GHY Tradelines

(CBP)

On Tuesday April 16, 2013, U.S. Customs and Border Protection will host a webinar twice on CBP’s National Customs Automation Program Test concerning “Manifesting and Entry of Residue found in Instruments of International Traffic (IITs).”

The one-hour webinars are primarily geared towards those companies that may be eligible to participate on the test.  This is a 60-minute webinar where the following CBP subject matter experts will participate in a panel to share information on this pilot program: Amy Hatfield, Branch Chief, Cargo Conveyance & Security, Office of Field Operations, CBP; Jeremy Baskin, Assistant to the Executive Director of Regulations and Rulings, Office of International Trade, CBP; and James Swanson, Office of Field Operations ACE Liaison, CBP.

The panelists will provide an overview of the key points of the U.S. Customs and Border Protection National Customs Automation Program Test Concerning Manifesting and Entry of Residue Found in Instruments of International Traffic (IITs) with a focus on the following key areas:

• Background on the Residue Pilot
• Calculations used by CBP to determine percentages by mode
• Technical issues – entry off the manifest
• User fees
• Issues on bonding and record keeping
• Roll out of the pilot, enforcement and outreach planned
• Will conclude with a question and answer session.

WHO: All members of the international trade community with an interest in manifesting and entry of residue found in instruments of international traffic.

WHEN: First Session, April 16, 2013, 01:00pm -02:00pm EDT
or
Second Session (duplicate session), April 16, 2013, 02:30pm-03:30pm EDT

HOW: To Participate:
Please join in a HSIN Connect Meeting. (Meeting Name: Office of Field Operations)
Click here to join the meeting.

If you have never attended a HSIN Connect meeting before, you can test your connection here.
NOTE: The Adobe Connect Add-In is not required to view the webinar.

Get a quick overview.

These webinars will be recorded and available for viewing on demand at a later date.
 

(STR Trade Report)

U.S. Customs and Border Protection has announced that with the March 30 retirement of Acting Commissioner David Aguilar, Acting Chief Operating Officer Thomas Winkowski will take over interim leadership of the agency. Kevin McAleenan, currently acting assistant commissioner for the Office of Field Operations, has been named acting deputy commissioner. There has been no indication yet from the White House as to when a new commissioner might be named and little speculation in the press about possible candidates.

At the Federal Maritime Commission, Richard Lidinsky has resigned as chairman but will remain with the agency as a commissioner. An FMC press release states that since becoming chairman in September 2009 Lidinsky has had three major administration goals for the agency: refocusing its work on “giving a voice to American citizens, taxpayers and job creators during its deliberations,” eliminating unnecessary rules and regulations that were particularly harmful to small businesses, and promoting the “greening” of U.S. ports to help both the environment and employment. Lidinsky was expected to be replaced as chairman on April 1 by Mario Cordero, who served on the Long Beach Board of Harbor Commissioners before being named an FMC commissioner in September 2010.
 

(CBP)

When CBP’s Assistant Commissioner of the Office of International Trade Allen Gina spoke to trade business leaders from the National Customs Brokers & Forwarders Association of America, NCBFAA, Monday, he lightheartedly greeted them in jest. But he wasn’t kidding when he told the group how much they were valued by CBP.

“The truth is the NCBFAA and each of you are extremely important to us,” said Gina, who was the keynote speaker at the opening day luncheon of the association’s 2012 Government Affairs Conference held in Washington, D.C. “When we think about partnerships and partners, the NCBFAA is one of the most critical. Every commissioner to date, including Deputy Commissioner [David] Aguilar, recognizes that and he wanted me to convey that to you today.”

Gina, pinch-hitting for Aguilar who was in Texas yesterday, also told those attending that the deputy commissioner’s focus is on modernizing and streamlining. “Everything we do needs to be safer, faster, cheaper,” said Gina. To illustrate his point, he shared the agency’s top trade transformation initiatives. The seven initiatives include—the Role of the Broker; ACE, the agency’s automated cargo processing system; the Centers of Excellence and Expertise, Simplified Entry-Air Cargo Advanced Screening, trusted trade partnerships; trade intelligence, and One U.S. Government at the Border.

Among the key points Gina expressed was the importance of the ACE program. “There’s no way we’re going to transform our operations with an antiquated system or paper forms. There needs to be some type of automation and ACE is it,” he said. “I’m a big believer that the only way we’re going to create efficiencies in the future is to deliver ACE to you. I’m here to tell you that the agency is fully committed to continuing with ACE’s development and delivery.”

Gina also noted that the new industry specific Centers of Excellence and Expertise were game changers for the agency. “The centers are going to create tremendous efficiencies for CBP, for other government agencies, and for the trade community at large,” he said, assuring the audience that brokers will be involved in the process. “I’d like to dispense with the notion that brokers do not have an active role to play within the centers. Nothing could be further from the truth,” he said. “By partnering with brokers, CBP has expanded our facilitation efforts, streamlining the import process – and the centers are the strategic platform to continue this partnership.”

Approximately 120 members of the association attended the luncheon, which was part of the two-day conference sponsored by the NCBFAA, the leading transportation logistics association in the country. The annual conference provides an opportunity for industry leaders to meet with legislators and update them on critical importing and exporting trade issues. Established in 1897 in New York, the NCBFAA currently is celebrating 115 years as the national voice of the industry.
 

(CBP)

U.S. Customs and Border Protection (CBP) is pleased to announce the expansion of the Simplified Entry Pilot for air cargo to additional ports and participants. Simplified Entry is the first phase of Cargo Release in the Automated Commercial Environment (ACE).

CBP announced the delivery of Simplified Entry/Cargo Release on June 4, 2012 with the first Simplified Entry filings at Indianapolis, Chicago and Atlanta. As of August 10, 2012, 7,914 Simplified Entries have been filed for 338 importers of record.

Based on an evaluation of the success of the pilot, CBP is deploying Simplified Entry/Cargo Release to additional airports using a regional approach. The port of Seattle is the latest port to join the pilot, receiving its first Simplified Entry on August 14, 2012. Expansion to the ports of San Francisco, Oakland and Los Angeles will follow soon thereafter. A subsequent expansion to the south and southeast, including Dallas/Ft. Worth, Houston and Miami, will take place in mid-September, to be quickly followed by an expansion to the northeast including Newark, New York/JFK and Boston.

On August 14, 2012, CBP published a Federal Register Notice announcing further expansion of the Simplified Entry test by opening the pilot to additional participants. Please consult the Federal Register Notice for explicit eligibility requirements and program participation details. Applications to participate in this expanded test must be received by CBP by September 4, 2012.

CBP is also working to expand the pilot functionality in the future to include additional capabilities: the Participating Government Agency (PGA) Message Set, the Simplified Entry transaction set, Single Transaction Bonds, automatic cancellations and deletions and the Document Image System. CBP will also work to include Remote Location Filing (RLF) in future pilot deployments.

Simplified Entry/Cargo Release streamlines the release of goods and enhances cargo security. It segregates the filing of the transportation information from the filing of the entry information. This allows for the earlier filing of entry information which will in turn allow CBP personnel to apply more time and resources to identifying high-risk shipments. This risk-segmented approach potentially reduces transaction costs for the trade community. Filers can update the entry information until the point that the conveyance arrives. The capability for filers to update information will result in more accurate data for CBP and PGAs.

CBP will continue to build upon the Simplified Entry Pilot with future deployments of additional functionality until Cargo Release is fully available in ACE. For additional information on Simplified Entry/Cargo Release, including the Frequently Asked Questions, please continue to check the Simplified Entry CBP website.
 

(STR Trade Report)

U.S. Customs and Border Protection officials announced at the agency’s May 10 West Coast Symposium that they expect to have nine Centers of Excellence and Expertise covering the full range of imported goods operational by the end of 2013. Officials said the CEEs are a “game changer” with respect to the way CBP processes trade transactions and interacts with the trade community and should yield benefits for both sides.

Industries. CBP currently has CEEs in operation for electronics in Los Angeles and pharmaceuticals, health and chemicals in New York. The New York CEE is operational with respect to pharmaceuticals and chemicals and will expand to include the health equipment industry in the near future. The Los Angeles CEE is now handling all commodities within the information technology and consumer electronics industries.

On May 10 CBP announced two additional CEEs: one for the automotive, aerospace and transportation-related industries in Detroit, and one for the petroleum, natural gas and minerals industries in Houston. CEEs for the remaining five sectors – base metals and machinery, consumer products and mass merchandising, industrial and manufacturing materials, and textiles, wearing apparel and footwear – are expected to be up and running by the end of 2013. Officials said they are trying to determine the appropriate physical locations for each of these CEEs, which may be more difficult than for those already established because the geographical footprint of the industries involved is not as concentrated. Read more here.
 

(Journal of Commerce – Bill Mongelluzzo)

New offices join two others intended to bring consistency to commodity classification and clearance

U.S. Customs and Border Protection Acting Commissioner David Aguilar announced Thursday that CBP will establish new Centers of Excellence and Expertise in Detroit and Houston, bringing to four the national centers designed to bring more uniformity and industry knowledge to Customs’ operations.

Centers of Excellence and Expertise are commodity-specific offices where Customs concentrates a variety of its specialists who share information with the private sector, and vice versa, to ensure that Customs treats the classification and clearance of products consistently throughout its more than 300 seaport, airport and border crossing entry points throughout the U.S.

Customs last October established its first two CEEs. The New York center handles pharmaceuticals and chemicals and the Long Beach center is in charge of electronics imports. The Detroit CEE will be a center for the automobile and aerospace industries, and the Houston CEE will be a center for petroleum, natural gas and minerals. Read more here.
 

(Toby Gooley — DC Velocity)

U.S. Customs’ decade-long IT project is testing some new features that are meeting with approval from the trade community.

It’s been so long since U.S. Customs and Border Protection (CBP) began work on its Automated Commercial Environment (ACE) information system that one could be forgiven for assuming the project must have ground to a halt at some point.

But according to Cindy Allen, executive director of CBP’s ACE Business Office, the agency continues to press forward with both existing features for ACE and some new ones. Allen provided an update on the decade-old program at the recent Coalition of New England Companies for Trade (CONECT) Northeast Trade and Transportation Conference held in Newport, R.I.

The ambitious ACE project will do much more than replace the current import processing software, the Automated Commercial System (ACS). According to CBP, ACE will facilitate collection, processing, and analysis of import and export data; allow participants to access and manage trade information via reports; expedite processing of imports and exports; improve communication and collaboration between CBP and the trade community; and provide a platform for government agencies to share trade data. Read more here.
 

(Scott Meiner — Hawaii News Daily)

U.S. Customs and Border Protection is seeking authority to eliminate requirements that it post notice of seizures in local and port newspapers. Current regulations require “administrative seizure and forfeiture notices for at least three successive weeks in a newspaper circulated at the customs port and in the judicial district where CBP seized the property.”

Additionally, CBP is required to attempt to notify all known parties-in-interest in advance of publication. However, attempting to notify known parties doesn’t require that the parties actually be notified. Dusenbery v US – 534 U.S. 161 (2002) It requires taking steps “reasonably calculated” to achieve notification.

Under CBP’s proposal, public notice would be satisfied by posting forfeiture updates on the Department of Justice’s forfeiture web site, www.forfeiture.gov, in lieu of newspapers. Read more here.
 

(World Trade Interactive)

U.S. Customs and Border Protection has updated its quarterly Internal Revenue Service interest rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties. For the quarter beginning Jan. 1, 2012, the interest rates for overpayments are 2% for corporations and 3% for non-corporations, and the interest rate for underpayments is 3%. These rates are unchanged from the previous quarter.
 

(Nelson Balido — Security Debrief)

Customs and Border Protection Commissioner Alan Bersin last Thursday announced his resignation effective December 30. For folks who monitor border trade and security issues, this wasn’t exactly a surprise. But it was still a disappointment.

In March 2010, President Obama appointed Mr. Bersin CBP commissioner through a recess appointment (when Congress was out of session). This was a case of the president having grown tired of the Senate Finance Committee’s failure to do its job and act on the president’s formal nomination of Mr. Bersin to lead an agency that is critical to the country’s security and economic health.

Senate Finance Committee Chairman Max Baucus convened his committee in May 2010 to consider the Bersin nomination. Unfortunately, very little of the hearing focused on Mr. Bersin’s qualifications and the pressing need to confirm the president’s nomination for an agency that, as Sen. Baucus said in his opening remarks, “is the face of America.” [...]

While I’m disappointed that Mr. Bersin didn’t get a chance to continue as commissioner, it would not be accurate to say that the trade community is saddled with a consolation prize. It’s just the opposite.

Homeland Security Secretary Janet Napolitano made the right choice in naming deputy commissioner David Aguilar as the new acting commissioner and Tom Winkowski, who currently heads CBP’s field operations, as the acting deputy commissioner. Read more here.
 

(World Trade Interactive)

In a Dec. 15 message, U.S. Customs and Border Protection issued a blanket authorization for immediate delivery procedures for merchandise to be released on or after Dec. 15 and until Dec. 31. This authorization is offered to filers who may want to take advantage of interim Harmonized Tariff Schedule changes that take effect on or after Jan. 1, 2012.

This blanket authorization does not apply to absolute quota merchandise and merchandise moved under an immediate transportation entry. Tariff-rate quota merchandise previously authorized for ID release may still be released under ID, but the entry summary must be presented within 10 working days after release or within the quota period, whichever expires first.

In those instances where the paper CF 3461/CF 3461 (ALT) is used as the entry document and importers wish to elect ID, a line must be drawn through the word “entry” on the document. Automated Broker Interface entry transmissions, including the “paperless” provisional message, will establish the desired entry date by using the estimated entry date in the summary (EI) transmission. This will identify the change from entry to ID and allow filers to elect a date of entry in order to take advantage of duty rate changes or special programs. Under ID procedures, the entry/entry summary must be filed within 10 working days after release.

CBP stresses that no grace period will be granted for the purpose of timely filing ID entry summaries under this one-time allowance.
 

(World Trade Interactive)

U.S. Customs and Border Protection is requesting comments by Jan. 24 on the proposed extension with a change to the burden hours of the cargo manifest/declaration, stow plan, container status messages and importer security filing. A summary of each of these information collections is provided below.

CBP Form 1302
The master or commander of a vessel arriving in the U.S. from abroad with cargo on board must file CBP Form 1302, Inward Cargo Declaration, or submit the information on this form using a CBP-approved electronic equivalent. CBP Form 1302 is part of the manifest requirements for vessels entering the U.S. and was agreed upon by treaty at the United Nations Inter-government Maritime Consultative Organization.

CBP Form 1302A
The master or commander of a vessel departing from the U.S. must file CBP Form 1302A, Cargo Declaration Outward With Commercial Forms, with copies of bills of lading or equivalent commercial documents relating to all cargo encompassed by the manifest.

CBP Form 7509
The aircraft commander or agent must file two copies of CBP Form 7509, Air Cargo Manifest, with CBP at the departure airport or respondents may submit the information on this form using a CBP-approved electronic equivalent. The form contains information about the cargo onboard the aircraft.

CBP Form 7533
The master or person in charge of a conveyance files CBP Form 7533, Inward Cargo Manifest for Vessel Under Five Tons, Ferry, Train, Car, Vehicle, etc., which is required for a vehicle or a vessel of less than five net tons arriving in the U.S. from Canada or Mexico, otherwise than by sea, with baggage or merchandise. Respondents may also submit the information on this form using a CBP-approved electronic equivalent.

Manifest Confidentiality
An importer or consignee may request confidential treatment of its name and address contained in manifests by following the procedure set forth in 19 CFR 103.31.

Vessel Stow Plan
For all vessels transporting goods to the U.S., except for any vessel exclusively carrying bulk cargo, the incoming carrier is required to electronically submit a vessel stow plan no later than 48 hours after the vessel departs from the last foreign port which includes information about the vessel and cargo. For voyages less than 48 hours in duration, CBP must receive the vessel stow plan prior to arrival at the first port in the U.S.

Container Status Messages
For all containers destined to arrive within the limits of a U.S. port from a foreign port by vessel, the incoming carrier must submit messages regarding the status of the events if the carrier creates or collects a container status message in its equipment tracking system reporting that event. CSMs must be transmitted to CBP via a CBP-approved electronic data interchange system. These messages transmit information regarding events such as the status of a container (full or empty), booking a container destined to arrive in the U.S., loading or unloading a container from a vessel, and a container arriving or departing the U.S.

Importer Security Filing
For most cargo arriving in the U.S. by vessel, the importer or its authorized agent must submit the data elements listed in 19 CFR 149.3 via a CBP-approved electronic interchange system within prescribed time frames. Transmission of these data elements provide CBP with advanced information about the shipment.
 

(CBP)

Pursuant to publication in today’s Federal Register (76 FR 69755), U.S. Customs and Border Protection (CBP) announced a plan to conduct a National Customs Automation Program (NCAP) test concerning Automated Commercial Environment (ACE) entry capability. The new capability includes functionality specific to the filing of entry data for formal and informal consumption entries.  The initial phase of the test will be open to entries filed in the air transportation mode only.  The attached notice invites parties to participate in the test, seeks public comment on any aspect of the planned test, describes the eligibility requirements for participation in the test and outlines the development and evaluation methodology for the test.

Please see the FRN for additional requirements pertaining to the test.
 

(CBP)

U.S. Customs and Border Protection published on Oct. 25 a final rule in the Federal Register amending the agency’s regulations to add provisions for the use of statistical sampling and offsetting overpayments and underpayments of duty, fees and taxes under certain conditions. It also allows importers to use the same techniques in their internal company customs-related operations.

Statistical sampling, a method already in practice but not explicitly provided for in CBP regulations, is an important tool available to both the public and CBP auditors for examining customs entries. This method allows evaluation results of a selected reduced number of items to be applied to the entire universe of records, permitting conclusions to be drawn about the universe with a high degree of accuracy. The use of statistical sampling techniques is a practice recognized in both government and industry.

When statistical sampling is properly applied, it produces greater efficiency in review processes, reducing cost, and allowing CBP and importers to best use resources to evaluate import operations.

The revisions also define procedures for offsetting (netting) overpayments against underpayments on certain customs entries when identified during CBP audits. However, CBP will consider allowing offset circumstances when discovered during the preparation of importer disclosures which meet the requirements of the prior disclosure regulations (19 USC 162.74).

For the complete information on the revision made to CBP regulations, please review the final rule entitled “CBP Audit; Use of Sampling Methods and Offsetting of Overpayments and Over-Declarations.” This rule is available on cbp.gov here (Federal Register Notices 2011 – GPO Access).
 

(World Trade Interactive)

U.S. Customs and Border Protection is proposing to increase the informal entry limit from $2,000 to its maximum statutory limit of $2,500. CBP also proposes to remove regulatory language requiring the use of a formal entry for certain shipments of textile or apparel products, which is no longer needed due to the elimination of quotas formerly established under the Agreement on Textiles and Clothing. Comments on this proposed rule are due no later than Dec. 27.

All merchandise imported into the customs territory of the United States is subject to entry and clearance procedures. Formal entry generally involves the completion and filing of one or more forms (such as CBP Form 7501, Entry/Entry Summary, which contains detailed information regarding the import transaction) or their electronic equivalent as well as the filing of commercial documents pertaining to the transaction. However, CBP regulations exempt from formal entry imported merchandise whose aggregate value does not exceed a specified amount.

The informal entry limit has remained at $2,000 since 1998. CBP believes that increasing this limit by $500 will reduce the overall administrative burden on importers and other entry filers by expanding the availability of the simplified informal entry procedures. CBP has also determined that this increase will save the trade community approximately $11 million in merchandise processing fees annually (a figure that could rise considering that the MPF was recently increased from 0.21% to 0.3464%).
 

(CBP)

U.S. Customs and Border Protection announced today the establishment of two industry-specific centers: the Center of Excellence and Expertise – Electronics in Los Angeles and the Center of Excellence and Expertise – Pharmaceuticals in New York.

The centers, which previously functioned as pilot programs, will continue efforts to increase uniformity of practices across ports of entry, facilitate the timely resolution of trade compliance issues nationwide, and further strengthen critical agency knowledge on key industry practices.

“The Centers of Excellence and Expertise will fundamentally transform the way CBP approaches trade operations and works with the international trade community,” said CBP Commissioner Alan D. Bersin. “They will also help facilitate legitimate trade while enabling us to concentrate our enforcement efforts on potential threats to our nation’s security and economic competitiveness.”

Initially, the centers will serve as a single point of processing for businesses enrolled in CBP’s trusted shipper programs, the Customs-Trade Partnership Against Terrorism (C-TPAT) and the Importer Self-Assessment (ISA).

The centers will also serve as a resource to the broader trade community and to CBP’s U.S. government partners; center personnel will answer questions, provide information and develop trade facilitation strategies to address uniformity and compliance concerns.

Required import documents for trusted partners within the electronics and pharmaceutical industries are now being routed to their respective industry center. While revenue collection will continue to be carried out at the ports of entry, the centers will begin to perform all validation activities, protests, post entry amendment/post summary correction reviews, and prior disclosure validations for the trusted partners within their industry.

By redirecting work involving trusted shippers within the electronics and pharmaceutical industries to centralized, industry-specific locations, ports of entry will be able to more effectively focus resources on high-risk shipments and importers that may pose a danger to U.S. border security, harm the health and safety of consumers, or violate U.S. trade laws and intellectual property rights critical to our nation’s economic competitiveness. In turn, the approach to trade processing facilitated by the new centers will reduce transaction costs for the trade community, facilitate legitimate trade through risk segmentation, increase agency expertise and deliver greater transparency and uniformity of action within a given industry.
 

(CBP)

The 2011 ACE Customer Satisfaction Survey is now available and your VOLUNTARY feedback is requested!

Trade community ACE portal users can access the survey here.

Please remember that your response is VOLUNTARY and completely anonymous.  The survey should take approximately 5-10 minutes to complete – depending upon the level of detail in your comments.  The survey will be available through Wednesday, October 19, 2011.

For assistance, please contact FoundationBusinessOutcomes@cbp.dhs.gov.
 

(American Shipper)

U.S. Customs and industry representatives on Monday outlined how a simplified process for filing import declarations would look and said a trial program will start soon to demonstrate how fewer documentation requirements could benefit the government and importers alike.

The goal is to give trusted traders a more streamlined process to get goods released by linking security and admissibility data requirements. A simplified customs entry would resemble the Importer Security Filing (ISF) with a few extra data elements such as a 10-digit Harmonized Tariff System code, the estimated value and an entry number, reporters were told during a telephone briefing about last week’s Trade Support Network plenary session.

Importers need to be in Tier 2 or Tier 3 of the Customs-Trade Partnership Against Terrorism, a voluntary supply chain security program, to be eligible for simplified entry. The importer named on the ISF form has to be the same as the importer of record on the entry and have a continuous customs bond. Finally, the entry summary that details shipment information, and acts as a receipt for CBP, will need to be transmitted to the new Automated Commercial Environment instead of CBP’s legacy data system – without any sub-bills of lading. Read more here.
 

(UPI)

Customs officers seized nearly $5.4 million worth of counterfeit products at the Cincinnati/Northern Kentucky International Airport.

The seizure last week came a year after a similar operation by the United States Customs and Border Protection that confiscated $21 million in counterfeit products at the Cincinnati airport, The Cincinnati Enquirer reported Wednesday [...]

The seizures at the Cincinnati/Northern Kentucky International Airport reflect a trend growing nationwide: last year about $188 million worth of products were confiscated in about 20,000 seizures nationally.

Knockoff baseball caps, clothing, makeup, handbags and other inexpensive goods make up the bulk of the seized products. Nearly 80 percent of the products are being imported from China. Read more here.
 

(World Trade Interactive)

U.S. Customs and Border Protection has issued a clarification regarding the discontinuation of paper courtesy notices of liquidation as of Sept. 17.

According to CBP, the Sept. 17 paper courtesy notice includes liquidations through Sept. 30. As such, there will be no printed paper courtesy notices for entry summaries filed via the Automated Broker Interface with a liquidation date of Sept. 30 or later. For entry summaries filed electronically via ABI, CBP will send electronic courtesy notices via ABI to the entry summary filers. For entry summaries not filed through ABI, CBP will continue to mail paper courtesy notices of liquidation to the importers of record.

In addition, CBP deployed the new Courtesy Notice of Liquidation Report via the Automated Commercial Environment portal on Sept. 24. This report includes liquidation information for ACE entry summary types 01 (consumption) and 03 (antidumping/countervailing duty) as well as all Automated Commercial System entry types except 11 (informal) and 12 (informal quota). CBP stresses that this report is not the official notice of liquidation, has no legal effect and does not trigger the protest filing period. Also, CBP is asking users to refrain from running this report until it issues further notification that the data load is complete.