U.S. exporters and forwarders are still unsure how much due diligence is enough to comply with the Commerce’s Department’s recently expanded end-user and end-use restrictions, National Customs Brokers & Forwarders Association of America officials said. Although the Bureau of Industry and Security issued some guidance last year, the guidance didn't address all industry questions and was made more complicated by another set of restrictions that took effect this year, the officials said.

Shipping regulations should be revised to allow the Federal Maritime Commission to better address unfair detention and demurrage fees, agricultural export issues and a range of other shipping problems at U.S. ports, FMC Chair Daniel Maffei said. While he didn’t propose any concrete changes, he said he is “frustrated” with the situation at the nation’s ports and is speaking with Congress about potentially proposing regulatory changes. “I'm not prepared to go into any details now, but I do think that some things clearly need to be clarified,” Maffei said during a May 5 National Customs Brokers & Forwarders Association of America conference. “There are many, many areas where the law is vague or so outdated because it simply was written mostly in the time of tariffs, and now it's mostly contracts.”

Four months after the United Kingdom left the European Union, customs activity is stabilizing following a hectic period of trade between Britain and the bloc, said Joop Mastenbroek, director of Customs Brokerage North and Continental Europe, West Europe and Middle East Africa at logistics company GEODIS, speaking at a May 4 event hosted by the U.S. Fashion Industry Association about the leading customs challenges post-Brexit. While more exporters and importers are up to date on how to issue the right documentation to ensure smooth customs clearance, large challenges still exist. In the current market scenario, the robustness of government systems under the increased weight of declarations, challenges around products of animal origin, shortage of resources and differing customs procedures by the various EU member states stand as the most challenging customs issues, Mastenbroek said.

Making sure the recent changes to bankruptcy law that affects custom brokers don't expire at the end of the year (see 2012210045) is the National Customs Brokers & Forwarders Association of America's top priority, lobbyist Martin Whitmer said during a political update at the NCBFAA conference May 5. The group also is closely watching the 21st Century Customs Framework, renewal of the Miscellaneous Tariff Bill and the Generalized System of Preferences benefits program, ACE funding, forced labor legislation, the infrastructure package and the highway bill. “Trade and freight movement are one of the top topics in D.C. right now,” he said. “Members of Congress want to learn from you.”

The U.S. needs a national export strategy and a combination of federal support and digital solutions to address ocean carriers declining to carry U.S. agricultural exports, said Gene Seroka, executive director of the Port of Los Angeles. While he thinks the issue can be fixed, Seroka said it will be challenging.

The Agricultural Marketing Service is in the process of writing a final rule to require electronic filing of certificates for organic products at entry, among other provisions intended to strengthen organic enforcement, said Jennifer Tucker, AMS deputy administrator, at the National Customs Brokers & Forwarders Association of America annual conference May 5.

Forwarders are seeing a rise in maximum penalties issued by CBP for violations surrounding ocean shipments that occurred over a year ago, National Customs Brokers & Forwarders Association of America officials said. Joe Brogan, the chair of NCBFAA’s export compliance subcommittee, said CBP officers are increasingly digging up old violations where forwarders submitted incorrect transportation-related information, such as the date of export or the port of export, and have levied penalties higher than $14,000 for a “single occurrence.”

CBP will be moving drawback operations from within dedicated drawback centers and into the Centers of Excellence and Expertise, said Sharolyn McCann, director, Commercial Operations, Revenue and Entry, Office of Trade. McCann, who recently replaced Randy Mitchell in that role, spoke May 4 during the National Customs Brokers & Forwarders Association of America conference. "We are hoping to have this transition completed by the end of the fiscal year, the end of September," she said.

The Fish and Wildlife Service will again postpone full implementation of its partner government agency (PGA) message set in ACE, Myra Reynolds of John S. James Co. said during a panel discussion May 3. Already the subject of several delays, the last until June (see 2102040031), the PGA message set is currently being used for about 40% of FWS-regulated entries, and FWS would like to get it “up and running,” Reynolds said during the National Customs Brokers & Forwarders Association of America annual conference. But while FWS had thought it would have a rulemaking required for implementation completed by June, it now appears that the notice won’t come out until early fall, meaning full implementation of the FWS message set would come in late fall 2021, Reynolds said.

India is now requiring first-time importers, exporters and customs brokers to officially verify their identities with the government, the Hong Kong Trade Development Council reported May 3. All traders and brokers must “complete the process of verification” within 30 days of “first “engaging in import/export activity,” HKTDC said, which likely includes providing customs authorities with bank statements, company incorporation documents and “other proofs of a satisfactory financial standing.” The country may fine traders who don’t comply and revoke their “specified customs benefits.”