CBP is still aiming to propose rules for a Section 321 data collection process that are based on the Section 321 data pilot and Entry Type 86 test (see 2101290033), said Christopher Mabelitini, acting director, Intellectual Property Rights & E-Commerce Division, July 18 during CBP’s Trade Facilitation and Cargo Security Summit. "What we're working on, to expand off of the current pilots we have now and to bring the two together, is a draft regulatory framework that's being drafted this year," he said. Mabelitini said he expects a two- to three-year time frame to get the draft notice out for public comment.
Congress is abandoning its effort to compromise on its two China packages as the Senate moves to pass a pared-down bill that will provide financial incentives for domestic semiconductor manufacturing. What exactly is in the bill isn't yet known, but none of the trade title is expected to survive.
As CBP moves toward collecting data from “non-traditional” parties earlier in the supply chain as part of its reimagined 21st Century Customs Framework, major questions include the standard to which that data will be held, as well as how CBP will enforce those standards on supply chain actors beyond the agency’s jurisdiction, CBP and industry officials said during a panel discussion July 18.
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Republicans who are in the China package negotiations say that Senate Minority Leader Mitch McConnell's tweet that said that moving even a smaller Build Back Better bill would halt negotiations was not an empty threat. He had said that while Congress was away from Washington, at the beginning of the month (see 2207010039).
E-Merchants Trade Council sent a letter to congressional leaders arguing that carving China out of de minimis eligibility, which is part of the House version of the China bill, would cost companies $499 billion in additional duties, taxes and fees. The trade group is advocating for trade rules that simplify cross-border shipments, CEO Marianne Rowden said.
Five Republican senators, only one of whom voted for the U.S. Innovation and Competition Act (USICA), are asking that Senate conferees drop the directive to reopen a Section 301 exclusion process, and add a number of trade provisions only found in the House China package. Some House proposals that Sen. Mike Braun, R-Ind., Sen. Dan Sullivan, R-Ala., Sen. Kevin Cramer, R-N.D., and Florida's two senators, Rick Scott and Marco Rubio, both Republicans, want to include:
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CBP is “super, super close” to getting Office of Management and Budget approval to expand its global business identifier (GBI) pilot beyond nine participants, said Gail Kan, acting executive director-trade policy and programs at CBP (see 2201120015). “I can almost taste it, the moment that OMB is going to sign off on our test to allow all participants from the trade to participate, and not just nine,” she said at the June 29 meeting of the Commercial Customs Operations Advisory Committee.
As senators who support subsidies to build semiconductor chips in the U.S. continue to say the trade title differences are holding up the bill, and that it should drop out, House negotiators say it's not time to give up yet.