On November 7, 2019 the Office of the U.S. Representative (USTR) released a notice granting and additional 36 exclusions from the 301 China duties.
Prior, on October 28, 2019, the Federal Register notice (84 FR 57802) was issued notating that these exclusions would be retroactive to September 24, 2018 and extends through August 7, 2020.
CBP also issued CSMS #40564257, dated November 8th, 2019, providing guidance on filing List 3 product exclusions. Per the CSMS, the exclusions are available for any product that meets the description as set out in Annex A to Federal Register Notice 84 FR 57803, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the Harmonized Tariff Schedule of the United States (HTSUS) 10-digit headings and product descriptions in the Annex; not by the product descriptions set out in any particular request for exclusion.
As a reminder, for refunds, post-summary correction (PSC) filings can be made by the importer directly or any licensed broker; not just party who filed the original entry.
On September 28, 2019, CBP deployed the new Entry Type 86 for Section 321 (low-valued shipments) through ACE.
Trade users will benefit from this enhancement by being able to now electronically transmit low-valued shipment data to Customs. Using entry type 86 transaction, which includes importer and/or consignee information, the entry is transmitted via the Automated Broker Interface (ABI) into ACE, and filers will receive electronic release messages back from CBP for these low value shipments.
Filing an entry
type 86 to obtain release of low-valued Section 321 shipments is only a test; it
is not mandatory. All current Section 321 clearance processes remain in effect.
change in ACE?
questions about the new entry Type 86 functionality can be addressed by a
Client Representative or the ACE Account Service Desk (ASD) at 1-866-530-4172
This new entry type will only allow one bill per entry
This will allow for an entry to be filed with PGA data for a shipment of $800 or less
Entry type 86 will be available for CBP and trade users to review via ACE Reports
A Test Notice was published in the Federal Register on August 13, 2019.
With the transition to ACE over the last few years, one of the big benefits was the improvement of the Post Summary Corrections(PSC) filing process. With that, importers were looking forward to correcting entries quickly, easily, and less-expensively, regardless of the original filer.
year, CustomsNow identified a bug in ACE which was preventing importers from
filing a PSC for an entry that was originated by their 3rd party
broker. We worked closely with CBP to
help resolve, and finally, we’re happy to announce that this issue was recently
Now, many of our import clients are centralizing their correction process by either self-filing PSCs directly with Customs or by using CNI consulting to file on their behalf. This is especially helpful to manage refunds for those lucky enough to have a China Section 301 Exclusion or other refund situation.
The process is simple; run an ACE report, make corrections to the data, upload using CNI’s Import Upload Tool, and transmit to CBP. Results are returned in seconds and ACE data is updated immediately. There is even an “Accelerated Liquidation Requested” box for refunds to request that the entry liquidate within the 2-week cycle. Any follow up requests for documents from CBP are simply uploaded and transmitted via DIS. Learn more here.
According to this Federal Register notice, CBP is proposing amendments to the current broker verification regulations, and WOW!, it’s going to be a lot of additional work for the broker. This proposed amendment will require customs brokers to collect certain information from importers to enable the broker to verify the identity of an importer.
CBP believes this additional
scrutiny will help to prevent fraud and impede the creation of shell companies
by importers looking to evade CBP laws.
following information is what CBP is suggesting, at minimum:
The client’s name;
For a client who is an
individual, the client’s date of birth;
For a client that is a
partnership, corporation, or association, the grantor’s date of birth;
For a client that is a
partnership, corporation, or association, the client’s trade or fictitious
The address of the
client’s physical location (for a client that is a partnership, corporation, or
association, the physical location would be the client’s headquarters) and
The client’s email address
and business website;
A copy of the grantor’s
unexpired government-issued photo identification;
The client’s Internal
Revenue Service (IRS) number, employer identification number (EIN), or importer
of record (IOR) number;
The client’s publicly
available business identification number (e.g., Data Universal Numbering
System (DUNS) number, etc.);
A recent credit report;
A copy of the client’s business registration and license with
state authorities; and
The grantor’s authorization to execute power of attorney on behalf
of the client.
The comment period is open to the public until October 15th, 2019 and may be submitted through the Federal eRulemaking Portal here.
The September Trade Support Network (TSN) monthly meeting featured speakers from the Consumer Product Safety Commission (CPSC) and our own Nic Adams, VP Client Services for CustomsNow, was there.
The CPSC representatives announced that in late Fall, 2019,
they will be deploying functionality that will link their Risk Assessment Methodology
system, known as ITDS/RAM, with ACE to further coordinate efforts with CBP and
the trade community regarding examination and disposition results. This
represents the culmination of 2 years of work with CBP to achieve the first
phase, Hold Request and Conditional Release Coordination.
This first step in integrating with ACE will allow CPSC to more effectively notify CBP of shipments that are of concern and may require an examination in order to ensure the product is safe for consumers. (Today they manually notify CBP Officers of shipments they wish held.) They explained there are over 300 HTS numbers that they have identified as high-risk. The list of HTS numbers is not readily available but general product categories. Learn more details about this new program here. TSN members strongly suggested they work with CBP to flag those HTS numbers as other PGAs generally do.
The CPSC uses the entry data primarily to identify high-risk
shipments and, therefore, their review cannot begin until the entry is
filed. They will not receive the entry
details from CBP until the entry has been filed and the conveyance has been
‘arrived’ by the carrier.
Nic asked, “If a shipment is ‘Under Review’, should the
filer upload the commercials to ACE’s Digital Imaging System (DIS) right away”? The answer was “No”, and if the CPSC believes
the commercial documents may be of value, they will contact the filer and
request the documents.
This process is like the one employed today by CBP-Agriculture,
who do not receive PGA data from the filer.
Rather, they review manifests for products that may cause harm to U.S.
agriculture. Please see the CPSC
Participation in 1USG Notification Messaging at Import, attached, for
The U.S. puts in place the latest tariff increase – here’s what you need to know…
As announced on August 30th, 2019 in a Notice of Modification of Action from the Office of the United States Trade Representatives, additional 301 tariffs are now in place. For products covered by Annex A of the August 20, 2019 Federal Register notice, the rate of additional duty will be 15 percent on the current effective date of September 1, 2019. For products covered by Annex C of the August 20 notice, the rate of additional duty will be 15 percent on the current effective date of December 15, 2019.
For questions about this action, contact Associate General Counsel Arthur Tsao, Assistant General Counsel Megan Grimball, or Director of Industrial Goods Justin Hoffmann at (202) 395–5725. For questions on Customs classification or implementation of additional duties on products identified in the Annexes to this notice, email Customs at email@example.com.
See the list of HTS numbers covered by the Sept 1st increase here.
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.