BALTIMORE -- CBP Commissioner Kevin McAleenan told an audience of import and export professionals that CBP is going to use the White House directive on regulatory reform to edit regulations across many areas, including bonded warehouses, foreign-trade zones, vessel arrival, e-bonds and ending the requirement that customs brokers have local certification. McAleenan, who was speaking at the American Association of Exporters and Importers annual conference June 8, also touched on agency initiatives in improving screening of small packages, protecting trademarks and copyrights, and blocking shipments of goods produced with forced labor. He encouraged everyone to make e-allegations on forced labor, and said he just received one from junior high school students in Maine who are concerned about slave labor in the chocolate industry.
BALTIMORE -- There has been a long wait for details on how drawback will work under the Trade Facilitation and Trade Enforcement Act, but Dave Corn, vice president of Comstock and Theakston, said things are going to be moving in the next month. The Office of Management and Budget is required to send the proposed rule back to CBP by July 5, and Corn said he expects CBP to release a proposed rule notification a week or two after OMB acts. A lawsuit on whether CBP's action to change accelerated payment practices was outside its authority for interim guidance should also be resolved within a few weeks, he said while speaking at the American Association of Exporters and Importers annual conference on June 8.
BALTIMORE -- There are some barriers to data sharing among NAFTA companies that would ease goods' flow across borders, but progress is steady, panelists said at the American Association of Exporters and Importers annual conference. Kim Campbell, founder of MKMarin, a Canadian trade services firm, said some of the problems with data sharing on Canadian exports is that Canada generally doesn't ask exporters to submit information if they're sending their goods to their southern neighbor. "We don’t actually collect export data into the United States," she said, and shipments from Canada to Mexico are often not tracked, either, because firms took advantage of the lack of reporting requirement for shipments south, as goods transited across the U.S.
BALTIMORE -- More than 15 years after CBP implemented the Customs-Trade Partnership Against Terrorism (CTPAT) program, it's time to raise the standards for supply chain security, said Liz Schmelzinger, CTPAT director at CBP. "CTPAT is 17 years old now," she said, and "really not as effective as it used to be." Most pressing is the need for companies to examine cybersecurity aspects of the supply chain, she said, as the risk of data breaches and cyberattacks continues to grow.
The Commerce Department has abandoned its seven-year ban on exports to Chinese telecom giant ZTE, instead levying a second $1 billion penalty for violating sanctions on North Korea and Iran, Commerce Secretary Wilbur Ross said in an interview on CNBC June 7. Previously, ZTE paid all but $300 million of a $1.19 billion fine, but Commerce said the company didn't follow through with its promises to discipline employees responsible for the illegal exports, and lied to the Bureau of Industry and Security.
BALTIMORE -- The first round of Section 232 product exclusions should be released soon, said Rich Ashooh, assistant secretary for export administration at the Department of Commerce. "The [Commerce] secretary is very anxious to reach that milestone," he said in response to a question from International Trade Today. Ashooh spoke at the annual American Association of Exporters and Importers Conference June 7.
The European Union requested consultations with the U.S., to hash out whether Europe has resolved the issues with Airbus subsidies, as it claimed on May 17. The EU lost the case on state financing for plane model launches back in 2011, but the World Trade Organization legal process has been continuing since then on whether the illegal practices have been fully abandoned. The U.S. first brought the case in 2004. On May 15, a WTO appellate body said the EU had partly complied with its obligations, but still had some changes to make (see 1805150066).
House Speaker Paul Ryan expressed skepticism that there's a veto-proof majority aligned to pass a bill constricting the president's authority to levy tariffs. "You'd have to pass a law he would want to sign into law. You can do the math on that," he said at a press conference at the Capitol on June 6.
Companies that have made requests for product exclusions on South Korean, Brazilian or Argentinian steel imports will be denied, a Commerce Department spokesman said June 6. The proclamation only makes product exclusions available to goods imported from countries that face tariffs, not to those that have exports constrained by quotas. Brazil is the second-largest steel exporter for the U.S., and South Korea is third.
Sen. Bob Corker, a Republican Trump critic from Tennessee who is retiring at the end of the year, told reporters in the Capitol June 5 that he will be introducing a bill that would not allow the president to implement tariffs or quotas based on national security concerns without congressional approval. That authority was given to the executive branch in 1962. According to a source familiar with the bill, if passed, it would require the president to submit to Congress actions under Section 232 of the Trade Expansion Act of 1962. "For a 60-day period following submission, legislation to approve the proposal will qualify for expedited consideration, guaranteeing the opportunity for both debate and a vote." This would give Congress an opportunity to veto tariffs on autos and auto parts -- an investigation under Section 232 recently began (see 1805240002). The bill would also apply to the administration's steel and aluminum tariffs and quotas, the source said.