CBP Posts its Answers to Trade Questions from the November 2005 Trade Symposium
U.S. Customs and Border Protection (CBP) has posted to its Web site its answers to questions submitted by the trade community at its November 2005 Trade Symposium.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
This is Part I of a multi-part series of summaries on this document and highlights CBP's answers to questions on compliance posed to CBP's Trade Team. See future issues of ITT for additional summaries.
Are the number of OR&R rulings down and what is the turnaround time for rulings, how is OR&R doing with rulemakings? CBP states that although the number of rulings being issued by its Office of Regulations and Rulings (OR&R) is down somewhat, the number of other tasks performed by OR&R has increased (e.g., phone calls, HSC Document reviews, FTA reviews, MT Bills, NTC/Security questions, Internal Commodity Seminars, CBP field training, FTA negotiations, rulemaking).
According to CBP, the average turnaround time for the Commodity Specialist Division (NY) is 17-18 days. CBP notes that the time for issuing a ruling depends on many factors, including whether a laboratory analysis is required or whether further information is necessary. CBP further states that the average turnaround time for the more complex rulings issued by OR&R Headquarters in fiscal year (FY) 2005 was 72 days.
Regarding rulemakings, CBP states that its recent reorganization of OR&R is facilitating the drafting of CBP rulemakings. CBP notes that there are now two regulations branches, both of which are fully staffed - one branch prepares border security regulations and the other branch prepares trade and commercial regulations. CBP states that with sufficient resources being allocated, it envisions more rulemakings being drafted this [fiscal] year than in the previous year.
When will CBP issue its decision on whether to limit the Park B. Smith decision? CBP states that a draft decision is circulating within OR&R for review and CBP expects to send it forward for publication in the Customs Bulletin by mid-January 2006.
(See ITT's Online Archives or 9/27/05 news, 05092705 for BP summary of CBP's classification/protest guidance on textile and non-textile festive articles (in light of CBP'sproposedPark B. Smithdecision).)
Has Regulatory Audit overstepped its authority by evaluating a firm's business process? CBP responded in the negative to this question and stated that Regulatory Audit reviews internal controls relating to import compliance and the internal control review is a normal part of auditing and assists the auditors to determine the scope of the audit and the extent of testing necessary to concentrate on risk. CBP states that Regulatory Audit follows the Government Accountability Office (GAO) Government Accounting Standards (GAS), noting that these standards have always included requirements to review internal controls and management controls.
Does OST receive referrals for issues uncovered during a C-TPAT validation? According to CBP, C-TPAT validation material is kept confidential within the Office of Field Operations and the results of C-TPAT validations are not shared with the Office of Strategic Trade/Regulatory Audit.
How does an importer change its Account Manager? CBP responded to a question about how an importer changes its Customs Account Manager by stating that the account should contact Alice Buchanan, Chief, Account Management at (202) 344-2697.
What is being done to improve the reliability of ACE and what is the timetable for post summary correction and Reconciliation upgrades? CBP states that the current ACE Portal continues to be improved and with the implementation of Release 5/A2 the information will be significantly more accurate. The published timeframe for implementation of post summary correction and Reconciliation upgrades is July 2007.
The manufacturing drawback process used to include detailed description of manufacturing process & accounting audit trail - how has that changed? CBP states that the change to the drawback statute will still require that the claimant maintain the manufacturing records to support making their drawback claim; however, the documents need not be submitted to CBP, unless specifically requested.
Are there plans to apply the Canadian WPM exemption to WPM entering the U.S. from Mexico? CBP states that there are no plans to apply the same exemption that the U.S. applies to wood packaging material (WPM) entering the U.S. from Canada for Canadian origin goods to WPM entering the U.S. from Mexico.
What is the status of a lawsuit brought by 4 states regarding the attempt to invalidate the new WPM rules? CBP states that the lawsuit brought by four states in Federal Court in New York regarding the attempt to invalidate the new WPM rules is currently pending.
CBP answers to Trade Symposium questions (dated 12/23/05) available at http://www.cbp.gov/linkhandler/cgov/import/communications_to_trade/trade_2005/answers_qcards.ctt/answers_qcards.doc.