CBP posted a single-page fact sheet about shipments that are detained due to possible use of forced labor (here). For imported goods subject to a withhold release order (WRO), an importer will have three months to export the merchandise outside the U.S., CBP said. Such goods will be refused entry if "the importer fails to either re-export the detained shipment or timely furnish the required certificate of origin by the foreign seller or owner and a detailed statement demonstrating that the goods were not manufactured with forced labor," or if CBP doesn't consider submitted evidence satisfactory proof of admissibility, it said. Following the WRO, if CBP confirms its suspicions and issues a finding, an importer of merchandise subject to the finding will have three months after importation to provide proof that the goods weren't made using forced labor, the agency said. "If the proof submitted does not establish the admissibility of the merchandise, or if none is provided, the merchandise is subject to seizure." 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is in the process of writing regulations following the customs reauthorization law's forced labor provisions that repealed the "consumptive demand" considerations (see 1606170040), which is causing some industry anxiety (see 1605170017).
The following lawsuits were filed at the Court of International Trade during the week of Dec. 5-11:
The incoming Trump administration could mean more funding and a greater enforcement focus for CBP, but the prospect of stricter trade enforcement could complicate day-to-day operations, analysts said in recent interviews. The presidential transition will cost the trade community mainly in terms of immediate uncertainty within industry and between the U.S. and its trading partners, as well as any regulatory “adjustments” that CBP might make, said David Aguilar, former CBP acting commissioner and current principal at Global Security and Innovative Strategies. But CBP’s trade funding and basic structures like the Commercial Customs Operations Advisory Committee will likely remain intact, he said.
The following lawsuits were filed at the Court of International Trade during the week of Nov. 21-27:
NEW YORK -- CBP issued a request for proposals seeking a private company to collect fines on its behalf, CBP Commissioner Gil Kerlikowske said at the Court of International Trade Judicial Conference on Nov. 21. Once selected, the collection agency will cost nothing to the taxpayer, instead taking a percentage of whatever fines it collects, he said. “Perhaps they’ll do a better job,” he said, noting congressional criticism of CBP’s collection efforts. “I’m not sure,” he said. In any case, CBP will learn about new collection methods and how they work, Kerlikowske said. A CBP official said in July that CBP is going through a procurement process with “multiple vendors” to find a company to collect unpaid antidumping and countervailing duties (see 1607280025).
International Trade Today is providing readers with some of the top stories for Nov. 14-20 in case they were missed.
The prospect of punitive tariffs and a renegotiated NAFTA could significantly impact customs brokers, but some could see benefits from U.S. leverage in any NAFTA withdrawal talks and potential port investments under the Trump administration, National Customs Brokers & Forwarders Association of America Legislative Representative Jon Kent said during a Nov. 22 webinar. The required six-month window between submitting a withdrawal notice to NAFTA members and actual departure could give Trump an advantage in promoting U.S. interests, potentially spurring flexibility from Canada and Mexico during talks, Kent said. “It may not be enough, he may want to go further, and they’re willing to take it,” he said. “Having the ability just to shut down the agreement may provide him some edge. I think he’s well known as a negotiator, and I think this may be part of that inclination.”
CBP intends to self-initiate withhold release orders and, alongside Immigration and Customs Enforcement, investigations into imports produced by forced labor, CBP Deputy Commissioner Kevin McAleenan said during a Customs Commercial Operations Advisory Committee meeting on Nov. 17 in Washington. The COAC had adopted a recommendation at the meeting that CBP clarify its ability to “self-initiate allegations.” A representative from the advocacy group Human Rights First that participated in a COAC work group on the forced labor issue urged CBP to self-initiate forced labor investigations during the meeting and, noting that the recommendations that came out of the work group didn’t “represent consensus,” asked CBP to provide an opportunity for public comments. A representative from another advocacy group that participated in the COAC work group, Humanity United, also said she has concerns about the recommendations, including disagreement with one that said CBP should set a time limit on how long it has to respond to an importer’s proof of admissibility after issuing a withhold release order. CBP Commissioner Gil Kerlikowske told the Senate Finance Committee in May that CBP plans to self-initiate forced labor investigations (see 1605110042).
MIAMI -- Efforts toward a North American Single Window should not change the role of customs brokers in the U.S., Mexico and Canada, respectively, said Geoff Powell, president of the National Customs Brokers & Forwarders Association of America. The association is not looking for a “European Union model” wherein brokers would be able to conduct customs business throughout the continent, Powell said, speaking at the Florida Customs Brokers & Forwarders Conference of the Americas on Nov. 15. Instead, it’s working with CBP, Canadian and Mexican customs, and broker groups in Mexico and Canada on facilitating the sharing of data, including export and import manifest, to “make it a little bit easier in getting the data” and to avoid duplicating information, he said.
CBP posted an agenda (here) and other documents for the upcoming Commercial Customs Operations Advisory Committee (COAC) meeting on Nov. 17 (here) in Washington. Among the posted items are draft recommendations from the forced labor working group (here) that suggest regulatory changes should be made to define when CBP must decide to make a formal finding after a withhold release order is issued. Currently, CBP's regulations don't specify timing, so "CBP should establish an appropriate timeframe to respond to an importer’s proof of admissibility as a result of a WRO," the group said. The agency should also make changes to proof of admissibility requirements in the regulations and seek comments on any changes, it said.