CBP issued the following release on commercial trade and related matters:
Industry groups asked the U.S. government to work to repeal restrictions on NAFTA drawback and duty deferral and to expand ACE, in response to the Commerce Department’s request for information (here) on regulations that hamper domestic manufacturing. Although negotiators included the drawback and deferral restrictions in NAFTA to prevent China from using Mexico as a platform for component parts to be exported to the U.S., several companies involved in duty preference programs for foreign investors and domestic firms have nevertheless convinced suppliers from Asia and Europe to establish production facilities in Mexico to replace imports from non-NAFTA sources, according to the Duty Drawback Coalition’s comments (here). To counter the negative effects of NAFTA drawback restrictions on foreign-owned manufacturing plants in Mexico, Mexico established Sectoral Promotion Programs, which reduce several standard duty rates, the coalition said. Canada has reduced duty rates to mitigate the effects of the NAFTA drawback restrictions as well, the group said.
CBP remains wary of creating a Center of Excellence and Expertise entirely focused on customs brokers, said Rich DiNucci, executive director-cargo and conveyance security at CBP, during the National Customs Brokers & Forwarders Association of America annual conference April 4. Despite some early discussion of the possible addition of a CEE to focus on broker management (see 1510210017), CBP isn't inclined to further segment the importing process, DiNucci said. The CEEs will certainly evolve, "but I would say it's much too early to get into that concept now. We'll see where we are three, four years from now."
NEW ORLEANS -- CBP plans to propose changes to powers of attorney and cybersecurity requirements as part of an update to customs broker regulations, said Cynthia Whittenburg, deputy executive assistant commissioner at CBP’s Office of International Trade, during the National Customs Brokers & Forwarders Association of America annual conference on April 4. The agency is the process of drafting the proposal, which will then face "extensive economic evaluation" by the Office of Management and Budget (OMB). The evaluation is a requirement of a recent Trump administration executive order that requires the repeal of two regulations for every "significant" new rulemaking (see 1702070048). Whittenburg didn't give a time frame for the proposal, but the agency recently said timing would be hard to predict (see 1703070009).
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.
CBP sees additions of national monthly statements and line-level liquidations among the top recommendations within the agency's simplified processes initiative, said Randy Mitchell, director of the Commercial Operations and Entry Division, during a March 24 webinar sponsored by the National Customs Brokers & Forwarders Association of America. National monthly statements, which would consolidate port-specific entry statements into a single statement, would likely be phased in, he said. Line-level liquidation would be a "longer-term" goal due to some "legal and regulatory factors" involved, Mitchell said. Other "top recommendations" include monthly entry summaries and the elimination of the separate 09 entry type for reconciliation by allowing for Post-Summary Corrections instead, he said.
International Trade Today is providing readers with some of the top stories for March 13-17 in case they were missed.
Fuel for satellites used after they are launched into space is eligible for duty drawback because the launch is considered export, CBP said in a Feb. 24 ruling (here). Satellite manufacturer Thales Alenia Space asked CBP about drawback eligibility for satellite propellant, which "is solely utilized to power a satellite’s thruster system after the satellite has been launched into orbit and activated." Thales also sought CBP input on what documentation is necessary to prove export through launch.
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.
CBP provided a small update related to coming changes to drawback filing that were part of the Trade Facilitation and Trade Enforcement Act of 2015 (see 1603010043). In CBP's monthly drawback simplification newsletter (here), the agency said it "and members from the trade completed a two day in person meeting discussing all facets of the new TFTEA drawback law. The meeting went well and there was consensus on many issues." The drawback changes will take effect Feb. 24, 2018, and CBP plans to provide monthly updates through the newsletter (see 1701250037).