The Office of the U.S. Trade Representative posted comments (here) on possible de minimis competitive needs limitation (CNL) waivers and possible re-designations of articles not eligible for Generalized System of Preferences (GSP) benefits because they exceeded CNL thresholds, as part of the executive branch's 2016/2017 GSP review. Comments were due at midnight March 22. The Trump administration is expected to make effective final decisions regarding the 2016/2017 GSP review by July 1. In another notice, the International Trade Commission said (here) that it won’t provide advice on withdrawn petitions that had requested CNL waivers for certain products under GSP, after USTR rescinded its request for advice on such petitions in a Feb. 17 letter to the ITC (see 1703020045).
U.S. Trade Representative nominee Robert Lighthizer vowed to engage with Canada over its "low de minimis level" and is “deeply concerned” about counterfeiting and piracy in China, he told the Senate Finance Committee in writing after a recent hearing (here). Lighthizer said he would consult with Congress and domestic stakeholders on developing a strategy to tackle U.S. export-related concerns with Canada's de minimis level of $20 Canadian dollars. He said an increase in the level could be a "significant issue" for U.S. bilateral and multilateral engagement with Canada. Lighthizer also cited potential negative the impacts of Chinese counterfeits on the U.S. economy, U.S. jobs, health, safety and national security. Lighthizer awaits committee advancement of his nomination to the Senate floor, after his March 14 confirmation hearing (see 1703150042). If confirmed, Lighthizer said, he will use all relevant trade policy tools, including the Special 301 report and “new procedures” provided under the Trade Facilitation and Trade Enforcement Act to address Chinese counterfeits.
Congress seems unlikely to provide dedicated funding for new ACE development in upcoming appropriations legislation, according to industry officials. Still, CBP may be able to funnel operations and maintenance resources to ACE development, said one industry observer. While the end to funding for new programming isn't unexpected (see 1609140034), the shift is closer to becoming a reality as the Senate and House aim to pass final Department of Homeland Security appropriations legislation by late April, industry and congressional officials said recently.
Petitioners withdrew the competitive need limitation (CNL) waiver petitions from the 2016/2017 Generalized System of Preferences (GSP) Annual Review for the following products that didn’t surpass CNL thresholds for 2016, the Office of the U.S. Trade Representative said (here):
CBP posted documents for the upcoming Commercial Customs Operations Advisory Committee (COAC) meeting on March 1 (here) in Washington. Among the posted items are draft recommendations from the Rulings and Decisions Improvement Working Group of the Trade Modernization Subcommittee (here) that suggest CBP work to ensure sufficient resources for the Office of Regulations and Rulings (R&R) "in light of the foreseeable, imminent shifts in U.S. trade and border policy." The agency must be able to maintain "trade and other critical subject matter priorities despite other issues that may become of significant concern," it said. "COAC also feels this is necessary due to the Administration’s mandate to eliminate two regulations for every one regulation that the Government issues."
The Environmental Protection Agency will enforce a hard deadline for upcoming Toxic Substances Control Act labeling requirements for formaldehyde emissions in composite wood products, the EPA’s Todd Coleman said during a Feb. 23 webinar. Beginning Dec. 12, 2017, imported composite wood products covered by a recent EPA final rule will have to be labeled as compliant with new formaldehyde emissions requirements (see 1612120022). Prior to that date, EPA will not allow imports of products bearing such labels, though the agency will allow early labeling of composite wood products distributed abroad as long as it is not distributed on U.S. soil, Coleman said.
Some big decisions still need to be made for the delayed post-release ACE deployment that was previously scheduled for Jan. 14 (see 1701110039), said Valerie Neuhart, acting executive director for the CBP Office of Trade Relations. The agency has yet to decide whether it will deploy all of the post-release functions at one time, as was planned, or through multiple deployments, she said. "Is there a decision yet on if it's all together or broken up into some phased approach?" she asked. "Not that I know of," she said. Specific timing also still remains uncertain, though those functionalities will be in place during 2017, she said. Neuhart, who is now in the position previously held by Maria Luisa Boyce (see 1702020063), spoke on Feb. 14 at the National Association of Foreign-Trade Zones' Legislative Summit.
A recent executive order requiring the repeal of two regulations for every new one implemented applies only to regulations deemed “significant” by the Office of Management and Budget, according to “interim guidance” issued by OMB on Feb. 2 (here). The interim guidance also lists exemptions to the “two-for-one” and regulatory budgeting requirements set by the executive order, as well as what qualifies as a deregulatory action, including elimination of reporting and recordkeeping requirements. Despite the potential burden, the interim guidance said agencies must perform new cost analyses for the two deregulations, rather than relying on previous cost estimates.
CBP under the Trump administration should start by addressing several open issues related to imports of goods below the de minimis threshold, the National Customs Brokers & Forwarders Association of America said in a letter (here). The NCBFAA wrote to Department of Homeland Security Secretary John Kelly and Steven Mnuchin, the nominee to head the Treasury Department, on Jan. 20 with a list of priorities. The trade group raised concerns about the lack of targeting on goods that are below the de minimis level, which increased to $800 from $200 last year (see 1608250029). Imports below the de minimis level, known as Section 321 releases, can receive faster CBP processing.
In the Jan. 18 issue of the CBP Customs Bulletin (Vol. 51, No. 3) (here), CBP published notices that propose to revoke or modify rulings and similar treatment on the application of Jones Act coastwise laws to certain merchandise and vessel equipment that are transported between coastwise points. The Jones Act limits activities by foreign-flagged vessels around the U.S. CBP also posted four related rulings (here) that aren't available on CBP's ruling database.