SAN DIEGO -- With the Centers of Excellence and Expertise handling more post-entry work, importers are seeing duty bills revised upward more often, which is leading to increased bond requirements, said Lisa Gelsomino, CEO of Avalon Risk Management, during the Western Cargo Conference on Oct. 14. When the duty bills are found to be wrong, CBP considers such improper declarations to be indicative of a higher-risk importer, which leads to a higher bonding requirement, she said. Other factors that could lead to an increased bond include fines, penalties and forfeitures, as well as surety payments, she said.
SAN DIEGO -- CBP is in "almost daily contact" with Hanjin Shipping as the insolvent company devises a path for moving cargo to its intended destinations, CBP Commissioner Gil Kerlikowske said at the Western Cargo Conference on Oct. 14. The agency is working to understand the "difficult issues," such as cargo sitting offshore and the storage or movement of cargo at the ports (see 1609300047), he said. "We have made sure that on the West Coast, all of our port directors" know what's going on, he said. The agency is also "well aware" of the problems the situation is causing, he said. Much about Hanjin's future, including a possible sale, remains unclear, the Wall Street Journal reported (here).
The Labor Department on Sept. 30 updated its List of Goods Produced by Child Labor or Forced Labor (here). The list now includes 139 goods from 75 countries, with the 2016 edition adding three new goods (pepper from Vietnam, potatoes from Lebanon, and silk cocoons from Uzbekistan) and two new countries (Costa Rica for cattle and coffee, and Sudan for gold), DOL said (here). The list does not directly affect CBP decisions to issue withhold release orders (WROs) banning imports of goods made from forced, child or prison labor, though CBP has said it may use the list for research and pointed to DOL reports as resources for importers to avoid being affected by the company-specific CBP forced labor import bans (see 1604220017). DOL also issued on Sept. 30 its 2015 Findings on the Worst Forms of Child Labor report (here), and is seeking comments on that report, as well as the forced labor goods list and a 2014 list of products produced by child labor, it said (here).
International Trade Today is providing readers with some of the top stories for Sept.19-23 in case they were missed.
CBP Commissioner Gil Kerlikowske will testify at the House Ways and Means Trade Subcommittee’s trade enforcement hearing scheduled for 10 a.m. Sept. 27, the subcommittee said (here). Kerlikowske recently said a focus for the hearing would be child and forced labor goods (see 1609130052).
The House Ways and Means Trade Subcommittee on Sept. 27 will hold a 10 a.m. hearing on enforcement of U.S. trade laws, focusing specifically on CBP enforcement, optimizing the flow of legitimate trade and implementing the Trade Facilitation and Trade Enforcement Act of 2015, the subcommittee said (here). “Enforcing obligations in U.S. trade agreements, U.S. intellectual property rights, and antidumping and countervailing duty laws while streamlining legitimate trade prevents our competitors from gaining an unfair advantage,” subcommittee Chairman Dave Reichert, R-Wash., said in a statement. “Our new law requires U.S. Customs and Border Protection to modernize its systems, facilitate compliant trade, and intensify enforcement against cheaters to help American workers compete in the global marketplace. We will hold Customs accountable for this important work.” CBP Commissioner Gil Kerlikowske last week said the hearing would touch on CBP's policy toward imports of child and forced labor goods (see 1609130052).
CBP recently issued a new withhold release order due to suspicions of goods made by forced labor, said CBP's list of such orders (here). The Sept. 16 order applies to "Peeled Garlic" made by "Hongchang Fruits & Vegetable Products Co., Ltd." The order follows the recent elimination of an exemption to a ban on imported goods made by forced labor (see 1602260049).
CBP posted a single-page fact sheet on supply chain due diligence for importers to help avoid involvement with goods made by forced labor (here). "To combat the risks of child and forced labor in your operations and global supply chains, you should have a comprehensive and transparent social compliance system in place," CBP said. Among resources listed by CBP are the Labor Department's guidance on setting up a social compliance system (here), CBP rulings and the use of supply chain audits. Importers also may "obtain advice from a customs expert," CBP said. "For example, a licensed customs broker, customs/international trade attorney, or customs consultant." The agency is in the process of writing regulations following the customs reauthorization law's forced labor provisions that repealed the "consumptive demand" considerations (see 1606170040), which is causing some industry anxiety (see 1605170017).
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).
CBP issued the following releases on commercial trade and related matters: