The trade community should plan for the Port of Houston and other ports affected by Hurricane Harvey to be closed for the “foreseeable future,” and start sending cargo to other ports until damage from the storm can be fully assessed, said Gary Schreffler, acting chief of CBP’s Cargo Control & Release Branch, during a call held Aug. 29. Recent guidance issued by CBP requesting diversion of cargo to other ports applies only for the short term, affecting shipments already on the water. Shipments leaving ports now should find other destinations, as affected ports could be closed for a month or more, he said.
The addition of seats to a cargo van and their removal immediately after importation constitutes “legitimate tariff engineering” to obtain a lower duty rate applicable to passenger vehicles, said the Court of International Trade in an Aug. 9 decision that was released the evening of Aug. 16. Tariff classification is determined based on an article’s condition at the time of importation, and the steps Ford took to manufacture its Ford Transit Connect vans after importation are irrelevant to the classification analysis, CIT said.
CBP released a revised schedule for deploying post-release capabilities in ACE in a July 27 CSMS message. The agency will separate out the collections functionalities and "deploy the other post release capabilities of ACE core using a phased approach," said CBP.
The U.S. Trade Representative is authorizing duty free treatment for certain travel goods of heading 4202 under the Generalized System of Preferences, it said in a list of the results of its 2016-2017 GSP Review (here). The list also includes USTR’s decisions to add other products to GSP, including certain rolled grains and essential oils of lemon, as well as USTR’s decisions on competitive need limitation and de minimis waivers. The changes take effect July 1.
CBP again postponed its last major ACE deployment for post-release capabilities that was scheduled for July 8, it said in a June 27 CSMS message (here). "We have been conducting ongoing, rigorous testing to ensure these capabilities will operate successfully," said CBP. "Our latest efforts have revealed areas specific to collections that are in need of further testing before these capabilities can be deployed. Consequently, we are postponing the July 8, 2017 deployment, and are in the process of replanning. We will communicate further information as soon as possible."
The World Customs Organization on June 14 released its latest tariff classification rulings, as well as changes to the Harmonized System Explanatory Notes and amendments to the WCO Compendium of Classification Opinions, from the 59th session of the Harmonized System Committee in March (here). Importers and exporters should verify implementation of these decisions in the relevant country before relying upon them, the WCO said.
First-time importers and importers delinquent on antidumping and countervailing duties may be subject to enhanced bonding and “other legal measures,” under an executive order signed by President Donald Trump on March 31 (here).
CBP again delayed its mandatory use date for ACE drawback, reconciliation, duty deferral, statements and liquidation, the agency said on Sept. 28 (here). “In order to allow additional time for all stakeholders to prepare for this transition, and to provide the opportunity to solicit and receive public comment on the associated regulatory changes, CBP is rescheduling this transition which was previously scheduled for October 29, 2016,” it said. “CBP is targeting January 2017 for the revised deployment and mandatory date and will provide additional clarification regarding the precise transition date in the coming weeks.”
CBP and the Treasury Department released a highly anticipated interim rule on Aug. 18 that creates new formal procedures for CBP investigations of antidumping and countervailing duty evasion. The notice (here), which also includes a request for public comment, is scheduled for publication in the Federal Register on Aug. 22, it said.
As of June 15, ACE will be the only authorized system for filing electronic entries and entry summaries for certain Food and Drug Administration entries and entry summaries under certain entry types, said CBP in a Federal Register notice scheduled for publication on Monday (here). On June 15, for entry types 01, 03, 06, 11, 23, 51 and 52, the Automated Commercial System “will no longer be a CBP-authorized [electronic system] for purposes of processing these electronic filings,” it said. “CBP will continue to monitor the FDA filing rates in ACE. Should there be a need to avoid a substantial adverse impact on trade, CBP will reassess the transition completion date for FDA filings,” said CBP. The Customs Commercial Operations Advisory Committee (COAC) recently joined industry calls for CBP to announce its ACE deadline for FDA entries, citing the trade industry’s need to know the date for development and training purposes.