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WHAT'S NEW AT ECUSTOMS Census ramps up for "imminent" mandatory AES rule The U.S. Census Bureau's Foreign Trade Division is ramping up staff and resources to help the export industry comply with the soon-to-be-published rule for mandatory use of the Automated Export System. William Bostic Jr., chief of the Foreign Trade Division, told the Regulations and Procedures Technical Advisory Committee in Washington Tuesday that the rule is "imminent." Census and the Department of Homeland Security resolved their 30-month standoff over publishing the rules in early January. Census was prepared in 2005 to issue a notice of proposed rulemaking updating the foreign trade regulations, but DHS blocked the effort after failing to gain approval to share export transaction data with foreign governments as part of its antiterrorism cooperation. Census has long maintained a policy of preserving the confidentiality of business-sensitive details from export records. Bostic declined to go into the details of the rulemaking, such as questions about continuing post-departure filing in AES, known as Option 4, and the status of sharing export information with foreign governments.... The Foreign Trade Division uses the data from AES to help calculate the country's trade statistics, while Customs and Border Protection uses it to target illicit exports before they leave the country. The new AES regulations will require exporters to file shipper's export declarations a certain number of hours prior to departure depending on the transport mode. The time frames are 24 hours prior to lading for vessel shipments, four hours before wheels up for air shipments (with exceptions for nearby countries), two hours for rail and one hour for truck (or 30 minutes for pre-certified secure carriers). The rule will go into effect 30 days after it is published in the Federal Register and be implemented within 90 days. Census has developed a training video and plans to conduct numerous seminars and town hall meetings throughout the country once the rule is published. Bostic said emphasis will be placed along the U.S. southern border with Mexico and Puerto Rico where paper SEDs are still filed. In addition to lingering paper SED filings, the biggest errors in export reporting remain late filings, wrong Schedule B numbers, ultimate consignee details, and inaccurate shipping weights and values. Census officials plan to focus training on these aspects as well, Bostic said.... ... Census is putting the finishing on a "best practices" document for AES filers — both exporters and freight forwarders. The agency is also working with the Commerce Department's Bureau of Industry and Security on a compliance program involving Export Administration Regulation-related issues, such as Export Control Classification Numbers (ECCNs), license exceptions, general licenses, and falsely classified "no-license required" items. On the 91st day of implementation of the mandatory AES rules, Foreign Trade Division staff will be sent to work with CBP at the ports for about a week to put a stop to any lingering paper SED filings, Bostic said. Census has delegated authority for enforcement and the issuance of penalties, which are set at $10,000 per violation, to CBP and BIS.... Bostic warned that if it becomes apparent that companies are ignoring the mandatory AES regulations or Census's efforts to help them comply, then the agency may have no other choice but to refer the violators to CBP and BIS. Census believes that the mandatory AES regulations and the follow-up agency training for their implementation will be rapidly embraced by the export industry.... Source: American Shipper 10 Tips on Dealing with U.S. Customs Many more shipments are being inspected and detained than ever. With the current just-in-time delivery environment in which international traders now routinely operate, companies cannot afford to have shipments delayed, even if they are later released. Try explaining to a customer why Customs' inquiry is not well-founded when it takes several weeks to resolve! The suggestions below cannot guarantee your dealings with Customs will be problem-free, but if you follow them, you will at least be ready for those problems should they arise.
These tips are intended to mention some of the most important ones that are typical to a vast array of transactions. These are also the ones most likely to take money out of your pocket if you have not planned properly. There is no way to fully explain the ins and outs of importing in this short an article, so the best tip of all is make sure you have good advisers around you. Following a competent and energetic staff, they are your best resource for success! Source: "Journal of Commerce Online" newsletter Testing to Begin Soon for ACE Rail and Sea Manifest February 28, 2008 — U.S. Customs and Border Protection is preparing a comprehensive system testing plan designed to provide insights into the operational performance of the new Automated Commercial Environment rail and sea manifest processing capabilities before they are deployed to the nation's ports of entry in fall 2008. The testing strategy is designed to ensure a smooth transition to ACE, the agency's new commercial trade processing system. When deployed, CBP will use ACE to process more than 52,000 bills of lading that are received at the nation's rail ports and seaports of entry each day. The cornerstone of the testing plan for ACE rail and sea manifest capabilities is the use of operational data to detect system errors before the system is deployed. CBP anticipates that the use of operational manifest data will facilitate the discovery of system errors that are typically not found until a system "goes live." "Testing the system with actual data provides CBP with insight into the real-world problem scenarios usually experienced only after a new system is turned on," says Janet Pence, director of ACE communications, training, outcomes and deployment. "This approach allows CBP to anticipate and correct system errors before the transition to ACE." The new ACE capabilities will provide CBP officers with a consolidated view of rail and sea manifest entry data at the bill of lading or container level, which will facilitate the identification of shipments that may pose a potential risk and expedite the release of legitimate cargo. The ACE Secure Data Portal, essentially a computer screen similar to a Web page, will provide CBP officers with a single, integrated online access point for communications and information. "CBP officers and the trade community can be assured that ACE will keep all the functionality of current rail and sea cargo processing systems while adding many new features that further enhance security and expedite processing of legitimate cargo," said Louis Samenfink, executive director of the CBP Cargo Systems Program Office that is developing ACE. ACE rail and sea manifest capabilities set the stage for multi-modal processing that will replace three existing systems and provide a single, automated cargo control and release system across all modes of transportation. ACE truck processing capabilities are currently operational at the nation's 99 land border ports. Source: U.S. CBP CBSA to Introduce More Modern PIP Program February 21, 2008 — The Canada Border Services Agency (CBSA) has announced it will introduce an updated Partners in Protection (PIP) program by June 30, 2008. According to CBSA, the modernized program will require members to adhere to stricter, better-defined and targeted security measures to strengthen border and supply chain security. This update comes as part of Canada's commitment under the Security and Prosperity Partnership of North America to enhance border security, combat organized crime and terrorism, and achieve mutual recognition and compatibility between Canada's PIP program and the United States' Customs-Trade Partnership Against Terrorism (C-TPAT) program. On December 20, 2007, CBSA and U.S. Customs and Border Protection (CBP) representatives met to move forward on achieving mutual recognition between the PIP and C-TPAT programs. The CBSA continues to work closely with U.S. CBP to ensure the alignment of both programs and to negotiate mutual recognition. Steps are also being taken to ensure that the PIP program's new requirements are better aligned with international standards such as the Framework of Standards to Secure and Facilitate Global Trade (SAFE) and the Authorized Economic Operator concept of the World Customs Organization. Program changes will include the implementation of minimum-security criteria for each sector (air, highway, rail and marine carriers, importers/exporters, warehouse operators, couriers and customs brokers) outlined in a new security profile, site visits prior to approval and a revised partnership agreement (memorandum of understanding or MOU). New program policies will outline the circumstances under which applications will be denied, the conditions under which membership will be suspended, reinstated or cancelled and the appeal process for CBSA decisions on membership matters. In addition, the current Security Questionnaire is being replaced by a security profile that is divided into generic sections (which apply to all applicants) and sections specifically developed for each of the business sectors: highway, rail, marine and air carriers, customs brokers, warehouse operators, importers/exporters and couriers. The final security profile and MOU will be available by March 31, 2008 so that your company can get a head start in meeting the new security requirements. Applications under the modernized PIP program will be accepted on or after June 30, 2008. Source: Canada Border Services Agency New AES Reporting Requirements for BIS License Exceptions February 15, 2008 — The Bureau of Industry and Security (BIS) has announced that, effective April 28, 2008, AES reporting requirements for export license exceptions administered by BIS, under the Export Administration Regulations (EAR), will change. Exporters and their authorized filing agents (AES filers) should follow the new reporting requirement to prevent the return of fatal errors from AES. The Export Control Classification Number (ECCN) will be required for License Exceptions reportable under the following License Exception codes:
For further information on License Exceptions and Export Clearance Requirements under the EAR, see Part 740 and part 758 of the EAR. For further information or questions regarding use of License Exceptions and Export Clearance Requirements under the EAR, contact BIS’s Outreach and Education Division at one of the following locations.
For general AES information, contact the Bureau of Census at 1-800-549-0595 x1. Source: Bureau of Industry and Security CBP Extends "10+2" Comment Period February 1, 2008 — U.S. Customs and Border Protection said today it is extending the comment period by 15 days for its proposed rulemaking requiring an advance security filing from importers. The 60-day comment period for the complex "10+2" regulation was originally scheduled to run through March 3. Parties involved in international trade will now have until March 18 to submit their comments. The American Association of Exporters and Importers, National Industrial Transportation League, Joint Industry Group, and seven other organizations two weeks ago asked in writing that the comment period be extended 30 days to April 2 to allow for more thorough responses. Industry groups are worried that the new rule will require huge changes to their business processes .... Source: American Shipper CBP Mandates Electronic Manifests Nationwide January 2, 2008 — Washington — Truck carriers will be required to electronically submit manifests detailing cargo and carrier information to U.S. Customs and Border Protection prior to arrival at Alaska land border ports beginning February 11, 2008, marking nationwide implementation of mandatory e-manifest filing. Following a period of enforcement discretion, full enforcement of the e-manifest filing requirement in Alaska will begin April 11, 2008. With the deployment of ACE e-manifest capabilities on November 7 in Piegan, Mont., all ports on the nation's northern and southern land borders are capable of processing e-manifests. The submission of e-manifests is already required in 15 states. After the new requirement for Alaska goes into effect, e-manifests will be required at all 99 U.S. land border ports. During the initial enforcement phase in Alaska, CBP intends to exercise discretion by issuing "informed compliance" notices to carriers that arrive without submitting or attempting to submit an e-manifest. These notices will alert truck carriers to a violation of the Trade Act of 2002, which requires submission of advance electronic cargo information. On April 11, 2008, CBP will begin fully enforcing the mandatory e-manifest policy by denying a permit to proceed to any carrier that arrives at an Alaska land border port without submitting or attempting to submit an e-manifest. For a short period of time during the full enforcement phase, CBP plans to continue exercising limited enforcement discretion for carriers that attempt to file e-manifests. Following this period of transition, but beginning no earlier than May 11, 2008, CBP will deny a permit to proceed for any truck that arrives at an Alaska land border port without first successfully transmitting an e-manifest for that trip. Monetary penalties of up to $10,000 may also be issued. Source: U.S. Customs and Border Protection Small Firms Fail to See Benefits of Joining C-TPAT December 13, 2007 — Many small and medium-size importers fail to see the value of joining the U.S. government’s Customs-Trade Partnership Against Terrorism program. According to a recent survey by Trade Bridge International, an industry association for small to medium-size companies, about 55 percent of firms with less than 500 employees could not determine the benefits of participating in C-TPAT. Trade Bridge received more than 100 responses to its 10-question electronic survey for a "snapshot" of how SMEs feel about C-TPAT. The survey also found that 37 percent of companies cited either lack of time or money, or both, to devote to applying for C-TPAT status. More than 50 percent of those firms surveyed said they were either never invited by CBP or their customs brokers to become C-TPAT participants. CBP has published a C-TPAT cost-benefit analysis on its Web site, but the Trade Bridge survey found that more than 80 percent of SMEs have not read it. Leslie L. August, Trade Bridge’s secretary general, said that to increase small importer participation in C-TPAT, CBP and the brokers must do a better job with communication and outreach about the program. Mike Laden, president of customs and trade consultancy of the Trusted Trade Alliance, said a setback for C-TPAT, which now includes an enrollment of more than 7,800 importers, carriers, terminal operators, customs brokers and freight forwarder/consolidators, has been CBP’s failure to establish a "bright line" between the C-TPAT members and those who do not participate. Laden said that his firm’s research found no appreciable increase in cargo inspections for non-C-TPAT members versus those firms in the program. "There should be a 50 percent increase in the exam rate" for non-C-TPAT firms, he said. CBP should take a "harder line" with the program to separate the "known from the unknown" in the supply chain, Laden added. Source: American Shipper Magazine Feds Ink Deal to Work on Additional Border Crossing December 5, 2007 — Canada's federal government and the U.S. government have signed a Memorandum of Cooperation (MOC) to maintain a high priority on the development of enhanced capacity of the border-crossing infrastructure in the Detroit-Windsor region. The MOC has earmarked increased border crossing capacity, an efficient and secure Windsor-Detroit Corridor, as key priorities for the two neighboring governments. The MOC provides opportunities for the two governments to commit publicly to continue working together to develop a crossing that not only benefits the economies of Michigan and Ontario, but also supports the economies of both countries. "Canada is experiencing the second-largest period of economic expansion in Canadian history," stated Lawrence Cannon, Minister of Transport, Infrastructure and Communities. "That is why the Government of Canada is committed to developing additional border capacity along the Windsor-Detroit corridor. It is a crucial support to the continued growth of the economies of Canada and the United States." The MOC follows the direction given at the North American Leaders' Summit on August 21, 2007, in Montebello, Quebec, Canada by the Prime Minister of Canada and the President of the United States. Transport Canada and the U.S. Department of Transportation will coordinate with interested federal agencies and with provincial and state partners to strengthen collaboration on this critical project. "Providing new capacity at this critical crossing will strengthen our economies, cut congestion, and improve the flow of goods and people that define the special relationship between our two nations," U.S. Secretary of Transportation Mary Peters. Source: Today's Trucking U.S. Security Turning Border into Parking Lot November 15, 2007 — U.S. security turning border into parking lot, envoy warns. The following was excerpted from the 14 November 2007 edition of "globeandmail.com". U.S. Customs and Border Protection should review and reduce excessive security measures at the Canada-U.S. line or risk turning it into a parking lot, Ambassador Michael Wilson told the agency Wednesday. Idling trucks on both sides of the border aren't secure or profitable, he said, and fees are being slapped several times on the same products as parts travel back and forth during manufacturing.... If it's cheaper per car to ship 4,000 from halfway around the world than to send eight on a truck over the Ambassador Bridge linking Windsor and Detroit, then something's wrong, said Mr. Wilson. "The competition from abroad is fierce," he said. "We cannot allow a host of seemingly unrelated regulations to collectively erode what we have achieved with (free trade) and put at risk our mutual economic prosperity in the years ahead." Canada wants much of the border clearance process to move away from crossing points, as well as a bilateral vision of what the border should look like 10 to 15 years down the road. Mr. Wilson's call for a review of U.S. border fees and regulations comes after a summer of trade delays of up to two or three hours despite decreased traffic, the worst waiting times since Sept. 11. Extra security checks, not enough infrastructure, inadequate staffing and faulty computer systems are to blame, say business leaders. Even trucking companies enrolled in special programs like FAST, which is meant to speed crossings, are getting hit with secondary checks. "If we do not offer tangible, reasonable incentives to our industries, we will lose their participation in security partnership programs," said Mr. Wilson. "And that, I would venture, would put all of us at more risk. We need to do better." The problem is magnified because parts for many products, such as cars and trucks, are shipped back and forth across the border several times during the building process. Auto industry analysts say the industry is used to a 20- to 30-minute window to cross the border. Each additional hour of wait time costs about $432,000 for Canadian parts going to U.S. plants, they say, and $800,000 for American parts going north. Canada is also concerned about rising fees, including two bills in Congress that would impose new user fees on food and drugs going to the United States in light of heightened concerns about countries like China. If the bills are passed and apply to Canada, Canadian companies would pay 10 times more than those in China and twice as much as those in the European Union, U.S. executives say, since Canada is the single largest exporter of food and agricultural products to the United States. "Many of those fees are intended to address costs associated with imports from countries that do not have the same proven track record as Canada as a safe supplier," said Mr. Wilson. "So let's be sure that the cost is paid by the right people and that we are getting value for money." Canada has long advocated cutting red tape and fees while expanding bridges and other infrastructure built two generations ago, when two-way trade was a fraction of the $1-million a minute it is now. There are particular fears about longer lineups once passports are required at land and sea crossings into the United States as early as next summer. Source: CSBC News New Product Safety Bill affects Brokers, Manufacturers, Retailers November 5, 2007 — A consumer product safety bill that passed a Senate committee last week contains a nasty surprise for customs brokers — the possible loss of their license for repeated entry of unsafe imports. Commerce, Science and Transportation staff inserted the provision on Oct. 30 during final editing of the Consumer Product Safety Commission Reform Act of 2007, which increases the agency's enforcement authority and funding levels. The original version of the bill said any importer who repeatedly brings in products that violate consumer product safety law could be referred to Customs and Border Protection to yank its import license. Committee members subsequently realized that there is no such thing as an import license, so they substituted customs brokers as the target of the repeat offender rule because they require a license to do customs business, industry lobbyists involved in the issue said. Under the provision, brokers found by the Consumer Product Safety Commission to have aided or abetted in the transportation of unsafe products can have their license revoked. The legislation is a reaction to numerous recalls of tainted or faulty toothpaste, pet food, toys, tires, fish and other products from China this year. "This bill is about safety," said Chairman and co-sponsor Sen. Daniel Inouye, D-Hawaii, in a statement. "Harmful products continue to enter the stream of commerce, resulting in tens of thousands of deaths, tens of millions of injuries, and hundreds of billions of dollars in losses to our country each year. These numbers are too high, and an effective CPSC should help reduce these grievous losses." Customs broker industry representatives expressed surprise at being included in legislation targeted at the manufacturing industry. Brokers do not have first hand knowledge about the product or suppliers — they simply process customs documentation and make sure all information passed to them by the customer is properly submitted and import fees paid. "We told them that a customs broker had no knowledge in almost every instance of the nature of an importation, the specifics about the content of the product, where it was made," said Jon Kent, legislative representative for the National Customs Brokers and Forwarders Association of America. The association wrote co-sponsor Mark Pryor, D-Ark., that "the entire bill talks about responsibilities of manufacturers, retailers and distributors — parties who are beneficial owners of the product and have contractual relationships with suppliers. Yet, when it comes to the penalty, the legislation turns to the customers' broker, who is not in a position to choose the supplier or source of a product. This does not make sense from either a legal or practical standpoint." Lobbyists said they are fighting to strip the provision out of the bill, which now may have to go to the Senate Finance Committee because it involves customs matters. The bill could have gone straight to the Senate floor for a vote if it simply focused on consumer product law and not customs law. Committee staff claim that the customs broker language is just a placeholder until an import penalty solution is found, Kent told Shippers' NewsWire. "The customs broker community is up and arms and been calling their congressmen all over the country. It's unprecedented how upset they are. It's partly because their licenses are at stake and because it's such a ridiculous provision. For our community, it undermines confidence in the institution," he said. The bill, which includes measures that impact the import and logistics industries, would also:
The House version of the consumer protection bill does not include the customs broker provision. The Energy and Commerce Committee is scheduled Tuesday to hold a hearing on product safety, followed by a markup session and vote on Thursday. The committee has investigated recent widespread findings of lead in children's products imported from China, and the nation's system for recalling defective or tainted products. In August it sent letters to 19 retailers and importers requesting information on their findings of lead. Meanwhile, more than 110 companies and trade associations expressed concern about provisions in pending food safety legislation that would impose user fees on shipments of imported food to help pay for Food and Drug Administration inspections. Source: American Shipper Magazine 98% of All Truck Manifests Now Filed Electronically: CBP October 16, 2007 — U.S. Customs and Border Protection (CBP) Automated Commercial Environment (ACE) electronic truck manifest (e-Manifest) filings increased 84 percent from February to August 2007 as CBP continues to implement the e-Manifest filing requirement at additional land border ports. Today, e-Manifests represent the overwhelming majority of truck manifests – 98 percent at all ports. Trade community involvement has been vital to strong e-Manifest compliance rates. Before the mandatory e-Manifest policy began in January 2007, 424 carriers had become eligible to submit e-Manifests via a CBP-compatible Electronic Data Interchange (EDI) program or package. Today, the number of truck carriers filing e-Manifests through EDI is 640. Between January and August 2007, the number of ACE Secure Data Portal truck carrier accounts has also risen dramatically, with over 6,400 new accounts created, for a total of more than 9,700 carrier accounts. Data indicates CBP outreach efforts and the trade community's responsiveness to the e-Manifest mandate are bearing fruit in terms of faster processing. In March 2007, when 18 percent of manifests were filed electronically, the average processing time for an e-Manifest was 33 seconds faster than a traditional paper manifest. Since that time average processing speed has further increased as e-Manifest filing becomes the norm at ports nationwide. Ford Schweitzer, Vice President, Midland Transport, Ltd., recently contacted CBP to share his view of ACE truck manifest capabilities. Noting that Midland had made a significant investment in its information technology systems to prepare for e-Manifest filing, the benefits for Midland are clear. "I feel it is important to let CBP know when a system is working well. We're very, very pleased with ACE. CBP officers are able to pull our information right away." Source: U.S. Customs and Border Protection PARS, RMD No Longer Accepted by Canada Customs October 15, 2007 — The Canada Border Services Agency (CBSA) has announced that, as of Monday, October 15, it will no longer accept paper release forms for Pre-Arrival Review System (PARS) or Release on Minimum Documentation (RMD) from brokers and importers on most shipments. The new mandatory line release requirements, which require electronic submission via EDI, were imposed by CBSA at the Ambassador Bridge in Windsor this past April and are now being expanded to all border crossings. CBSA says elimination of paper at the time of release is a precursor to the e-manifest — know as Advanced Commercial Information (ACI) — in Canada. Some carriers are concerned about the impact of this change when importers and brokers are not available and electronic transmission of release documentation has not occurred. CBSA says it is currently developing a protocol that trucking companies can follow should documentation not be immediately available. In the meantime, CBSA says it will not turn back trucks at the border because of a broker's failure to send the e-manifest electronically. Also, because EDI transmission is still compatible with certain existing parameters, CBSA will continue to temporarily allow documentation for goods that are subject to another government department and where there is no EDI link between CBSA and the other agency, according to Livingston International. Exceptions also exist if the invoice represents more than 999 lines; if there is more than one warehouse sub location code; or goods moved into a bonded warehouse. For more information, visit the CBSA Web site at: www.cbsa-asfc.gc.ca/import/notice-avis-imp-eng.html Source: Today's Trucking First Ports Get Go-Ahead for TWIC Cards October 4, 2007 — After a series of delays and launch postponements, the Department of Homeland Security has announced that enrollment for a special secure identification card for port workers will begin Oct. 16 at the Port of Wilmington, Del. The Transportation Security Identification Credential, or TWIC, will be required for longshoremen, truckers and other workers that require unescorted access to secure areas of a port. Each worker must undergo a criminal and terrorist background check, provide a fingerprint and purchase a tamper-proof, biometric card that can be automatically read to verify identity. The cards will cost $132.50, down from the $137.50 announced in interim rulemakings. Truckers who have undergone background checks for the hazardous material endorsement to their commercial drivers license or for the FAST cross-border trucking program, as well as credentialed merchant mariners, will save $30. The ID card is valid for five years. Workers in Wilmington can begin online pre-enrollment Oct. 9 through the TSA Web site. The process saves time by allowing them to fill out biographical information and schedule an in-person appointment to complete the application. TWIC enrollment will spread to 11 other ports in November. They are:
DHS said the order of the rollout was based on factors such as risk, geographic location, size and contractor resources. Technical and other challenges have forced the Transportation Security Administration, which is managing the TWIC program in partnership with the Coast Guard, to begin enrollment and use of the photo ID portion of the card until biometric readers that work in the marine environment are ready. Source: American Shipper Magazine Final e-Manifest Testing Announced for Ports in Alaska September 26, 2007 — U.S. Customs and Border Protection has announced that trucks entering the United States through land border ports of entry in the state of Alaska have begun testing their ability to transmit advance manifest information via the Automated Commercial Environment's (ACE) e-Manifest feature. The ports of Alcan, Dalton Cache, and Skagway represent the final group of ports to be tested for ACE e-Manifest readiness. ACE e-Manifest is not mandatory system at these ports at this time; a 90-day notice will be published in the Federal Register prior to these becoming e-Manifest mandatory. Once these points of entry are fully operational, the ACE e-Manifest deployment for land border entry points will be complete. Source: U.S. Customs and Border Protection |
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