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.
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!
were manufactured in the United States (US) and returned to the US are eligible
for free entry back into the country only if:
They have not undergone
any advancement in value due to upgrades, repairs, improvements in condition or
any other processing which would elevate the value of the item.
If the goods were subjected to
changes which improved the condition then you would be responsible for paying
duty on the fair market value of the labor or the item as it has
been changed. Chapter 9802 would cover
the repairs, changes value.
**NOTE**, duty is only assessed on
the actual repair or improvement not on the entire value of the goods.
If the goods have not been subjected to any of the outlined processes above then you would file a CBP Form 3311, Declaration for Free Entry of American Goods Returned here. This would entitle you to free entry under HTS 9801.00.10 as duty free.
GOODS FOR WHICH DUTY HAS ALREADY BEEN
PAID RETURNING TO THE US
question which arises is “what if I have goods on which duty has already been
paid returning to the US”, for example a product sold that is defective,
damaged, doesn’t conform to a certain specification outlines by the buyer etc..
9801.00.26, HTS provides for articles, previously imported, with respect to
which the duty was paid, if
They were exported within 3 years
after the date of such previous importation.
Sold for exportation and exported to
individuals for their personal use, re-imported for the reason hat such
articles do not conform to sample or specifications
Re-imported without having been
advance in value or improved in condition by any process of manufacture or
other means while abroad.
Re-imported as personal returns from
those individuals; and re-imported by and for the account of the person who
exported the goods from the United States within one year of the exportation.
If all of
these conditions are satisfied, the goods are eligible to be re-imported duty
free. Also, if the goods are imported
under HTS 9801.00.26 they are not subject to visa or quota requirements as
the goods were originally exported with the benefit of drawback, the goods will
not be eligible for duty-free treatment upon re-import. The reason being, U.S. Note 1(a), Subchapter
I, Chapter98, HTS, states that subheading 9801.00.26 would not apply to an
article exported with the benefit of drawback.
CBP has the right to request proof from the exporting party that duty was paid
upon the previous import of the items.
Customs 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, 2017Federal 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.
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.
CBP’s mission statement is “To safeguard America’s borders thereby protecting the public from dangerous people and materials while enhancing the Nation’s global economic competitiveness by enabling legitimate trade and travel”.
Did you know that you can check out CBP’s website for a detailed snapshot of what CBP does on a typical day to uphold that mission?
Following are a few highlights:
Processed: 1,069,266 passengers and pedestrians. 326,723 incoming international air passengers and crew. $6.3 billion worth of imported goods. Conducted 1,140 apprehensions between U.S. ports of entry.
Arrested 22 wanted criminals at U.S. ports of entry.
Identified 877 individuals with suspected national security concerns.
Discovered 404 pests at U.S. ports of entry and 4,638 materials for quarantine – plant, meat, animal byproduct, and soil.
Seized: 7,910 pounds of drugs, $289,609 in undeclared or illicit currency, $3.8 million worth of products with Intellectual Property Rights violations.
Collected $122.7 million in fees, duties, and taxes.
Facilitated the release of 89,315 entries of merchandise at our air, land, and sea ports of entry
The submission period for the 2018 CBP Triennial Status Report and fee for all licensed Customs brokers opens Dec. 15, 2017, and runs through Feb. 28, 2018.
The deadline for submitting the 2018 triennial status report and fee is Feb. 28, 2018, at 11:59 p.m. (EST).
Over 14,000 active U.S. Customs brokers can pay electronicallythrough Pay.gov with a credit card, debit card, and digital wallet payments, e.g., PayPal and Amazon Pay. No additional fees are charged for any payments, and receipts are provided electronically. CBP encourages brokers to submit fees electronically via Pay.gov; however, a paper status report and payment may be submitted to the port that originally delivered the license.
Licensed Customs brokers must include an employee list, if applicable, with each status report submitted to CBP in accordance with 19 CFR 111.28(b). In addition, each individually licensed broker must state whether or not he/she still meets the applicable requirements of 19 CFR 111.11 and 111.19 and has not engaged in any conduct that could constitute grounds for suspension or revocation under section 111.53. Broker employee lists and any additional detail can be submitted as a PDF file attachment to the Pay.gov online form.
Click here to learn more about filing options and requirements for the 2018 Triennial submission.
The ability to query a consignee in ACS was shut off with the September 15, 2017 ACE deployment, and CBP is not planning to create this same ability in the new Automated Commercial Environment (ACE). Read on:
In CBP’s legacy system, ACS, there was a way to query a consignee “as a means for filers to obtain a number which may be used as the ultimate consignee number in cargo release and border cargo release processing when the actual consignee number is not immediately available.” The application identifier associated with this query was ‘KN.’
This Consignee Name/Address Query transaction allowed a filer to query ACS’s Importer File by transmitting the name and address for an ultimate consignee of interest and receiving a name and address information plus the consignee identification number.
Most importantly, this functionality also provided the ability to determine if CBP had assigned an identification number to a non-resident importer of record. This feature was a valuable tool for brokers, but no longer.
In a response from the ACE Support Hotline, CBP stated; “U.S. Customs and Border Protection (CBP) is aware of the trade communities concerns related to the discontinuation of the KN application in the Automated Commercial System (ACS). At this time, CBP has decided not to develop or transition the KN application in the Automated Commercial Environment (ACE). To query a Foreign-Based Importer of Record (IOR) number that is already on file with CBP, filers should contact their local or Remote Location Filing (RLF) ports to obtain the CBP-Assigned IOR number.”
This is one update to ACE that seems to run contrary to the tenant of making information more accessible and transparent. Brokers and local CBP port staff will have to take additional, and sometimes manual steps to determine this information.
A follow up to our earlier blogregarding the downtime experienced on ACE on November 14, CBP has released the following formal statement.In it, they discuss the outage, their evaluation of the current downtime procedures, and what steps they are taking to further enhance their procedures. CBP is also working closely with Commercial Operations Advisory Council (COAC) to identify areas of concern, and NCBFAA is seeking feedback from it’s members to assist.
The ACE system resumed cargo processing at approximately 10:00 p.m. EST last night and continues to process normally. All transactions backlogged in the queue were processed as of approximately 1:00 a.m. EST. Our technicians, in collaboration with IBM technicians, are working around the clock to identify the root cause of the disruption to the ACE database. We do know that this issue and the Aug. 2 outage issue are unrelated.
CBP executive leadership continues to communicate with our ports receiving initial reports that downtime procedures worked as expected. The Office of Field Operations is using this event to perform an evaluation of these procedures by polling the ports to identify issues or deficiencies, as well as best practices, in order to enhance our downtime procedures. In addition, CBP client representatives are continuing to assess impacts to trade. Further, CBP will continue engaging the COAC Outage working group and other trade partners to identify areas of concern surrounding operations and our response to the event.
On Wednesday, November 8th, CBP published a General Notice in the Federal Register announcing the transition of Daily and Preliminary Monthly Statements to ACE. “As of December 9th, 2017, ACE will be the sole CBP-authorized EDI system for generating, transmitting and updating daily and monthly statements, and ACE will no longer be a CBP authorized EDI system for such purpose”. The one exception is Reconciliation entries (type 09) which are scheduled to be deployed to ACE on February 24th, 2018.
Also scheduled to transition to ACE on December 9th is the ability to file e214’s, for FTZ admission, and
the creation and maintenance of Manufacturer ID’s (MID.
In addition to Reconciliation entries, the release scheduled for February 24th includes:
• Drawback: Support for core trade processing and
›Automated Surety Interface (ASI)
(Entry Summary Nightly, Entry Summary Quarterly, and Monthly Continuous Bond
• HTS Query
› Drawback Bond Decrementation
› Continuous Bond Sufficiency
No additional ACE deployments are scheduled beyond this release at this time.