The Agricultural Marketing Service is amending its regulations to reflect electronic filing procedures currently in use for certifications that fruits, vegetables and specialty crops are exempt from marketing order grade, size, quality and maturity requirements, in an interim final rule that takes effect March 30 (here). The agency is also removing outdated language on grade exemption certifications for dates and raisins. AMS says the regulatory changes will support implementation of the International Trade Data System by allowing for filing of exemption certificates through the Automated Commercial Environment. Comments on the interim final rule are due May 26.
A new Consumer Product Safety Commission trusted trader program could be in the offing as the agency moves cautiously toward electronic filing of certificates of compliance, said CPSC Commissioner Joseph Mohorovic during a March 19 meeting with the National Customs Brokers & Forwarders Association of America. However, any CPSC trusted trader program must overcome the familiar hurdle of providing enough benefits to importers, said NCBFAA representatives at the meeting.
Revenue from customs brokerage services at Expeditors International rose 8 percent in 2014 over the previous year to over $1.6 billion due to “increased volumes from existing and new customers,” according to the company’s annual 10-K report recently filed with the Securities and Exchange Commission (here). However, the company only saw a 4 percent increase in net revenue from customs brokerage services due to a 12 percent increase in brokerage-related expenses in 2014, it said.
CBP should move to update the Business Rules document on Automated Commercial Environment Summary soon, National Customs Brokers & Forwarders Association of America leaders recently told Brenda Smith, CBP assistant commissioner. "Although there is a Business Rules Document on ACE Summary, there is still some effort needed to update this publication," said the trade group's president, Geoffrey Powell, on the NCBFAA site (here). "There is an urgent need for the Business Rules document for Cargo Release as soon as possible, as opposed to April/May timeframe," he said. The document is important for training the industry and CBP, said Powell. "Many of our members rely heavily on the ACE Summary Business Rules Document daily when communicating with CBP, so there is mutual understanding of the issue at hand and how it needs to be addressed."
A recent court decision holding the owner of apparel importer Trek Leather responsible for his company’s negligent omissions on entry documentation would subject import compliance managers to “massive penalties,” casting the entire importing industry into upheaval, said the American Association of Exporters and Importers in a brief submitted to the Supreme Court. The amicus brief, filed on March 16 by John Peterson of Neville Peterson on behalf of AAEI, argues that the Supreme Court should hear the case and overturn the Court of Appeals for the Federal Circuit’s ruling.
The Consumer Product Safety Commission plans to test out a “streamlined approach” to filing electronic certificates of compliance in its upcoming pilot program, said Carol Cave, director of CPSC’s Office of Import Surveillance and Inspection, during a webinar on March 12. Agency officials envision a “certificate registry,” where full certificates of compliance containing all required data elements would be filed in advance of entry, said Cave. At time of entry, importers and brokers would then only have to provide a certificate number generated by the registry that would reference the full certificate, she said.
The text of the Trans-Pacific Partnership remains shielded behind closed doors, but U.S. compliance professionals are preparing for the sharp rise in trade flows and increased filing hurdles that are expected to accompany future implementation of the pact, several brokers and compliance consultants said in recent days. TPP chief negotiators are meeting in Hawaii this week, and speculation is rising over a conclusion to the deal. U.S. Trade Representative Michael Froman recently predicted a wrap-up of the talks at some point in 2015 (see 1502050058), but the U.S. has failed to meet deadlines set in the past by Froman and other TPP officials.
An importer faces nearly $17 million in penalties for misclassifying Chinese tires under duty free tariff subheadings, according to a complaint filed at the Court of International Trade on March 10. The government says China Tire Warehouse falsely classified its new car and truck tires under HTS subheadings for used tires and forestry vehicle tires, avoiding over $400,000 in duties in the process.
Congress should take up legislation now to simplify the drawback process or the “window for programming drawback simplification into the Automated Commercial Environment” will close, said trade groups in a letter to lawmakers. The letter was signed by American Association of Exporters and Importers and the National Customs Brokers & Forwarders Association of America, said the NCBFAA, which described the letter in a notice to members. Industry will have to file through ACE by 2016, the final stage of ACE implementation.
The White House released its Consumer Privacy Bill of Rights Act draft Friday to “establish baseline protections for individual privacy in the commercial arena” for both online and offline data and “foster timely, flexible implementations of these protections through enforceable codes of conduct developed by diverse stakeholders.” Sen. Ed Markey, D-Mass., industry groups and consumer groups expressed concern with the bill as it includes a provision that could pre-empt strong state laws, such as California’s privacy law, that already protect the privacy rights of consumers. But Microsoft expressed support.