U.S. Customs and Border Protection (CBP) recently announced its plan to conduct a National Customs Automation Program (NCAP) test concerning Automated Commercial Environment (ACE) entry capability. According to CBP’s General Notice, the new trial will test entry filing via a process known as Simplified Entry, which will be filed in lieu of filing a Form 3461 or its electronic equivalent.
Simplified Entry is intended to simplify the entry process by allowing participants to submit twelve (12) required and three (3) optional data elements to CBP at any time before the imported goods arrive, as follows:
Required Data Elements
1. Importer of Record
2. Buyer name and address
3. Buyer Employer Identification Number (consignee number)
4. Seller name and address
5. Manufacturer/supplier name and address
6. HTS 10-digit number
7. Country of origin
8. Bill of lading/house air waybill number
9. Bill of lading issuer code
10. Entry number
11. Entry type
12. Estimated shipment value
Optional Data Elements
1. Ship to party name and address
2. Consolidator name and address
3. Container stuffing location
The Simplified Entry may not be filed in lieu of an entry summary, which still must be made in ACE. CBP has limited this initial phase to entries that are not under the admissibility jurisdiction of Other Government Agencies (OGAs). It also will limit to air shipments.
CBP has chosen the following nine brokers to participate in the pilot program, which is expected to begin at the end of 2011/beginning of 2012:
1. A.N. Deringer Inc.
2. Expeditors
3. FedEx Trade Networks
4. FH Kaysing
5. Janel Group of New York
6. Kuehne + Nagel Inc.
7. Livingston International
8. Page & Jones Inc.
9. UPS.
Showing posts with label Brokers. Show all posts
Showing posts with label Brokers. Show all posts
Tuesday, December 13, 2011
Thursday, September 22, 2011
Proposed Bill Provides Customs Brokers with New Obligation
Senator Claire McCaskill of Missouri introduced a bill entitled the “Fighting for American Industry’s Right to Enforcement Against Duty Evasion Act,” otherwise known as the “FAIR Enforcement Against Duty Evasion Act of 2011,” with the intention of ending duty evasion by foreign companies. The bill addresses two issues: (1) the lack of information collected on importers making it difficult for officials to identify those companies evading antidumping duty and (2) the ability of foreign companies who have not previously shipped to the U.S. to post a bond to cover estimated duties rather than pay cash.
Broker Obligation
The bill obligates customs brokers to use a good faith effort to obtain the identity of the customer importing into the U.S. and “maintain[ ] records of the information used to substantiate a person’s identify, including name, address, and other identifying information.” SAFE Enforcement Against Duty Evasion Act of 2011, sec. 3(a)(i)(2)(C), amending section 641(i) of the Tariff Act of 1930. With this additional burden on brokers comes new significant penalty exposure. A broker who fails to obtain the required identifying information is potentially liable for a penalty of up to $10,000 for each violation and a possible revocation or suspension of the broker’s license. http://mccaskill.senate.gov/files/documents/pdf/McCaskill_FAIR_Enforcement_Against%20Duty_Evasion_Act.pdf
Senator McCaskill indicated in her press release that collection of the identifying data would assist law enforcement during an investigation by “increasing the likelihood the lawbreakers can be identified and brought to justice.” http://mccaskill.senate.gov/?p=press_release&id=1337. The bill also creates what she referred to as a “safe harbor” to prevent brokers from penalties when they made reasonable efforts to comply with the new law. To this end, within 60 days from the date the bill is enacted, CBP must publish a Federal Register notice, in which it solicits proposals for examples of conduct that should not trigger the penalty provision. After the public comment period closes, CBP will issue its final regulation specifying such practices.
In addition, the bill requires CBP and other regulators to submit a report to Congress, (1) recommending the best way to require foreign nations to provide brokers with the required identifying information and (2) establishing a system for brokers to review identifying information maintained by the government.
New Shippers
In addition to the added broker obligations, the bill also removes the “bonding-in-lieu” provision for new shippers to the U.S. Instead, the bill requires shippers to pay in cash up front, thereby eliminating the possibility of posting a bond for estimated duties. This requirement is intended to prevent foreign companies from vanishing before making a duty payment in full. Under the bill, estimated duties are paid on imported goods at the beginning of the import process, rather than after the goods are in the U.S.
Broker Obligation
The bill obligates customs brokers to use a good faith effort to obtain the identity of the customer importing into the U.S. and “maintain[ ] records of the information used to substantiate a person’s identify, including name, address, and other identifying information.” SAFE Enforcement Against Duty Evasion Act of 2011, sec. 3(a)(i)(2)(C), amending section 641(i) of the Tariff Act of 1930. With this additional burden on brokers comes new significant penalty exposure. A broker who fails to obtain the required identifying information is potentially liable for a penalty of up to $10,000 for each violation and a possible revocation or suspension of the broker’s license. http://mccaskill.senate.gov/files/documents/pdf/McCaskill_FAIR_Enforcement_Against%20Duty_Evasion_Act.pdf
Senator McCaskill indicated in her press release that collection of the identifying data would assist law enforcement during an investigation by “increasing the likelihood the lawbreakers can be identified and brought to justice.” http://mccaskill.senate.gov/?p=press_release&id=1337. The bill also creates what she referred to as a “safe harbor” to prevent brokers from penalties when they made reasonable efforts to comply with the new law. To this end, within 60 days from the date the bill is enacted, CBP must publish a Federal Register notice, in which it solicits proposals for examples of conduct that should not trigger the penalty provision. After the public comment period closes, CBP will issue its final regulation specifying such practices.
In addition, the bill requires CBP and other regulators to submit a report to Congress, (1) recommending the best way to require foreign nations to provide brokers with the required identifying information and (2) establishing a system for brokers to review identifying information maintained by the government.
New Shippers
In addition to the added broker obligations, the bill also removes the “bonding-in-lieu” provision for new shippers to the U.S. Instead, the bill requires shippers to pay in cash up front, thereby eliminating the possibility of posting a bond for estimated duties. This requirement is intended to prevent foreign companies from vanishing before making a duty payment in full. Under the bill, estimated duties are paid on imported goods at the beginning of the import process, rather than after the goods are in the U.S.
Wednesday, August 17, 2011
CBP Ends Paper Courtesy Liquidation Notices
In an attempt to streamline the notification process and reduce mailing costs, U.S. Customs and Border Protection (CBP) has decided to eliminate mailing paper copies of courtesy notices of liquidation. Although not statutorily necessary, CBP had established the practice of issuing courtesy copies of liquidation notices to importers of record whose entry summaries are filed in the Automated Broker Interface (ABI). Such courtesy liquidation notices provide informal and advance notice of an entry’s liquidation date.
CBP will cease mailing paper copies, but will continue to issue electronic courtesy notices to all ABI filers, which include importers of record who file their own entries and customs brokers who file as the agent of the importer of record. Importers of record who do not file entries through ABI will continue to receive the paper liquidation notices. CBP has also indicated that importers of record with an Automated Commercial Environment (ACE) Secure Data Portal Account can monitor the liquidation of their entries by using the reporting tool in the ACE Portal.
CBP estimated that upon implementation of the new policy, the agency will avoid duplication of the courtesy notices and save approximately $3,000,000 in postage annually. Although CBP received several comments praising CBP’s effort to save money, other commentators were concerned that importers of record would become completely reliant on their brokers to provide the liquidation date information that affect myriad of deadlines and customs compliance issues.
In response, CBP indicated that brokers are obligated to provide the liquidation dates. In addition, CBP responded that the agency is currently reprogramming ACE to permit all importers of record to monitor liquidation of entries filed under their importer of record numbers through the ACE Portal. CBP explained that even for those importers who do not have ACE Portal Account, an importer may gain limited access to a broker’s ACE Portal Account to obtain reports for entries filed by the broker using the importer of record number belonging to that importer. CBP is also considering posting an electronic courtesy bulletin notice of liquidation.
In light of this change, importers should consider revising their import policies to ensure that their customs brokers(1) provide the liquidation notices to importers upon receiving the electronic courtesy copy and (2) permit the importer limited access to their ACE Portal Account so that the importer can obtain reports for its entries.
The final rule is effective September 30, 2011. See 76 Fed. Reg. 50883 (Aug. 17, 2011), http://www.gpo.gov/fdsys/pkg/FR-2011-08-17/pdf/2011-20957.pdf, CBP will implement the rule the first day on or after September 30, 2011 that CBP can provide importers with complete liquidation reports, including liquidation dates, through the ACE Portal. CBP will announce the exact date of implementation after it determines when the ACE reports will be ready.
CBP will cease mailing paper copies, but will continue to issue electronic courtesy notices to all ABI filers, which include importers of record who file their own entries and customs brokers who file as the agent of the importer of record. Importers of record who do not file entries through ABI will continue to receive the paper liquidation notices. CBP has also indicated that importers of record with an Automated Commercial Environment (ACE) Secure Data Portal Account can monitor the liquidation of their entries by using the reporting tool in the ACE Portal.
CBP estimated that upon implementation of the new policy, the agency will avoid duplication of the courtesy notices and save approximately $3,000,000 in postage annually. Although CBP received several comments praising CBP’s effort to save money, other commentators were concerned that importers of record would become completely reliant on their brokers to provide the liquidation date information that affect myriad of deadlines and customs compliance issues.
In response, CBP indicated that brokers are obligated to provide the liquidation dates. In addition, CBP responded that the agency is currently reprogramming ACE to permit all importers of record to monitor liquidation of entries filed under their importer of record numbers through the ACE Portal. CBP explained that even for those importers who do not have ACE Portal Account, an importer may gain limited access to a broker’s ACE Portal Account to obtain reports for entries filed by the broker using the importer of record number belonging to that importer. CBP is also considering posting an electronic courtesy bulletin notice of liquidation.
In light of this change, importers should consider revising their import policies to ensure that their customs brokers(1) provide the liquidation notices to importers upon receiving the electronic courtesy copy and (2) permit the importer limited access to their ACE Portal Account so that the importer can obtain reports for its entries.
The final rule is effective September 30, 2011. See 76 Fed. Reg. 50883 (Aug. 17, 2011), http://www.gpo.gov/fdsys/pkg/FR-2011-08-17/pdf/2011-20957.pdf, CBP will implement the rule the first day on or after September 30, 2011 that CBP can provide importers with complete liquidation reports, including liquidation dates, through the ACE Portal. CBP will announce the exact date of implementation after it determines when the ACE reports will be ready.
Tuesday, October 2, 2007
Brokers Breaking the Law
Now that the Customs Broker’s Exam is over, those who passed the exam will be notified and a background investigation will be performed. Will this investigation uncover anything that would prevent any of the aspiring applicants from receiving a license? Even after you receive your license, it comes with the responsibility to continue to obey Customs laws and regulations. For those who are considering taking the exam, you too must consider your actions because certain deeds could prevent you from obtaining your license.
Those of you who have studied for the exam are quite familiar with the grounds for denial or revocation of a broker’s license found in 19 CFR 111.16 and 19 CFR 111.53. The provisions of the regulations that are the focus of this article are related to criminal, dishonest or unethical conduct along with violation of any law enforced by Customs and knowingly aiding in the violation of Customs laws.
As you read this, many of you may be thinking that we're foolish to suggest that a Customs broker would commit a crime and risk losing his or her license. Are we foolish? No. Regrettably, the actions of just a few brokers created the opportunity for this discussion.
In June 2007, licensed customs brokers were among 29 people arrested for participating in a scheme to import counterfeit goods such as Nike shoes, Rolex watches and other goods. Those arrested included distributors, freight forwarders, customs brokers, owners and managers of customs-bonded warehouses, and managers of a customs exam site. These people were named in criminal complaints for conspiring to smuggle more than 950 shipments of high-quality knockoffs through New York City, Long Beach, Calif., Texas and other ports of entry. The counterfeit goods were estimated to have an approximate value of $700 million if authentic. Officials said it was one of the largest plots in recent history involving corrupt Customs brokers. The government licenses the brokers to inspect paperwork provided by importers and to clear merchandise for delivery to wholesalers. If found guilty, the defendants face prison sentences of five to 20 years. Additional information about this incident can be found on the ICE web site.
Customs and Border Protection (CBP) enforces laws relating to the protection of trademarks and copyrights. Articles that infringe on a properly registered trademark or copyright are subject to detention and/or seizure. Infringing articles may consist of articles that use a protected right without the authorization of the trademark or copyright owner or articles that copy or simulate a protected right.
Articles bearing marks that are counterfeit or that inappropriately use a federally registered trademark are subject to seizure and forfeiture. The importation of articles intended for sale or public distribution bearing counterfeit marks may subject an individual to a civil fine if the registered trademark has also been recorded with CBP. Articles bearing marks that are confusingly similar to a CBP recorded registered trademark are subject to detention and seizure. As you learned from the above incident, participants can also be arrested and charged with a crime that carries a prison sentence.
If a client or other party contacts you about importing counterfeit goods “Just Say No.” The next time a street vendor tries to tempt you to purchase a pair of Nike athletic shoes or a pair of Ray Ban sunglasses at a price that is too good to be true, think about the consequences and “Just Say No.” Obtaining that Customs Broker’s License is hard work, so don’t jeopardize your license, opportunity to make a living or reputation by participating in counterfeiting or any other illegal activity.
Those of you who have studied for the exam are quite familiar with the grounds for denial or revocation of a broker’s license found in 19 CFR 111.16 and 19 CFR 111.53. The provisions of the regulations that are the focus of this article are related to criminal, dishonest or unethical conduct along with violation of any law enforced by Customs and knowingly aiding in the violation of Customs laws.
As you read this, many of you may be thinking that we're foolish to suggest that a Customs broker would commit a crime and risk losing his or her license. Are we foolish? No. Regrettably, the actions of just a few brokers created the opportunity for this discussion.
In June 2007, licensed customs brokers were among 29 people arrested for participating in a scheme to import counterfeit goods such as Nike shoes, Rolex watches and other goods. Those arrested included distributors, freight forwarders, customs brokers, owners and managers of customs-bonded warehouses, and managers of a customs exam site. These people were named in criminal complaints for conspiring to smuggle more than 950 shipments of high-quality knockoffs through New York City, Long Beach, Calif., Texas and other ports of entry. The counterfeit goods were estimated to have an approximate value of $700 million if authentic. Officials said it was one of the largest plots in recent history involving corrupt Customs brokers. The government licenses the brokers to inspect paperwork provided by importers and to clear merchandise for delivery to wholesalers. If found guilty, the defendants face prison sentences of five to 20 years. Additional information about this incident can be found on the ICE web site.
Customs and Border Protection (CBP) enforces laws relating to the protection of trademarks and copyrights. Articles that infringe on a properly registered trademark or copyright are subject to detention and/or seizure. Infringing articles may consist of articles that use a protected right without the authorization of the trademark or copyright owner or articles that copy or simulate a protected right.
Articles bearing marks that are counterfeit or that inappropriately use a federally registered trademark are subject to seizure and forfeiture. The importation of articles intended for sale or public distribution bearing counterfeit marks may subject an individual to a civil fine if the registered trademark has also been recorded with CBP. Articles bearing marks that are confusingly similar to a CBP recorded registered trademark are subject to detention and seizure. As you learned from the above incident, participants can also be arrested and charged with a crime that carries a prison sentence.
If a client or other party contacts you about importing counterfeit goods “Just Say No.” The next time a street vendor tries to tempt you to purchase a pair of Nike athletic shoes or a pair of Ray Ban sunglasses at a price that is too good to be true, think about the consequences and “Just Say No.” Obtaining that Customs Broker’s License is hard work, so don’t jeopardize your license, opportunity to make a living or reputation by participating in counterfeiting or any other illegal activity.
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