Plans to update statutory language to allow for CBP to use advance cargo data "for any lawful purpose" is an early area of concern among trade groups that submitted comments to the office of Sen. Bill Cassidy, R-La., about a draft customs modernization bill (see 2111030039). That provision "is a significant amendment to the Trade Act of 2002 manifest requirements and will present a challenge regarding how the agency will merge and crosscheck data received from multiple parties," the Express Association of America told Cassidy, EAA Executive Director Michael Mullen said by email.
The Customs Modernization Act is a bit of a misnomer, a Sidley Austin advisory says, encouraging firms to tell Sen. Bill Cassidy's office that changes are needed to make it beneficial to importers. The discussion draft of the bill was released so that it wouldn't produce unintended consequences for importers or businesses that provide services to importers, the Louisiana Republican's spokesman said (see 2111030035).
Assistant U.S. Trade Representative for the Western Hemisphere Daniel Watson and Andrés Cárdenas Muñoz, Colombia's vice minister of foreign trade, directed their customs and trade facilitation teams to have another discussion on lessons learned and future plans "especially with regard to the digitalization of customs procedures," according to a USTR readout of the Oct. 22 meeting.
Shipmonk, an e-commerce fulfillment and inventory management provider, acquired El Mar Mexico and its fulfillment center based in Tecate, Mexico, Shipmonk said Oct. 21. The acquisition will allow for customers to "legally bypass taxing on the majority of U.S. shipments, eliminating tariffs and import duties" due to the Section 321 exemption allowed on low-value goods, it said. "Goods are legally imported into a free trade zone in Mexico under special license, and then shipped directly to the U.S. consumer within ShipMonk's comprehensive shipping zone coverage area, without paying duties and tariff fees," it said.
RANCHO MIRAGE, California -- Lawyers are seeing a rise in cases filed against customs brokers for failing to meet their fiduciary duties, said Cameron Roberts, a Roberts & Kehagiaras trade attorney. Many of the cases involve importers who allege their brokers didn’t correctly advise them about issues related to forced labor, Section 301 tariffs and certain agriculture imports, he said. “All of these issues are being put at the foot of the broker,” Roberts said, speaking during the Oct. 15 Western Cargo Conference.
RANCHO MIRAGE, California -- CBP has faced some delays with beginning the next term of the Commercial Customs Operations Advisory Committee, but it is very close to holding its first meeting, said AnnMarie Highsmith, CBP’s executive assistant commissioner in the Office of Trade. Highsmith also said the agency is on track to revamp its system for collecting customs duties, taxes and fees by 2024, and said its Section 321 data pilot has been a “big success.”
CBP field officers were instructed to allow for foreign-trade zone storage of goods stopped under a withhold release order while an admissibility decision is made, said Jim Swanson, CBP director-cargo and conveyance security and controls, speaking at the National Association of Foreign-Trade Zones virtual conference Sept. 21. He said the agency told the “field folks to allow those goods” to be put “in a foreign-trade zone under the very tight conditions that we outline.” While Swanson previously said a public guidance would come soon (see 2104290003), he said at the conference that “we're still working on getting it in writing, because there's a lot of legal stuff and there's some changes going on in the background.”
International Trade Today is providing readers with the top stories from Sept. 13-17 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
CBP recently updated its frequently asked questions about the withhold release order aimed at silica-based products from China that made a first mention of de minimis considerations (see 2108030026). CBP's revised response to a question about whether finished products containing a small percentage of silica-based products subject to the WRO now says the agency “recognizes there may be some very fact-specific instances, where the question of the contribution of prohibited labor to the whole of a product (from a quantitative and a qualitative perspective) is something that a court might consider with respect to the statutory intent of Section 1307 of Title 19, United States Code.” The updated version also removes any mention of the phrase “de minimis” and an example of a de minimis contribution.
The American Association of Exporters and Importers, IBM and U.S. subsidiaries of the Foxconn Technology Group all disagree with CBP's proposed use of Part 102 rules of origin in non-preferential claims and procurement under USMCA (see 2107010045), they said in the comments recently posted in the docket for the proposal. Meanwhile, lithium-ion battery producer, Inventus Power, and the American Iron and Steel Institute voiced support for the changes in their comments. So far, the comments show a deep split between industries in support (see 2107270049) and against (see 2109010006) the proposal.