International Trade Today is providing readers with some of the top stories for May 8-12 in case they were missed.
The high U.S. de minimis level has contributed to an upsurge in overseas distribution centers where higher-value items are broken down into smaller quantities for shipment to the U.S., the National Customs Brokers and Forwarders Association of America said in comments to the Commerce Department on U.S. trade deficits (here). Low reporting standards for de minimis shipments mask the volume of those imports, as the Census Bureau can’t acquire information on those goods, NCBFAA said. This translates to a huge quantity of imports not calculated in the U.S. trade deficit, the association said. Comments from trade groups questioned the validity of the trade deficit as a measure of U.S. economic health and fair trade, while others tied deficits to antidumping and countervailing duty collection issues.
There's been a "reinvigoration" of forced labor enforcement issues at CBP following the repeal of the "consumptive demand" exemption last year (see 1603010043), said Alice Kipel, executive director of CBP's Office of Regulations and Rulings. The "consumptive demand" consideration served as a deterrent to companies bringing information to CBP, but with that now repealed, "we're seeing more being brought to our attention," she said. Kipel, who spoke on a panel at the American Bar Association International Law Conference on April 28, said she was speaking on her own behalf rather than for CBP.
CBP recently posted a document (here) that provides side-by-side comparisons of 18 U.S. free trade agreements and preferential trade programs. This updated version includes a new section on whether or not "Tariff Shift Rules Updated to 2017 HTSUS" for each agreement. CBP also updated the expiration dates for the Generalized System of Preferences and African Growth and Opportunity Act (see 1506290045). CBP noted that the document, dated March 29, is for comparative purposes and isn't legally binding.
International Trade Today is providing readers with some of the top stories for April 3-7 in case they were missed.
NEW ORLEANS -- Section 321 clearance via the Automated Broker Interface is likely years away, but CBP and the trade community are actively considering a multitude of issues surrounding e-commerce and low value shipments, according to trade industry and government officials during a panel discussion at the National Customs Brokers & Forwarders Association of America annual conference on April 5. Though short-term solutions for filers and CBP are likely to come earlier, CBP and the trade community need to avoid having those fixes becoming the norm and put the resources into an automated solution that gives customs brokers the same capabilities as others in the supply chain, said Vince Iacopella of Alba Wheels Up.
NEW ORLEANS -- CBP has nearly fixed a series of issues surrounding release date updates in ACE that were causing CBP to mistakenly issue liquidated damages for late filing against compliant filers, said Jim Swanson, CBP director-cargo security and controls, at the National Customs Brokers & Forwarders Association of America annual conference on April 4. The agency is cancelling in full mistaken assessments of liquidated damages caused by the issues, and is currently deciding how to handle mistaken claims that have already been paid, Swanson said.
NEW ORLEANS -- CBP is considering a role for customs brokers to help point out importers that may be skirting antidumping or countervailing duties as part of President Donald Trump's March 31 executive order, National Customs Brokers & Forwarders Association of America President Geoff Powell said during an April 3 panel discussion at the NCBFAA annual conference. CBP wants to get "the brokers' assistance in bonding" and figuring out "how to identify potential AD/CVD companies that are getting around it." CBP will "develop implementation plans to provide security for AD/CVD liability through bonds" within 90 days, the Department of Homeland Security said in a fact sheet about the executive order (here).
The World Customs Organization published a report on e-commerce (here), based on a survey of its members, which analyzes global customs practices and initiatives related to low-value e-commerce processing, the WCO said. The recent increase in de minimis e-commerce processing has spurred several challenges in the global trading environment, the WCO said. The continuous increase in online trading necessitates a broad, international customs approach to deal with questions regarding regulation, consumer protection, revenue collection and national security, the organization said. The study outlines several countries’ e-commerce approaches to de minimis shipments, and notes that proper risk management of such e-commerce shipments requires large personnel allocations, which several customs administrations lack.
The Office of the U.S. Trade Representative released its annual 2017 National Trade Estimate Report (here) on March 31. The report, which details trade barriers in some 60 countries and the European Union, highlights Canada’s de minimis limit of C$20, which it called “the lowest among industrialized nations,” and restrictions of U.S. seed and grain exports to Canada. The report also took issue with China’s protection of intellectual property rights and lack of transparency on trade-related measures. Concerns continue about Mexico’s customs administrative procedures, including “insufficient prior notification of procedural changes, inconsistent interpretation of regulatory requirements at different border posts, and uneven enforcement of Mexican standards and labeling rules,” it said.