.12-16 in case they were missed.
Livingston International purchased Affiliated Customs Brokers, a Canadian brokerage with 12 offices in the U.S., Livingston said (here). "The acquisition will strengthen Livingston's service offerings in both Canada and the U.S., adding particular strength in the Quebec marketplace," the purchaser said. "Affiliated brings particularly strong expertise in the energy, printing, pharmaceuticals, automotive, capital equipment and food industries." The purchase price wasn't disclosed.
CBP will not immediately reject export filings without data required by the National Marine Fisheries Service once NMFS ACE export requirements take effect Sept. 20 (see 1608150011), according to an update from the National Customs Brokers & Forwarders Association of America. Export filers that do not include the additional data elements will receive a “verify” or “warning” message at this time, although eventually the missing data will cause a fatal error, the update said. The Automated Export System is already programmed to accept the additional NMFS data elements, and by Oct. 1 will include Schedule B and Harmonized Tariff Schedule flags, it said. "If the exporter's commodities are subject to the NMFS regulation, they will have to provide you with the data elements and in turn, you will have to provide them with the ITN [(internal transaction number)] so that they can upload the necessary documents to NMFS,” the NCBFAA said. CBP did not immediately comment.