CBP to Take Action on In-Bonds, Low Value Entries, Rules of Origin, First Sale
On July 23, 2010, U.S. Customs and Border Protection Commissioner Alan Bersin sent a letter to 16 trade and industry groups1 responding to a list of proposals that were presented to him to improve Customs regulations and operations.
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.
The following are highlights of his comments with regard to upcoming notices to be issued by the agency:
CBP to Issue Proposed Rule on Modernizing the In-Bond Process by End of 2010
CBP has been engaging with industry about its efforts to draft regulations that would encompass a complete revision and modernization of 19 CFR Part 18 to enable the in-bond process to go from a paper-dependent entry process to an automated-paperless process.
In addition to modernizing the regulations to meet the realities of the current real-time shipping environment, the proposed amendments to the regulations are being designed to provide CBP with the necessary tools to better track in-bond merchandise.
Work is ongoing to draft these substantial regulatory change proposals. CBP intends to have a proposed rule published by the end of this year where it will officially be seeking public comments on its proposals.
CBP to Issue Proposed Rule on Increases to De Minimis, Informal Entry Values
CBP agrees, from a policy perspective, with the recommendation that the de minimis and informal entry limits should be increased. CBP has drafted a proposed rule providing for increases of both the de minimis value and the value for informal entries consistent with language in S. 1631 (the Customs Facilitation and Trade Enforcement Reauthorization Act of 2009).
CBP is in the process of conducting an economic analysis and evaluating other factors required to evaluate the range of discretion available under 19 USC 1321. In addition, CBP’s proposal will need to be reviewed and agreed to by the Treasury Department. CBP expects the economic analysis to be completed within the next 60 days and intends to proceed with all due speed based on the findings of the analysis.
CBP to Soon Publish Notice on Rules of Origin Issues
CBP and the Treasury Department have carefully reviewed the comments submitted in response to the rules of origin proposal. In particular, the agencies have heard concerns expressed about the impact that extension of the rules of origin to other than North American Free Trade Agreement (NAFTA) trade may have on the trade community. These matters are still under consideration within the agencies as part of the official rulemaking process; however, CBP expects to soon be publishing a notice on this matter in the Federal Register.
(In July 2008, CBP issued a proposed rule to use uniform tariff shift and other rules for CBP determinations of the country of origin of imported merchandise, etc. CBP subsequently extended the comment period and reopened the comment period on the proposed rule. See ITT’s Online Archives or 10/31/08 news, 08103105, for BP summary announcing the reopening of the comment period.)
CBP to Formally Withdraw First Sale Proposed Interpretation
A Federal Register notice to formally withdraw the first sale rule proposal has been drafted. CBP expects to have it published within the next 30 days.
According to CBP sources, the August 2008 interim final rule that amended 19 CFR and set the effective date for the first sale declaration effectively withdrew CBP’s proposed interpretation to require that the price paid in the last sale occurring prior to the introduction of the goods into the U.S., instead of an earlier sale, be considered the price actually paid or payable for the imported goods when sold for exportation to the U.S. However, CBP has not yet formally withdrew its proposed interpretation. (See ITT’s Online Archives or 08/22/08 news, 08082205, for BP summary of the interim final rule.)
1Air Transport Association of America, American Association of Exporters and Importers, American Trucking Association, U.S. Business Alliance for Customs Modernization, Border Trade Alliance, Canadian/American Border Trade Alliance, Canadian Chamber of Commerce, Canadian Manufacturers & Exporters, Canadian Trucking Alliance, National Association of Foreign Trade Zones, National Association of Manufacturers, National Customs Brokers and Freight Forwarders of America, National Retail Federation, Retail Industry Leaders Association, and U.S. Chamber of Commerce.
Letter available via email by sending a request to documents@brokerpower.com