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 The changes are the result of the Trade Facilitation and Trade Enforcement Act (TFTEA), which repealed the exemption for imports necessary to meet the "consumptive demands" in the U.S. from the prohibition on forced labor goods (see 1603010043).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.
CBP is developing a repository of possible deregulatory actions that could serve as offsetting actions for regulatory proposals considered "significant" by the Office of Management and Budget, said Alice Kipel, executive director of CBP's Office of Regulations and Rulings (OR&R), during a May 8 interview. Federal agencies, under a January executive order, are required to repeal two regulations for each new regulation seen as "significant" by OMB (see 1702070048). So far, though, OMB has not flagged any trade-related CBP regulations as "significant," Kipel said. "At this time, with respect to the regulations that CBP has in the interagency review process, I am not aware of any trade regulation that has been deemed 'significant' by OMB and offsetting regulations would not be immediately" necessary if it hasn't been deemed significant, she said.
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There's been a "reinvigoration" of forced labor enforcement issues at CBP following the repeal of the "consumptive demand" exemption last year (see 1603010043), said Alice Kipel, executive director of CBP's Office of Regulations and Rulings. The "consumptive demand" consideration served as a deterrent to companies bringing information to CBP, but with that now repealed, "we're seeing more being brought to our attention," she said. Kipel, who spoke on a panel at the American Bar Association International Law Conference on April 28, said she was speaking on her own behalf rather than for CBP.
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