CBP and the Commercial Customs Operations Advisory Committee, or COAC, have "several issues where the COAC and CBP have agreed to disagree," in a customs modernization proposal, said Flexport's Caroline Dale (see 2306050069), but the lengthy work to come to consensus is just the start.
CBP's upcoming regulatory changes around de minimis shipments will combine the best of the Section 321 data pilot and the best of the entry type 86 test, adding together "clearance speed of the entry type 86," CBP's E-Commerce and Small Business Branch Chief Christine Hogue said on a May 18 webinar discussion hosted by the World Trade Center Miami.
NEW ORLEANS -- Much-anticipated customs modernization legislation likely won’t be introduced for at least another few months, but the National Customs Brokers & Forwarders Association of America’s legislative adviser isn’t worried about running out of time for Congress to pass it into law before the presidential election cycle, she said during a panel discussion April 26.
The CBP executive whose directorate covers trade remedies, intellectual property enforcement and e-commerce said that small-value shipments coming to the U.S. are not slipping through uninspected, just because there are no duties owed. Brandon Lord, executive director of the Trade Policy and Programs Directorate, said in an interview with International Trade Today at the CBP Trade Facilitation and Cargo Security Summit: "There's a misconception that we don't target or screen de minimis -- it's not true. People throw around the phrase 'loophole.' It's not a loophole. De minimis is not a loophole."
When most people think of counterfeits in the U.S., they think of luxury fashion -- purses and watches -- but CBP also is concerned about safety issues from counterfeit medicines, sunscreen, baby formula and poorly made electronics whose lithium-ion batteries can cause fires.
Almost half of de minimis shipments last year were covered either by the Type 86 entry test or the Section 321 data pilot program, CBP said, but that doesn't mean that the government has a good grasp on what merchandise is entering in small packages.
Despite the success of its Section 321 data pilot, which has taught CBP lessons on the types of data on de minimis shipments it may find helpful and reduced hiccups for industry participants providing the additional data, CBP still has “quite a bit we can learn,” CBP’s Christopher Mabelitini said during a webinar April 12. In addition to expanding the number of participants covered by the pilot, CBP is looking to increase the universe of data and transactions.
CBP has started to shift its enforcement focus to Type 86 entries as use of the relatively new entry type for de minimis shipments grows and the agency sees a "large percentage of violations" related to use of the entry type, CBP's James Moore said during an April 5 webinar hosted by the agency.
U.S. Trade Representative Katherine Tai reassured the members of the National Council of Textile Organizations that the Office of the U.S. Trade Representative has no interest in loosening rules of origin for clothing made in Central America and the Dominican Republic. Some have argued that the CAFTA-DR has not lived up to its potential because its rules are too restrictive (see 2112030045 and 2104140047).