Today, American Shipper published in their Daily Digital Magazine, the news that acting CBP Commissioner, John Sanders, is resigning effective July 5th, 2019.
Acting Commissioner Sanders was in his role for 2 1/2 months. According to various news reports, President Donald Trump is expected to name Mark Morgan, a former FBI analyst who currently serves as acting director of Immigration and Customs Enforcement, as the new acting CBP commissioner.
Facing the onslaught of President Trump’s China Tariffs,
importers are having to get creative in order to minimize the impact these
higher duty rates will have on their goods.
Foreign Trade Zone / Bonded Warehouse / Tariff Engineering
Foreign Trade Zones (FTZ), approved by the U.S. government,
can be a temporary haven for companies reducing duties on a case-by-case
basis. Trade zones are not a loophole
for goods destined for the U.S. market, but they can be a way for companies to
avoid duties on goods shipped to the United States and subsequently re-exported
to another country.
There are different types of zone designations depending on
the end use of the goods; further manufacturing, packaging, comingling, etc. In any case, the duties are not paid out
until the goods are exported out of the Trade Zone, either in-bond for
re-export or destined for the U.S. market.
Companies can utilize the zones to spread out those duty payments based
upon the timing of the export from the zones.
This can help manage huge import duty payments being paid at time of
import to the U.S.
Bonded warehouses are another option. Firms can store and
make products in “Customs-bonded” warehouses for up to five years. Duties are
only applied once products leave the facility for consumption. Companies can
apply to U.S. Customs for a license to operate a bonded warehouse.
According to a paper by law firm Barnes, Richards & Colburn,
Tariff engineering also is making a comeback.
Companies can tweak their design processes in order to be able the
re-classify their goods under a lower duty rate. However, importers need to be very conscious
of taking this too far, since Customs tends to reject revisions to existing HTS
codes when companies appear to be making a “fictional or temporary
Effective July 2019, CBP will no longer publish on CBP.gov the quarterly interest rates for Reconciliation. Filers can find the quarterly rates on the www.irs.gov website by querying “quarterly interest rates for (YYYY)” in the search engine located on the upper right hand corner of the webpage.
section of the ACE Business Rules will be updated with the above website for
identifying the quarterly rates.
If you have any questions or require
additional information, please email OT-RECONFOLDER@CBP.DHS.GOV, Commercial
Operations, Revenue and Entry Division, Office of Trade.
U.S. Customs Centers of Excellence and Expertise, aka “CEEs” are Customs way to better align with modern business practices. Whether or not you are currently engaged with your CEE, Importers are already assigned to one.
Ever wonder how to find out which CEE team has been assigned to your company?
Well, it’s not as difficult as you may have thought… In order to get the details, you just need to do a simple bond query with your company’s Federal Identification number, either though your surety, Customs broker, or in ABI/ACE directly . The query results will show you who your CEE team is. Below is an example of how it looks in the ABI response.
It’s as simple as that! Contact CustomsNow if you have any questions.
CBP TRADE SYMPOSIUM IN CHICAGO – CBP sent out a formal notice that the Trade Symposium will be held in Chicago this year. The registration will open on Thursday, June 13th, at noon EST. Learn more here.
This is always a great event to get up-to-date information on current trade activities. The event sells out quickly so be sure to register early!
According to to CBP CSMS# 18-000689, issued today, November 21, when filing a reconciliation for a Free Trade Agreement issue, ACE is displaying incorrect original paid amounts. Until headquarters issues further guidance, filers should submit the reconciliation header information in the Document Imaging System (DIS) when filing the reconciliation with a FTA issue.
If you have any questions or require additional information, please send an email to OT-RECONFOLDER@CBP.DHS.GOV, Commercial Operations, Revenue and Entry Division, Office of Trade.
On Friday June 15th, 2018, the United States Trade Representative (USTR) announced that the U.S. will follow through with 25 percent tariffs on approximately $50 billion worth of goods from China in 2018 import value (read announcement here).
The list of goods covered by the order includes mainly industrially significant technology products spread across 1,102 U.S. tariff lines. The list of specific tariff numbers can be found here and, as announced, CBP will begin collecting these additional duties beginning July 6th.
Additionally, there is a second set of HTS numbers which have been identified by the interagency Section 301 Committee as benefiting from Chinese industrial policies. These include the “Made in China 2025” industrial policy, and the set covers about $16 billion worth of imports from China. The second set of products will undergo a public notice and comment process, including a public hearing, after which USTR will issue a final determination on the products from the list that would be subject to the duties, the agency said. Crowell Morning Trade Law wrote a good overview on this, here.
The USTR will “soon provide an opportunity” for the public to request exclusion of “particular products” from the duties to be imposed under Section 301 of the Trade Act of 1974, and will issue a notice in the Federal Register with details on this process within the next few weeks, USTR said.
Have you been asked by your Chinese partners for additional company information for new shipment into and out of China? It is our initial understanding that for US entities the information requested is the consignee or notify party’s company Employee Identification Number (EIN). The carrier OOCL provides a good overview to their customers on their website, here.
Our friends at NCBFAA are also working diligently on providing guidance on the new requirements for shipments to and from China. The regulations are confusing and in some cases contradictory. We will follow up with addition information as it becomes available.
The GACC published the original requirements in 2008 in Decree No. 172. These specific requirements were not implemented in 2008. Customs announced in Notice No. 56 that implement would begin June 1, 2018. (See links to the notices below).
Below are some additional links to the GACC notices: