CBP posted on the agency's website some documents for the upcoming Commercial Customs Operations Advisory Committee (COAC) meeting on Aug. 23 in San Diego. Only the government papers and the agenda for the meeting were posted. Among other things, CBP said in its Border Interagency Executive Council issue paper that the BIEC principals plan to meet on Aug. 28 to consider a working group report on partner government agency targeting and manifest access. "The BIEC is working on several major projects, along with developing a process to prioritize enhancements to Automated Commercial Environment (ACE) that are considered 'post-core,'" the agency said. The BIEC will also "be focusing on continued ACE enhancements and simplifying CBP processes, in line with CBP’s trade priorities and funding availability," it said.
While the Trade Facilitation and Trade Enforcement Act’s elimination of the “consumptive demand” loophole for child and forced labor imports has helped slow the flow of such goods, "the Chinese government continues to use forced labor to produce exports destined for the United States, in violation of U.S. law and bilateral trade agreements," according to a report by the U.S.-China Economic and Security Review Commission. Visibility within China remains an issue, it said. No ICE agents have been allowed to make site visits in China since 2009 and there's indication "forced labor continues to occur at these sites but under a different penal framework," the report says.
President Donald Trump on Aug. 2 signed legislation that authorizes new sanctions against Iran, Russia and North Korea, the White House announced. Specifically, the bill directs the president to assess military sanctions on Iran, provides for several economic and cyber-related sanctions against Russia, and provides for several economic sanctions against North Korea. The law also provides sanctions for North Korean cargo and shipping, goods produced through North Korean convict or forced labor, and foreign persons that employ North Korean forced laborers. The legislation requires the State Department to determine whether North Korea meets criteria for designation as a state sponsor of terrorism. In an Aug. 2 statement, Trump said he favors "tough measures" to "punish and deter aggressive and destabilizing behavior."
The Commercial Customs Operations Advisory Committee (COAC) for CBP will next meet Aug. 23 in San Diego, CBP said in a notice.
The Treasury Department published an updated 2017 regulatory agenda for CBP (here) that mentions several new rulemakings that weren't included in the last update (see 1611180003). The agenda includes a newly mentioned proposal for updates and modifications to the (a)(1)(A) list of records required for the entry of merchandise (here). That list is included within the appendix to 19 CFR Part 163 (here). CBP seeks to publish the proposal in October, according to the agenda.
The Trump administration in the upcoming NAFTA renegotiation will push for "disciplines on the use of customs brokers," for Canada and Mexico to raise their de minimis levels, and to eliminate the binational dispute settlement process for challenging duties, the Office of the U.S. Trade Representative said in its renegotiation objectives released July 17 (here). Another objective is to provide for streamlined and expedited customs treatment for express shipments, including for shipments valued over the de minimis threshold.
Renegotiations of NAFTA could be an opportunity for the U.S. to push for a common North American single-window platform, panelists said during a U.S.-Mexico trade and security event on June 14. “We have to harmonize the whole enchilada. There’s no other way,” said Jose Martin Garcia, a representative for the Mexican Customs Administration at the Mexican Embassy in Washington, during an event hosted by the Wilson Center’s Mexico Institute and the Border Trade Alliance. “We’re already starting. I don’t know if it’s going to take two years, five years, ten years. Is the NAFTA renegotiation an opportunity to work on that? Perhaps.”
A CBP final rule will remove "consumptive demand" considerations from the agency's regulations when looking at possible use of forced labor for imported goods, the agency said in a notice (here). The changes are the result of the Trade Facilitation and Trade Enforcement Act (TFTEA), which repealed the exemption for imports necessary to meet the "consumptive demands" in the U.S. from the prohibition on forced labor goods (see 1603010043). While CBP previously considered making additional regulatory changes (see 1606170040), "this rulemaking is limited to this conforming amendment and other minor non-substantive amendments," CBP said. A CBP official recently said the agency would need more time to consider making other changes (see 1705260007).
SCOTTSDALE, Arizona -- The increase in the de minimis value threshold last year seems already to be driving a shift in international trade patterns, said Brenda Smith, executive assistant commissioner for the CBP Office of Trade, during a May 25 interview at the West Coast Trade Symposium. "What we're seeing is significant changes in supply chains," reflected in the growing number of Section 321 entries, she said. For example, one port in Alabama with few CBP officers "is suddenly getting this flood because it's close to a distribution center," she said. Likely, that's a result of container-loads full of under $800 small packages that qualify for de minimis, she said.
Despite the near elimination of an account for ACE development in the proposed fiscal year 2018 budget (see 1705230031), CBP is requesting additional funding for ensuring the system continues to operate smoothly, according to its FY 2018 budget justification (here). The proposed budget includes an “increase of $45.1 million” in FY 2018 for “ACE Core Functionality,” including funding for additional “software sustainment teams.” CBP is also requesting substantial increases in funding required to implement mandates in the Trade Facilitation and Trade Enforcement Act of 2015.