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JAS USA COMPLIANCE

News & Insights from JAS Worldwide Compliance

JAS Forwarding (USA), Inc.

6165 Barfield Road
Atlanta GA, 30328
United States
Tel: +1 (770)688-1206
Fax: +1 (770)688-1229

June 2016

Graduation Announcement
June 3, 2016

Our very own Peris Githongo-Johnson of the JAS Compliance Team graduated from Strayer University on May 14th, 2016 with a bachelor degree in International Business (minor in accounting)!

Please join us in congratulating her on a job well done!

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Commissioner Kerlikowske's Remarks at the NCBFAA
June 3, 2016

The NCBFAA Conference provides a setting for the nation’s leading customs brokers, freight forwarders, NVOCC’s, and service providers to gather and update themselves on industry developments.  NCBFAA members also learn from subject matter experts how to overcome industry challenges!  As the conference came to an end, Commissioner Kerlikowske provided remarks on his participation in another successful annual conference! This year JAS Forwarding had four attendees’ to participate in the conference.

"In Fiscal Year 2015, CBP processed more than 26 million imported cargo containers, along with $1.5 trillion of U.S. exported goods. We also collected approximately $46 billion in duties, taxes, and other fees – this highest amount collected in the past five years. And technology – which is spurring “e-Commerce,” for example – is radically changing the face of the global supply chain, increasing its complexity and challenging all of us to stay ahead of the curve. We’re using technology to cope with these changes, and the Automated Commercial Environment is a great example," stated Commissioner Kerlikowske.

Read All of The Remarks

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AD Duty Evasion Consequences
June 3, 2016

The consequences of evading AD duty can be devastating to your company, not only financially but also publicly. Recently, a U.S. company agreed to pay $15 million to resolve allegations that it violated the False Claim Act (FCA), by evading antidumping duties on wooden bedroom furniture imported from China.

"A U.S. company has agreed to pay $15 million to resolve allegations that it violated the False Claims Act by engaging in a years-long scheme to evade antidumping duties on wooden bedroom furniture imported from China through misclassification, according to an April 27 press release from the Department of Justice. U.S. Customs and Border Protection Commissioner R. Gil Kerlikowske said that under the recently enacted Trade Facilitation and Trade Enforcement Act “CBP will likely see an increase in these types of settlements as the streamlined processes take effect concerning allegations of duty evasion,” stated the Sandler, Travis & Rosenberg Trade Report.

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Miscellaneous Trade Bill Passes House
June 3, 2016

On April 27, the House of Representatives approved a 415-2 vote a bill (H.R. 4923) to reform the process of developing and enacting miscellaneous trade bills which suspend duties on imported products for which there is inadequate domestic production and availability.

A statement by the Sandler, Travis & Rosenberg Trade Report:

"Under H.R. 4923, the MTB process would begin with petitions submitted by U.S. businesses to the International Trade Commission rather than via legislation introduced by members of Congress. The ITC would analyze these petitions, taking into account comments received from the public and the White House, and then issue a public report to Congress with its recommendations regarding those products that meet MTB standards. Ways and Means would then examine the ITC’s recommendations and draft an MTB, which could exclude products recommended by the ITC but could not add products that were not recommended. The committee would have to certify that there are no spending earmarks and publish a list of any limited tariff benefits (tax cuts that benefit ten or fewer businesses). The House and Senate would then consider the MTB within existing rules."

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FDA Finalizes Rule Regarding Tobacco Products
June 3, 2016

A historic rule was finalized today by the U.S Food and Drug Administration to extend its authority to all tobacco products, including e-cigarettes, cigars, hookah tobacco, and pipe tobacco, just to name a few. This rule allows FDA to improve public health and protect future generations from the dangers of tobacco use.

“We have more to do to help protect Americans from the dangers of tobacco and nicotine, especially our youth. As cigarette smoking among those under 18 has fallen, the use of other nicotine products, including e-cigarettes, has taken a drastic leap. All of this is creating a new generation of Americans who are at risk of addiction,” said HHS Secretary Sylvia Burwell. “Today’s announcement is an important step in the fight for a tobacco-free generation – it will help us catch up with changes in the marketplace, put into place rules that protect our kids and give adults information they need to make informed decisions.”

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Training Tidbits June 2016
June 2, 2016

What is a USPP?
Am I The U.S. Principal Party In Interest (“USPPI”)?
The USPPI, as defined in the Foreign Trade Regulations ("FTR"), is the person in the United States that receives the primary benefit, monetary or otherwise, of the export transaction. In other words, if you are the recipient of the purchase order from the overseas party for cargo that is exported and you are invoicing them for the product, you are the USPPI no matter what the terms of sale are.

What are my responsibilities as the USPPI?

  1. DETERMINE COMMODITY JURISDICTION: Which U.S. Government Agency controls my product? Are my products subject to the Export Administration Regulations ("EAR"), the U.S. Department of State' Directorate of Defense Controls ("DDTC") International Traffic and Arms Regulations ("ITAR") and/or other government agencies such as the Nuclear Regulatory Commission ("NRC"), Drug Enforcement Administration ("DEA"), or Bureau of Alcohol and Tobacco & Firearms ("ATF")?
  2. KNOW YOUR CUSTOMER: Perform due diligence on the end user(s); know their intended end use; and ensure that no party to the export transaction is on any of the U.S. Government's lists of restricted parties with whom U.S. companies and U.S. Persons cannot do business without proper U.S. Government authorization.
  3. CLASSIFY PRODUCTS: for Statistics (Schedule B or the US Harmonized Tariff Schedule ("USHTS") and License Determination (Commerce Control List ("CCL") i.e. ECCN or EAR99, or US Munitions List ("USML")). License requirements are dependent upon an item's classification, technical characteristics, ultimate destination, end- user, and end-use. Exporters must determine whether or not the product being exported requires a license or whether it qualifies for a license exception.
  4. FILE ELECTRONIC EXPORT INFORMATION ("EEI") into the Automated Export System ("AES") or authorize your forwarder to file on your behalf by signing a Power of Attorney ("POA") or other written authorization such as a Shipper's Letter of Instruction ("SLI"). POAs should specify the responsibilities of the parties with particularity and should state that the forwarder has the authority to act on behalf of the Principal Party in Interest as its true and lawful agent for purpose of filing the Electronic Export Information ("EEI") in accordance with the laws and regulations of the U.S. Note: On "Routed Export Transactions", authorization is the responsibility of the Foreign Principal Party in Interest ("FPPI").
  5. MAINTAIN SHIPMENT RECORDS: according to the regulations of the controlling Government Agency; typically 5 years from the date of export

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Webinars & Events June 2016
June 1, 2016

Complying with U.S. Export Controls

Date:  June 9-10, 2016

Location:  Seattle, WA

The program will cover the information exporters need to know to comply with U.S. export control requirements on commercial goods.  The program will focus on what items and activities are subject to the EAR and what steps to take to determine if an export license is required.

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Registration is open for G-TEC!

Date:  August 8-9, 2016

Location:  Atlanta, GA

The NCBFAA Educational Institute is proud to invite all global logistics professionals to the Second Annual Global Trade Educational Conference (G·TEC).  This two-day event during beautiful summertime in Atlanta, GA will give customs brokers, freight forwarders, NVOCCs, OTI, service providers, importers, exporters and all global logistics professionals an opportunity to update themselves on industry developments and connect with colleagues new and old.  The JAS Compliance Team will be in attendance!  Be sure to stop by and say hello!

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