Jan. 6th ACE Statement Deployment – Important Information

ace-logoImportant information from our friends at NCBFAA…

Reminder: January 6, 2018 Statements Deployment

As a reminder, CBP will be delivering ACE Deployment G, Release 3B on January 6. At this point, ACE will become the system of record for all statements with the exception of Reconciliation statements. CBP will deliver Statements for Reconciliations as part of ACE Deployment G, Release 4 on February 24, 2018.

CBP will work with filers to address any issues related to this deployment of Statements in ACE, and will provide support as necessary.

To this point, CBP will also host a series of calls to communicate the status of the statements deployment beginning Sunday, January 7 and running through Friday, January 12:

  • On SUNDAY, January 7, 2018, at 1:00 p.m. ET: On this call, CBP will communicate the status of the statements deployment.
  • From MONDAY, January 8, 2018, through FRIDAY, January 12, 2018, 2:00 p.m. ET – 3:00 p.m. ET: On these calls, CBP will provide a short deployment status followed by an open question and answer session.

To dial in for these phone calls, please use the following conference line:  (877) 336-1828  PC: 6124214

For additional information on Deployment G Release 3A and 3B, please click here.

For ACE Deployment G Reports Information Notice, please click here.

American Shipper In-Bond Article Features CustomsNow

The December issue of the American Shipper Magazine is out, and we are excited to note that it includes an article mentioning CustomsNowand our import software solutions.

The article, “Shifting Into Gear”, written by American Shipper’s Chris Grillis, talks about CBP’s new requirement that in-bond entries be filed electronically as of November 2017.  This was announced by CBP, in a Federal Register notice dated September 28th, 2017 (read more here), giving the trade little time to adjust to the new requirements.  Many companies managing in-bond entries have still been processing their in-bonds with CBP manually (with paper).

Nic Adams, CustomsNow’s VP of Client Services, is quoted in the article, as well as Cody Armes of Mid-Gulf Shipping, a CustomsNow client.  The entire article is included below, or can be accessed by registering with American shipper here.

American Shipper page 1American Shipper page 2

2018 Annual User Fee Due Jan 26 – Increased Fee Amount!

cbp sealCustoms Brokers:
  Your annual user fee is due by January 26, 2018!

CBP’s annual user fee is required by CBP for any broker, whether you are a partnership, individual, association or corporation. The fee is due is due at each Customs Broker District where a local permit has been received to conduct CBP business.  Failure to pay the user fee will result in suspension and revocation of the permit.

The big news this year is that the fee for 2018 has increased to $141.70, pursuant to fee adjustments required by the Fixing America’s Surface Transportation Act (FAST Act).  Read the Nov. 1, 2017 Federal Register Notice here.

Additional information regarding the payment process for these user fees, visit CBP’s website here.  Please note, however, that at the time of this writing, CBP has not yet updated their website with the new fee amounts.




The Big News from CBP’s East Coast Trade Symposium was “No Big News”



CBP held their East Coast Trade Symposium last week in Atlanta, GA, and CustomsNow’s VP of Client Services, Nic Adams, was there.  It was widely anticipated that CBP would make an announcement on how they intend to implement better processes for De Minimis shipments, also known as Section 321 entries, going forward.

Unfortunately, there was no announcement made as CBP acknowledged that the announcement has been delayed pending the outcome of the USTR’s NAFTA relegations.

The news was so anticipated because Section 321 filings are a ‘hot topic’ these days, ever since February 24, 2016, when the de minimis value was raised from $200 to $800. This increase was required by the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA), as announced by CBP hereon March 11, 2016.  The increase has much controversy surrounding it, due to the impact on e-commerce and security therein, and when most other nations are greatly decreasing their allowed value to ensure proper scrutiny and security.

Due to this change, CBP shall clear free of duties and taxes, any shipment of merchandise having a fair retail value in the country of shipment not exceeding $800. Although there are many conditions for eligibility that exist, such as only one Sec. 321 may be imported by one person on one day, and shipments with PGA are not allowed under 321, for example.

Currently, a Section 321 declaration to CBP is made via the truck or air manifest or by providing documentation to CBP at the port of arrival.  This process does not have the same controls in place as with commercial shipments to ensure that they qualify for Section 321 benefits and any required PGA declarations are made.  This lack of controls is greatly contributing to the increase in the number of parcel and mail shipments containing illicit or illegal products.

The Commercial Operations Advisory Committee (COAC) E-Commerce Working Group has made recommendations for improving the process to ensure that proper screening is taking place on the ever-increasing number of small package shipments entering the United States.  Among their recommendations is “The COAC recommends CBP provide section 321 filing capability in ACE for ACE filers and that automated solutions, including the ability to file PGA data, should be available in ABI and AMS”

By implementing this recommendation CBP, and the PGAs, will be able to leverage their existing targeting systems to interdict illicit or illegal products.  In addition, many companies that are involved in legitimate e-commerce trade are looking for more efficient ways to declare these shipments to CBP.

CustomsNow, as an ABI software vendor, is looking forward to the day when our clients can quickly and easily declare these shipments electronically with CBP.


CBP Priority Trade Issues: Textiles


U.S. Customs monitors high-risk areas that threaten U.S. Economy, safety and health concerns through their Priority Trade Issues

One such trade issue is that of “Textiles & Wearing Apparel”.   The textile sector is one of the largest manufacturing employers in the United States, and is a key component of the U.S. economy.   For example, textiles generated 40 percent of the duties collected by CBP in the fiscal year 2014.  CBP’s efforts in the textile area focus on promoting legitimate trade, while also encouraging a strong domestic manufacturing base.

The goal of the Textiles Priority Trade Issue is to ensure that textile imports fully comply with applicable laws, regulations, quotas, Trade Preference Program requirements and Intellectual Property provisions.

Read more here.


ITC Rules on Chinese Subsidized Plywood on ADD/CVD


Tariffs Raised By 200 Percent On Some Imports

After failing to get tariffs in place for Chinese plywood twice before, the newest ruling by the International Trade Commission (ITC) is that the domestic industry is materially injured, or threatened with material injury, by reason of these dumped and subsidized imports.

Read the full article here by The Woodworking Network, dated December 1, 2017.

Visit ITC’s website here to see the current and completed anti-dumping or countervailing (ADD/CVD) investigations.

Using CustomsNow’s ITM solution, filers can maintain all part or  SKU entry data fields, including ADD/CVD duty information.  By sharing this detailed part file information with the broker or using internally when self-filing, a high level of compliance with off CBP regulations, including ADD/CVD, can be achieved.

Court Rules on GSP-eligible Sets – Questions Remain


In their Inaugural Newsletter KMPG summarized The U.S. Court of International Trade’s (CIT) recent  decision in Meyer v. United States, ruling that importing retail “sets”, comprised of both GSP-eligible and non-eligible products classified under a single tariff provision, does not disqualify the GSP-eligible products in the set from the lower GSP duty preference (nor would the existence of GSP eligible products in the set impart eligibility on the non-eligible products). This decision clarifies the Customs law in this area and brings additional predictability on whether the lower duty GSP preferential treatment will be granted to products classified under the HTSUS as retail “sets.”

Specifically, the importer entered shipments of cookware “sets,” which included pots and pans produced in Thailand, a Beneficiary Developing Country (BDC) eligible for preferential duty treatment under the Generalized System of Preferences (GSP), and glass lids produced in the People’s Republic of China, a non-BDC (and thus, not GSP eligible). U.S. Customs and Border Protection (CBP) denied GSP treatment to the imported sets due to the presence of the non-BDC glass lids.

The court decided in the favor of the importer and determined that the pots and pans do qualify for GSP treatment while the glass lids do not.  However, as KMPG adroitly points out, “The CIT left open the issue(s) of whether the rate of duty applicable to the non-eligible items should be the duty rate applicable to the tariff classification of the entire set as a whole under GRI 3(b), or the duty rate applicable to the classification of the individual non-eligible article itself (e.g, the glass lids), including how it would need to be presented upon Customs entry, CBP Form 7501.”

That leaves something for us Customs Geeks to ponder…  Should the set should be ‘broken out’ into 2 lines; one for the pots/pans and another for the lids?  Or, how about using the X,V,V logic?  Frankly, at CNI, we don’t believe the X,V,V logic will work in this case since the X line carries the duty rate.  Rather, it would probably be best to break out the components.  However, then filers would have to decide if they would use the same HTS for each component based on the ‘essential character’ of the set, claiming GSP for the pots/pans value and not claiming GSP for the lids or classifying the pots/pans in chapter 73 and the lids in chapter 70.  Either way, legal assistance is suggested in these situation.

Looming Government Shut Down on December 8 is Uncertain

What is actually shut down during a government shut down?


Congress is debating a government shut down on Dec 8, but there is talk of it being pushed back to December 22.

While anything linked to national security will not be included in the shut down (such as military, law enforcement, postal services and executive branch employees) national parks, museums and processing of passports and visas may be delayed.

Read more…

CBP Hosting Triennial Status Report and Fee Electronic Submission Webinar


Photo Dec 04, 3 21 23 PM


As a follow up to our earlier blog…..Customs and Border Protection (CBP) announced earlier today the submission period for the 2018 Customs Broker Triennial Status Report and fee for all licensed customs brokers will open December 15, 2017.

CBP is hosting a webinar on December 13 at 3:00 p.m. EST to help clarify the paperless submission process. All members are encouraged to join to ensure their submissions are properly filed.


12/9 ACE Deployment Partially Delayed – Just announced today by CBP!

Delayed message.e214 & MID moving to ACE; Statements delayed.

As announced today on the ACE Outreach call, and followed by CBP’s December 4th CSMS message on the subjectCBP is pushing out the statement deployment date to Jan 6th.

However, still to be deployed on Dec. 9th is e214 and MID creation.  Read more here regarding the specific changes to statements that all filers need to be aware of.

Also of concern is the potential for a government funding lapse effective December 8, 2017.  CBP notes that they will be closely monitored and will provide future communication regarding any impact as soon as possible.

Stay tuned for more as this develops!