RANCHO MIRAGE, Calif. -- CBP is considering offering trusted trader benefits to those in the e-commerce world as a way to improve compliance, said John Leonard, executive director-trade policy and programs at CBP, during a May 2 panel discussion at the National Customs Brokers & Forwarders Association of America's annual conference. The hope is to "incentivize all these new actors in this space to improve the platforms and marketplaces, etc., to be more compliant," he said. "Part of that could involve the Trusted Trader program" and the Customs-Trade Partnership Against Terrorism program, he said. CBP "is looking at this very closely."
RANCHO MIRAGE, Calif. -- Both the government and customs brokers will need to keep agile in light of the fast-moving changes in the world of international trade, said Brenda Smith, executive assistant commissioner-trade at CBP. "The relationship between the government and private sector is very much facilitated by the role of the customs broker," Smith said during a May 2 interview at that National Customs Brokers & Forwarders Association of America's annual conference. "I believe those that do international trade are helped by the knowledge and expertise of customs brokers. I think very often there is a financial function that customs brokers can also perform for the private sector. For CBP, I think, they help educate around requirements and we believe that's a very valuable function."
International Trade Today is providing readers with some of the top stories for April 23-27 in case they were missed.
RANCHO MIRAGE, California -- Much of the $34 million in "additional money earmarked for ACE" within the recent omnibus government funding bill is already "planned out," said Jim Swanson, CBP director-cargo and conveyance security and controls, while speaking at the National Customs Brokers & Forwarders Association of America's annual conference on May 1. "That money was to be allocated for new development or enhancements in the ACE process," he said. CBP has a priority list, he said. Among the factors for the priority list was a list of requests provided to CBP from the NCBFAA (see 1802200043).
Canadian Ambassador to the U.S. David MacNaughton pointed to one of President Donald Trump's tweets about e-commerce to explain why Canada sees the need for conservative de minimis levels, but said changing it has been under discussion in NAFTA negotiations. "Is there a number between 20 [dollars] and 800 [dollars] that works? Probably," he said. He said he presumes that before the deal is finished, Canada will raise its de minimis level, but said it will probably be to a lot less than $800. He also said he doesn't expect the U.S. de minimis level to necessarily move down to the same amount Canada agrees to.
Stakeholders continue to ask for additional and enhanced ACE capabilities, and the agency is working on system enhancements to enable de minimis functionality, CBP Commissioner Kevin McAleenan told the House Homeland Security Committee Subcommittee on Border and Maritime Security in his prepared opening statement. Creating de minimis functionality "will provide CBP access to previously unavailable admissibility data for low value shipments, resulting in improved cargo processing and use of enforcement resources," he said.
The internal debate on the role of foreign-trade zones in e-commerce is ongoing within the government, said Brenda Smith, executive assistant commissioner-trade at CBP, while speaking at an American Apparel and Footwear Association event on April 25. "I recognize that, from a business perspective, people are very interested in reducing their duty costs," she said. "It presents an interesting policy question, really, for the Department of Commerce, about 'what are FTZs for, why do we want them?'" CBP is considering a ruling on whether larger shipments can be brought to FTZs and then broken up into smaller shipments valued under the $800 de minimis threshold (see 1804130042).
International Trade Today is providing readers with some of the top stories for April 9-13 in case they were missed.
A bipartisan group of 59 House members asked the U.S. trade representative to make raising de minimis levels in NAFTA a chief negotiating priority. In a letter sent April 10, led by Rep. David Schweikert, R-Ariz., and Rep. Ron Kind, D-Wis., they said that "simplifying, modernizing and expediting customs procedures will help facilitate the movements of low-value shipments across borders." The letter notes that the U.S. de minimis threshold is $800, while Mexico's is $50 and Canada's is $16. It's critical that the administration follow through in its efforts to convince Mexico and Canada to raise their thresholds to a comparable amount to the U.S. standard, the lawmakers said.
CBP is continuing work to resolve questions that have arisen on Section 321 clearance through foreign-trade zones, said Brenda Smith, executive assistant commissioner-trade at CBP, in an April 10 interview. The agency is still considering a ruling request on whether larger shipments can be brought into foreign-trade zones, then broken up into smaller shipments valued under the $800 de minimis so they can be entered exempt from taxes and fees under Section 321 (see 1802140015).