CBP under the Trump administration should start by addressing several open issues related to imports of goods below the de minimis threshold, the National Customs Brokers & Forwarders Association of America said in a letter (here). The NCBFAA wrote to Department of Homeland Security Secretary John Kelly and Steven Mnuchin, the nominee to head the Treasury Department, on Jan. 20 with a list of priorities. The trade group raised concerns about the lack of targeting on goods that are below the de minimis level, which increased to $800 from $200 last year (see 1608250029). Imports below the de minimis level, known as Section 321 releases, can receive faster CBP processing.
President-elect Donald Trump names Reed Cordish, who has directed agency "beachhead" teams, as assistant to the president-intragovernmental and technology initiatives ... Buchanan & Edwards, technology firm with government customers, hires Dennis Kelly, ex-Iomaxis, as president-CEO ... Thumbtack names Laszlo Bock, ex-Google, as strategic adviser ... Hortonworks appointed Raj Verma, ex-Tibco Software, president-chief operating officer ... Comcast hires Kai Bond, ex-Samsung Accelerator, as principal to lead Comcast Ventures Catalyst Fund ... Joining Baidu is Qi Lu, ex-Microsoft, as group president-chief operating officer.
President-elect Donald Trump's transition team trade-related actions so far give a mixed message for how the incoming administration will conduct trade policy, Jon Kent, legislative representative for the National Customs Brokers & Forwarders Association of America, said during a Jan. 17 webinar. “Everybody is wondering where things are going, what will happen, and that question is being shared by the Washington so-called ‘insider community,’ that is hearing a great number of mixed messages, different signals, and none of them creating a streamlined pattern for people to follow so that they can speak with any assurance as to what will happen,” he said. Customs policy development will likely be addressed “at a later time” after the Senate confirms top administration personnel into their positions, Kent said.
International Trade Today is providing readers with some of the top stories for 2016 in case they were missed.
The Drug Enforcement Administration is issuing a final rule (here) amending its regulations to require electronic filing of permit applications, import and export declarations, and other required filings and reports for the importation and exportation of controlled substances, listed chemicals, and tableting and encapsulating machines. The agency is eliminating paper filing of most DEA-required submissions entirely, instead requiring importers and exporters to file via the DEA Office of Diversion Control secure network application, it said.
CBP will make numerous regulatory changes to reflect the Centers of Excellence and Expertise as a component of the agency, it said in an interim final rule (here). Among other things, the interim rule officially shifts responsibilities from the port directors to the CEE directors, CBP said. The new rule also describes the process by which importers will be assigned to Centers and the appeals process for their Center assignments, CBP said. The Trade Facilitation and Trade Enforcement Act required CBP to implement the CEE (see 1602170074). The interim rule will be effective Jan. 19.
The debate surrounding World Trade Organization compliance of border adjustability provisions being discussed by House GOP leaders will likely center on whether any changes would maintain a U.S. tax deduction for labor costs, said tax analysts in recent interviews. There's a growing discussion over border adjustability provisions mentioned in the House GOP tax blueprint and if such tax changes would violate WTO rules for import and export treatment (see 1612140046). The framework would exempt exports from taxes through rebates while making imports taxable. WTO rules prohibit such a system if part of a direct tax, or income-based, framework. The blueprint tries to steer clear of any violation by employing a “consumption-based” tax approach (see 1612010056). Still, outside observers would likely scrutinize whether any U.S. tax reform actually manifests a pure consumption tax in practice, and look beyond any label that government officials might attach to a proposal, analysts said.
An industry coalition petitioned the Federal Maritime Commission to issue new rules preventing common carriers and marine terminal operators from charging demurrage, detention and per diem fees during events beyond the control of shippers, including port congestion or disruption, bad weather and delays spurred by government action, according to the American Association of Footwear and Apparel (here). The no-charge period would start whenever a circumstance out of the control of shippers, receivers or motor carriers precludes a marine terminal or ocean carrier from tendering cargo or receiving equipment for delivery, according to the proposal. The petition was filed by the Coalition for Fair Port Practices, a group of 25 trade associations including the National Customs Brokers & Forwarders Association of America (NCBFAA), the AAFA and the National Retail Federation.
The National Marine Fisheries Service is setting new filing requirements at time of entry for imports of certain species of seafood the agency has deemed high-risk, in a final rule (here). Conceived as part of an administration-wide strategy to combat illegal, unreported and unregistered (IUU) fishing and seafood fraud (see 1503160016), filers will have to submit via ACE certain data elements and electronic documents with information on the fisher, the fish and how it was fished, in order to improve traceability of imports of the high-risk species. The importer of record must also maintain records on the chain of custody of their seafood imports, and obtain an International Fisheries Trade Permit for the high-risk species.
Trade industry representatives suggested to Fish and Wildlife Service officials during a recent meeting that it use a trusted trader program to help reduce some ACE data reporting requirements that are set to expand in 2017 (see 1611140019). Trade leaders met with the FWS officials during the East Coast Trade Symposium, according to an email from the National Customs Brokers & Forwarders Association of America. Several trade groups recently wrote a letter to FWS about the added data requirements (see 1611210004). During the meeting, "numerous proposals surfaced -- including a trusted trader concept that allowed companies to be vetted in advance," the NCBFAA said. William Woody, chief of the FWS Office of Law Enforcement "promised to address the issues raised and requested examples from the trade of where data would be required for regulated components of minimal value," the trade group said. Also discussed was the end to the Designated Port Exception Permit program, which allowed for FWS-regulated goods to enter at ports with no FWS staff present. "Woody acknowledged the consternation of ports such as Savannah and promised to work to resolve the budgetary and other issues that prompted the proposal," according to the NCBFAA. The meeting was led by Jon Gold, vice president of supply chain and customs for the National Retail Federation, and Woody, the NCBFAA said.