CBP should take a new look at its penalty mitigation guidelines, the Commercial Customs Operations Advisory Committee (COAC) recommended during its April 27 meeting. A more "uniform" application of mitigation policies, which were last updated in 2004, is needed "in light of technology advances, trusted trader programs, and inter-agency enforcement partnerships," the COAC Trade Enforcement and Revenue Collection subcommittee said. "Particularly in cases of less egregious violations, CBP should enforce and mitigate on more of an account-based, as opposed to transactional approach," it said.
Merchandise detained as a result of a CBP withhold release order can either be re-exported or the importer can submit information as proof the merchandise isn't in violation, the agency said in a list of frequently asked questions about forced labor petitions (here). The customs reauthorization law repealed the "consumptive demand" exemption to the ban on imported products made by forced labor (see 1603010043). "Shipments subject to findings can be excluded or seized," said CBP. CBP recently issued its first forced labor withhold release orders in over 15 years (see 1603310034).
TUCSON, Ariz. -- The customs reauthorization law makes for an "exciting and perhaps challenging" time for customs brokers, CBP Commissioner Gil Kerlikowske said during a speech at the National Customs Brokers & Forwarders Association of America conference on April 20. He pointed to new requirements that brokers collect information on new and foreign importers and CBP's ability to revoke licenses due to terrorist involvement, as well as other pieces that will have the biggest effect on brokers. Kerlikowske was scheduled to testify on the new law for a Senate Finance Committee hearing scheduled for April 20, but it may be postponed so Kerlikowske can attend the funeral of a recently killed border agent, he said.
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TUCSON, Ariz. -- Implementation of new trade enforcement provisions of recently passed customs reauthorization legislation will not result in an overall increase in cargo exams, said CBP officials speaking April 19 at the annual conference of the National Customs Brokers & Forwarders Association of America. Though CBP is focused on creating its new Trade Law Enforcement Division tasked with issuing trade alerts (see 1602230080), as well as implementing new programs to apply risk assessments (see 1602170074), the agency’s overall goal is better targeted exams, not more of them, they said.
CBP issued the following releases on commercial trade and related matters:
Changes on the way to CBP’s regulations prohibiting imports of goods made by forced labor will include an update to the process for submitting petitions, said CBP Commissioner Gil Kerlikowske in remarks (here) prepared for a Coalition of New England Companies for Trade conference on April 13. The agency will be “clarifying” the standards and process for reviewing petitions alleging a good was produced with forced or child labor and deciding whether to issue a “withhold release order” banning imports of the product, he said. “We welcome input from industry” and non-governmental organizations, said Kerlikowske. CBP recently issued its first forced labor withhold release orders in over 15 years (see 1603310034), weeks after customs reauthorization legislation removed an exemption to the forced labor ban (see 1603010043). Human rights groups recently requested a withhold release order directed against all cotton products from Turkmenistan (see 1604120031). “I urge industry to be proactive in evaluating their supply chains,” said Kerlikowske.
Labor and human rights groups recently requested CBP issue a withhold release order banning importation of all cotton from Turkmenistan because it is allegedly produced by forced labor. In their April 6 petition (here), the Netherlands-based Alternative Turkmenistan News and the International Labor Rights Forum allege all raw cotton in Turkmenistan is produced under a government monopoly that forces Turkmen citizens to grow and harvest cotton under threat of penalty. The withhold release order should apply to “cotton lint, yarn, fabric and cotton goods from Turkmenistan,” they said. The petition also asked for immediate detention of all cotton products from Turkmenistan while CBP considers the request.
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CBP provided some details on the recent changes to the law that prohibits imports of goods made by forced labor in a fact sheet (here). The Trade Facilitation and Trade Enforcement Act of 2015 repealed a "consumptive demand" exemption to the ban on imports made by forced labor (see 1602260049). CBP will next "amend the regulations at 19 CFR § 12.42(b), which require certain information pertaining to consumptive demand, in order to comport with the updated law," it said. "CBP depends and acts on information," the agency said in the fact sheet. "CBP encourages anyone with reason to believe that merchandise produced by forced labor is being, or is likely to be imported into the United States, to communicate his or her belief to any U.S. port director or the commissioner of CBP." The agency recently issued its first withhold orders in over a decade related to forced labor (see 1603310034).