CBP paused its efforts to cull inactive importer numbers, the National Customs Brokers & Forwarders Association of America said on Dec. 10. CBP apparently acknowledged its scope was too broad, and plans to make some changes and start again sometime in 2019, the NCBFAA said. CBP also told the NCBFAA that "the Office of Finance is handling a considerable amount of reinstatement requests and is currently backlogged," the NCBFAA said. CBP didn't comment.

The Food and Drug Administration has seen a recent increase in trucks carrying FDA-regulated cargo entering the U.S. from Canada without stopping for FDA examination, the agency’s Division of Northern Border Imports said in a Nov. 27 memorandum to customs brokers. “While we understand communication errors may occasionally occur, it is the collective responsibility of each of the importing parties associated with the entry (customhouse broker and carrier) to become familiar with and follow established procedures for importing FDA regulated entries,” the memo said. “For entries crossing during FDA hours of operation … we strongly encourage carriers to report to FDA for exam and clearance,” it said. Doing so will prevent costly delays, including needing to return the entry for physical examination, FDA said.

CBP plans to make use of the new entry type meant for low-value shipments as part of the next blockchain "use case" involving intellectual property rights licensing, said Vincent Annunziato, director of CBP’s Business Transformation and Innovation Division. "We figured out a way to make it so we're tying in the data that we're getting off the licensing to the entry," he said of the test while speaking on a panel during the stakeholder's forum of the U.S.-Canada Regulatory Cooperation Council on Dec. 5. "And we're using that new type 86 that hasn't come out yet so a lot of the companies will get a chance to experiment." The new type 86 entry is planned as a way to handle de minimis shipments in the Automated Broker Interface, with a pilot program expected during calendar year 2019 (see 1810200002).

Welke Customs Brokers USA cannot pay unlicensed sales representatives by commissions for brokerage services sold, CBP said in a Nov. 30 ruling. Welke USA (WUSA) and sister company Welke Customs Brokers Ltd. in Canada (WCAN) both employ separate sales forces, but were considering a change to the sales structure, CBP said. WUSA sought CBP input on whether the company may pay sales commissions and if WCAN can solicit business on behalf of WUSA.

CBP is currently considering deregulatory efforts that include revenue modernization, updating the customs regulations to account for e-bond functionality in ACE, free-trade zone modernization and bonded warehouse modernization, it said in a document released ahead of the Commercial Customs Operations Advisory Committee meeting previously scheduled for Dec. 5. Other deregulatory efforts will focus on the liquidation process and updating regulations for ACE functionality, CBP said.

A coalition of almost 150 trade groups -- including multiple customs broker groups -- sent a letter to President Donald Trump Nov. 27 warning that the tariffs levied so far are damaging exports and that consumers will be bearing the brunt of additional tariffs, if they come. The letter notes that exports subject to retaliatory tariffs have dropped by 26 percent as of September, compared to September 2017, and that businesses paid more than $5.6 billion in tariffs in October, a more than 70 percent increase from October 2017. "Mr. President, we urge you to capitalize on your upcoming meeting with President Xi to reach an agreement that addresses China’s unfair trade practices and policies in order to remove the 2018 tariff increases, forgo the January 2019 tariff increase and avoid an additional round of tariffs on the remaining $267 billion worth of everyday consumer products and manufacturing inputs," wrote the coalition, which is known as Americans for Free Trade. "Millions of American farmers, business owners, companies, workers, and families are counting on you to make a deal."

CBP posted an updated version of its Frequently Asked Questions for Importer Security Filing with information from the agency's ISF changes that took effect May 14 (see 1804110010). Among other things, the FAQs now include a section on ISF-5 filings. CBP's final rule expanded the definition of "importer" for foreign cargo remaining on board (FROB). "For FROB cargo, the ISF Importer is the carrier or the [non-vessel operating common carrier (NVOCC)]; for [Immediate Exportation (IE) or Transportation and Exportation (T&E)] in-bond shipments, and goods to be delivered to [a Foreign-Trade Zone], the definition of ISF Importer includes the goods’ owner, purchaser, consignee, or agent such as a licensed customs broker," CBP said.

The National Customs Brokers & Forwarders Association of America promoted Tom Mathers from communications director to deputy director for special projects, NCBFAA said in an announcement. Austin Miller, who was assistant director of communications, moved to the communications director position Mathers vacated. Also, Drenda Williams was promoted from administrative supervisor to deputy director for membership.

Express shippers are troubled by a footnote that suggests the U.S. could lower its de minimis rate for NAFTA partners (see 1811060010) and ask that it be removed, said Michael Mullen, executive director of the Express Association of America, during a Nov. 15 U.S. International Trade Commission hearing. Mullen also said the fact that the taxes and duties levels are separate means the $40 Canadian and $50 for Mexico will be the operative de minimis amounts. That Canadian level "is among the lowest in the world," Mullen said, adding that Mexico already offers simplified duties and taxes above $50 and $117, so the administration needs to make sure the pact does not make things worse.

The following lawsuits were filed at the Court of International Trade during the week of Nov. 5-11: