International Trade Law News

U.S. Customs and Border Protection (CBP) has posted on its website some of the materials that we will be presented during n the breakout sessions at next week's 2009 Trade Symposium.

Among the materials now available for review include information on C-TPAT, antidumping and countervailing duty functionality in ACE, post entry summary corrections in ACE and customs rulings.

For those that cannot attend the sold-out program in person, CBP will be presenting a live webcast of many of the sessions from the Trade Symposium. To view the presentations and for more details on the webcast click here.

Labels: Antidumping, C-TPAT, CBP, Customs

The U.S. Senate Committee on Commerce, Science, and Transportation held a full committee hearing today entitled "Transportation Security Challenges Post-9/11" featuring Janet Napolitano Secretary of the Department of Homeland Security (DHS).

In her testimony Secretary Napolitano indicated that DHS will need additional time to meet the 2012 deadline for 100% scanning of inbound containerized maritime cargo as required by the SAFE Port Act of 2006.  Specifically, Secretary Napolitano said:

. . . in order to implement the 100% scanning requirement by the 2012 deadline, DHS would need significant resources for greater manpower and technology, technologies that do not currently exist, and the redesign of many ports. These are all prohibitive challenges that will require the Department to seek the time extensions authorized by law.

the costs of 100% scanning pose a great challenge, particularly in a struggling economy. Deploying SFI-type scanning equipment would cost about $8 million per lane for the more than 2,100 shipping lanes at more than 700 ports around the world that ship to the United States. On top of these initial costs, operating costs would be very high. These include only DHS expenses, not the huge costs that would have to be borne by foreign governments or industry. It is also important to keep in mind that about 86% of the cargo shipped to the United States is sent from only 58 of those more than 700 ports. Installing equipment and placing personnel at all of these ports – even the tiny ones – would strain government resources without a guarantee of
results. 

Labels: 10+2, CBP

The next meeting of the National Council on International Trade Development (NCITD) will take place on December 9, 2009 in Washington, DC and will feature the following speakers:

Labels: CBP, Exports, Incoterms

U.S. Customs and Border Protection (CBP) announced today that it is offering for the first time a webcast of the sold-out 2009 Trade Symposium that will be held in Washington, DC from December 8 – 10, 2009.

All general sessions of the Trade Symposium will be shown as part of the live webcast and CBP will also select three breakout sessions to show during the live webcast. All of the general sessions and eight breakout sessions will be available to registrants to view for 30 days following the program. on-demand access.

The cost to view the webcast is $35.00 and is now open. Click here for the 2009 Trade Symposium agenda and to register for the webcast (note that the link to the registration website is listed in the "on the web" portion on the right side of the page).

Labels: CBP

Today President Obama nominated Alan Bersin to serve as U.S. Customs and Border Protection (CBP) Commissioner. Mr. Berson is currently serving as Assistant Secretary for International Affairs and Special Representative for Border Affairs at the Department of Homeland Security.

Prior to joining the Obama Administration, Bersin served as the Board Chairman of the San Diego County Regional Airport Authority. He served from 2005-2006 as California’s Secretary of Education and previously served as superintendent of public education in San Diego.

Bersin served as the U.S. Attorney for the Southern District of California from 1993 to 1998. He was appointed as Special Representative for the Southwest Border in 1995 by former Attorney General Janet Reno where he oversaw the coordination of border law enforcement along the U.S.-Mexico border for three years.

Labels: CBP

U.S. Customs and Border Protection (CBP) has selected four customs brokers to to participate in the Broker Self-Assessment Outreach Pilot program that was announced in April 2009. CBP plans to use the pilot program to assist the agency in determining whether to formally implement the BSA program and what changes might be needed to ensure its effectiveness.

Under the BSA program pilot, participating customs brokers will update and improve internal controls, perform periodic testing of these internal controls, and disclose to CBP deficiencies discovered through the testing. The primary goal of the pilot is to ensure a high level of broker compliance with CBP laws and regulations.

The BSA pilot is based on the Importer Self-Assessment Program announced in 2002.

The four customs brokers were selected from 26 customs brokers that applied. CBP did not announce the names of the customs brokers selected.

Labels: CBP

U.S. Customs and Border Protection announced today that the 2009 Trade Symposium will take place from December 8 – 10, 2009. The program will be held for the first time at the Walter E. Washington Convention Center in Washington, DC, a much larger venue than the Ronald Reagan Building.

Further information on registration procedures and the agenda will be issued in the "early fall."

The materials from CBP's 2008 Trade Symposium can be found here.

Labels: CBP

Ralph Basham, Commissioner of U.S. Customs and Border Protection (CBP), retired yesterday after more than 38 years of public service.

In addition to serving three years as CBP Commissioner, Basham also served as Director of the U.S. Secret Service, Chief of Staff at the Transportation Security Administration and Director of the Federal Law Enforcement Training Center.

CBP Deputy Commissioner Jayson Ahern will serve as Acting CBP Commissioner until a successor is named by President Obama and confirmed by the Senate.

Portions of Basham's farewell message to CBP employees can be found here.

Labels: CBP

It is now official. The Department of Homeland Security issued an announcement late today confirming that it will not extend the Importer Security Filing and Additional Carrier Requirements regulation (commonly known as 10+2) that was published in the Federal Register (pdf) on November 25, 2008 and was scheduled to take effect today.

The full text of the announcement is as follows:

DHS Will Not Postpone Requirements for Maritime Cargo Carriers and Importers

(Monday, January 26, 2009)

Washington – The U.S. Department of Homeland Security confirmed today that it will not extend the effective date for new information requirements on maritime cargo destined for the United States.

The Importer Security Filing and Additional Carrier Requirements interim final rule, scheduled to go into effect today, January 26, now requires maritime cargo carriers and importers to submit additional data to U.S. Customs and Border Protection before vessels are permitted entry into the country.

The determination not to postpone the January 26 effective date was made after consideration of the factors set forth in the memorandum from the director of the Office of Management and Budget, “Implementation of Memorandum Concerning Regulatory Review,” dated January 21.

The decision was based in large part on the fact that the rulemaking process was procedurally adequate; that a 75-day public comment period was already provided to respond to the Notice of Proposed Rulemaking; and, that this Interim Final Rule is now subject to an additional six-month public comment period. The January 26 effective date will also allow CBP to work with industry on testing and improving the systems of this important security initiative during the structured review and delayed enforcement period which ends a year later on January 26, 2010.

This additional information will be critical to enhancing the department’s ability to identify and stop dangerous goods from entering our nation, and CBP will continue to welcome input from the regulated industry.

For additional information, please visit the CBP Trade Web site. ( Trade ) Questions may be sent to Security_Filing_General@cbp.dhs.gov.

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Note to Importers: To assist the trade community in understanding the expectations of CBP concerning the Importer Security Filing and Additional Carrier Requirements rule, CBP just issued a very helpful Word document providing responses to the most frequently asked questions regarding 10+2.

Labels: CBP

U.S. Customs and Border Protection recently published the following Year in Review of the Customs-Trade Partnership Against Terrorism Program (C-TPAT) for 2008:

C-TPAT 2008 Year in Review

Labels: C-TPAT, CBP

The well-publicized memorandum from Chief of Staff Rahm Emanual to the heads of executive branch departments and agencies regarding review of pending regulations will be published in Monday's Federal Register. Among other things, the regulatory review memo suggested that agencies "consider extending for 60 days the effective date of regulations that have been published in the Federal Register but not yet taken effect." The memo also notes there are exceptions for national security and other significant circumstances.

The Office of Management and Budget issued a follow-up memo containing a number of factors agencies should use in determining whether to extend the implementation date of pending regulations, including whether the rulemaking process was procedurally adequate, whether the rule reflected proper consideration of all relevant facts, whether the rule reflected due consideration of the agency’s statutory or other legal obligations and several other factors.

Despite rumors to the contrary, neither U.S. Customs and Border Protection (CBP) nor the Bureau of Industry and Security have announced any plans to delay the implementation date of any pending regulations.

The most well known of CBP and BIS's pending regulations is CBP's Importer Security Filing and Additional Carrier Requirements regulation (commonly known as 10+2) that was published in the Federal Register (pdf) on November 25, 2008 and is scheduled to take effect tomorrow, January 26th. Therefore, it appears that the 10+2 regulation will go into effect tomorrow as planned.

However, as most importers are aware, the 10+2 regulation already contained a "structured review and flexible enforcement period" that will give the trade 12 months, or until January 26, 2010, to adjust to the new reporting requirements. Nevertheless, importers are still required to "make a good faith effort to comply with the rule to the extent of their current ability."

Given that regulatory and policy issues will be in a state of flux for the near term, importers and exporters should closely monitor announcements from CBP, BIS and other agencies governing the import and export of goods.

Labels: BIS, CBP

The Department of Homeland Security (DHS) has announced that former Arizona governor Janet Napolitano was sworn in today as the third Secretary of DHS. Announcements on other nominees for DHS leadership posts, including Commissioner of U.S. Customs and Border Protection, are expected in the coming weeks.

Announcements on leadership changes at State, Commerce and Treasury won't take place, of course, until the various cabinet secretaries are confirmed by the Senate (or renominated by the President in Commerce's case).

For news and information on new nominees and appointees in the foreign policy, national security and intelligence communities, see Laura Rozen's blog at ForeignPolicy.com.

Update: The Senate just confirmed Senator Hillary Clinton to be the 67th Secretary of State by a vote of 94-2.

Labels: CBP, Miscellaneous

U.S. Customs and Border Protection (CBP) sent a notice yesterday to all participants in the Customs Trade Partnership Against Terrorism (C-TPAT) program advising that CBP officers recently discovered 2,822 pounds of marijuana in a shipment from Mexico involving participants in the C-TPAT program.

According to CBP, officers at the Nogales, Arizona port of entry became suspicious of a truck carrying wiring harnesses from Mexico as it attempted to make entry into the U.S. and decided to send the shipment for an X-ray inspection to determine if contraband was hidden in the trailer. Before the tractor and trailer could even make it to the X-ray unit for inspection, one of the CBP narcotics detection dogs alerted to the presence of narcotics in the trailer.

The image from the X-ray inspection confirmed the presence of narcotics hidden in the shipment. Upon further examination, 110 packages of marijuana with a street value of over $4.5 million were discovered. The driver was arrested and turned over to Immigration and Customs Enforcement for further investigation and the narcotics, tractor and trailer were seized by CBP.

In its notice, CBP stated that "trust was betrayed" since the companies transporting and receiving this shipment were trusted participants in the C-TPAT program, which is intended to lead to a reduction in the number of random examinations of low risk shipments.

As a result of this seizure, the companies' C-TPAT privileges have been suspended until CBP can further investigate the events that transpired.

Labels: C-TPAT, CBP

As a result of falling short-term interest rates, U.S. Customs and Border Protection announced in today's Federal Register a decrease in the interest rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties.

For the calendar quarter beginning January 1, 2009, the interest rates for overpayments will be 4% (decrease from 5%) for corporations and 5% (down from 6%) for non-corporations. The interest rate for underpayments will be 5% (decrease from 6%) .

Labels: CBP

U.S. Customs and Border Protection (CBP) is hosting trade outreach events in various locations around the country to provide the trade community with an opportunity to learn more about the new Importer Security Filing and Additional Carrier Requirements (a.k.a. "10+2") that will go into effect on January 26, 2009.

Programs will be held in the following cities in January 2009:

Oakland/Burlingame, CA - Wednesday January 14, 2009
( Oakland/Burlingame, CA Registration )
Baltimore, MD - Thursday January 22, 2009
( Baltimore, MD Registration )
Philadelphia, PA - Friday January 23,2009
( Philadelphia, PA Registration )
Charleston, SC - Wednesday January 28, 2009
( Charleston, SC Registration )
Savannah, GA - Thursday January 29, 2009
( Savannah, GA Registration )

Programs will be held in the following cities in February 2009:

Houston, TX - Wednesday,February 4th, 2009
( Houston, TX Registration )
JFK Area, NY - Thursday, February 5th, 2009
( JFK Area, NY Registration )

Specific event information with location details and further instructions will be emailed to registrants after completion of the on-line registration process.

Dates for the following cities will be announced in the near future:

Boston, MA
Miami/Port Everglades, FL
Long Beach, CA
Chicago, IL
Norfolk, VA

CBP has stated that it will show restraint in enforcing the rule as long as importers are making satisfactory progress toward compliance and are making a good faith effort to comply with the rule to the extent of their current ability. This "flexible enforcement period" will last for 12 months after the effective date.

Labels: CBP

From Strasburger & Price's Logistics Blog:

U.S. Customs & Border Protection (“CBP”) has announced that every truck entering the U.S. in 2009 must pay a fee of $10.75 per crossing or be equipped with a transponder, good for a year, which will cost $205. CBP has been working on a project which would allow motor carriers to renew their current transponders electronically (known as “DTOPS”), but DTOPS was not available for this year’s transponder renewal period. Many carriers have ordered their new transponders for 2009 but have not yet received them.

Facing the prospect starting in January of having to pay the per crossing fee until CBP made the new transponders available, the industry asked the agency to adopt a back-up plan. CBP has agreed that during the month of January a truck crossing into the U.S. will not have to pay the per crossing fee if it can show possession of one of the following: i) a 2008 transponder; ii) a receipt downloaded from the DTOPS website showing the 2009 transponder has been ordered, iii) a paper receipt from CBP showing the carrier filed its renewal on paper; or iv) any other evidence that the 2009 transponder for the truck has been ordered.

Labels: CBP

The new regulation requiring private aircraft to transmit traveler manifest and arrival and departure information to U.S. Customs and Border Protection (CBP) using the Electronic Advance Passenger Information System (eAPIS) goes into effect later this week.

On Thursday, December 18, 2008, CBP will begin to accept voluntary APIS manifests for private aircraft arriving in and departing from the United States. On May 18, 2009, the voluntary compliance period will end and private aircraft pilots or their designees must adhere to the requirements of this final rule. This new regulation requires private pilots or their designees to transmit electronically to CBP:

• Traveler manifest information for each individual traveling onboard the aircraft
• Notice of arrival information
• Notice of departure information

This data must be received by CBP no later than 60 minutes prior to departure for flights arriving in or departing from the United States.

CBP has developed a component within the eAPIS web site (https://eapis.cbp.dhs.gov) to assist private pilots in comply with the rule. CBP has also created an eAPIS web based training program, which consists of several training modules on various aspects of eAPIS.

Under the new regulation, pilots that fail to comply with the reporting requirements are subject to a civil penalty of $5,000 for the first violation and $10,000 for each subsequent violation.

Labels: CBP

U.S. Customs and Border Protection announced today that current members of the Free and Secure Trade frequent border crosser program (FAST), can now create an account online through the Global Online Enrollment System (GOES) on CBP's web site.

The FAST program is available to drivers crossing the borders between the U.S. and Canada or Mexico.

Creating an online account on GOES will allow FAST members to update their personal information and mailing address. Members are encouraged to update their contact information by February 1, 2009 since new replacement cards will be mailed in spring 2009.

Current U.S.-Canada FAST members will receive their new FAST cards by mail at the address previously provided. U.S.-Mexico FAST members will be notified by telephone when to pick up their new card at their local enrollment center.

Labels: CBP, FAST

U.S. Customs and Border Protection announced today that agriculture specialists inspected the luggage of all 366 passengers who arrived aboard two flights, a Korean Airlines flight and an All Nippon Airways flight, to Washington Dulles International Airport on Thursday.

The inspection, dubbed Operation Checkpoint, is part of a continuing agriculture enforcement blitz and awareness campaign that focuses on intercepting high-risk agriculture products on flights originating in various nations. CBP inspected 172 passengers from Korean Airlines flight 93 and 194 passengers of All Nippon Airways flight NH002.

CBP fined a Korean Airlines passenger $300 after discovering a package of beef dumplings that the passenger failed to declare hidden in sweet bread. Additionally, CBP agriculture specialists seized 25 pounds of pork products and 11 pounds of beef products from the Korean Airlines flight, and 15 pounds of pork products, one pound of beef products, and four plant cuttings and propagated plant roots from the All Nippon Airways flight.

“We have noticed a correlation between the holidays and an increase of inadmissible agriculture products travelers bring to the United States. We want to raise awareness among international travelers that federal law prohibits the importation of agriculture products from certain nations,” said Christopher Hess, CBP port director at Dulles International Airport.

CBP recently conducted a similar enforcement action named Operation Addis that targeted high-risk agriculture products arriving from Africa.

On November 14, CBP agriculture specialists inspected all 125 passengers who arrived to Dulles aboard Ethiopian Airways flight 500, and discovered two dangerous insect pests in a mango and a host of inadmissible meat and plant products.

Labels: CBP

U.S. Customs and Border Protection agent and officers (CBP) will be featured in a new television series premiering on January 6, 2009 at 8 p.m. EST.

The 13 episode series, called “Homeland Security USA”, takes cameras into situations never before seen on television, with each episode covering locations on the “front lines” where CBP officers and agents work each day.

The premiere episode, “This is Your Car on Drugs,” takes viewers inside some of the busiest international entry points to the U.S., including Los Angeles International Airport, the Blaine, Washington border crossing and locations along the U.S.-Mexico border.

Check your local listings and set your TiVos.

Labels: CBP

The U.S. International Trade Commission (ITC) has released a new Harmonized Tariff Schedule (HTS) Online Reference Tool that contains an online version of the U.S. HTS.

The ITC's online HTS includes a number of very useful features to importers, such as links directly to U.S. Customs and Border Protections' customs classification rulings on the CROSS system at the 10-digit level, an online version of the relevant chapter notes and links to the chapter 99 item showing temporary and seasonal rates.

Labels: CBP, HTS, ITC

U.S. Customs and Border Protection (CBP) today published a new regulation in the Federal Register making changes to the procedure for private aircraft to provide advance notice of their intended arrival or departure, and submit manifests of the persons on board. The new process is similar to the one currently in use by commercial aircraft and is intended to standardize advance notice procedures for all CBP airports of entry.

The new regulation will go into effect on December 18, 2008. All parties must comply with the new requirements by May 18, 2009, which is 180 days after the publication date.

Under the new regulation, pilots (or their designee) will be required to submit advance notice and passenger/crew manifest information to CBP via the Electronic Advance Passenger Information System (eAPIS) web portal or other approved system no later than 60 minutes prior to departure. The electronic submission will include essentially the same data elements previously provided through other means. CBP will require that the pilot compare the manifest data to the information on a Department of Homeland Security approved travel document presented by each individual seeking travel onboard the aircraft. This will ensure that the manifest data is correct, that the travel document appears to be valid for travel to the United States, and that the traveler is the person to whom the travel document was issued. Pilots will receive an authorization to depart from CBP from the same system.

The new rule also requires pilots departing from the United States to a foreign location to file notice electronically and obtain permission to depart. Departure clearance has been required for commercial aircraft for some time, and the new rule will make such reporting consistent for all general aviation aircraft through the same web portal.

Labels: CBP

The Food and Drug Administration has published a final rule in the Federal Register modifying the requirements for the prior notification of imported food that have been in effect since the issuance of an interim final rule in October 2003 that implemented the Public Health Security and Bioterrorism Preparedness and Response Act of 2002 .

While the final rule made a number of changes to the interim final rule, the final rule did not make any changes to the method or deadlines for submitting the prior notice for imported food products.

The final rule, which will take effect on May 6, 2009, requires that the prior notice be submitted to FDA electronically via either U.S. Customs and Border Protection's Automated Broker Interface of the Automated Commercial System or the FDA Prior Notice System Interface (PNSI). The information must be submitted and confirmed electronically by the following deadlines:

• For food arriving by water = 8 hours
• For food arriving by air or land/rail = 4 hours
• for food arriving by land/road = 2 hours

Labels: CBP, FDA

The Departmental Advisory Committee on Commercial Operations of U.S. Customs and Border Protection and Related Homeland Security Functions (COAC) will meet on November 20, 2008 in Washington, DC. The meeting is open to the public.

The tentative agenda for the meeting is as follows:

1. Advance Trade Data ("10+2") [various reports indicate that the 10+2 rule may be published this month]
2. C-TPAT (Customs-Trade Partnership Against Terrorism).
3. Intellectual Property Rights Enforcement.
4. Customs Bonds.
5. Import Safety Initiatives.
6. World Customs Organization Updates.
7. CBP Trade Strategy.
8. Agriculture Programs Update.

For more information on how to attend the COAC meeting click here.

Labels: CBP

Congratulations to those that passed the October 2008 Customs Broker License Exam. The pass rate was approximately 10%, about half that of the previous exam.

The questions and answer key to the exam can be found here. As indicated in the answer key, CBP gave credit for all answers to questions 49 and 65. CBP gave credit to two answers to questions 16 and 52.

The next exam will be given in April 2009.

Labels: CBP

The American Association of Exporters and Importers (AAEI) and the Automotive Industry Action Group (AIAG) are holding the first-ever Southern Border Trade Symposium in San Antonio, Texas on November 18, 2008.

The program will feature speakers on U.S. and Mexico customs issues, including supply chain security, 10+2, AES and other important cross border topics. The program's keynote speaker is Mr. Brad Skinner, director of CBP's C-TPAT program.

An optional Harmonized Tariff Schedule training program will be held on November 19, 2008.

Click here for more information and to register for these programs.

Labels: CBP

U.S. Customs and Border Protection (CBP) published a long awaited final rule in the Federal Register last week updating the tariff shift rules of origin for goods imported under the North American Free Trade Agreement (NAFTA) (19 CFR Section 102.20) and for the country of origin of textile and apparel products under(except for purposes of determining whether goods originate in Israel) (19 CFR Section 102.21) to reflect the 2007 changes in the Harmonized Tariff Schedule of the United States (HTSUS). The changes were necessary because the 2007 modifications to the HTSUS added or removed certain tariff provisions and transferred certain goods to different or newly-created tariff provisions.

As a result of these changes, CBP announced that it has re-opened the comment period for parties to submit comments on CBP's July 25, 2008 notice of proposed rulemaking that would amend CBP's regulations to replace the "substantial transformation" test for determining the country of origin of imported merchandise with the tariff shift rules of origin set forth in 19 CFR 102. CBP is proposing this change since it claims that the tariff shift rules are more objective and transparent than the current case-by-case process. The new deadline is December 1, 2008.

Labels: CBP, NAFTA

At today's Trade Symposium in Washington, DC, U.S. Customs and Border Protection (CBP) Commissioner W. Ralph Basham announced the release of CBP's first Trade Strategy (pdf), a document that details how CBP intends to accomplish its mission of facilitating legitimate trade during the next five years. The document explains that the four major goals of CBP's trade strategy are to:

• Facilitate legitimate trade and ensure compliance;
• Enforce U.S. trade laws and collect accurate revenue;
• Advance national and economic security; and
  
• Intensify modernization of CBP’s trade processes.

Labels: CBP

Welcome to those attending this week's 2008 Trade Symposium being held by U.S. Customs and Border Protection (CBP) in Washington, DC.

CBP is not providing printouts of the presentations to those attending this year's program. Rather, CBP will post the presentations on on CBP's website.

This is good news for those who were not able to attend this year's Symposium.

The presentations can be found at the following link: www.cbp.gov/xp/cgov/trade/trade_outreach/symposium08/event_materials/

There currently are ten presentations posted.

Labels: CBP

U.S. Customs and Border Protection (CBP) announced in today's Federal Register a new voluntary import safety pilot program. Known as the Importer Self-Assessment-Product Safety Pilot (ISA-PS), the joint program between CBP and the Consumer Product Safety Commission (CPSC) will be open to current ISA participants only.

In order to participate in ISA-PS, an importer must:

1. Be an active member in ISA and comply with all ISA requirements
and obligations.
2. Complete an ISA-PS/CPSC Questionnaire and sign an ISA-PS/CPSC
Addendum.
3. Agree to comply with all laws and regulations administered by
CBP and CPSC.
4. Maintain an internal control system that ensures the integrity
of product safety.
5. Notify CBP of any major organizational changes that may impact
the importer's product safety controls.
6. Submit an annual written notification to CBP that sets forth the
importer's ISA-PS point of contact and acknowledges that the importer
continues to meet the requirements of ISA-PS.

Interested and eligible applicants may send an e-mail requesting an application to isa@dhs.gov, and will receive an electronic ISA-PS/CPSC Questionnaire and an ISA-PS/CPSC Addendum.

Since the ISA program started in 2002, over 172 importers under 760 different Importer of Record numbers have been approved to participate in ISA. In FY 2007, merchandise imported by ISA participants comprised 15% of the total value imported into the United States and the compliance rate for ISA importers was 99.4%.

Labels: CBP

U.S. Customs and Border Protection has issued the draft agenda (doc) for the sold-out 2008 Trade Symposium that will be held at the end of this month in Washington, DC. The program will feature the following breakout sessions:

• TSA Air Cargo Screening Programs - TSA’s 100% Air Cargo Screening and Certified Cargo Screening Program (CCSP): Listen to TSA and CBP discuss collaboration on TSA air cargo screening programs and initiatives designed to meet the 9/11 bill mandate to screen 100% of cargo on passenger planes.
• C-TPAT Security Best Practices and Lessons Learned - Don’t Let This Happen To You: Through case studies hear lessons learned from C-TPAT member security breaches.
• Implementing Importer Security Filing Implementation (ISF) - Hear from CBP experts on steps you need to take to meet the implementation requirements. Hear from ATDI participants and CBP as they discuss their implementation experience and answer more detailed and technical questions.
• CBP Trade Strategy - CBP Trade Strategy and What It Means To Your Business: Review with OT leadership the strategy in detail and discuss strategies planned to implement its goals and how they may impact your business.
• Import Safety Working Group and ISA - President’s Import Safety Action Plan One Year Later: Review CBP’s progress on implementing the plan provisions and hear about PGA program progress related to the action plan. Review progress made in ITDS and experience in piloting the ISA-Product Safety initiative.
• USDA/CBP Agriculture Mission CBP - Prevent Agriculture Related Remedial Actions: Get a progress report on implementation of the Joint Agency Task Force initiatives. Review case studies of Ag-related remedial measures and what you should know to prevent them.
• Upcoming ACE changes - Discuss in detail upcoming ACE functionality and schedule for an understanding of the impact on the trade community.
• ISA Best Practices for Compliance - Importer Self-Assessment, The Path to Facilitation: A discussion of best practices in a competitive environment.
• IPR Initiatives and Trade Facilitation - A discussion of issues surrounding IPR enforcement and future initiatives. Working with the trade to balance enforcement and facilitation.

Labels: C-TPAT, CBP

U.S. Customs and Border Protection (CBP) has posted on its website the minutes (doc) from the August 7, 2008 meeting of the Departmental Advisory Committee on Commercial Operations of Customs and Border Protection and Related Homeland Security Functions, commonly known as the COAC.

The minutes contain a great deal of useful information on the current status of a number of CBP initiatives, including C-TPAT, Mutual Recognition, import safety, 10+2 and changes to the first sale and country of origin rules.

For example, with respect to C-TPAT the minutes provide the following statistics as of July 21, 2008:

• 8,527 certified C-TPAT Partners
• 600 new companies joined
• Added Buffalo and Houston to the C-TPAT field offices whose focus is primarily on Canada (CA) and Mexico (MX) supply chains
• 8,519 total validations conducted to date, of which 1285 are revalidations
• 1,916 Validations conducted this year alone – expected to reach 3,200 total.
• CBP is taking actions to suspend companies who fail their validation - 593 members removed – 1/2 are highway carriers.
  
• CBP is revalidating Mexican carriers to ensure they improve
  
• Their are currently 267 Tier 3 Importers of Record.

The 10th COAC endorses the current CBP multi-layered approach on maritime cargo entering the United States in regards to the level of commitment and expenditure required for 100% scanning of maritime containers. It is COAC’s position that these resources can be more appropriately directed towards other cargo and passenger venues that present an equally real threat, but where security programs are less developed.

Labels: CBP

As a result of Hurricane Ike, U.S. Customs and Border Protection has announced that the following ports are currently closed and will only re-open on Tuesday September 16th at the very earliest:

• Houston Field Office
• Area Port of Houston/Galveston Seaport
• Service Port of Houston
• Port of Port Arthur, Texas
• Port of Beaumont, Texas
• Port of Corpus Christi, Texas
• Port of Point Comfort, Texas
• Port of Freeport, Texas
• Port of Lake Charles, La.

Labels: CBP

U.S. Customs and Border Protection (CBP) published a notice in Monday's Federal Register extending the deadline from September 23, 2008 to October 23, 2008 for interested parties to submit comments on the proposed rule that would significantly change the way that country of origin determinations are made on merchandise imported into the U.S.

As we reported, on July 25, 2008, CBP published a notice of proposed rulemaking that would amend CBP's regulations to replace the "substantial transformation" test for determining the country of origin of imported merchandise with the NAFTA-like rules of origin set forth in 19 CFR Part 102.

CBP stated that it proposed this change because the tariff shift rules set forth in NAFTA and other recently negotiated free trade agreements "have proven to be more objective and transparent and provide greater predictability in determining the country of origin of imported merchandise than the system of case-by-case adjudication they would replace."

Labels: CBP

In less than 24 hours more than 600 people registered for U.S. Customs and Border Protection's annual Trade Symposium and registration is now closed.

Even though registration is full, interested persons can still complete the online registration form to be placed on a waiting list. CBP will contact those on the waiting list as space becomes available.

The link to register for the waiting list can be found here.

Labels: CBP

The next meeting of the National Council on International Trade Development (NCITD) will take place on September 11, 2008 in Washington, DC and will feature the following speakers:

• Ms. Hillary Hess, Director, Regulatory Policy Division, Bureau of Industry and Security, Department of Commerce

• Mr. Bradd Skinner, Director, C-TPAT/Industry Partnership Programs, U.S. Customs and Border Protection, Department of Homeland Security
  

• Mr. Glenn Smith, Office of Defense Trade Controls Compliance, Directorate of Defense Trade Controls, Department of State

Labels: BIS, CBP, DDTC

Registration opened today for U.S. Customs and Border Protection's annual Trade Symposium that will be held in Washington, DC from October 29 - October 31, 2008 at the JW Marriott hotel.

The direct link to the registration site is: https://apps.cbp.gov/tradesymposium/?w=4.

Be sure to register soon since this event typically fills up quickly.

Labels: CBP

As a reminder, this Friday, September 5th, is the deadline for applicants to submit their written application and exam fees to take the customs broker license examination being held on October 6, 2008. See this page on Customs and Border Protection's website for more information.

Labels: CBP

U.S. Customs and Border Protection (CBP) today issued a notice in today's Federal Register formally announcing that CBP's annual trade symposium will be held in Washington, DC from October 29 - October 31, 2008 at the JW Marriott hotel.

The theme of this year's them is "Global Trade: Continuity Through Transition''. The schedule for the program will be as follows:

• Wednesday, October 29, 2008 - 0pening remarks and panel discussions beginning at 1 p.m. and open forum with senior management from 6 p.m.-8 p.m..
• Thursday, October 30, 2008 - panel discussions from 8 a.m.-5 p.m..
• Friday, October 31, 2008 - panel discussions ending by 1 p.m.

Labels: CBP

U.S. Customs and Border Protection issued a notice in today's Federal Register reminding shippers and importers that all loaded containers arriving by vessel at a port of entry in the U.S. on or after October 15, 2008, are required by statute (6 U.S.C. 944) to be sealed with a seal meeting the ISO/PAS 17712 standard.

The ISO/PAS 17712 standard requires that container freight seals meet or exceed certain standards for strength and durability so as to prevent accidental breakage, early deterioration (due to weather conditions, chemical action, etc.) or undetectable tampering under normal usage. ISO/PAS 17712 also requires that each seal be clearly and legibly marked with a unique identification number.

Tanks and non-standard containers, such as open top containers, that cannot accommodate a seal meeting the ISO/PAS 17712 standard are not subject to the statutory requirement.

Members of CBP's C-TPAT program are currently required to use seals meeting the ISO/PAS 17712 standard.

Labels: CBP

Labels: CBP

For those interested in seeing last Sunday's Dateline NBC report on CBP, portions of the program can be found at the following site: www.msnbc.msn.com/id/8004316/. Then scroll down to "Dateline". There are seven separate videos from the program.

Labels: CBP

Tonight's Dateline NBC episode was entitled "First Line of Defense" and was billed as "A look inside of the U.S. Customs and Border Protection bureau, as they take care of America's defense against terrorism, drug smugglers and illegal immigration."

Unfortunately, CBP and the Department of Homeland Security failed to provide any advance notice that this show would air tonight. However, a transcript of the entire episode can be found on Dateline NBC's website at the following link: www.msnbc.msn.com/id/25999369.

Labels: CBP

U.S. Customs and Border Protection (CBP) has proposed yet another significant change to long-standing U.S. customs law and policy. In today's Federal Register, CBP published a notice of proposed rulemaking that would amend CBP's regulations to replace the "substantial transformation" test for determining the country of origin of imported merchandise with the NAFTA-like rules of origin set forth in 19 CFR Part 102. In addition, CBP also proposes to amend the country of origin rules applicable to pipe fittings and flanges, printed greeting cards, glass optical fiber and rice preparations.

CBP stated that it is proposing this change because the tariff shift rules set forth in NAFTA and other recently negotiated free trade agreements "have proven to be more objective and transparent and provide greater predictability in determining the country of origin of imported merchandise than the system of case-by-case adjudication they would replace." In addition, CBP indicated that the agency's "experience in administering country of origin rules using the codified method has been that, by virtue of their greater specificity and transparency, codified rules result in determinations that are more objective and predictable than under the case-by-case adjudication method." Finally, CBP noted that the "proposed change also will aid an importer's exercise of reasonable care."

Of course, the notice indicates that the Part 102 tariff shift rules will not be used where existing free trade agreements specify another origin test for determining origin. For example, the tariff shift rules will not apply to making preference determinations for goods other than textile and apparel goods under the United States-Israel and United States-Jordan Free Trade Agreements because it has been the understanding of U.S. negotiators and trade officials of those governments that the case-by-case method would be used for making origin determinations for preference purposes under those agreements.

CBP did not, however, that it will use the appropriate sections of Part 102 to make all other origin determinations (non-preference or preference) regarding goods from Israel and Jordan and for those free trade agreements already negotiated that use the substantial transformation standard as part of the test to determine whether products qualify for reduced tariffs (such as the United States-Bahrain and United States-Morocco Free Trade Agreements). CBP also indicated that it plans to apply the Part 102 tariff shift rules to any FTA negotiated in the future using the substantial transformation standard, unless otherwise specified.

Public comments on this proposed change in CBP policy must be submitted by September 23, 2008.

Labels: CBP

U.S. Customs and Border Protection has announced that due to the impact from Hurricane Dolly, a "snow day" has been granted for all filers of customs entries in the ports of Brownsville and Progreso, Texas for July 23, 2008. As a result, CBP is granting a one day extension for the filing and payment of entry summaries due on July 23, 2008.

Labels: CBP

A broad coalition of 40 industry and trade associations have signed a letter urging Members of Congress to request U.S. Customs and Border Protection (CBP) to conduct a prototype program on the proposed "10+2 Rule" prior to issuance of a final rule.

The letter states:

The proposed rule, which requires 10 new categories of data to be collected on U.S.-bound shipments 24 hours before loading in foreign ports, raises serious concerns for both large and small companies from every sector who depend on imported final products, parts and components for their U.S. operations.

Implementing the proposed rule, as presently drafted, will significantly raise the cost of doing business at a time when increasing global competition and a slowing domestic economy are creating new stresses on U.S.-based manufacturers and companies from every sector. The proposed rule will cost U.S. companies over $20 billion annually—costs that will be passed down to the consumer at a time when hardworking families can least afford it.

We believe that a prototype program conducted to the specifications of the proposed rule would be the best method for evaluating the proposed rule’s impact on both security and business as well as for identifying ways to improve the rule before the government and industry invest billions of dollars in implementation.

Labels: 10+2, CBP

The Department of Homeland Security's Advisory Committee on Commercial Operations of U.S. Customs and Border Protection (known as "COAC'') will hold a meeting in Seattle, Washington on August 7, 2008. The tentative agenda of the meeting is as follows:

1. World Customs Organization & Mutual Recognition Status.
2. C-TPAT Programs (Customs-Trade Partnership Against Terrorism).
3. ITDS (International Trade Data Systems Status).
4. Import Safety Initiatives.
5. Advance Trade Data ("10+2'').
6. Secure Freight Initiative.
7. Agriculture Program Update.
8. Trade Facilitation and Compliance Issues.

For information on how to attend the meeting see the following notice published in Friday's Federal Register: http://edocket.access.gpo.gov/2008/E8-16538.htm.

Labels: CBP, Customs

U.S. Customs and Border Protection (CBP) has announced that the next Customs Broker License Examination will be held on Monday, October 6, 2008.

All exam applications and exam fees ($200) must be received and accepted by CBP at the service port where the applicant intends to take the examination on or before the close of business on Friday, September 5, 2008 to be considered.

To obtain a copy of the examination application form, click on the form number CBP 3124E (CBP Form 3124E - Application for Customs Broker License Exam ) or contact your local service port.

Labels: CBP, Customs Brokers

CUSTOMS Info and Global Data Mining are hosting a free webinar called "ISF 10+2: How to Make it Add Up for You" on July 22, 2008 from 2:00 - 3:00 PM EDT.

This webinar will focus on assisting importers to prepare for the proposed Importer Security Filing (ISF) requirements published by U.S. Customs Border Protection on January 2, 2008. The presentation is designed to create executive awareness that 10+2 readiness is a strategic issue, not a tactical one.

The speakers at the program include Matt Gersper, President & Founder, Global Data Mining and Kevin Gavin, VP of Supply Chain Solutions, IES.

Global Data Mining has prepared some pre-webinar reading material which can be found here.

Space is limited. Reserve your Webinar seat now at: https://www1.gotomeeting.com/register/628460647.

Labels: 10+2, CBP

CBP does not intend to proceed further on the proposal on first sale before January 1, 2011. Nor will we change the current interpretation with respect to first sale without consulting with the Congress and the private sector, or without the explicit approval of the Secretary of Treasury.

Labels: CBP, Congress, ITC

In light of the two Circuit Courts of Appeal decisions holding that the Fourth Amendment of the U.S. Constitution does not require any reasonable suspicion to search and seize the contents of any electronic device, including a laptop computer, belonging to a U.S. citizen returning to the U.S. from abroad, the Senate Judiciary Committee's Subcommittee on the Constitution, Civil Rights and Property Rights held a hearing earlier this week on "Laptop Searches and Other Violations of Privacy Faced by Americans Returning from Overseas Travel."

At the hearing, subcommittee chairman Russell Feingold (D-WI) expressed concern that the Department of Homeland Security, which oversees U.S. Customs and Border Protection (CBP) did not send a witness to testify.

According to the New York Times , Senator Feingold said a written statement submitted by Deputy Commissioner Jayson P. Ahern , provided “little meaningful detail on the agency’s policies.” The paper reports that "Mr. Ahern’s statement said that the agency’s efforts did not infringe upon privacy and that it was important to note that the agency was 'responsible for enforcing over 600 laws at the border, including those that relate to narcotics, intellectual property, child pornography and other contraband, and terrorism.'"

Labels: CBP

Under CBP's new e-Allegations system, individuals may report information regarding suspected violations of customs laws, such as misclassification of merchandise, false country of origin markings, health and safety issues, valuation issues and intellectual property rights, via an online form on the CBP website.

According to CBP, the e-Allegations reporting system was established to make it easier for the public to notify CBP of possible trade violations. While CBP has indicated that they will "confidentially research concerns, determine the validity of the allegations and any actions required based on the subsequent review," the system does not require the submitter to provide any identifying or contact information and it is not clear how CBP will be able to distinguish valid from invalid claims.

Labels: CBP, Customs

The Department of Homeland Security's Advisory Committee on Commercial Operations of the Bureau of Customs and Border Protection, commonly known as COAC, held its quarterly meeting last Friday in Washington, DC.

The COAC meeting agenda included a number of trade facilitation topics and Commissioner Basham reiterated CBP's renewed emphasis on trade-related issues when he stated that “We know that we’re going to have to focus more of our energies on trade enforcement and facilitation”.

Executive Director of Trade and Policy Programs Brenda Brockman Smith, gave a synopsis Customs and Border Protection's (CBP) new Trade Strategy, a plan to address the changes in the discourse with the trade community. According to CBP, the Trade Strategy has four main goals: (1) to facilitate legitimate trade and ensure compliance; (2) to enforce trade law and collect revenue; (3) to advance economic security; and (4) to intensify trade processes.

As an example of interagency collaboration, Carol Cave from the Consumer Product Safety Commission (CPSC), spoke to COAC about import safety issues and the cooperation between CBP and CPSC.

The COAC members were also briefed on a number of other CBP programs and initiatives including: IPR enforcement, bond issues, Mutual Recognition status, ACE status, In-Bond processes, Secure Freight Initiative, Global Trade Exchange, Advance Trade Data (10+2), Conveyance Security Devices, agriculture programs and C-TPAT.

The next COAC meeting will take place on August 7, 2008 in Seattle, Washington.

Labels: CBP

U.S. Customs and Border Protection officers conducting outbound operations at the port of El Paso, Texas recently seized 2,000 AC/DC power adapters in an in-bond shipment from China to Mexico since the Underwriters Laboratories "UL" markings on the adapters were counterfeit.

CBP's intensive examination of the merchandise revealed that the items were labeled "Made in China" and did not bear "UL"-authorized control numbers. Through collaboration with Underwriters Laboratories, it was determined that the labels were counterfeit.

Labels: CBP

The comments submitted by the public on U.S. Customs and Border Protection's (CBP) proposed change to the "first-sale" rule have been posted on the Regulations.gov website. The controversial proposal generated a great deal of interest and CBP received more than 140 comments by importers, trade associations, law firms and members of Congress.

Under CBP's proposal issued on January 24, 2008, in a transaction involving a series of sales, the price actually paid or payable for the imported goods when sold for exportation to the U.S. would be changed to the price paid in the last sale occurring prior to the introduction of the goods into the U.S., instead of the first (or earlier) sale. As a result, the entered value for duty assessment purposes would be determined on the basis of the price paid by the buyer in the U.S. (the last sale), rather than the first sale.

CBP's proposal has generated a great deal of criticism by U.S. importers and retailers since this change in CBP's long-standing policy will increase the duties paid on U.S. imports.

Labels: CBP, First Sale Rule

U.S. Customs and Border Protection (CBP) has announced that applicants for the U.S./Mexico Free and Secure Trade (FAST) Commercial Driver Program will be permitted to enroll online at the CBP website starting on April 1, 2008.

The online enrollment program is the first step in a phased migration to full online account management.

FAST account updates, card replacements, conditional approval notifications and interview scheduling will remain manual until the second half of 2008, when CBP is scheduled to roll out the online application and fee payment program for U.S./Canada FAST drivers.

The current paper application process for southern border FAST will become invalid on April 1, 2008.

CBP announced that there are currently 92,604 drivers enrolled in the FAST program on both borders.

Labels: CBP, FAST

We recently reported that U.S. Customs and Border Protection (CBP) issued a proposed rulemaking on January 2, 2008 regarding the submission of advanced trade data elements for importers and carriers (commonly referred to as "10+2").

CBP announced in the Federal Register last Friday that it is extending the public comment period for the proposed rulemaking to March 18, 2008. The new deadline provides interested parties with 15 additional days to submit comments to CBP on the 10+2 proposal.

Labels: CBP

On January 2, 2008, Customs and Border Protection (CBP or “Customs”) published a notice of proposed rulemaking in the Federal Register that would require both importers and carriers to submit additional data to Customs pertaining to cargo before the cargo is brought to the U.S. by vessel. Under the current regulations any vessel subject to entry is required to submit certain information related to the vessel’s ocean containers (i.e., the cargo manifest) 24 hours before the cargo is laden aboard the vessel at the foreign port. Known as the “24 Hour Rule”, the current regulations also enumerate specific informational elements that are required in the cargo manifest. The proposed rule, if adopted, would expand the nature of information carriers and importers are required to submit to Customs.

The proposed rulemaking is mandated under the Security and Accountability for Every Port Act of 2006, and is one of several actions intended to improve high-risk targeting of marine cargo destined to the United States. Both the 24 Hour Rule and the proposed rule depend on data supplied by carriers, non-vessel operating common carriers, importers and brokers through the Automated Targeting System (ATS). ATS screens 100 percent of cargo shipments to the U.S. at foreign seaports and identifies high risk targets that will subsequently face inspection on arrival at U.S. ports. The proposed rule is aimed at increasing this risk assessment capacity by requiring importers and carriers to submit data electronically, and by expanding the advance data elements required for ocean cargo shipments to the U.S.

The proposed rule would require importers to provide ten data elements, and carriers to provide an additional 2 data elements. As reflected below, many of these data elements are analogous to entry information and manifest data Customs currently receives for ocean cargo.

An importer, or person causing goods to arrive within the limits of a port in the U.S. would be required under the proposed rule to submit an Importers Security Filing within 24 hours before cargo is laden abroad a vessel. The Importers Security Filing for cargo (other than foreign cargo remaining on board) must contain the following data elements:
1) Manufacturer name and address
2) Seller name and address
3) Container stuffing location
4) Consolidator name and address
5) Buyer name and address
6) Ship to name and address
7) Importer of record number
8) Consignee number
9) Country of origin of the goods
10) Commodity Harmonized Tariff Schedule number (6 digits)

The data elements included in the proposed Importers Security Filing are readily available in current logistics processes.

In addition, the proposed rule would require carriers to submit (1) a vessel stow plan revealing the location of the cargo within 48 hours of departing from the foreign port (or for shorter trips, prior to the vessel’s arrival to the first U.S. port); and (2) container status messages.

The information carriers would be required to submit in the proposed vessel stow plan is generally the same information ocean carriers must currently submit as part of their cargo manifest (i.e., data regarding the vessel, each container, and unit of break bulk cargo laden on the vessel). However, carriers would be required to submit under the proposed rule, a stow plan revealing the cargo’s position. Further, the new rule would allow carriers 48 hours after departure from the last foreign port, in certain instances, to submit the stow plan.

With respect to container status messages, the new rule would require carriers (except carriers of bulk and break bulk cargo) to submit updates for certain events relating to all containers laden with cargo destined to arrive within the limits of a port in the U.S. by vessel, on a daily basis. Carriers would be required to report terminal container movements and any change in the status of containers no later than 24 hours after the message is entered into the carrier’s equipment tracking system. Customs would require these messages to be submitted through the Automated Manifest System (AMS). A complete list of events that would trigger these reporting requirements is available in the Federal Register notice.

Carriers would be permitted to use either American National Standards Institute (ANSI) X.12 standard, or the United Nations rules for Electronic Data Interchange For Administration, Commerce and Transport (UNEDIFACT) standard to create container status messages. The following information must be included for each generated message:
1) Event code being reported;
2) Container number;
3) Date and time of the event being reported;
4) Status of the container (empty or full);
5) Location where the event took place; and
6) Vessel identification associated with the message.

Written comments regarding the proposed rule must be submitted to U.S. Customs and Border Protection by March 3, 2008.

Labels: CBP