JAS USA COMPLIANCE

News & Insights from JAS Worldwide Compliance

JAS Forwarding (USA), Inc.

6165 Barfield Road
Atlanta GA, 30328
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Tel: +1 (770)688-1206
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JAS USA Compliance Insights

Helpful Tips

JAS USA Compliance Insights on the Impact of COVID-19

The new USMCA Trade Agreement will be entering into force in just a few months! CBP has published an interim implementation instructions guide.

Download USMCA Interim Guide
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The Department of Commerce has initiated an investigation on “Forged Steel Fluid End Blocks” Germany, India, Italy and China.  The products covered by these investigations are forged steel fluid end blocks (fluid end blocks), whether in finished or unfinished form, and which are typically used in the manufacture or service of hydraulic pumps.

Read the Entire Scope of the Investigation
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CBP has released their schedule for the customs broker’s license exams for 2020.  The April 2020 exam will be held on Wednesday, April 1, 2020, and exam scheduled for October 2020 will be held on Thursday, October 8, 2020.  Registration for the April 2020 exam will open on February 3rd at 12:00 AM EST.

Register Here
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Incoterms 2020
December 4, 2019

The International Chamber of Commerce (ICC) has released the new Incoterms 2020 rules that identify the responsibilities of buyers and sellers for the delivery of goods in international trade. The new terms take effect on January 1, 2020.

Get More Information on INCOTERMS 2020
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Every product subject to a proposed or ongoing Section 301 tariff action is identified by an 8-digit or 10-digit HTS Subheading. This search engine allows you to search by an 8-digit HTS Subheading to obtain information about a proposed or ongoing Section 301 tariff action.

Search for an HTS
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Customs and Border Protection has a new page for CSMS Messages.  The old page was accessible until September 30th.  Effective October 1st, the new CSMS page will contain the most up to date message feed.

To the New Customs CSMS Messages
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In the coming months, U.S. Customs and Border Protection (CBP) will deploy a new online tool for submitting Electronic Vessel Manifest Confidentiality requests. Automating the process by which an importer, consignee, or exporter may request confidential treatment of its name and address on inward or outward vessel manifests, this enhancement will allow trade users to manage their own confidentiality requests electronically via a new tool on cbp.gov.

Get More Information
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Incoterms 2020
August 5, 2019

Did you know that there is an update to Incoterms that will be effective January 1, 2020?  There will be a few changes!  Some of the announced changes include a new incoterm CNI (Cost and Insurance).  This term will cover a gap between FCA and CFR.

Unlike FCA, which would include the cost of international insurance on account of the seller-exporter, and as opposed to CFR/CIF. CNI would not include freight. As in the other Incoterms in “C,” this new Incoterm would be an “arrival Incoterm,” i.e., the risk of transport would be transmitted from the seller to the buyer at the port of departure.

​Stay tuned over the next several months for more updates on Incoterms 2020!

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Customs Trade Partnership Against Terrorism (CTPAT) is but one layer in U.S. Customs and Border Protection’s (CBP) multi-layered cargo enforcement strategy. Through this program, CBP works with the trade community to strengthen international supply chains and improve United States border security.

How CTPAT works? When an entity joins CTPAT, an agreement is made to work with CBP to protect the supply chain, identify security gaps, and implement specific security measures and best practices. Applicants must address a broad range of security topics and present security profiles that list action plans to align security throughout the supply chain.

CTPAT members are considered to be of low risk and are therefore less likely to be examined at a U.S. port of entry.

Get More Information on CTPAT
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CBP recently reported that in fiscal year 2018 there was an increase in the number of importer audits.  That number increased from 418 to 435 audits.  The total number of trade penalties also increased from 931 to 1385.  However, the number of liquidated damages decreased by 11%.  Any idea why?

It turns out that importers are starting to take proactive measures to maximize compliance in the event they are audited.  Some proactive measures include import manuals, submitting binding ruling requests, expert consultations and more.  Do you have an import manual?  If not, now would be the time to get one!  Contact your local JAS representative for more information!

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The USTR has published a database with a search option to enter an HTS Code to determine if the tariff is subject to the additional duties from China.  The database can be found by clicking here!

Read More
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Did you know that there is a free, online tool designed by Registrar Corp to assist companies in assessing their U.S. FDA compliance issues, possible requirements and deadlines under five Food Safety Modernization Act (FSMA) Rules?

  1. Preventive Controls for Human Foods
  2. Preventive Controls for Animal Food
  3. Foreign Supplier Verification Program
  4. Intentional Adulteration (Food Defense)
  5. Produce Safety

Sign UP for the FSMA Wizard
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On 02/15/2019, Commerce published in the Federal Register a notice of lifting the suspension of antidumping duties on truck and bus tires from China.  The notice is effective February 15, 2019 and supersedes any previous instructions terminating the antidumping duty.

Download PDF Here
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The 2019 updates to the US Harmonized Tariff Schedule are now available.  Please review to ensure that you have the latest version!

View the Updated Document
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China duties are increasing March 2019, are you setup for ACH?  Automate your duty payments by signing up for ACH today!      

ACH Debit is an alternative to using cash or checks for payment of duties and fees on imported merchandise to US Customs.  It is a great option to automate payments directly from the importer’s account and eliminate delays and can also be a cost savings.  For more information on how to get setup with an ACH account, ask your JAS representative today!

Download ACH Flyer
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Are you wondering if imports from Hong Kong are subject to the additional 301 duties?  Or what about if the 301 duties are eligible for drawbacks?  Are goods subject to the 301 tariffs if it’s admitted into a free trade zone (FTZ)?

CBP has the answers for you!  Check out the section 301 trade remedies frequently asked questions!



Get More Information
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Helpful Tips 2!
November 29, 2018

We just received a CF-28 from U.S. Customs ….. WHAT NOW?

The industry is starting to see an increase in the number of CF 28’s and CF29’s due to related imports covered by the Section 301 tariffs on goods from China.  We are expecting to see what could be even more of an increase over the next couple of weeks.  CBP will be scrutinizing imports of goods subject to the Section 301 duties and the ability to show reasonable care is critical.  A lack of reasonable care can lead to steep penalties!

Here are a Few Suggestions on What to do if you Receive a CF-28 Request!
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DAP is the short form for “Delivered at Place” that was introduced in 2010.  It is a term of agreement between a buyer and a seller much like DDU.  DDU was removed from Incoterms 2010 and replaced with DAP; however, many traders continue to use DDU in their business documents.  As a result, if traders use the terms in their business documents it is mandatory to mention “as per Incoterms 2000.”  Otherwise, DAP terms are applicable.

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CONCERNED WITH HIGH DUTIES ON IMPORTS FROM CHINA?

​AUTOMATE YOUR DUTY PAYMENTS BY SIGNING UP FOR ACH TODAY!

ACH Debit is alternative to using cash or checks for payment of duties and fees on imported merchandise.  It is a great option to automate payments directly from the importer’s account and eliminate delays and can also be a cost savings.  For more information on how to get setup with an ACH account, ask your JAS representative today!

Download the ACH Service Flyer
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Can you guess how many tariff numbers are in the US Harmonized Tariff Schedule?  

Over 17,000!!!!!!  The Harmonized Tariff Schedule of the United States (HTSUS), also referred to as the Harmonized Tariff Schedule of the United States Annotated (HTSA), is the primary resource for determining tariffs (customs duties) classifications for goods imported into the United States.  It can also be used in place of Schedule B for classifying goods exported from the United States to foreign countries.  The Harmonized Tariff Schedule classifies a good based on its name, use, and/or the material used in its construction and assigns it a ten-digit classification code number, and there are over 17,000 unique classification code numbers!!!!

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Is an Electronic Export Information (EEI) Declaration required?  

Shipments that require an EEI or AES filing are required but not limited to the following:  

  1. Goods valued over $2500 USD for each Schedule B number.  
  2. Good requiring an export license.  
  3. Goods subject to ITAR but exempt from licensing requirements.  
  4. Used self-propelled vehicles.
  5. Rough diamonds.  

​There are several exemptions as to why an AES/EEI would not be required and can be found in 15 CFR 30.36 and 30.37.

Read the Full List of Exemptions
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Does your imported merchandise require antidumping or countervailing duties?  

An anti-dumping duty is a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. Dumping is a process where a company exports a product at a price lower than the price it normally charges on its own home market. To protect local businesses and markets, many countries impose stiff duties on products they believe are being dumped in their national market.

U.S. Customs has an ADD/CVD searchable database to retrieve up-to-date case information and commodity specific information regarding outstanding cases.

Search the ADD/CVD Database
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Are You at Risk?  Have you ever thought or even said any of these statements?

“Just use this harmonized tariff code, it’s the one we have always used.”

“Send it to another port and use the same HTS and maybe that port won’t catch it…”

”We’ve never had to enter this item as ADD/CVD before so it doesn’t apply.”

“Compliance manual?  Why do we need that?”

“Ultimate Consignee type?  Other/unknown seems like a good choice.”

“Routed export transaction, who cares.”

“Oh just mark it as EAR99 and send it no license required, it can’t be harmful.”

If you have thought or said any of these statements, you may be putting yourself at a compliance risk!  JAS Compliance may be able to help you!!!  We offer a variety of value-add services.

Please contact your JAS representative today for more information!

Download Our Compliance Service Flyer
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The 2018 updates to the US Harmonized Tariff Schedule are now available.  The current version available is “2018 Stages Rates Addition.”  Please review to ensure that you have the latest version!    

To view the updated document:  https://hts.usitc.gov/current

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SIMP

A rule proposed December 28, 2022, by the National Marine Fisheries Service (NMFS) to significantly expand the species covered under the Seafood Import Monitoring Program (SIMP) was withdrawn on November 16. The additional species to be added to the SIMP, along with a change stating that the importer of record on the customs filing must also be the party that holds the required  International Fisheries Trade Permit, had caused concern in the trade community leading to a significant number of comments being filed with NMFS concerning the proposed rule. The NMFS advised that they will now conduct a comprehensive SIMP review to determine any future action to be taken in order to strengthen the impact and effectiveness of SIMP.

EURO NOTE

In a recent Cargo Systems Messaging Service message, CBP provided a list of the countries that are members of the European Union and who, therefore, use the Euro as their domestic and international trade currency. It was further stated, “Therefore, all invoices, other documents, and entry transmissions from these countries must show EUR for the foreign value or as their currency code”. CBP is updating its records to reflect the Euro as the appropriate currency for all countries listed.

CBP LOGO

Customs and Border Protection (CBP) will hold an important webinar on December 15, 2023, from 2PM to 3PM on the topic of the 2024 Permit Annual User Fee and Triennial Status Report Filing. The webinar will explain the process for paying the Permit fee and filing a Triennial Status Report via the e.CBP online portal. A link to register for the webinar is below.

CRACKERS

Christmas crackers are a festive holiday tradition in the United Kingdom, Australia, Canada, New Zealand and South Africa. They consist of a decoratively wrapped tube with a prize, a paper hat and a joke card inside. The wrapping on the tube is extended outwards on both sides and twisted around a shock sensitive card strip similar to what is used for cap gun shot caps. A person at each end will then pull on the wrapping simultaneously, generating a bang or cracking sound and causing the tube to open and reveal the prizes. It is believed that Christmas Crackers were invented in London around 1847 by a confectioner named Tom Smith who was looking for a way to repackage the candies he sold to increase sales. The hats and prizes were added by his son Walter Smith to further increase sales as other competitors began selling crackers as well. If you are planning on visiting the United Kingdom and are thinking of bringing back any Christmas Crackers, kindly note that the Transportation Security Administration does not allow crackers in carry-on bags or checked luggage on flights to the U.S.

ALUMINUM EX

A petition was filed on October 4, 2023, and an investigation instituted on October 13, 2023, by the Commerce Department and the International Trade Commission to greatly expand the antidumping and countervailing duty orders in effect on aluminum extrusions from China to cover products that are now exempt and to add 14 additional countries. The petition was filed by the United Steelworkers Union and the U.S. Aluminum Extruders Coalition. The requested scope of the order is five pages long and covers aluminum extrusions for a wide variety of applications. The list of countries to be included are Colombia, the Dominican Republic, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, the People's Republic of China ("China"), South Korea, Taiwan, Thailand, Turkey, the United Arab Emirates and Vietnam. Importers of aluminum extrusions from the listed countries should follow the progress of this investigation and possibly pursue legal involvement in the proceedings if appropriate.

EU FLAG

The Internal Market and International Trade committees of the European Parliament adopted a draft regulation that would ban the importation and exportation of goods proven to be made with the use of forced labor. Items suspected of being made with forced labor would be halted at the border. If forced labor use is proven, the items would have to be donated, recycled, or destroyed. Any related goods that had already reached the European Union (EU) market would have to be withdrawn from the marketplace. The regulation would also create a list of geographical areas and economic sectors at high risk of using forced labor. For goods from these areas and sectors, there would be a presumption that forced labor was involved and the company attempting to import or export such goods would have the burden of proof to show otherwise. The EU council will review the proposed regulation next and then talks will start over the final shape of the regulation.

SEMICONDUCTOR

On October 25, the Bureau of Industry and Security (BIS) published in the Federal Register several updates to its comprehensive interim final rule of October 7, 2022, which amended the Export Administration Regulations (EAR) to implement controls on advanced computing integrated circuits (ICs), computer commodities that contain such ICs, and certain semiconductor manufacturing items exported to China. The updates, inter alia, adjust the thresholds for which chips are covered by the regulations, expand licensing requirements to an additional 43 countries included in the D:5 Country Group of the EAR, and add several dozen items to the list of controlled semiconductor manufacturing equipment. Exporters of ICs and semiconductor manufacturing items should thoroughly review the notice and submit any comments to BIS by the December 18, 2023, deadline. The Center for Strategic & International Studies has published a concise summary and commentary on these updates prepared by Emily Benson. A link to this commentary is below.

GOAT

Customs and Border Protection Agriculture Specialists (CBPAS) are tasked with preventing the introduction of invasive species and toxic substances into American agriculture and natural resources. To accomplish this task, a CBPAS will utilize targeting, detection and interception techniques while examining passengers returning to the United States and commercial cargo arriving into U.S. ports of entry. CBPAS’ also work to identify and prevent any attempts at agro-terrorism via the intentional introduction of disease or the contamination of food products with toxic substances. The diversity of passengers and cargo attempting to enter the United States on a daily basis can lead to some interesting interceptions by agriculture specialists.

One recent example took place at the Minneapolis-Saint Paul International Airport in early October. CBPAS’ inspected a small box carried by a passenger returning from Kenya. To the specialists surprise, the box contained giraffe fecal material. The passenger then advised that she had obtained the droppings in Kenya and planned to make a necklace with them, also stating that she had used moose feces at her home in Iowa in the past for the same purpose. The box was then seized and destroyed.

Another recent example occurred at the Chicago O’Hare International Airport. Two passengers returning from Congo were referred for inspection. Inside their baggage was found an unknown meat along with 15 pounds of raw goat viscera including, among other things, the heart, lungs and entire digestive system of a goat. The items, of course, were confiscated. Never a dull moment in the life of a CBPAS!

CBP LOGO

Customs and Border Protection (CBP) quietly unveiled a new online portal, ePetition, for the filing of required documentation for petitions for mitigation of amounts charged in penalty notices and liquidated damage claims. Petition filers, however, should still make contact with the responsible CBP officer stated on the notice to confirm that uploaded documents are well received. Petitions can then subsequently be looked up on the portal and the status checked.

CONTAINERS LA

As of November 1, 2023, the Traffic Mitigation Fee (TMF) charged at the ports of Los Angeles and Long Beach will increase 4 percent. The increase is a result of the 4 percent increase in longshore wage and assessment rates recently ratified in the coastwide contract between the International Longshore and Warehouse Union and the Pacific Maritime Association. The TMF was instituted as a way to encourage shippers to have their cargo picked up at the terminals during late night shifts or on weekends to reduce the congestion at the terminals occurring during normal business hours. Beginning November 1, the TMF will be $35.57 per TEU (twenty-foot equivalent unit) or $71.14 per forty-foot container.

TRAINING GROUP

Customs and Border Protection (CBP) recently announced that it will be providing a quarterly series of webinars free of charge to assist and train small and medium-sized businesses on how to report trade violations that could threaten their bottom line and hurt the overall economy. The webinars will run from November 7, 2023, through September 10, 2024, and will guide participants through the process of reporting commercial trade violations using the Trade Violations Reporting Tool. The webinars will demonstrate how to report allegations of a variety of trade violations, including antidumping and countervailing duty evasion, forced labor, and natural resource crimes.

LEIDEN

On November 23, Thanksgiving Day will be celebrated in the United States. In the town of Leiden, Netherlands stands an ancient church, called the Pieterskerk, that has a unique connection to the Thanksgiving Day celebration. Inside this church, you will find a large display dedicated to the Pilgrims who landed at Plymouth, MA on December 22, 1620. The one hundred or so individuals who arrived in Plymouth on the vessel Mayflower are widely known for having fled England to escape religious persecution for their Puritan faith. However, less widely known, is that many of these pilgrims actually first fled to Leiden in the Netherlands and lived there for around 12 years before setting sail for America. Their pastor John Robinson was buried at this church and there is a prominent memorial display for him inside. The church also has an ancient pipe organ that is still played and that contains some pipes dating to the 1400’s. Another interesting fact about Leiden is that during the same time the pilgrims were living there, a teenager by the name of Rembrandt Harmenszoon van Rijn was living there as well. This young man became known to history as a brilliant painter and printmaker, going simply by his first name, Rembrandt. If you ever travel to the Netherlands, make sure to visit Leiden and the Pieterskerk.

CCSF WAREHOUSE

JAS Forwarding had its ninth facility certified for cargo screening as a Certified Cargo Screening Facility (CCSF) by the Transportation Security Administration (TSA) on August 9, 2023. Located in Somerset, NJ, the facility handles eCommerce and, as a result, 60 pallets a day on average are being screened. This equates to approximately 10,000 to 15,000 pieces of cargo being screened at this one facility. With the approaching eCommerce peak season about to start in November, the volume of cargo screened is expected to increase 150%! The primary screening method is K9, therefore, our K9 handlers and K9’s such as Zeus (pictured above and below) will be hard at work!

CLOSED SIGN

A U.S. government shutdown was averted at the eleventh hour on the evening of September 30, when both the House of Representatives and Senate passed bills to extend present government funding levels for 45 days to November 17. Additional aid to Ukraine and provisions to enhance border security were left out of the measures, while a large appropriation of $16 billion for disaster relief was included. The limited term of the measures, however, means that a shutdown could well become imminent again unless longer term funding bills are approved within the next 45 days.

COMPLIANCE PIECE

The Commerce Department’s Bureau of Industry and Security (BIS) imposed a civil penalty of $48,750 against a leading manufacturer of aircraft engines to resolve 13 violations of the antiboycott provisions of the Export Administration Regulations (EAR) as was alleged in a Proposed Charging letter. Between May 2019 and March 2020, the manufacturer received requests on thirteen different occasions from a Middle Eastern airline to not import any Israeli origin goods into the Middle East to fulfill purchase orders from the airline. The manufacturer failed to report to BIS the receipt of these requests as required by 15 CFR 760.5. However, the manufacturer fully cooperated with the investigation and significantly reduced the penalty imposed as a result of the remedial measures taken after discovery of the conduct. This is another reminder of the need to have robust procedures in place to monitor receipt of any such boycott requests and to have a mechanism in place to report them immediately to BIS.

SOFTWOOD LUMBER

Another chapter in the ongoing softwood lumber dispute between the United States and Canada was opened on September 1. Canada’s Trade Minister Mary Ng announced that Canada was launching a Chapter 10 United States-Mexico-Canada Agreement (USMCA) challenge to the latest countervailing duties (CVD) in place on importations of softwood lumber into the U.S. Additionally, a suit is being filed by Canada in the U.S. Court of International Trade to challenge the antidumping duties (ADD) on softwood lumber from Canada also now in effect.

The dispute goes back to 1981 when the U.S. lumber industry first requested the Department of Commerce to investigate Canadian stumpage programs and impose countervaling duties. The issue is rooted in the fact that most Canadian land where softwood lumber is harvested from is owned by provincial governments, and the fees charged to harvest timber on the land, or the stumpage rates, are set by government regulation. In the United States, most softwood timber land is privately owned and the stumpage rates are determined by market forces. U.S. lumber companies have long claimed that the stumpage rates charged to harvesters by the provinces in Canada are well below market rates and are, therefore, countervailable subsidies. An agreement to suspend the application of any ADD or CVD that had been in effect expired in 2015, and the battle has raged on ever since. The World Trade Organization (WTO) ruled in favor of Canada in 2020 and stated that the United States CVD measures were not in conformity with its WTO obligations. However, the U.S. has ignored that determination for the most part. Talks between the leaders of Canada and the U.S. in Ottawa earlier this year did not break the impasse.

COSMETIC BAG FDA REGISTRATION

The Food and Drug Administration recently published its much anticipated Draft Guidance on Registration and Listing of Cosmetic Product Facilities and Products as mandated by the Modernization of Cosmetics Regulation Act of 2022. The guidance provides details on which facilities must register and the information required to be provided in cosmetic product listings. FDA also published screenshots for the “Cosmetics Direct” electronic submissions portal to be utilized for the registration and listings. The portal is supposed to be available in October.

CRITICAL MINERALS

The recent passage of the Inflation Reduction Act of 2022 along with the increased attention given to clean energy transportation alternatives and environmental protection has highlighted the increasingly important role played in the economy by what are termed critical minerals and rare earth elements. The Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) has published a very helpful primer that explains what these items are, where the main sources of supply are, and their end uses and applications. The IGF is a forum of more than 80 member countries established to support the advancing of sustainable development goals through effective laws, policies, and regulations for the mining sector.

As the primer states, critical minerals are the minerals and metals necessary for renewable energy and clean technology. It further states that “there is no universally agreed upon definition of what “criticality” means, and criticality changes over time, depending on the needs of society and the availability of supply”. Rare earth elements are “a set of 17 metallic elements that are considered critical because of their properties”. These elements are not in fact rare but are referred to as rare because they can be difficult to extract and can be complex to process.

The need for and importance of these minerals and elements will only increase and will continue to have major impacts on United States trade policy and the logistics industry.

FTZ CONFERENCE OCTOBER

JAS employees were on the move in September as Compliance Project Manager Scott Cassell and Miami FTZ Administrator Ivel Martinez attended the National Association of Foreign-Trade Zones “Celebrating 50 Years of NAFTZ” conference held in Miami on September 10 to 13. JAS operates foreign trade zones (FTZ) in both Charleston, SC and Miami, FL and the conference was a great opportunity for the JAS team to stay abreast of the current issues and regulatory changes affecting FTZ’s.

The entire JAS compliance team also meet on September 19 and 20 at the JAS headquarters in Atlanta for their annual meeting. Led by Vice President of Compliance Laurie Arnold this year’s theme was “Coming together is a beginning, keeping together is progress, working together is success!”. Various topics were discussed and strategies for the coming year were formulated.

HALLOWEEN

It is October and that means Halloween is around the corner! The Library of Congress reports that Halloween has its roots in the ancient Celtic festival of Samhain (pronounced “SAH-win”). Samhain was a pagan religious celebration at the time of the harvest at the end of summer in which people would light bonfires and wear costumes to ward off ghosts. Then, in the eight century, Pope Gregory III designated November 1 as a day to honor Catholic saints and this was called All Saints Day. All Saints Day incorporated some of the traditions of Samhain. The evening before All Saints Day then became a holiday as well and was celebrated as All Hallows Eve, from which we derive Halloween. The Halloween tradition of carving pumpkins into Jack O’Lanterns is rooted in the Celtic legend about a man named Stingy Jack who was able to repeatedly trap the devil and would only let him go if he promised that Jack would never go to hell. However, when Jack died, heaven did not want him either, so he had to wander the earth as a ghost for eternity. The devil then gave Jack a burning lump of coal in a carved-out turnip to light his way. The tradition then started in Ireland of carving scary faces in turnips to frighten the ghost of Jack and other evil spirits away. Have a safe and happy Halloween and look out for Jack!

Worker Examination

In a Federal Register notice, the Transportation Security Administration (TSA) announced the opportunity for qualified, interested shippers to register as Certified Cargo Screening Facilities (CCSF). While the TSA had approved shippers to become CCSF’s previously when requested, the TSA had never fully integrated these operations into the Certified Cargo Screening Standard Security Program (CCSSSP). An incentive for shippers to consider becoming a CCSF is that, on October 31, the Impracticable to Screen (ITS) amendments that the TSA had in effect will expire. These amendments allowed cargo not easily screened due to the commodity packaging type or size to move via airfreight. After October 31, ITS cargo will require 100% screening. ITS cargo could be screened by the airline or other third-party service provider, however, higher costs for the shipper are likely to result.

To initiate the registration process, shippers must send an email indicating their interest to an address identified in the notice and TSA will respond with additional information regarding the application requirements.

PCB

Several prominent information technology associations, including the Semiconductor Industry Association, Retail Industry Leaders Association, and the Information Technology Industry Council, sent a letter to U.S. Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo expressing concern over the recent announcement by the Indian Government to require a license to import computers and related information and communication technology products into India. The licensing requirement is to take effect on November 1, 2023. One concern raised was that the licensing regime could make it difficult for U.S. companies with data centers in India to import servers into India that are needed for their operations. While the government announcement included certain exemptions, the associations requested more comprehensive details on the scope of the exemptions. Licensing requirements have also been used in the past as major non-tariff import barriers by various countries, which was another concern raised. The U.S. government was urged to request that India reconsider the implementation of the policy.

Pencils

In an important recent decision, the U.S. Court of Appeals for the Federal Circuit ruled in the case, Royal Brush Manufacturing, Inc. vs. United States Dixon Ticonderoga Company, that Customs and Border Protection (CBP) violated the Fifth Amendment right to due process of Royal Brush by providing only redacted versions of reports that CBP utilized in making its determination that antidumping duty (ADD) evasion occurred in connection with an Enforce and Protect Act (EAPA) investigation. The EAPA investigation centered around pencils shipped from the Philippines to Royal Brush in the United States. CBP concluded that the pencils were of Chinese origin and were transshipped via the Philippines to avoid paying the ADD under case A-570-827 for Cased Pencils from China. However, in making this determination, CBP relied on reports from a verification visit made to the Philippine factory. When Royal Brush requested copies of the reports, production number data and photographs taken at the factory were redacted due to CBP deeming this information to be confidential business information. CBP stated that there was no provision in the EAPA law itself that empowered them to issue a protective order which could have allowed release of the confidential information. Royal Brush then filed suit in the Court of International Trade (CIT).

The CIT ruled in favor of CBP, then Royal Brush appealed. The appellate court stated in its decision: “In short, the law is clear that, in adjudicative administrative proceedings, due process includes the right to know what evidence is being used against one.” The decision further stated: “As best we can make out, the government’s argument is that due process does not require public disclosure of confidential business information relied on in adjudication but only requires disclosure to affected parties under protective orders… We are aware of no case supporting any such extraordinary theory, and it is untenable on its face. The right to due process does not depend on whether statutes and regulations provide what is required by the constitution.” The case was remanded back to the CIT for CBP to provide Royal Brush the redacted information and give them an opportunity for rebuttal.

In legal circles, it is believed that this decision could also have an impact on CBP’s investigations under the Uyghur Forced Labor Prevention Act as CBP often does not release the evidence that it has compiled to the party whose cargo is being detained, which may now lead to court challenges of those decisions.

Allow Delay

In separate Cargo Systems Messaging Service (CSMS) messages, Customs and Border Protection (CBP) announced postponements of two important system enhancements. First, CBP stated on 08/22/23 that it was disabling the testing of the Ocean House Bill Release in its ACE test Certification Environment. This testing was a precursor to having Ocean Bill Release go live in ACE. A new date for when either testing will continue or the Ocean House Bill Release will go live is to be determined.

Also, on 08/25/23 CBP announced that it was postponing the migration of declarations-related functionality as a part of the Phase 4 ACE portal functionality modernization. A new date for this update is to be determined as well.

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