International Chamber of Commerce Secretary General John Danilovich presented industry recommendations for a World Trade Organization e-commerce agreement at WTO’s annual Public Forum in Geneva on Sept. 28, the ICC announced (here). The proposal itself recommends that any e-commerce package include capacity building resources for developing economies, and reflect a WTO review of its telecommunications rules to remove non-tariff barriers, as well as a “light-touch” approach to regulation that allows entry of new businesses into the information and communications technology ecosystem, among other things.
Given that the merchandise processing fee (MPF) for informal entries filed for release on goods valued below the de minimis level are minimal, CBP should waive the fees for such entries, the National Customs Brokers & Forwarders Association of America said in comments to the agency. CBP requested input on how it should approach the "release from manifest" process, commonly known as a Section 321 procedure, for goods under the new $800 de minimis level (see 1608250029). "The NCBFAA believes that qualifying merchandise should be afforded the duty and tax exemptions but entered via ACE and [International Trade Data System] entry procedures thereby assuring the proper data collection and adherence to CBP and Partner Government Agency import requirements," it said.
CBP should develop a separate "Section 321 module" for brokers to allow for easier manifest release requests on low-value imports regulated by other agencies, the Express Association of America said in comments to CBP (here). The comments were in response to CBP's regulatory changes to the de minimis value threshold (see 1608250029), a provision of the Trade Facilitation and Trade Enforcement Act (TFTEA) of 2015. Among other questions, CBP sought information on how it should approach the "release from manifest" process, commonly known as a Section 321 procedure, for goods under the new $800 de minimis level when the manifest doesn't include information required by other agencies. Unlike express couriers, customs brokers currently cannot electronically designate Section 321 clearances via manifest (see 1605160030).
The first meeting of the World Customs Organization's e-commerce working group included discussion of a wide range of issues, such as new revenue collection models and the potential for criminal exploitation, the WCO said in a news release (here). During the meetings in Brussels over Sept. 21-23, more than 175 delegates looked at the "opportunities and challenges stemming from the growing trade in e-commerce," the WCO said. "Participants agreed that e-commerce has changed the landscape for Customs: from a few well known importers and exporters, it now has to manage a large number of e-enabled exporters and importers that are not well-known, and which transactions may be irregular."
The Commerce Department issued the final results of the countervailing duty administrative review and a concurrent new shipper review on cut-to-length carbon-quality steel plate from South Korea (C-580-837) (here). Commerce found both companies under review, Dongkuk Steel Mill Co., Ltd. (DSM) and Hyundai Steel Company Ltd., received de minimis illegal subsidies during the period of review, assigning each a zero percent CV duty rate. Subject merchandise from DSM and Hyundai entered Jan. 1, 2014, through Dec. 31, 2014, will be liquidated without any assessment of CV duties, and future entries of subject merchandise from DSM and Hyundai will not be subject to CV duty cash deposit requirements until further notice. Changes to cash deposit rates from these final results take effect Sept. 19.
CBP faces a challenging budget environment for ACE as it works to find funding for improvements and new functionalities long desired by the trade community, said Cynthia Whittenburg, deputy executive assistant commissioner at CBP’s Office of Trade, at a National Customs Brokers & Forwarders Association of America conference in Washington Sept. 12. Following completion of “core” ACE in December, the “funding profile” will “adjust downward” as CBP will be legally required to use ACE operations and maintenance funding for operations and maintenance, and will not be able to use the funds for building new capabilities, including for partner government agencies (PGAs). “So when you see in our appropriations and funding, 'ACE,' those dollars are going strictly to fixing bugs and keeping the system running,” she said.
CBP’s import scanning should provide more benefits for Customs-Trade Partnership Against Terrorism (C-TPAT) participants and remain risk-based, CBP Commissioner Gil Kerlikowske said Sept. 13. “C-TPAT does need some additional work,” he said during the National Customs Brokers & Forwarders Association of America Government Affairs Conference in Washington. “If you’re a C-TPAT member and you’re valued and you’ve reached those top tiers, we need to enhance the benefits very much there.” Kerlikowske indicated that a risk-based scanning approach would dovetail with providing greater trusted trader benefits, and that such a method would be more realistic and efficient than a congressional mandate requiring all incoming U.S. cargo to be scanned via X-ray, which can be extended every two years with lawmakers’ approval. Department of Homeland Security Secretary Jeh Johnson last notified Congress of such an extension in May (see 1605310028).
As implementation of core ACE capabilities nears completion, CBP and the trade community “need to keep an eye on” congressional budgets to make sure the resources are in place for improvements after 2016, said Brenda Smith, executive assistant commissioner of CBP’s Office of Trade, at the National Customs Brokers & Forwarders Association of America Government Affairs Conference on Sept. 12 in Washington. Though completion of core ACE by the Obama administration’s December 2016 deadline is “in the bag,” there is “vast room for improvement,” Smith said. CBP and the trade community need to make sure that ACE is not only the “best of the best” single window in 2016, but continues to be going forward, she said.
International Trade Today is providing readers with some of the top stories for Aug. 22-26 in case they were missed.
CBP will make regulatory changes to reflect the increase to the de minimis level, from $200 to $800, under the new customs reauthorization law and seeks input on how to approach other agency requirements for imports below the threshold, it said in an interim final rule (here). While the de minimis changes have been in effect since March (see 1603100010), CBP's regulations listed the old dollar amount. The final rule also makes some regulatory changes related to alcohol and tobacco products as well as to the applicability of excise taxes. Comments are due Sept. 26.