JAS USA COMPLIANCE

News & Insights from JAS Worldwide Compliance

JAS Forwarding (USA), Inc.

6165 Barfield Road
Atlanta GA, 30328
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COMPLIANCE SOLUTIONS

JAS USA Compliance Insights

Compliance Solutions

JAS USA Compliance Insights on the Impact of COVID-19

CBP Offering Webinars on the Uyghur Forced Labor Prevention Act
June 1, 2022
CBP’s Office of Trade Relations are hosting webinars during the first few weeks of June.

CBP’s Office of Trade Relations are hosting webinars during the first few weeks of June. These webinars will provide an overview of the Uyghur Forced Labor Prevention Act (UFLPA), as well as strategies on implementation of the act before it goes into effect on June 21st.

The UFLPA establishes a rebuttable presumption that the importation of any goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China, or produced by certain entities, is prohibited by Section 307 of the Tariff Act of 1930 and that such goods are not entitled to entry to the United States.

CBP is also urging all importers to do their due diligence and review their supply chains to ensure their goods are not being produced with forced labor before UFLPA is implemented.

  • Wednesday, June 1, 2022, 10:00 –11:00 a.m. EDT
  • Tuesday, June 7, 2022, 1:00 – 2:00p.m. EDT
  • Thursday, June 16, 2022, 2:00 –3:00 p.m. EDT
There are 3 webinars scheduled, follow to register
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Expired Section 301 Tariffs Reinstated
April 1, 2022
The Office of the United States Trade Representative announced its determination to reinstate certain previously granted and extended product exclusions in the China section 301 Investigation

The Office of the United States Trade Representative announced its determination to reinstate certain previously granted product exclusions in the China section 301 Investigation. The determination reinstates 352 of the 549 eligible exclusions. The reinstated product exclusions will apply as of October 12, 2021 and extend through December 31, 2022.

The reinstated exclusions are set out in the Federal Register notice linked here.

Clients with products that qualify for reinstated exclusions should contact their local JAS Forwarding USA Inc. branch representative to discuss how to assess impact and define next steps to work towards any duty refunds.

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CBP Launches UFLPA Webpage
April 1, 2022
New CBP Website for UFLPA

The Uyghur Forced Labor Prevention Act (UFLPA) is scheduled to go into effect on June 21, 2022. In preparation for the implementation of this act, CBP has created a webpage as well as a new email for questions and information on the implementation of UFLPA. The website will be regularly updated with the most up to date information, and their inbox is open for inquiries and compliance advisement. The Forced Labor Enforcement Task Force (FLETF) will also be holding a public hearing on the methods used to prevent goods produced with forced labor from entering the US. The hearing is on April 8th, and members of the public can register on the CBP site if they wish to provide public testimony.

See the new website here
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ACH and the Benefits
November 1, 2021

U.S. CBP’s ACH (Automated Clearinghouse) is an electronic payment option that allows participants to pay customs fees, duties, and taxes electronically.  This program offers numerous benefits from automation of payables on duties to better accuracy of payments.  Additionally, once importers are signed up for ACH, the PMS (Periodic Monthly Statement) becomes an option which provides additional cash flow benefits.  To learn more, check out our ACH and PMS flyers linked below.

ACH Flyer DownloadPMS Flyer Download
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JAS USA Compliance
October 1, 2021

Did you know that the JAS Forwarding USA Inc. Compliance Team can partner with clients to consult on numerous issues?  Our team has well over 100 combined years of experience in regulatory trade compliance.  Check out our Compliance presentation and let’s connect and see how we can partner.

See the Presentation(PDF)
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Manhattan U.S. Attorney Announces Criminal and Civil Charges Against CEO of Apparel Company for Customs Fraud
October 1, 2021

The Manhattan U.S. attorney has announced criminal and civil charges against the CEO of an apparel company.  It is alleged that the CEO has engaged in Customs Fraud.  The CEO is suspected of misrepresenting value of imported goods in an attempt to avoid paying lawfully owed customs duties.

Read more details from the U.S. Attorney's Notice
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New Requirements for Importing US and Foreign Goods Returned
September 1, 2021

There are new requirements for importing US and Foreign Goods Returned under HTSUS Chapter 98 (9801.00.10). Previous changes and history are found in the CSMS message linked below and summarized here. On April 25, 2016, a change to HTSUS Chapter 98 for U.S. goods returned went into effect. Specifically, section 904(b) of the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA), “Modification of Provisions Relating to Returned Property,” amended HTSUS Subheading 9801.00.10.

The expansion of Subheading 9801.00.10 includes all products exported from and returned to the United States, regardless of country of origin. For U.S. origin products, there is no time limit on filing a claim. For foreign origin products, there is a 3-year time limit. The changes to 9801.00.10 apply to U.S. or foreign articles returned to the United States and entered, or withdrawn from warehouse, for consumption on or after April 25, 2016.

Read More Here
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Colleagues Urge U.S. Trade Representative to Help U.S. Manufacturers, Restart the Exclusion Process for Imports Subject to Tariffs on China
June 3, 2021

U.S. Senators Rob Portman and Tom Carper, along with 38 other members of the Senate, sent a letter to U.S. Trade Representative Katherine C. Tai, asking her to restart the exclusion process for imports from China subject to tariffs under Section 301 of the Trade Act of 1974. The Trump administration set up an exclusion process to help U.S. manufacturers and businesses receive relief from the tariffs when an imported good was not available outside of China, or when the tariffs caused severe economic harm to U.S. industry. Unfortunately, those exclusions expired at the end of 2020, and the Biden administration has not restarted a process for businesses to apply for new exclusions.

Read the Full Article
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ICAO All-Cargo 100% Screening Mandate June 2021
December 2, 2020

The mandate issued by the International Civil Aviation Organization (IACO) from Sept 2016, requires that all air cargo carried by commercial aircraft be screened or have commensurate security measures applied by June 30, 2021.  A 100% requirement for screening of cargo transported on passenger planes has been in effect since August 2010 with freight forwarders successfully meeting this mandate. JAS Forwarding (USA) has long been a member of TSAs Certified Cargo Screening Program and currently has CCSF (Certified Cargo Screening Facility) located in all major gateways

Read More
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SECTION 301 EXCLUSIONS EXPIRING JULY 9, 2020
July 9, 2020

The Office of the U.S. Trade Representative has announced that there are 100 products that were on the first Section 301 exclusion list and will expire today.  Among these products are electric motors, pump parts, construction equipment, agricultural vehicles, hubs, bearings, capacitors, switches, and dental x-ray equipment.  Please click below to access the list of tariffs that are due to expire.

EXCLUSIONS EXPIRING 07.09.20
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USMCA IMPLEMENTATION AS OF JULY 1, 2020
June 23, 2020

USMCA WEBINAR 06.23.20

(Presentation only file below)

CERTIFICATION FORM

There is no official certificate of origin form for USMCA; however, certification is required at the time of the claim.  Please find a template form that is available below if a form is preferred.

USMCA WEBINAR 06.23.20 - PRESENTATION ONLYUSMCA CERTIFICATION TEMPLATE FORM
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JAS PRESENTATIONS RELATED TO COVID-19
April 23, 2020

The following presentations are available for informational purposes only related to COVID-19.  Please be advised that the material provided is not legal binding and should not be considered legal advice.

Importing & Exporting PPE - Presentation OnlyImporting & Exporting PPE - Audio VersionPPE Products Export From China - Operation Manual
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IMPORTING COVID-19 MATERIALS
April 21, 2020

JAS USA Compliance is receiving questions regarding the importing materials related to the COVID-19 pandemic.  The below information is intended to be a guide and serve as a resource for informational purposes.​

IMPORTING PERSONAL PROTECTIVE EQUIPMENT

When an inquiry is submitted to JAS USA Compliance regarding the importation of personal protective equipment (PPE), please provide answers to the following questions when submitting your inquiry:

Face Mask/Respirators

  • What is the intended purposes?  Medical or non-medical?  Surgical mask that provide a liquid barrier protection?
  • Who is the manufacturer?
  • What is the type?  N95, KN95, KN100, etc?
  • Are they NIOSH Approved or Non-NIOSH approved? The approved list of NIOSH respirators can be found HERE.

Hand Sanitizer/Antibacterial Soaps

  • Is it alcohol based? What is the content of the alcohol?
  • Who is the manufacturer? Is the manufacturer registered with FDA?


Surface Disinfectors

  • Is it the cleaner considered to be a pesticide?


COVID-19 Test Kits

  • Who is the manufacturer?


Thermometers

  • Are the thermometers liquid filled or non-liquid filled?

Surface Disinfectors

  • Is it the cleaner considered to be a pesticide?

If the inquiry is regarding any other emergency items not listed, please provide as much information about the product as possible including the manufacturer information and a complete description.

Any further questions regarding importing COVID-19 materials can be sent to compliance@jas.com.

RESOURCES AND FREQUENTLY REQUESTED INFORMATION

FDA’s Subject Matter Experts

Due to the large number of inquiries that FDA and CBP have been receiving on importing medical products under one of the guidance documents or an Emergency Use Authorization, we have set up the following email addresses for importers, manufacturers, or brokers to get direct answers.

For more information, please visit the following links to FDA's COVID-19 website

CSMS # 42448725 - Information for Filing Personal Protective Equipment & Medical Devices During Covid-19

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The U.S. and Japan have reached an agreement to adjust the Section 232 tariffs on Japanese steel imports. This new agreement sets a quota for Japanese steel, allowing for up to 1.25 million tons to be imported without any Section 232 duties imposed. This plan is similar to a resolution passed last year easing EU steel and aluminum tariffs, though this agreement only affects Japanese steel imports.  These multinational agreements are part of a larger strategy to fight China’s anti-competitive trade practices, as well as creating a greener steel trade industry.

The Department of the Treasury's Office of Foreign Assets Control (OFAC) is issuing a final rule to adjust certain civil monetary penalties (CMP) for inflation pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. OFAC imposes CMPs pursuant to the penalty authority in five statutes: The Trading With the Enemy Act; the International Emergency Economic Powers Act ; the Antiterrorism and Effective Death Penalty Act of 1996; the Foreign Narcotics Kingpin Designation Act; and the Clean Diamond Trade Act . The new rule went into effect February 9th.

AD/CVD (Anti-dumping and countervailing duty) is a hot topic in the trade world these days.  Determining whether AD/CVD applies to products is imperative to understand the costs of imported goods.  Applicability of AD/CVD is typically based on the description of the item as it relates to the scope of the AD/CVD order.  HTS codes are part of AD/CVD scopes but are not the deciding factor.  

Using case numbers, The US Customs & Border Protection system for AD/CVD search AD/CVD search can provide information on specific cases including scope and other background related to individual cases.  Simply enter a case number in the search field and the results will appear.  Users can sort by date, status, type and much more.  

  • While it is often attributed to him, Ben Franklin actually did not come up with daylight saving time as we know it today, but he did pen the idea of adjusting schedules to the available sunlight in an unpublished satirical letter from 1784. In the letter he calculated the money that Parisians could save on candles if they woke with the sun instead of lazily waking at noon.
  • The actual name is Daylight Saving, not Daylight Savings, as it is often called.
  • Daylight Savings was not enacted officially in the US until March 1918. This was later repealed, then enacted again during WWII. After the war, states were allowed to choose whether they wanted to utilize DST or not. This resulted in massive travel issues for citizens crossing multiple state lines.
  • Modern use of DST was established in 1966, when the government passed the Uniform Time Act, creating a standard for daylight savings across the country (minus a few holdout states).
  • Hawaii, Arizona, and most US Territories do not observe DST.
  • There is much debate over whether DST has positive or negative effects on regions that use it, and whether it is necessary at all. Polls indicate that over 60% of Americans generally support the idea of eliminating DST permanently.
  • Studies show that the second Monday in March (the day we “lose an hour” every year) there are noticeable spikes in workplace accidents, traffic accidents, losses of productivity and slight increases in health issues such as heart attacks and strokes.

In early January, US Customs and Border Protection released their annual statistics for Fiscal Year 2021. Among the data provided was information on the ongoing efforts to protect consumers from products made using forced labor. In the last fiscal year, CBP has prevented almost $500 million worth of goods manufactured using forced labor from entering the US. Trade seizures were also up from last year, with over 83,000 shipments siezed over alleged trade violations. CBP also noted a record year in imports, collecting almost $94 billion in duties and taxes.

The International Trade Commission (ITC) has opened an AD/CVD investigation to determine whether there is a reasonable indication that an industry in the United States is materially injured or threatened with material injury, by reason of imports of steel nails, provided for in subheadings 7317.00.55, 7317.00.65, and 7317.00.75 of the Harmonized Tariff Schedule of the United States, that are alleged to be sold in the United States at less than fair value from India, Sri Lanka, Thailand, and Turkey and alleged to be subsidized by the Governments of India, Oman, Sri Lanka, Thailand, and Turkey. Unless the Department of Commerce (“Commerce”) extends the time for initiation, the Commission must reach a preliminary determination in antidumping and countervailing duty investigations in 45 days, or in this case by February 14, 2022. The Commission's views must be transmitted to Commerce within five business days thereafter, or by February 22, 2022.

Investigation Nos. 701-TA-673-677 and 731-TA-1580-1583 (Preliminary)

On January 24th, the Department of Homeland Security announced that they are seeking public comment on the Uyghur Forced Labor Prevention Act. These comments are intended to help shape the way the act will be implemented and enforced. Included in the notice are instructions on how to submit a comment, and a series of questions to help ensure DHS gets the information they need. The commenting period is open now and will close March 10th at midnight. For further information on the bill or details on how to submit a comment, please see the below links.

New legislation has been introduced to the House that aims to reduce exploitation of the Section 321 de minimis threshold. Section 321 de minimis currently allows goods from foreign countries to be imported duty-free and tax-free as long as the value of the goods is under $800. Over the past several years, the amount of packages arriving in the US under Section 321 has expanded exponentially, currently averaging over 2 million packages per day. There are major concerns that this is reducing the competitiveness of US businesses, and allows bad actors in the industry to exploit the lack of oversight on these lower-value shipments. The Import Security and Fairness Act is intended to close this loophole and provide additional oversight to the de minimis import process. The Act also will require CBP to collect information on all de minimis shipments in order to prevent further abuse of the rule, as well as ensuring de minimis is not being used to bring in goods made with forced labor.

Starting January 22nd, DHS will begin enforcing a requirement for all non-US citizens traveling to the United States via land port of entry or ferry terminals to be fully vaccinated against COVID-19. This new requirement is part of a series of changes to Non-Citizen entry into the US that was created in October of last year in order to fight the ongoing spread of COVID-19.  As of January 22nd, any non-US individuals entering the US - regardless of their reasoning for entry – will need to verbally state their vaccination status and provide proof of a CDC-approved COVID-19 vaccination, along with the usual documents required to cross into the United States.

US importers are responsible for keeping all records related to imporations into the United States for the legal retention period.  In general records must be kept for 5 years from the date of entry, or 5 years from the date of the activity which required the creation of the record.  Failure to produce entry records upon lawful demand can result in significant consequences.  Check out CBP’s informed compliance publication on “Recordkeeping” in the link below to learn more.

Valentine’s Day is just around the corner! Sweep your partner off their feet with these fun Valentine’s facts.

  • In 1875, a Swiss inventor Daniel Peter combined cocoa and condensed milk to create the first Milk Chocolate, which is now the most widely consumed chocolate across the globe. The milk condensation process had been created by Henri Nestlé, who's last name may sound very familiar! These men would go on to create Nestlé, one of the largest food and confectionary companies in existence today.
  • The United States is the biggest importer of chocolate in the world! In 2020, the United States imported $2.9 billion worth of chocolate.
  • Projections for 2022 show that Americans will likely spend over $27 billion on their Valentines. This is an increase of over $5 billion compared to last year!
  • Nothing says “I Love You” like a new diamond bracelet! Lovers all across the United States spent a whopping $5.8 billion on jewelry for their significant others in 2021.  
  • Conversation Hearts (also called Sweethearts), while not exactly considered the best-tasting Valentine’s candy, have become a holiday staple since their creation in 1901 by the famous confectionary company Necco. Approximately 8 billion conversation hearts are made every year!

First Sale Valuation and Reducing Section 301 Tariffs

February 10, 2022

2:00 PM ET- 3:00 PM ET

Sandler Travis & Rosenberg

The Census Bureau is proposing to amend its regulations to reflect new export reporting requirements related to the country of origin.  Specially, the Census Bureau is proposing to add a conditional data element, country of origin, when foreign origin is selected in the Foreign/Domestic Origin Indicator field in the Automated Export System (AES).  In addition to the new export reporting requirement, the proposed rule would make remedial changes to the FTR to improve clarity and to correct errors.

 Written comments are requested and must be received on or before February 14, 2022.

Earlier this year, the Uyghur Forced Labor Prevention Act was introduced to the Senate. The bill includes measures to restrict certain goods imported from the Xinjiang Uyghur Autonomous Region due to alleged human rights violations and forced labor being used to manufacture exported goods. The only exceptions for imported goods from this region will be if CBP can establish proof that the goods were not made through exploitive or forced labor practices. The bill will also empower the current administration to impose and enforce sanctions against any businesses or individuals supporting any forced labor practices within the region. This bill was passed in the House on December 8th, and the Senate on December 16.  The bill was signed by the President on December 23, 2021.

On December 13th, Chris Magnus was sworn in as the Commissioner of the United States Customs and Border Protection agency.  The new Commissioner will lead the United States’ largest law enforcement agency, with nearly 65,000 people. Magnus brings with him over 40 years of experience in law enforcement leadership from across the US and has served as police chief in several cities. Magnus has stated that he wants to work together with Congress to address the most pressing issues for the CBP.

On December 23, 2021, the White House issued a proclamation to modify the Harmonized Tariff Schedule of the United States.  The White House Press Release says “Section 1205(a) of the Omnibus Trade and Competitiveness Act of 1988 (the “1988 Act”)…directs the United States International Trade Commission (the “Commission”) to keep the Harmonized Tariff Schedule of the United States (HTS) under continuous review and periodically recommend to the President such modifications to the HTS as the Commission considers necessary or appropriate to accomplish the purposes set forth in that subsection.”  On December 28, 2021 the Presidential proclamation was published in the Federal Register and the new changes will be in effect 30 days later (January 27, 2022).

Flagging for reconciliation allows importers to file their entry summaries using the best available information they have on file and electronically “flag” estimated elements, with the mutual understanding that CBP will receive the actual information at a later date.  Importers can then provide the corrected information on a new type of entry called a Reconciliation.  To read more about reconciliation, check out the link below.

January is National Meat Month, and what better way to celebrate than with the perfect steak dinner! Of course, you’ll need some quality ingredients to serve your protein-rich meal, but where did all these ingredients come from? It may surprise you to find that old traditional steak dinner requires foods and goods from all over the globe to come together on your dinner plate. The package label may say ‘New York Strip Steak’ but there is a fair chance that steak was imported from Canada, Mexico, or New Zealand. Once you get the steak going, you can add some flavor by topping it with some shiitake mushrooms, fresh from South Korea! Next, you’ll want a side for the meal, so scallop some Canadian potatoes and top it with some American cheddar cheese. Of course, you’ll need some greens to balance out the meal - time to toss a salad! Take a big pile of leafy lettuce and ripe tomatoes (both imported from Mexico) and top with some fancy cheese and dressing, both Italian! Considering all the countries that had to come together to plate this one meal, maybe we should call it International Meat Month?

New Product Classifications Under HTSUS 2022

January 11, 2022

2:00 PM ET – 3:30 PM ET

Sandler Travis & Rosenberg

The US Chamber of Commerce has sent a letter to Congress encouraging Congress to take action on renewing GSP (Generalized System of Preferences) and the MTB (Miscellaneous Tariff Bill), both of which expired in December of 2020.  The Chamber pointed out the impact to US business and urged Congress urgently approve this legislation before the end of the year.

On October 1st, APHIS (USDA Animal and Plant Health Inspection Service) began implementing Phase VI of the Lacey Act enforcement scheduled. Last year, APHIS solicited comments on Phase VI and received numerous concerns that trade could be delayed or disrupted if certain products were added to HTS 4415 and required import declarations.  Phase VI now includes rules that benefit shippers by not requiring import declarations on crates, pallets, and other Wood Packaging Materials used to ship goods.  Only new products categorized under HTS 4415 will require declarations upon import.

For further details and a list of all affected products, pleasesee the official statement here  

Starting January 1, 2022 the current tariffs on imports of EU steel (25%) and aluminum (10%) will be replaced with a Tariff-Rate Quota. All steel and aluminum products within-quota will not have any Section 232 duty applied, whereas any steel or aluminum imports that arrive above-quota will be charged their respective Section 232 duty rate. The TRQ will be reviewed annually and recalculated regularly in order to keep up with demand.

Customs Audits 101: What to Expect

December 7, 2021

2:00 PM ET- 3:00 PM ET

1 CCS Credit

Sandler, Travis and Rosenberg

CBP’s website (linked below) for “Official Notice of Extension, Suspension and Liquidation” can be used to determine the status of entries.  Entries must have a status of extension, suspension, or liquidated to produce any results.  Some of the information returned includes Posted date, Liquidation date, Action (meaning change increase or no change, etc.), Port of Entry, Entry date, Entry Type, and the CEE Team designation.

Users can search by entry number along with combinations of filer code and importer of record numbers.  This can be a useful quick check tool to see the status of entries!

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