FY2020 CBP increases MPF min and max amount

According to CBP, due to inflation the minimum and maximum amount for MPF (Merchandise Processing Fee) for CBP fiscal year 2020 will change starting October 1st.

The MPF ad valorem rate of 0.3464% will not change, however the minimum and maximum amounts on formal entries will change as follows:

  • MPF minimum as of Oct 1st will increase from $26.22 to $26.79
  • MPF maximum as of Oct 1st will increase from $508.70 to $519.76

A complete list of CBP fees for FY2020 can be found in the Federal Register Notice here.

USTR publishes proposed action and China reacts with it’s own list

Achina us trades announced, the U.S. Trade Representative (Trade Representative; USTR) has determined that the acts, policies, and practices of the Government of China related to technology transfer, intellectual property, and innovation covered in the investigation are unreasonable or discriminatory and burden or restrict U.S. commerce. The Office of the U.S. Trade Representative (USTR) is seeking public comment and will hold a public hearing regarding a proposed determination on appropriate action in response to these acts, policies, and practices. The Trade Representative proposes an additional duty of 25 percent on a list of products from China. The list of products, defined by 8-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), is set out in the Annex to this Notice.

The official 301FRN notice is:  OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE Docket No. USTR-2018-0005 Notice of Determination and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation.  Read the notice here.

Attorneys Susan Kohn Ross and Kevin Rosenbaum from MSK, published a blog article today which gives a complete overview of the situation.  Read here.  As they also say, “Stay tuned for more developments”.

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.

 

 

 

Advance Screening for Air Freight to Continue

On July 24th, U.S. Customs & Border Protection (CBP) published a Federal Register notice announcing an extension of the Air Cargo Advance Screening (ACAS) pilot program which was due to expire on July 26, 2017. The program has been extended for another year.

In brief, the ACAS pilot revises the time frame for pilot participants to transmit a subset of mandatory advance electronic information for air cargo of no later than the time of departure of the aircraft for the United States (from specified locations) or four hours prior to arrival in the United States for all other locations.

The ACAS pilot is a voluntary test in which participants agree to submit a subset of the required 19 CFR 122.48a data elements (ACAS data) at the earliest point practicable prior to loading of the cargo onto the aircraft destined to or transiting through the United States. The ACAS data is used to target high-risk air cargo.

To address air cargo security vulnerabilities, CBP intends to amend the CBP regulations to incorporate ACAS as an ongoing regulatory program. The regulation will take into account the results of the pilot and the concerns of industry. CBP would like the pilot to continue during the rulemaking process to provide continuity in the flow of advance air cargo security information and serve as a partial stop-gap security measure. CBP would also like to continue to provide pilot participants with the additional opportunity to adjust and test business procedures and operations in preparation for the forthcoming rule.

CBP Trade Event – Status of Broker Regs and New Exam Webinar July 26th @ 2:30 EST!

cbp trade eventsJust announced this afternoon!  WEBINAR TIME CONFIRMED 2:30 EST!!

CBP, Broker Management is hosting an online webinar on Wednesday, July 26th, entiled “ORR Broker Regulations and BMB Brokers Exam Webinar”.  This is a must attend to learn, firsthand, about proposed changes to the broker regulations as well as the already announced changes to the Customs broker exam process.

Following is today’s email announcement from the NCBFAA, with links to the registration…

On Wednesday, July 26, the Office of Regulations and Rulings will be presenting on the status and process of broker related regulations, the NPRM for 19 CFR 111 and TFTEA 116 and the effect of Executive Order on the regulatory process.

Broker Management Branch will speak to the October 2017 Customs Broker exam, which will be the first automated delivery.

To register for this event, please click here.

If you need to cancel your registration, please click here.

Say “Goodbye” to blanket flagging in Reconciliation on July 8th, 2017

 

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It’s the same story we posted on January 10th, 2017, only this time it’s actually going to happen.

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As a follow up to yesterday’s blog, CBP pulled out a bit of a surprise this week in announcing that reconciliation was finally moving to ACE, along with other Post Summary capabilities, effective July 8th, 2017.

With this deployment, US Customs will no longer apply ‘Blanket Reconciliation Flagging’ to entry summaries.  CBP has left it up to the importers and their brokers.  As a result, all reconciliation flagging must be done on an entry-by-entry basis.  Read the June 8, 2017 CSMS & Federal Register notice.

Importers that currently benefit from blanket flagging on their recon entries should work with their customs brokers to ensure entries are flagged in accordance with the importer’s requirements.  If self-filing*, importers should ensure that their ABI software providers’ systems are programmed accordingly.

Failure to properly flag entries for reconciliation, will require importers to submit 520(d)s, post-summary corrections or prior disclosures to correct issues that are otherwise handled by reconciliation, depending on the specific situation.

On yesterday’s ACE technical call, we were told that flags can only be added retroactively by sending a request to CBP HQ, however, we have yet to see a detailed explanation of the process.

By way of background, CBP announced in the December 12, 2016, Federal Register that:

  • CBP is streamlining the process for blanket flagging underlying entries for reconciliation.
  • Under the existing process, importers provided CBP a request asking that CBP input and apply a blanket flag to all underlying entries filed by the importer for a specific time period. Importers also identified the specific issue(s) for which they requested that CBP input and apply the requested blanket flag.
  • This document announces that effective January 14, 2017, importers no longer will submit requests asking that CBP apply a blanket flag on their behalf. Instead, importers may input and apply a blanket flag themselves. Importers who use blanket flagging must continue to identify the issue(s) they are flagging.

Please note that reconciliation flags are applicable ONLY to entry summary types 01, 02 and 06

 * CustomsNow™ self-filing clients have the ability to manage their recon flags at either the “blanket” level, or even at the Part/SKU level, a fantastic option. Learn more.

ACE: Recon “blanket flagging” to be discontinued on Jan 14

 

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Attention recon filers!  Effective January 14, US Customs will no longer apply ‘Blanket Reconciliation Flagging’ to entry summaries.  CBP has left it up to the importers and their brokers.  As a result, all reconciliation flagging must be done on an entry-by-entry basis.

Failure to do so will require importers to submit 520(d)s, post-summary corrections or prior disclosures to correct issues that are otherwise handled by reconciliation.

By way of background, CBP announced in the December 12, 2016, Federal Register that:

 

  • CBP is streamlining the process for blanket flagging underlying entries for reconciliation.
  • Under the existing process, importers provided CBP a request asking that CBP input and apply a blanket flag to all underlying entries filed by the importer for a specific time period. Importers also identified the specific issue(s) for which they requested that CBP input and apply the requested blanket flag.
  • This document announces that effective January 14, 2017, importers no longer will submit requests asking that CBP apply a blanket flag on their behalf. Instead, importers may input and apply a blanket flag themselves. Importers who use blanket flagging must continue to identify the issue(s) they are flagging.

Importers that currently benefit from blanket flagging on their recon entries should work with their customs brokers to ensure entries are flagged in accordance with the importer’s requirements.  If self-filing*, importers should ensure that their ABI software providers’ systems are programmed accordingly.

Please note that reconciliation flags are applicable ONLY to entry summary types 01, 02 and 06

 * CustomsNow self-filing clients have the ability to manage their recon flags at either the “blanket” level, or even at the Part/SKU level, a fantastic option. Learn more.

CBP: Notice of Liquidation process to leave the Stone Age

paperless

 

Protest filers rejoice! As part of the ACE modernization process, US Customs is proposing to convert the cumbersome, paper-based Notice of Liquidation process to a more efficient paperless electronic system.

In today’s Federal Register, CBP has announced a proposal to post official notice of liquidation for all entries, including entries filed in paper form, as well as official notices regarding the extension or suspension of liquidation, at www.cbp.gov.

This proposed electronic posting will replace both the physical posting or lodging of bulletin notices in the customhouse as the legal evidence of liquidation and the mailed notices of extension or suspension as official notice.

 

Some details:

  • The information will instead be accessible via a conspicuous link on the www.cbp.gov, labeled “Bulletin Notices of Liquidation. “
  • The electronic bulletin notices will be searchable on the CBP Web site by 10 data elements, such as entry number, IOR number, filer, etc.
  • The liquidation information posted electronically will be updated daily.
  • The information will be available on www.cbp.gov for a minimum of 15 months.
  • Electronic filers, using their ACE Portal Account, will be able to access historical liquidation information that is no longer available on the CBP Web site, run queries for information on recent liquidations, extensions, and suspensions, run targeted reports to conduct in-house audits, identify systemic errors, and more.

The public comment period on this proposed regulatory change is open until November 14, 2016.

CBP/EPA: Harmonize import entry requirements for different classes of vehicles, engines and allow e-filing of docs

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From today’s Federal Register:

In an effort to provide consistency in the administration of CBP’s vehicle and engine imports program so that importers of both road vehicles and engines, as well as stationary and nonroad engines (including engines incorporated into vehicles or equipment), are subject to the same filing and recordkeeping requirements, CBP is proposing to conform the entry filing requirements applicable to the EPA Declaration Form 3520-21 to those that currently exist for EPA Declaration Form 3520-1

CBP proposes to amend existing regulations to permit the electronic filing of EPA Declaration Forms 3520-1 and 3520-21 to CBP in the ACE or to any other CBP-authorized electronic data interchange system. (The EPA declaration forms may also still be filed with CBP in paper with a paper entry filing at the time of entry.)

The electronic transmission to CBP of EPA declaration forms will

  • automate and enhance the interaction between the EPA and CBP by facilitating electronic collection, processing, sharing, and review of requisite trade data and documents during the cargo import and export process.
  • provide for a quicker and more efficient clearance process and enhance CBP’s ability to conduct targeting and enforcement of importation requirements.
  • permit CBP to analyze and flag problems immediately, whereas paper filings result in an ad-hoc process that requires a physical inspection by a CBP or EPA inspector.

Comments on the proposed rule must be received on or before September 16, 2016.

ACE is FDA-ready!

fdalogoAs announced in yesterday’s Federal Register:

  • CBP and FDA have determined that ACE is capable of accepting FDA-regulated electronic entries in ACE via the FDA PGA Message Set and are concluding the Message Set test, effective May 2, 2016.
  • Despite the FDA test concluding, CBP is not, at this time, decommissioning the ACS for transmitting FDA data. Nonetheless, ACE is capable of accepting FDA-regulated electronic entries and CBP encourages all importers of merchandise regulated by the FDA to now use ACE for their electronic filings. Making the transition to ACE now will benefit the filing community when ACE will become the sole CBP-authorized EDI system for these filings