RANCHO MIRAGE, California -- CBP has faced some delays with beginning the next term of the Commercial Customs Operations Advisory Committee, but it is very close to holding its first meeting, said AnnMarie Highsmith, CBP’s executive assistant commissioner in the Office of Trade. Highsmith also said the agency is on track to revamp its system for collecting customs duties, taxes and fees by 2024, and said its Section 321 data pilot has been a “big success.”
CBP field officers were instructed to allow for foreign-trade zone storage of goods stopped under a withhold release order while an admissibility decision is made, said Jim Swanson, CBP director-cargo and conveyance security and controls, speaking at the National Association of Foreign-Trade Zones virtual conference Sept. 21. He said the agency told the “field folks to allow those goods” to be put “in a foreign-trade zone under the very tight conditions that we outline.” While Swanson previously said a public guidance would come soon (see 2104290003), he said at the conference that “we're still working on getting it in writing, because there's a lot of legal stuff and there's some changes going on in the background.”
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CBP recently updated its frequently asked questions about the withhold release order aimed at silica-based products from China that made a first mention of de minimis considerations (see 2108030026). CBP's revised response to a question about whether finished products containing a small percentage of silica-based products subject to the WRO now says the agency “recognizes there may be some very fact-specific instances, where the question of the contribution of prohibited labor to the whole of a product (from a quantitative and a qualitative perspective) is something that a court might consider with respect to the statutory intent of Section 1307 of Title 19, United States Code.” The updated version also removes any mention of the phrase “de minimis” and an example of a de minimis contribution.
The American Association of Exporters and Importers, IBM and U.S. subsidiaries of the Foxconn Technology Group all disagree with CBP's proposed use of Part 102 rules of origin in non-preferential claims and procurement under USMCA (see 2107010045), they said in the comments recently posted in the docket for the proposal. Meanwhile, lithium-ion battery producer, Inventus Power, and the American Iron and Steel Institute voiced support for the changes in their comments. So far, the comments show a deep split between industries in support (see 2107270049) and against (see 2109010006) the proposal.
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CBP announced a two-year extension of its Section 321 data pilot, through August 2023, in a notice released Aug. 27. “CBP will extend the test for another two years to continue further evaluation of the 321 Data Pilot program and the risks associated with section 321 shipments,” it said. The pilot is still “limited to a maximum of nine participants,” said CBP, which has said it intends to expand the pilot to more participants (see 2108040012).
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CBP's use of a new “de minimis” standard for allowing imports of goods in which forced labor played a minimal role will depend on the specifics of individual cases, a CBP spokesperson said by email. The standard was first mentioned as part of a set of frequently asked questions about a withhold release order aimed at silica-based products produced by Hoshine Silicon Industry, a company located in China's Xinjiang province, and its subsidiaries (see 2106240062). CBP said in the FAQs that it may consider a product outside the scope of the statute that prohibits forced labor goods if the forced labor contribution is “insignificant” (see 2108050019).
CBP seemed to open up the possibility for a new de minimis provision under forced labor withhold release orders, but more guidance is needed to determine its impact, Mayer Brown said in an Aug. 16 post. The post focused on an answer released in a recent CBP set of frequently asked questions on the WRO on silica-based products made by Hoshine Silicon Industry Co. in Xinjiang, China (see 2108030026). “CBP now appears willing to use its authority to enforce US law on the use of forced labor (19 U.S.C § 1307) to provide importers with flexibility when their imports contain de minimis amounts of product produced with forced labor,” the firm said. “However, until more guidance develops on how CBP intends to implement this policy, manufacturers and US importers should be wary of relying on it too heavily.”