Sens. Richard Blumenthal, D-Conn., Chris Murphy, D-Conn., and Ron Wyden, D-Ore., called for U.S. Trade Representative Michael Froman to urge Canadian Prime Minister Justin Trudeau to raise his country’s de minimis level to at least $150.52 (CA$200), when the Trudeau visits Washington on March 10. While Canada’s proximity to the U.S. often makes it the first foreign market that small- and medium-sized businesses contemplate for export, the country’s low de minimis level of CA$20 is a “distinct disadvantage” to companies that try to export to Canada, the Senators said (here). The most disadvantaged goods usually are “relatively low value items where the either the duty or costs associated with formal entry can effectively kill the sale,” the senators wrote. EBay is also be interested in such a change, it said recently (see 1601270013).
An increase to the de minimis threshold, the first of likely many changes to CBP's regulations due to the customs reauthorization law (see 1602260049), is expected to be a relatively easy update, said Mike Mullen, executive director of the Express Association of America. Mullen is involved in ongoing discussions between industry and CBP on the changes, which are targeted for implementation by March 10, he said during an interview on March 1. Mullen has long pushed for changes to de minimis on behalf of the group's members, which include UPS and FedEx.
International Trade Today is providing readers with some of the top stories for Feb. 22-26 in case they were missed.
The Trade Facilitation and Trade Enforcement Act of 2015 (here), signed into law Feb. 24, includes an overhaul of current law on drawback, including provisions for substitute drawback at the eight-digit level and a uniform five-year deadline for claims. It also increases the de minimis limit to $800, exempts container residue from duties, and eliminates an exemption from import bans on goods produced with forced labor. Finally, the law holds CBP to stricter reliquidation timelines, and fixes legislation enacted last year that would have resulted in higher tariffs on recreational performance outerwear.
The Office of the U.S. Trade Representative, as part of its 2015/2016 Generalized System of Preferences Annual Product Review, published a breakdown of 2015 import statistics (here). The agency lists six items set to be removed from GSP eligibility (though four have pending petitions for waivers), 103 products eligible for a de minimis waiver, and 145 non-GSP-eligible products that might be reconsidered for GSP designation. Re-designations could be given based on 2015 trade data and consideration of certain statutory factors, USTR said. USTR will accept public comments until April 1 regarding possible de minimis competitive needs limitation waivers (CNL) and potential re-designations, the agency said in a notice (here).
Changes to CBP's regulations for the de minimis threshold will be the first regulatory undertaking for the agency as it begins to implement the new customs reauthorization law (see 1602250021), said Maria Luisa Boyce, CBP’s senior advisor for trade engagement, who discussed the law on a Feb. 26 conference call. While the de minimis changes will be moving quickly in order to meet the Congressional timeline, there's still a number of decisions to be made and CBP said it planned to further discuss the issue with industry the following week.
CBP plans to address illegal steel imports from China through some "enhanced enforcement measures," the White House said in a report that touted the Obama Administration record on trade enforcement (here). The White House released the report in conjunction with President Barack Obama's signing of customs reauthorization legislation on Feb. 24 (see 1602240042). Among other efforts, CBP will require live entry for high risk steel shipments, meaning "all entry documents and duties" are to be "provided before cargo is released by CBP into U.S. commerce," said the White House.
Clarification: Several provisions in customs reauthorization legislation would go into effect 180 days following signature from President Barack Obama, while other provisions use different timing (see 1602110018). For example, the bill's increase to the de minimis limit would take effect 15 days after enactment.
Akin Gump posted a summary of some of the major parts of customs reauthorization legislation (here) that was recently passed by Congress and is expected to be signed by President Barack Obama (see 1602120029). The summary includes sections on new penalties for customs brokers, changes to drawback procedures, intellectual property rights protections and information requirements for importers of record. The outline also includes information on potentially quickly moving changes to de minimis levels, which "shall apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after the 15th day after the date of the enactment."
President Barack Obama intends to sign the comprehensive customs reauthorization legislation passed by the Senate on Feb. 11 (see 1602110018), White House Press Secretary Josh Earnest said in a statement (here). Despite some concerns with the legislation's mention of Israel, the bill's "passage is an important milestone in our overall trade agenda," Earnest said of the Trade Facilitation and Trade Enforcement Act of 2015. Among other things, the legislation (here) increases the de minimis level, directs the Secretary of Homeland Security to draft new importer of record regulations, fixes tariffs for recreational performance outerwear, and updates reliquidation procedures.