CBP Updates List of COAC Recommendations

The recommendations that came from the COAC at its March 5 meeting and given to CBP included the following:

Intelligent Enforcement Subcommitee

AD/CVD Working Group:

• COAC recommends that CBP issue a CSMS message informing the trade community of any limitation within ACE to calculate or validate duties when more than two [Harmonized Tariff Schedule of the U.S.] HTSUS numbers are reported on an entry summary line.
• COAC recommends, in order to achieve higher compliance with Executive Orders related to additional tariffs, that ACE be programmed to calculate duties (estimated and liquidated) for entry summary lines that contain multiple HTSUS numbers and/or other trade remedy duties.

Next Generation Facilitation Subcommitee

ACE 2.0 Working Group:

• The COAC recommends that DHS and Treasury approve CBP's request for immediate funding for current ACE development to support anticipated new and future trade actions to benefit trade facilitation and trade enforcement efforts, as well as any future ACE modernization efforts.

Secure Trade Lanes Subcommitee

Export Modernization Working Group:

• COAC recommends that CBP investigate the policy and procedures for reviewing and approving general manufacturing drawback rulings to ensure that each review closely follows the purpose within the regulations in 19 CFR 190.7(a) to simplify drawback for “certain common manufacturing operations.” While the regulations in 190.7(c)(1) contemplate the drawback office will “promptly issue a letter acknowledging receipt of the letter of intent and authorizing the person to operate under the identified general manufacturing drawback ruling…”, the approvals to operate under General Manufacturing Rulings currently take six months or more to finalize. (This recommendation pertains to all general rulings as listed in 19 CFR 190, Appendix A.)
• COAC recommends that upon completion of the investigation for a general manufacturing drawback ruling that CBP publish their findings on CBP.gov for future reference.
• COAC recommends that CBP establish a new General Manufacturing Drawback Ruling for manufacturing processes that meet the following requirements: (1) all imported/substituted components claimed for drawback undergo at least a change in 8-digit HTSUS as part of the production process, and (2) the claimant certifies that it has exercised reasonable care in determining whether the process qualifies as a manufacture or production as defined in 19 CFR 190.2, certifies that it otherwise qualifies for manufacturing drawback, and certifies that it has researched relevant rulings that may apply to that general manufacturing operation. The purpose of this General Manufacturing Ruling is to expedite and simplify the processing of straightforward Specific Manufacturing rulings that currently require approval from CBP’s Regulations & Rulings, a process that can take one to two years to complete.

Foreign Trade Zone (FTZ) Warehouse Working Group:

• COAC recommends that CBP create a tab in the ACE web portal viewable to the FTZ Board, FTZ operator and CBP specifically for FTZ Board orders or actions authorizing production authority to assist CBP in processing admission and entries to align with the FTZ Board approvals. The recommended tab should include fields for the FTZ Board to populate for approved production details, restricted production authorities, and PF status foreign inputs. The recommended tab should include check boxes or fields for: “Restricted Production Authority” which approve the final product for export only; “Required PF status” for certain foreign components based on the FTZ Board’s included production restrictions that require foreign inputs to be duty paid regardless of substantial transformation; “Quantitative limits”; and FTZ Board notes.
• COAC recommends that CBP provides access to the ACE e-214 FTZ admission report universe for vested parties, including but not limited to FTZ Operators, FTZ Applicants, and FTZ Filers. All the data elements filed on the e-214 must be available on the reports data universe.
• COAC recommends that CBP implement the use of the Electronic Permit to Transfer (ePTT) system for all bonded movements within a port, across all modes of transportation. Additionally, COAC supports the replacement of existing paper-based in-bond processes with electronic alternatives to enhance efficiency and accuracy.