President Signs New Consumer Product Safety Improvement Act of 2008

On August 14, 2008, the President signed into law Public Law No. 110-314, the Consumer Product Safety Improvement Act of 2008 (H.R. 4040). Because of the widely-publicized recalls of imported toys, the new law establishes stringent safety provisions for children's products. However, the new provisions include a broad scope of products other than toys and are projected to affect manufacturers, importers and other distributors and retailers of consumer products.

The new law also contains provisions relating to the administrative functions that have been delegated to the United States Consumer Product Safety Commission ("CPSC"), enhances the authority of the CPSC to order recalls, increases the amount of the civil penalties that the CPSC may impose, and has other miscellaneous provisions.

In addition to the new safety requirements, the civil penalties for non-compliance have increased to $100,000 for each violation with a maximum cap of $15 million for a related series of violations. The criminal penalties permit larger fines, up to five years' imprisonment, and forfeiture of assets associated with a violation. Additionally, directors, officers and agents may be criminally charged even if they were not aware of the violations. To promote compliance, employees who report violations, testify or otherwise provide assistance in CPSC enforcement proceedings, or who refuse to participate in an employer's illegal conduct will receive whistleblower protection.

The provisions that are most important to importers and exporters include:

• Requirements for self-certification and testing for imported products that are subject to the CPSC rule, effective on November 12, 2008, and third-party testing and certification of certain imported children’s products with requirements for:

- Certificates furnished by the manufacturer for every imported consumer product subject to CPSC.

- Certificates from third-party testing for toys and children’s products.

- Certificates accompanying the product.

- Procedures for filing certificates electronically may be implemented.


• Prohibition of most exports of recalled, banned, hazardous or non-conforming products to other countries.

• Policies to utilize the ITDS and increase cooperation with U.S. Customs and Border Protection to prevent non-compliant products from entering the United States.

• Procedures to destroy non-conforming products that have been denied admission into the United States.


Provisions of general interest include:


• New definitions for toys and children's products.

- The definiition of "Children's toys" now includes consumer products "designed or intended by the manufacturer for a child 12 years of age or younger for use by the child when the child plays."

- "Child care articles" are now defined as "a consumer product designed or intended by the manufacturer to facilitate sleep or the feeding of children age 3 and younger, or to help such children with sucking or teething."

• Phased-in ban on lead all children’s products.

• Additional safety rules affecting toys and children's products, including permanent tracking labels, expanded warning requirements for choking hazards, and new rules for durable infant and toddler products to facilitate owner registration.

• More stringent recall procedures have been created by eliminating the right of a party recalling a product to elect whether they will offer a refund, repair or replacement for recalled products, and by permitting the CPSC to require a refund, repair and/or replacement as the CPSC determines to be in the public interest.

Since the provisions are likely to affect a vast majority of manufacturers, distributors and retailers, all parties are urged to read the new law and consult their attorneys and other experts to ensure compliance with the extensive changes.

Customs Broker Exam Study Tip 7: How to Read the CBP Regulations

From the time we were children, most of us were taught to read a book sequentially, from the first page to the last. When reading Title 19 of the Code of Federal Regulations (CBP Regulations) for the Customs Brokers Exam, you should break that rule. Yes, we really did suggest that you should not read the regulations from the beginning to the end, but that doesn’t mean that you shouldn’t read the entire book. The material contained in the regulations is very technical and often quite boring; therefore, it is not the kind of book you can read from cover-to-cover in a short time.

If you think this idea sounds crazy, pick up the book and read Part 4, containing approximately 45 pages. Only two questions from Part 4 have appeared on the last ten exams; that’s two questions in a total of 800 questions, which is less than 1% of the questions. This means you’ve just spent valuable time reading material that won’t likely be tested. On the other hand, Part 111 is one of the most frequently tested sections and it contains 15 pages. There have been 57 questions from Part 111 on the last ten exams, which means approximately 7.1% of the questions on each exam come from Part 111. Not only will you be reading information that is important for the test, but Part 111 provides requirements for customs brokers. Understanding the requirements for customs brokers is important for passing the exam and for persons who want to be brokers.

The CBP Regulations is a lengthy book, and often is difficult to read and understand; however, it is important for importers, brokers, and other parties involved in international trade to have a good understanding of this book. There are numerous reasons for reading, understanding and applying the regulations. For purposes of the exam, knowledge of the regulations reduces time spent looking for answers on exam day. CBP employees and other members of the trade community might tell you that all of the sections are equally important. This is true, but for the purposes of the exam, some sections are not as significant because they are not as heavily tested.

The key to reading the regulations is to match your reading schedule with your study plan. In most situations, this means reading the sections that are most heavily tested first and saving the sections that are rarely tested for later. For example, Week 1 of your plan may require you to read Part 111- Brokers, Part 141 – Entry of Merchandise and Part 142 - Entry Process. These three parts are included in the top five sections that have been tested on the last ten exams and make up about 16% of the total questions on each exam.

Another strategy might be to read sections that are related to each other by a common theme. For example, Parts 18, 114, 127, 132, 143, 144 and 146 contain information about types of entries and alternatives to entry. There are various strategies for reading the regulations. Use what works best for your study plan, but use your time wisely and avoid reading the book from cover-to-cover.

We would like to offer some other suggestions related to reading the regulations. First, use "tabs" to mark each part of the regulations. Colored tabs can be used to indicate more important or frequently used parts. Using tabs also makes certain parts easier to find which can be a time saver during the exam. Second, highlight important facts, which can be used later for making outlines, flash cards or other study tools. Third, make notes in the margins to help you remember certain fact or provide examples that might not be included. Fourth, memorize the titles of each part and/or associate that title with something that will remind you of the information contained in that part.

We welcome your comments on these suggestions and encourage you to add your own ideas to this forum so that other students studying for the exam can benefit from your experiences.

Check the Boskage Trade News regularly for more helpful hints on studying for the Customs Broker Exam and other useful news for international trade professionals! We will discuss “How to Use the HTSUS” in the next study tip.

Last Chance To Apply For The October Exam!

The deadline for filing applications to take the October exam is just a few days away. If you are planning to take the October Broker License Exam, don’t let this important deadline pass! All exam applications and the exam fees of $200 must be received and accepted by CBP at the service port where the applicant intends to take the examination on or before the close of business Friday, September 5, 2008. Applications received after Friday, September 5, 2008 will not be accepted- NO EXCEPTIONS.

Click to print your application. Fill it out and take it over to your local CBP office today! If you are not close to an office, send it by express courier, today!

Exports Are NOT The Opposite of Imports

For importers and others who are new to exporting, the first thought might be that exporting is the opposite of importing. Thus, if a product is sent out of the country, that shipment constitutes and export. While that statement is correct, it is incomplete because an export can occur without a product leaving the U.S. territory. How does that happen?

Export is defined in the Export Administration Regulations (EAR) 734.2 (b)(1) as an actual shipment or transmission of items subject to the EAR out of the United States, or the release of technology or software subject to the EAR to a foreign national within the United States. Section 120.17 of the International Traffic in Arms Regulations (ITAR) defines export as the disclosure (including oral or visual disclosure) or transfer of technical data to a foreign person, whether in the United States or abroad. Those definitions sound simple, assuming we know what constitutes a foreign national and the “release” of technology or software.

First, let’s define foreign national or person. A foreign national is:

· Someone who is NOT a U.S. citizen or permanent resident alien (green card holder)
· A foreign corporation, business associations, partnership, trust, society or any other foreign entity or group that is not incorporated or organized to do business in the United States.
· An International Organization
· A foreign government and any agency or subdivision of foreign governments or foreign corporations
· Foreign persons in the U.S. on limited work visas or student visas

When trying to determine if someone is a foreign national, it is important to know that whether someone is a “foreign” person under the export regulations is not the same as whether the individual is in the country legally, entitled to work, a good person, etc. Checking an individual’s social security card or driver’s license will not be sufficient to make the determination.

Now that we have a better idea of what constitutes a foreign person, let’s explore what constitutes the “release” of technology and software. Release includes visual inspection by a foreign national of U.S. origin equipment and facilities, oral exchanges of information in the U.S. or abroad. Some of the typical situations in which an export “release” of technology or software could occur within the U.S. include:

· Sending an email or fax that contains technical information to a foreign person
· Talking on the phone with a foreign person
· Holding technical data discussions within earshot of foreign nationals not licensed to receive information
· Viewing information on a laptop
· Foreign national visit U.S. facilities for tours and meetings
· Trade shows, seminars and conferences
· Company Intranet
· Presentations

This concludes our brief lesson for those who are new to exporting. Knowing that an export can occur without shipping a tangible product is a very important lesson to learn early in your career in exports.

CBP Announces Annual Trade Symposium

Mark your calendars and make your reservations! On August 26, 2008, U.S. Customs and Border Protection announced its annual trade symposium will take place Wednesday October 29 through Friday October 31. The agenda for the Trade Symposium and the keynote speaker will be announced at a later date on the CBP Web site. The CBP Trade Symposium will be held at the JW Marriott, 1331 Pennsylvania Avenue, NW., Washington, DC. Hotel accommodations have been reserved at two hotels in downtown Washington, DC.

To obtain the latest information on the Symposium and to register on-line, visit the CBP Web site. The cost is $250.00 per person, and includes all Symposium activities. Persons interested in attending are encouraged to register early, as space is limited. Registration will open to the public on or about September 2, 2008. All registrations must be made online at the CBP Web site and will be confirmed with payment by credit card only.

Customs Broker Exam Study Tip 6: Taking Previous Exams

Taking past exams is an important part of any study plan. Persons studying for the Customs Broker Exam have an advantage because past exams are available for students to review. The exams provide information about the types of questions and format of the test. So, now that you have discovered this gold mine of information, what should you do with it?


1. Familiarize yourself with the test format.

It is not necessary to sit down and take a complete test of 80 questions the first time you review the exam. Take time to read a few questions and become familiar with the way the questions are constructed. Practice looking up answers in the HTSUS and Regulations. Watch out for questions containing the words “NOT”, “MAXIMUM”, “EXCEPT” and other words that appear in all capital letters and bold text. Pay close attention to the terminology. Some questions may contain answer options that appear to be the same such as 10 working days and 10 calendar days. Don’t get in a hurry and select the first answer that contains “10” in it.



Example:

Imported merchandise must be entered within _________ days after landing from the vessel, aircraft or vehicle.



A. 10 calendar days

B. 10 working days

C. 15 calendar days

D. 15 working days



The correct answer is C. Part 142.2(a)

2. Take practice exams in simulated test environment.
Do your best to recreate the actual test-taking environment and conditions. Find a quiet location to take the test without distraction and threat of interruption. Use only the written reference materials and notes allowed on the exam. Do not use any electronic device other than a battery-operated calculator. Allocate 4 hours for taking the entire test or 2 hours if taking half of the exam. The exam contains 80 questions, and the time allotted is four hours, which averages out to three minutes per question. You may take less time on some questions and more on others, but it will be impossible to finish the test if you spend 10 minutes on each question.

3. Review your results.

In addition to preparing you for the test format and testing conditions, taking practice tests as part of your study plan builds confidence and allows you to find areas that need more concentrated study. Compare your answers with the answer sheet. Review the questions you answered incorrectly and keep track of the sections of the regulations and HTSUS the correct answer comes from. If you find most of your incorrect answers come from the HTSUS, then devote more time to studying the HTSUS lessons and answering classification questions. If you find that you missed more answers from Part 152 on valuation, then spend more time studying valuation and answering valuation questions. Devoting extra time studying the topics related to the questions missed on the practice exam is a great way to improve your score on the next practice exam and the real exam.


4. Highlight all answers in the CBP Regulations.
As you review the exam questions answered, highlight the correct answers in your copy of the regulations. This will reinforce your knowledge of the regulations and the highlighted information tends to stand out on the page when you are looking for it. Even though the questions for each exam may be worded differently, the answers will still be found in the same texts. The last eleven exams contained 33 questions from Part 24. Ten of those 33 questions came from 19 CFR 24.23. Six of the 33 questions came from 24.5 and six came from 24.1. By marking the answers in those three sections, you reinforce the information in your mind and you will be more likely to spot the answer quickly when looking for it on the actual exam.Click HERE to see a sample of a highlighted page for the answers related to 24.5.

5. Answer test questions as a regular part of study.

In addition to taking practice tests, set aside some study time once or twice a week to answer questions from other exams that you are not using for the simulated practice. Since each question is allotted an average of 3 minutes, you could plan to spend 30 minutes answering 10 questions from an older exam. You could do this exercise four times a week and have completed half of one exam in a week. Alternatively, you could allot one hour and answer 20 questions at a time. If you did this four times a week, you would have completed an entire exam. This exercise will give you practice managing time. Additionally you will gain familiarity with the question, answer formats, and increase your knowledge of the materials.



Note:

When taking old exams, be alert for possible inconsistencies in the answer selections. Tariff numbers and duty rates have changed over the years. A tariff number that was listed as a possible answer on the October 2003 Exam may not be valid in 2008. When calculating the duty rates to determine an answer, you may find a slight variance because of the reduction in duty over the years. With the addition of new free trade agreements, duties have been reduced and eliminated for certain countries.



We welcome your comments on these suggestions and encourage you to add your own ideas to this forum so that other students studying for the exam can benefit from your experiences.

Customs Broker Exam Study Tip 5: Time Management

Now that your study materials and workspace are organized, it is time to discuss time management. Students often feel overwhelmed by the amount of information to be learned in order to pass the exam. Some people feel like they do not have enough time to do all they want to do, so finding additional time to study for the Customs Broker Exam seems like an impossible task.

Have you ever noticed how some people seem to have a natural ability to get things done without appearing stressed out, while others are often late in completing tasks and appear to be rushed all of the time? Have you ever thought that certain people accomplish more because they don’t have to work full time, or they don’t have children or they have more money? Even if those reasons were true, it doesn’t change the fact that everyone has the same amount of time each day. The difference is in how you choose to use your time. Time cannot be bought or saved. Once time is gone, you cannot get it back. Your ability to pass the exam as well as accomplish other goals begins with how you manage your time.

What are some of the causes of time management problems? Three of the most important causes of problems related to time management are procrastination, poor planning and wasting time.

Procrastination is a tendency to avoid a harder or less pleasant task in favor of doing an easier one. Procrastination often results in added stress due to missed deadlines or last minute preparation to meet a deadline. No one needs or wants additional stress and stress is not good for our health. Visualize what will happen if you procrastinate by putting of studying for the exam. Do you see success or failure? Procrastination is not an option when you visualize success!

Poor planning is another culprit that sabotages achievement of success. You must prioritize and create schedules to accomplish the tasks necessary to accomplish your goals. Once you make up our mind to take the exam, you must create a study plan and make it a priority. Of course, most aspiring brokers have full time jobs and personal obligations; however, by creating a plan and schedule that allots specific time for study, you can ensure success by following that schedule. You can’t expect to pass the exam unless you make the effort.

Wasting time is one of the biggest problems exam students face. When too much time is spent doing things that are unproductive, you rob yourself of valuable time that could be spent studying for the exam. It may not be the activity itself that is unproductive, but the amount of time spent doing the activity that creates the problem. If you like watching television, watching one favorite show is not unproductive because it provides relaxation and a sense of well-being. However, watching several hours of television to avoid studying is unproductive. Playing a game on the computer for 15 minutes is not necessarily unproductive because it provides a break from the routine that gives your mind a rest. However, playing computer games for hours robs you of time that could have been spent studying.

What can you do to improve time management in order to pass the Customs Broker’s Exam?

The tools and methods adopted to manage time wisely will largely depend on the amount of individual’s experience with issues covered on the exam, learning styles, ability to grasp and retain new information, work schedule and other personal issues. We have provided a few suggestions below. At the end of this article, you can comment on these and provide some ideas of your own.

· Create a Calendar

Your calendar should allocate time for work, study, exercise, meals, family and personal time. Set a regular time for study. You may want to check off the items completed each day and keep track of time spent on each task.

· Identify Priorities

Prioritize tasks and create a “To Do” List. Compete the most important tasks first. If not all tasks are completed, putting off the least unimportant task isn't procrastination, it's probably good prioritization.

· Learn to Say “NO”

Explain to people that you must study to pass the test and you will be available in a few weeks. Six to eight weeks of intense study is a small commitment of time when you think about the rewards of passing the exam and the amount of free time you will have when you no longer need to study.

· Make Time For Family

Set aside special time for family each week. Remember, quality over quantity. Your family will appreciate the time you spend with them and be more understanding of your need to study when you devote special time for them.

· Set Aside Time for Exercise

Regular exercise reduces stress and promotes good health. Exercise can provide a welcome break from your studies by giving your mind a chance to relax and think of something else. Your choice of exercise can be anything from gardening, walking around the block to a game of softball or a workout at the gym.

· Limit Unproductive Activities

Reduce the amount of time spent on the phone, watching television, reading email, playing computer games, etc. There will be plenty of time for these activities when you finish the exam. Take the necessary phone calls, but do not use the phone as an excuse for not studying.

· Make Good Use of Unproductive Time

1. Waiting

At one time or another, you will find yourself waiting for something. The wait may be anywhere, from the doctor’s office or at an airport, to an unaticipated event, such as a traffic jam. Anticipate circumstances that are likely to create unavoidable delays and be sure to have your notes handy. You can make great use of that time to study. Instead of being upset because you were stuck in the airport for two hours because your plane was late, you can be excited that you were able to devote two more hours to your studies.

2. Commute

Whether it’s by train or car, most people have some type of commute to work. Use the commute time to listen to the audio lectures on CD. Turn that hour spent in a traffic jam into productive study time.

3. Lunch

Do you really need an hour to eat lunch? Consider devoting three of your lunch breaks each week to study. Treat yourself to a nice lunch out at the end of the week.

· Reward Yourself

Set daily, weekly and monthly goals. When you have achieved a goal, reward yourself. It may be as small as allowing yourself 30 minutes of television or spending 30 minutes playing a video game to something more significant such as a vacation or cruise after receiving news you passed the exam.

We welcome your comments on these suggestions and encourage you to add your own ideas to this forum so that other students studying for the exam can benefit from your experiences.

Check the Boskage Trade News regularly for more helpful hints on studying for the Customs Broker Exam and other useful news for international trade professionals! We will explore “Using Previous Exams” in the next study tip.

CBP Requires Importers to Declare First Sale Information

On August 20, 2008, CBP posted CSMS #08-000163, which outlines the requirements for filing first sale information using the entry summary. Section 15422 of the 2008 Farm Bill requires the trade to provide notice to CBP when the transaction value of imported merchandise is determined on the basis of the first sale rule.

To fulfill these requirements, the required declaration is made when filing the consumption entry and is indicated by entering “F” in the miscellaneous indicator field. If the transaction is not subject to first sale valuation, then the field will remain blank. This procedure applies to all consumption entry types. For more information about the reporting requirements and procedures, contact your customs broker and/or ABI client representative.

New & Revised Informed Compliance Publications

Customs and Border Protection has been busy reviewing and updating the Informed Compliance Publications this year. Since the first quarter of 2008, one new publication was added and 12 were updated. Here’s a brief overview of the new publication along with a list of the publications that have been reviewed and updated.



New Publication:



Classification and Marking of Pipe Fittings under Heading 7307 (July 2008)
This new publication provides the definition of pipe fittings along with images and examples of the various categories of fittings. This document also provides detailed explanations of what is included and excluded from the provisions of HTS 7307, requirements for mill certificates and information about antidumping cases. This document is a must for importers of couplings, elbows, sleeves, unions and other metal fittings.

Revised and Updated Publications:
· Classification: Apparel Terminology under the HTSUS - 06/10/2008
· Classification and Quota Status of Raw Cotton Under the HTSUS - 06/10/2008
· Classification of Hats and Other Headgear Under HTSUS Heading 6505 - 06/04/2008
· Classification of Knit to Shape Apparel Garments Under HTSUS Heading 6110 - 05/16/2008
· Classification of Ribbons & Trimmings under the HTSUS - 06/12/2008
· Classification of Textile Costumes Under the HTSUS - 06/10/2008
· Gloves, Mittens & Mitts, Not Knitted or Crocheted, Under the HTSUS - 05/16/2008
· Marking Requirements for Wearing Apparel - 05/16/2008
· NAFTA for Textiles & Textile Articles - 05/16/2008
· Classification and Quota Status of Raw Cotton Under the HTSUS - 06/10/2008
· Table and Kitchen Glassware - 06/25/2008
· Classification of Textile Costumes Under the HTSUS - 06/10/2008

Tired of looking for updates? Click here to find out how you can have updated versions for all of the Informed Compliance Publications along with an extensive compilation of Customs Directives and other selected CBP information in loose-leaf and searchable CD-ROM.

Customs Broker Exam Study Tip 4: Organization

Now that you have made the decision to take the October 2008 Customs Broker Exam, it’s important to develop a study plan that guarantees your chances of success.

Some people are naturally good at organization; everything has a neat orderly place. Have you ever noticed your colleague’s desks or your neighbor’s garage? All of the books are stacked on bookshelves, all of the papers are filed away or neatly stacked, the tools are hung on a pegboard and two cars actually fit into the garage. On the other hand, you wonder how another colleague can find anything since his or her desk is covered with so many papers, books and other junk that you can’t even see a desk.

What is organization, why is it important and what can you do to become organized for the exam?



What is organization?

Organization is the systematic arrangement or assembly of objects in an orderly manner.


Why is organization important?
For the purposes of the studying for the exam, organizing your materials helps improve time management and increases your comprehension and memory. If your materials are organized, you will not waste time looking for a book or document that you need later on. Obtaining and organizing all of your materials will allow you easily access information as you need it. This organization will save time on the day of the test.


What can you do to become organized for the exam?

1. Organize Required Materials - Once you have obtained the required materials, you should organize them. You will want to be able to access each one quickly during the exam. Organizing the CBP Regulations and the HTSUS is easy, because they can be placed in binders so that you have two rather large books instead of a huge pile of loose paper. What remains are the stack of directives and the other supplementary documents required for the exam. If you haven’t purchased these materials already bound, then you may consider placing them together in a separate binder. You can include additional materials to that third binder later. It will be much easier to find information relating to the supplemental materials if they are placed together in one binder instead of having to shuffle through all of those documents stacked in a pile. In addition, placing those documents in a binder reduces the risk of one of them getting lost.

2. Label Required Materials – Consider using tabs to identify the chapters of the HTSUS. If you are looking for Chapter 61 and know that it's in the middle of the book, having a tab with the chapter number listed may help you to locate the exact chapter faster. Time is very important on the exam. We also suggest that you use tabs to mark each part of the regulations. Colored tabs can be used to indicate more important or frequently tested parts. Tabbing also makes certain parts easier to find and will save you time. Finally, you should consider using tabs on the supplemental materials you placed in the binder. As you add notes and other materials to the third binder, you will want to organize your notes so that you can easily locate them. Organizing our materials not only saves time, but it can also increase your comprehension and memory of large amounts of information.

Note: Even though you may use electronic versions of the HTSUS and CFR in your business, you must use the paper versions for the exam. It is a good idea to study using the paper versions to get used to looking up the information the same way you will on exam day.

3. Arrange Your Study Area – Remember the example of the colleague with the desk that looked like a disaster area? If that example sounds like your desk or study area, now is the time to clean it up. Don’t waste valuable study time digging through piles of paper. Get rid of the clutter in your study area and your office. If you have a desk or designated study area at home, create a special place for your study materials. If you study at the office, create a special place for your materials there too. If possible, create a study area that is comfortable and attractive. A bright cheery comfortable atmosphere will be more inviting for study than the dreaded cold gray metal desk with the uncomfortable wooden chair. Don’t get too comfortable; studying in the bed may result in sleep instead of productive study time.

4. Create a Study Schedule - Your schedule will depend on your experience and learning style. Someone who is new to importing may need to devote more time than someone who has more experience. Some students may need study that is more individual while others may prefer some group or interactive activities. Regardless of your preferences, you will be required to do a great deal of reading. Some people require more structure so that reading, tests and other assignments are provided on a regular basis. Others may prefer to create schedules that suit their schedules. Just remember that it is important to allow plenty of time for reading and taking practice tests. If you work full time and wait until two weeks before the exam to start reading the regulations, you may find yourself burned out and struggling on exam day. We’ve provided a few examples that may help you when creating your schedule:

· Consider how many weeks you plan to devote to study. If you have 16 weeks to study, then you will not need to read as much each week; however, if you only have eight weeks to study, you will need to read a little more each week.

· Divide the reading into manageable sections. You may consider reading similar sections together. For example, you might want to read and study the requirements for brokers and entry in one week. This would include Parts 111, 141 and 142. You may want to devote another week to the various types of entries and alternatives to entries.

· Determine how many practice tests you want to take and designate dates and times to take them. Students should take at least one complete 4-hour test and are encouraged to take more than one.


Now that you have placed the required exam materials in binders with tabs, arranged your study space and created a schedule, you are ready to begin your studies.



We welcome your comments on each of these articles. Share what has worked for you or what hasn’t worked so that others will benefit from your experiences.

Check the Boskage Trade News regularly for more helpful hints on studying for the Customs Broker Exam and other useful news for international trade professionals! We will explore “Time Management” in the next study tip.

ISO/PAS 17712 Container Seals Required Effective October 15

On Thursday August 7, U.S. Customs and Border Protection issued a notice in the Federal Register reminding shippers and importers that pursuant to 6 USC §944, all loaded containers arriving by vessel at a port of entry in the U.S. on or after October 15, 2008, are required to be sealed with a seal meeting the ISO/PAS 17712 standard.

The ISO/PAS 17712 standard requires that container freight seals meet or exceed certain standards for strength and durability so as to prevent accidental breakage, early deterioration (due to weather conditions, chemical action, etc.) or undetectable tampering under normal usage. ISO/PAS 17712 also requires that each seal be clearly and legibly marked with a unique identification number.

Tanks and non-standard containers, such as open top containers, that cannot accommodate a seal meeting the ISO/PAS 17712 standard are not subject to the requirement. C-TPAT members are already required to use ISO/PAS17712 approved security seals.

Containers arriving on or after October 15 without the required seal will be subject the party responsible for the violation to a civil penalty. CBP will phase in the penalty assessments for these violations. Vessel operators are reminded that they must transmit all seal numbers via the Vessel Automated Manifest System 24 hours before cargo is laden aboard a vessel at a foreign port.

Trade Enforcement Bill Introduced

On July 17, two House Ways and Means Committee members introduced a trade enforcement bill H.R. 6530 designed to promote market access for U.S. goods and services and reinforce remedies against unfair trade practices. Introduced by Committee Chairman Charles Rangel, D-N.Y., and Trade Subcommittee Chairman Sander Levin, D-Mich, the bill also calls for improved enforcement of U.S. intellectual property rights, health and safety laws and other related trade issues.

“The American public is skeptical about U.S. trade policy in part because the public does not believe that our trading partners are playing by the same rules as the United States,” Chairman Rangel said. “Our trading partners need to open their markets to U.S. exporters. They need to stop providing trade-distorting subsidies, and to stop dumping their products in our market. They need to protect intellectual property rights, and they need to ensure that their exports to the United States are safe. The Trade Enforcement Act of 2008 will help to regain confidence in U.S. trade policy." (House Committee on Ways and Means Press Release July 17, 2008)


The bill’s primary objectives are aimed at:

· Combating counterfeiting and piracy;
· Improving import safety;
· Eliminating barriers to American exports;
· Restoring and enhancing U.S. trade remedies.

The proposed bill involves participation and coordination between U.S. Customs and Border Protection (CBP), the U.S. Trade Representative (USTR), Immigration and Customs Enforcement (ICE) and the trade. The bill creates several new positions, such as the Office of Congressional Trade Enforcer and provides resources for training and technology to carry out this mission.

Due to other priorities, the shorter congressional schedule and the potential desire for government agencies and members of the trade to review and provide input, it is unlikely that the bill be approved this year. However, this effort will set the stage for trade policy discussions when the new president takes office in 2009.

Click HERE to see the entire bill.
Click HERE to see a summary of the bill.

Customs Broker Exam Study Tip 3: Using Looseleaf and Bound HTSUS and Regulations

Let’s face it; the materials necessary to study for the Customs Broker Exam are burdensome. Who wants to carry around a bunch of big heavy books? While it’s possible to use online versions while studying, we don’t recommend that you make a habit of this practice. Why? Because you cannot use the online version of the Regulations or HTSUS on the day of the exam. You will also want to make notes in your materials and highlight key words, phrases and sections. Use the online versions after you’ve passed the exam or when you need a quick answer to a client question and you have the online version readily available.

Now that we’ve determined that printed versions are best, what are the options? There are three primary options, looseleaf, paperback (perfect binding) and coil bound.

Looseleaf
The looseleaf version is bulky; however, it can be easily updated when supplements are issued quarterly for the Regs and in summer for the HTSUS. The print is larger than other versions, making it easier to read. There is also more room for making legible notes in the margin. If you use the looseleaf version, make sure you purchase a good quality binder so the pages turn easily and do not fall out of the binder.

Looseleaf editions can also be used in a publication rack, which allows them to sit open on a desk. The pages tend to turn more easily with a publication rack, and the disadvantage of bulkiness is essentially negated. This makes publication racks a popular choice for exam day.

Paperback/Perfect Binding
The Regulations produced using perfect binding resemble smaller paperback versions of the loose-leaf version (The paperback HTSUS is the same size as the looseleaf). The cover is made from heavier paper and is glued together at the spine with strong flexible glue. These books are lighter and slightly less expensive than the loose-leaf versions; however, they cannot be updated. If you are going to use the book regularly and make notes in the book, these might not be the best options. However, if you are looking for a book that is easy to carry for quick reference, then the paperback edition would be an excellent choice

Coil-Bound
Coil binding is commonly used for publications that are frequently opened so that the pages lie flat or back-to-back. Generally, binding is accomplished by punching holes along the entire length of the spine of the page and winding a wire through the holes to provide a fully flexible hinge at the spine. Coil bound versions are smaller and more lightweight than their looseleaf counterparts are (they are the same size as the perfect-bound). Coil binding is similar to looseleaf; however, the pages cannot be removed and they cannot be updated.

For persons taking the exam, we suggest that you consider the looseleaf book or a coil bound version. Both books are sturdy and the primary differences relate to the ability to update the looseleaf version versus the ease of carrying the coil bound version.

Click HERE to view the various binding options for the CBP Regulations.

Customs Broker Exam Study Tip 2: Exam Study Aids

In our first study tip, we discussed the importance of obtaining all of the required resources that are necessary to take the exam. This study tip will focus on the various study aids and materials that will help you prepare for the exam.

The percentage of people who pass the Customs Broker Exam the first time is low, ranging from 3% to 25%. While it is possible to pass the Customs Broker Exam using only the required exam materials, most people find using a variety a supplemental materials and exam study courses significantly increases their potential of passing the exam. The use of additional study materials also improves comprehension and makes better use of limited study time.

Some people learn better by actually doing a task, while others need to read the instructions or hear the instructions. Determining your style of learning and how you learn the best is the key to studying for the exam. If you do not have time to go to lectures, you may prefer correspondence or online courses. If you comprehend better by hearing the information, you may prefer audio lectures or classroom instruction. You should seriously consider the time you have to commit to studying and your learning style when selecting study courses and training materials. We have listed just a few options for using supplemental study aids and courses here.

1. Past Exams
Taking the past exams is a good way to become familiar with the format and types of questions that appear on the test. Using past exams as a study aid also helps you learn the materials, boosts confidence, shows your progress, as well as areas that need improvement.

2. DVD's and CD's
If you want the convenience of learning at your own pace CD's and DVD's allow you to study from the comfort of your home or office and may be reviewed as often as you like. CD's provide audio which is great for listening to on your daily commute. The DVD's usually simulate a classroom environment but the advantage is that you can view the lectures at your convenience rather than commute to a class.

3. Online Study Courses
For students who want the convenience of studying at their own pace, online courses provide instruction, examples, quizzes and other tools that are usually available 24/7 and anywhere you have an Internet connection.

Boskage Commerce Publications offers a variety of courses, study plans and other materials designed to fit different learning styles, experience levels and needs of students. Click HERE to view a variety of materials and courses. Consider your learning style as you review each of these options. We sincerely believe you will find that one or a combination of several that fits your needs perfectly; however, we may be able to customize plans to fit your needs. Be sure to check out the Customs Broker Exam Room Guide, a perfect resource for regular study and use on test day. This coil bound book contains all CATAIR sections, Directives and miscellaneous resources that will be tested on the upcoming exam. The Guide also contains includes quick-reference fact sheets such as Incoterms, trade program indicators, types of appraisement, acronyms, CBP fees and more.

Stay tuned to the Boskage Trade News for more helpful hints on studying for the Customs Broker Exam! The next article will provide the pros and cons of using the loose-leaf version of the CBP Regulations. We also welcome any suggestions on topics you would like to see discussed.

Customs Broker Exam Study Tip 1: Required Exam Resources

Now that you have made the decision to take the October Customs Broker Exam, it is important develop a study plan that guarantees your chances of success. Boskage wants to help you achieve your goal of passing the exam; therefore, we are starting a series of articles to support you on your journey to success! Our first topic in this series focuses on exam resources.

The first step in your plan should be acquiring the required texts and study materials. These materials come in two categories, “required” and “study aids”. Required materials are those that students must have because questions on the exam have been selected from these sources. CBP lists the required materials in the Notice of Examination. The required materials are listed below and you should obtain them now if do not already have them. All of the required materials can be purchased from Boskage Commerce Publications.

Required Exam Resources

1. Harmonized Tariff Schedule of the United States (2008 version - Supplement 1)

2. Title 19, Code of Federal Regulations (revised as of April 1, 2007 Parts 1 to 199) (no supplements)

3. Customs and Trade Automated Interface Requirements (CATAIR)

· Appendix B - Valid Codes
· Appendix D - Metric Conversion
· Appendix E - Valid Entry Numbers
· Appendix G - Common Errors
· Appendix H - Census Warning Messages
· Appendix L - Drawback Errors
· Glossary of Terms

4. Instructions for Preparation of CBP Form 7501 (8-30-2005)

5. C-TPAT - Minimum Security Criteria for Customs Brokers (3-20-2007)

6. Submission Changes for Supplemental Information Letters and Post Entry Amendments

7. CBP Directives

· 3510-004, Monetary Guidelines for Setting Bond Amounts
· Amendment to 3510-004 for Certain Merchandise Subject to Antidumping/Countervailing Duty Cases
· 3550-055, Instructions for Deriving Manufacturer/Shipper Identification
· 3550-067, Entry Summary Acceptance and Rejection
· 3550-079A, Ultimate Consignee at time of Entry or Release
· 3560-001A, Census Interface-Processing Procedures
· 5610-002A, Standard Guidelines for the Input of Names and Addresses Into Automated Commercial System (ACS) Files

Note: The use of any versions of the listed references other than those recommended is at the applicant's own risk.

Seeing this list of resources on paper and as a stack of documents on your desk can seem quite overwhelming, but don't worry. We’ll discuss organization of your materials in an upcoming article. Stay tuned to the Boskage Trade News for more helpful hints on studying for the Customs Broker Exam! The next article will cover the second category of exam resources, the “Exam Study Aids”. We also welcome any suggestions on topics you would like to see discussed.

CBP Proposes Elimination of Substantial Transformation Rule

On Friday, July 25, the Federal Register contained a Notice of Proposed Rulemaking (NPR), which proposes to eliminate the use of substantial transformation as one of the two methods for determining origin of imported goods.



Under the current regulations, there are two primary methods that CBP uses to determine the country of origin of imported goods that are processed in, or contain materials from, more than one country. One method provides for case-by-case adjudication to determine whether goods have been “substantially transformed'' in a particular country. The other method uses the codified rules in 19 CFR Part 102 , also known as the “tariff shift rules”, which also determine whether a good has been “substantially transformed'' by assessing changes in tariff classification.



CBP proposes to apply the Part 102 rules to future free trade agreements. This change will also affect many of the current free trade agreements such as GSP, CBERA and the AGOA; however, these rules will not be applied where current agreements specify another origin test for determining origin. Since use of FTA’s are often complex, please consult the notice in the Federal Register for more detail concerning these changes


CBP believes that the use of one codified standard will result in more objective uniform country of origin determinations instead of the subjective determinations that have resulted from the use of substantial transformation rules.

Comments related to this notice must be received on or before September 23, 2008. Make your opinion count and post your comments! Comments must be identified by docket number and submitted by one of the following methods.



Federal eRulemaking Portal:

http://www.regulations.gov/. Docket number USCBP-2007-0100

Mail:

Trade and Commercial Regulations Branch
Regulations and Rulings, Office of International Trade

U.S. Customs and Border Protection

1300 Pennsylvania Avenue, NW., (Mint Annex)

Washington, DC 20229.

CBP Posts Notice of Exam for October 2008

U.S. Customs and Border Protection has posted a notice to its web site announcing the October 2008 Customs Broker License Exam. The exam will be held on Monday, October 6, 2008 and applications (CBP 3124E) to take the exam must be received on or before Friday, September 5, 2008. Please note the important information about the following references.

Harmonized Tariff Schedule of the United States (2008 version – Supplement 1)
Questions on the exam were written using the 2007 HTSUS. It is important to use this edition since questions often require the determination of the correct HTS number, duty rate and applicability of Free Trade Agreements, all of which may change slightly from year to year.

Title 19, Code of Federal Regulations (revised as of April 1, 2007) (Parts 1 - 199)(No Supplements)
Questions on the exam were written using the 2007 CBP Regulations. However, anybody with the 2006 Regulations can use that book if it contains the updates through April 2007 (5th update).

CBP did not delete any of the supplemental materials listed from the April 2008 exam or add any new ones. The complete list of reference texts along with specific instructions for application to take the exam can be found on the CBP web site.

Note: CBP added the C-TPAT Minimum Security Criteria for Customs Brokers (3-20-2007) to the list of reference materials for the April 2008 exam and asked five questions related to that document. Be sure to read the C-TPAT document thoroughly and review the questions from the April Exam!

It’s time to get ready for the next Customs Broker Exam! Click HERE for a complete list of our study plans and products designed to help you study and pass the exam! As always, the only way to guarantee that you receive the correct editions prior to the Notice of Exam posting is the get the Required Testing Material package through Boskage. Don’t forget to visit the Boskage Trade News Blog for additional for import/export news updates, articles about specific trade topics and helpful posts related the Customs Broker Exam!

Annual CBP Trade Symposium Scheduled

U.S. Customs and Border Protection announced the dates for its annual Trade Symposium to be held on October 29-31, 2008 at the JW Marriott Hotel in Washington, DC. Check the CBP web site for additional information regarding registration procedures and program details that should be available in September.

“First Sale” Update

During the Senate Finance Committee hearing on June 24, Commissioner Basham stated that CBP would not proceed with the proposed changes to the “first sale” rule. In accordance with the previous suggestions by Congress, CBP will collect data to provide to the ITC for analysis. CBP will revisit the proposed change again in January 2011.

CFR Amended to Implement CAFTA-DR Provisions

On June 13, 2008, U.S. Customs and Border Protection “CBP” published an interim rule in the Federal Register outlining amendments to Title 19, Code of Federal Regulations (CFR) related to the Dominican Republic-Central America-U.S. Free Trade Agreement (CAFTA-DR). The interim rule was effective June 13, 2008.

The majority of the regulations have been included within Subpart J of Part 10 in the CFR (19 CFR Part 10, Subpart J); however, the Federal Register Notice discusses all changes to the CFR, including those outside of Subpart J, Part 10.

The full text of the interim rule, including instructions for submitting comments, can be accessed online at: http://edocket.access.gpo.gov/2008/E8-13252.htm. The changes to 19 CFR Part 10 can also be seen in the Electronic Code of Federal Regulations.


CBP is soliciting comments, due by August 12, 2008, related to the “economic, environmental or federalism effects that might result from this interim rule”. Comments must be identified by docket number and submitted by one of the following methods:


Federal eRulemaking Portal:
http://www.regulations.gov/. Docket number USCBP–2008–0060.




Mail:
Trade and Commercial Regulations Branch, Regulations and Rulings
U.S. Customs and Border Protection

1300 Pennsylvania Avenue, NW., (Mint Annex)

Washington, DC 20229.

BIS Creates Emerging Technology and Research Advisory Committee

In May, the Bureau of Industry and Security (BIS) announced the creation of the Emerging Technology and Research Advisory Committee (ETRAC). ETRAC, a technical advisory committee will assist BIS in reviewing and making recommendations concerning currently controlled technologies and emerging technologies that may have national security interest.

The ETRAC will provide recommendations to BIS on how to help keep the Commerce Control List current with respect to emerging technologies and research and development activities that have dual-use applications. The committee will assess new and existing regulatory controls that are of greatest consequence to U.S. national security and study the implications of the release of dual-use technology to foreign nationals under current deemed exports licensing requirements.

The ETRAC will be responsible for:

(1) identifying emerging technology and research development activities related to dual-use commodities;

(2) prioritizing new and existing controls that affect national security; and

(3) addressing the potential impact of dual-use export controls requirements on research activities.


BIS was seeking 25 individuals from the private sector to join and requested interested applicants to submit a copy of their resume to BIS by June 24, 2008. Qualified leaders in industry, academia and research were encouraged to apply. Members are expected to have in-depth knowledge of U.S. research and emerging technology that could affect U.S. national security and be able to qualify for Secret clearance. Additional information can be found in the Federal Register Notice.

Report Trade Violations to CBP

U.S. Customs and Border Protection launched a new system called e-Allegations that will make it easier for the public to report violations of import and export laws.

e-Allegations can be used to report violations related to issues such as misclassification, country of origin, health and safety, intellectual property, textiles and other trade violations. For example, if you know that a company is declaring the wrong country or origin on a product to obtain lower duty rates, that violation could be reported through the online system. The system cannot be used for reporting security issues such as potential terrorist activities or weapons of mass destruction.

If you have knowledge of a violation of United States trade law, you can access the online system at https://apps.cbp.gov/eallegations/ and click the "Report Trade Violations" button after reading the Privacy Policy. Complete the short form explaining the violation. The following information will be required; (1) type of trade violation, (2) description of what has occurred, and (3) products or goods involved and the alleged violator’s name and/or company. Other information may be included on a voluntary basis. These reports are confidential and may be made anonymously. Once you have submitted the form, a confirmation e-mail will be sent to the address you provided, if you gave one. You may also report trade violations by calling 1-800-BE-ALERT.

BIS Launches Online Advisory Database

The U.S. Bureau of Industry and Security has launched an online database containing advisory opinions on certain export issues subject to the Export Administration Regulations. Although the BIS Advisory Opinions are not as comprehensive as the rulings found on the CBP Cross database, BIS plans to add future advisory opinions as appropriate.

Protecting Your Laptop from Thieves, Terrorists and CBP

International travelers, beware of what you store on your laptop. As a result of a recent court case, travelers may see increased inspection of laptop computers. On Monday, April 21, 2008, the U.S. Court of Appeals for the Ninth Circuit ruled that CBP may examine the electronic contents of a passenger’s laptop computer and other electronic devices without any suspicion of criminal wrongdoing.

CBP officers at Los Angeles International Airport requested that a passenger returning from the Philippines boot up his laptop. The officers reviewed pictures found on the laptop and found one showing two nude women. Agents with Immigration and Customs Enforcement (“ICE”) were called and the computer was seized after the agents found other images that appeared to be child pornography. The grand jury charged the passenger with various pornography violations. The passenger filed a motion to suppress the information because the government conducted the search without reasonable suspicion and the district court granted the motion. However, the U.S. Court of Appeals for the Ninth Circuit reversed the district court based on a series of cases that demonstrated reasonable suspicion is not needed for customs officials to search a laptop or other personal electronic storage devices at the border. One government official analogized that rummaging through a computer's hard drive is no different from looking through a suitcase. Click HERE to read the entire ruling.

What should you do to protect private information? Are you required to provide passwords and encryption information to CBP officials? Deleting browser histories and cookies and encrypting the entire hard drive is something that should be done for security in case the computer is lost or stolen. The courts are divided on the issue of providing passwords and encryption information to CBP. A recent decision, which is being appealed by the government, ruled in favor of the defendant stating disclosure of the information was a violation of his Fifth Amendment rights. While the traveler may decide not to provide the information, CBP may retain the laptop to obtain a warrant requiring the decryption key. Businesses should review their current policies to ensure adequate procedures are in place to safeguard proprietary information. Additionally, employers should instruct employees on how to respond to CBP and other government officials requesting access to the proprietary information.

CBTPA Extended and First Sale Rule Delayed

On May 22, Congress overrode President Bush's veto of H.R. 2419. Two specific provisions related to imports include the extension of CBTPA benefits and delayed implementation of revisions to CBP’s first sale rule.

Originally scheduled for expiration on September 30, 2008, the provisions of the Caribbean Basin Trade Partnership Act (CBTPA) have been extended until September 30, 2010.

Congress expressed that CBP should not implement changes to the current usage for the first sale rule prior to January 1, 2011 and created a requirement for collecting and analyzing information about first stale transactions, as well as consulting with House Ways and Means and Senate Finance before taking action. For one year, beginning 90 days after enactment, importers will be required to provide declaration with each entry submitted to CBP providing information on whether the importer has used the first-sale methodology in declaring transaction value for the entry. The data will be analyzed and reported to Congress. So, importers have a couple of years some time to analyze their current transactions and plan for alternatives in the event CBP is able to make those changes to the first sale calculations and importers taking advantage of CBTPA benefits have two more years to enjoy the reduced and free duty provisions.

Special Notice: Explanatory Notes Now Available In Four Installments At Reduced Rates

Boskage Commerce Publications, the only authorized U.S. distributor of the Explanatory Notes to the HTSUS, has changed the pricing and terms of purchase of that publication.

The Explanatory Notes is the main publication tool used in classification, and is published by the World Customs Organization, in Brussels, Belgium. The newest edition was released in January of 2007, at WCO-set prices that were considerably higher than the previous edition. Last week, Boskage announced a discount and new terms, in response to a perceived growing need.

Starting today, Boskage is offering the Notes for $890 -- $200 off the list price of $1090 -- and allowing the tool to be purchased in four monthly installments. "We hope to allow a wider range of clients to acquire this landmark classification tool," said Boskage CEO Scott Warren Taylor. "The Explanatory Notes should be used by every individual engaged in classifying. We hope that this move will help make that necessity a reality."

CBE Appeal Checklist

If you plan to appeal your CBP Exam score, it is important to follow CBP’s appeal requirements. CBP will reject the appeal if it:

• is incomplete, is untimely, or is in the wrong format


• includes any arguments written by another person


• does not provide supporting arguments


• argues for an answer the applicant did not select


• contests an incomplete erasure or insufficient marking on the applicant’s answer sheet

CBP will provide to the examinee written notice of the decision on the appeal. If the CBP decision on the appeal affirms the result of the examination, the examinee may request review of the decision on the appeal by writing to the Secretary of Homeland Security, or his designee, within 60 calendar days after the date of the notice of that decision. 19 CFR 111.13(f)

To help you submit an appeal that complies with CBP requirements, we’ve created the CBE Appeal Checklist. Be sure to review each item and place a check mark next to the individual requirements.

New Regulations Require Electronic Filing of Export Documents

The final rule requiring the mandatory filing of electronic export information was published in the Federal Register on June 2, 2008. The Bureau of Census announced the final rule requiring mandatory electronic filing of export information through the Automated Export System (AES) or AESDirect for shipments where a Shipper’s Export Declaration is required. The AES is an electronic method for filing the paper SED information directly with the U.S. Customs and Border Protection (CBP) and the Census Bureau. The AESDirect is the Census Bureau's free Internet-based system for filing SED information through the AES. The current $2,500 exemption level for reporting will not change since this would increase the number of shipments reported and neither Census nor CBP has the resources to process the information.

Under the new regulations, exporters or their agents will be required to file electronic data in roughly the same time intervals as import cargo: 24 hours for ocean cargo, two hours in advance for rail and air, and one hour before trucks arrive at the border. Effective July 2, exporters will be required to file all export documents electronically; however, exporters will be given 90 days to adjust before enforcement actions will be taken. Even though the majority of exporters currently file electronically, may exporters at the southern border still file paper copies.

When the enforcement starts in October, parties could be fined up to $10,000. Penalty amounts have been increased from $100 to $1000 each per day of non-compliance for a maximum of $10,000 per violation. Criminal penalties may be applied in which the penalty will not exceed $10,000 and/or imprisonment for not more than five years. Enforcement responsibilities have been delegated to the Bureau of Industry and Security (BIS), CBP and U.S. Immigration and Customs Enforcement (ICE). Other noteworthy provisions include information on how to submit voluntary self-disclosures of a violation or suspected violation of the reporting requirements, power of attorney requirements for agents and a section on record keeping that explains the documentation/records each party is expected to retain. Records must be maintained for 5 years from date of export.

Click HERE to view the full text of the new export regulations.

Kosovo Country of Origin Requirements

Since the United States has officially recognized the Republic of Kosovo as a sovereign state on February 18, 2008, imported goods must be marked in English using the words Kosovo or Republic of Kosovo. CBP recognizes that manufacturers and importers need time to adjust to the changes; therefore, goods entering the United States that are marked “Serbia” will be permitted entry until February 18, 2009.

Changes Proposed to Customs Broker License Examination Eligibility Requirements

On Tuesday May 27, the Federal Register contained a Notice of Proposed Rulemaking (NPR) concerning changes to the eligibility requirements for taking the Customs Broker License Examination. The proposed rule would require individuals to meet the following criteria prior to the date of the exam. In order to take the exam, individuals must be U.S. citizens,
21 years of age, and not be an officer or employee of the U.S. Government.

The proposed amendments would more closely align the requirements for taking the written examination with the requirements an individual must satisfy in order to obtain a customs broker's license. As a result, this proposed rule would facilitate the overall customs broker licensing process by helping to ensure that those taking the examination are not automatically precluded from obtaining a license by reason of age, citizenship status, or employment. These changes also resemble the requirements for obtaining a license that were changed in 2000 to allow applicants three years to meet the eligibility requirements after taking the exam.

Comments must be received on or before July 28, 2008. Make your opinion count and post your comments! Comments must be identified by docket number and submitted by one of the following methods:

Federal eRulemaking Portal:
http://www.regulations.gov/. Docket number USCBP–2008–0059.


Mail:
Trade and Commercial Regulations Branch, Regulations and Rulings
U.S. Customs and Border Protection
1300 Pennsylvania Avenue, NW., (Mint Annex)
Washington, DC 20229.

Changes to Antiquated Customs Broker Regulations Pending

At the NCBFAA Conference in April, Commissioner Ralph Basham stated that some changes needed to be made to antiquated broker processes. First, there needs to be change to the process of filing the Triennial Status Report. Initiated prior to automated systems, the party who forgets to mail the administrative report could lose their license almost immediately, which results in a penalty disproportionate with the infraction. Second, CBP needs to be able to suspend the licenses of brokers whose illegal activities threaten national security and the health and safety of individuals in the U.S. Just last year, brokers were indicted and arrested for smuggling, but CBP could not suspend their licenses. Basham told the attendees that new draft legislation addresses both of these issues.

New Informed Compliance Publications

Customs and Border Protection has been busy writing, reviewing and updating the Informed Compliance Publications this year. Three new publications have been added, and 24 were updated in the first quarter of 2008. Here’s a brief overview of the new publications along with a list of the publications that have been reviewed and updated.

New Publications:

Classification and Entry Requirements of Alcoholic Beverages and Spirits (February 2008)
This new publication provides detailed explanations of each heading, the related explanatory notes and some examples of products included in each heading. Additionally, it provides instructions on how to compute proof liters along with examples. This is a great source of information for importers of alcoholic beverages and for persons studying for the broker’s exam. CBP has asked questions related to the classification of alcoholic beverages and calculation of proof liters on past exams.

Classification of Coated and Water Resistant Apparel (January 2008)
Finding the proper classification of wearing apparel can be a difficult task, but determining the difference between coated and water resistant provisions is one of the most frequently misunderstood areas. This new publication presents information to clarify the distinctions between the visibly coated and water resistant apparel goods by explaining how the GRI, Chapter Legal Notes and the actual headings provide direction in classifying these goods. Since CBP recently asked a question related to a water resistant apparel good on the broker’s exam, this publication would also be helpful to those studying for the upcoming exam.

Eyewear Frames and Eyewear (January 2008)
The new publication provides a comprehensive discussion of eyewear, which encompasses the actual completed product, frames, accessories and cases. In addition to CBP regulations, this publication includes information concerning the regulation of eyewear by other government agencies.


Revised and Updated Publications:
· Agglomerated Stone - 03/13/2008
· Agricultural Actual Use Provisions - 02/01/2008
· Base Metal Mountings and Fittings - 02/13/2008
· Basic Forms of Non-Ferrous Metals - 02/26/2008
· Beauty and Skin Care Products of Heading 3304 - 03/06/2008
· Button, Snap Fasteners, Slide Fasteners and Similar Articles - 02/13/2008
· Buying & Selling Commissions - 01/08/2008
· Caviar - 03/20/2008
· Classification of Children's Apparel - 02/13/2008
· Classification of Cooking Ranges, Stoves and Ovens - 03/03/2008
· Classification and Marking of Watches and Clocks - 02/13/2008
· Coated Nonalloy Flat-Rolled Steel - 02/13/2008 02/13/2008
· Decorative Glassware - 03/13/2008
· Diodes, Transistors & Similar Semiconductor Devices - 02/21/2008
· Distinguishing Bolts from Screws - 02/21/2008
· Fasteners of Heading 7318 - 02/13/2008
· Hand Tool Sets Classified Within Subheadings
  8205.90.00 and 8206.00.00 - 02/13/2008
· Household Articles of Base Metal - 02/13/2008
· Mushrooms - 03/06/2008
· Peanuts and their Classification under the HTSUS - 03/06/2008
· Personal Digital Assistants (PDAs) and Electronic Organizers - 04/01/2008
· Stranded Wire, Rope and Cable, of Iron or Steel- 02/28/2008
· Vending Machines and Their Parts Under the HTSUS - 04/21/2008
· Waste & Scrap as it Relates to Base Metals of Chapter 81 - 02/26/2008

Tired of looking for updates? Click here to find out how you can have updated versions for all of the Informed Compliance Publications along with an extensive compilation of Customs Directives and other selected CBP information in looseleaf and searchable CD-ROM.

Importer Security Filing “10+2” Update

In May, the Federal Register published the regulatory agendas for various government agencies, including the Department of Homeland Security. The comment period for the implementation of 10+2 ended on March 18, 2008. Almost 200 comments were submitted in response to the proposed rulemaking have been published for review. Click here to view some of the comments. According the information published in the Federal Register, CBP projects that they will issue the final 10+2 rule sometime in September.

As we posted in September 2007 and February 2008, the Importer Security Filing rule will require that carriers and importers submit additional data elements by EDI. CBP states that collection of this information will enhance targeting and risk analysis capabilities, improve facilitation of lawful trade, and is required by the SAFE Port Act 203. In addition to the new reporting requirements, the rule also proposes to amend 19 CFR 113.62 to include payment of liquidated damages for violations of the proposed regulations. The principal could be liable for damages equal to the value of the merchandise for failure to comply with the regulations. Additional penalties of $5,000 per violation could be imposed for failure to comply with container status messages.

Even though the final rule will not be published until September and the implementation is likely to be phased in over 8 to 12 months, importers, brokers, forwarders and carriers need to prepare now.

Someone within your organization needs to have responsibility for obtaining the required information. For importers, should this responsibility be delegated to Customs Compliance, Logistics, or some combination of parties? Who will transmit the information – your company or an agent? Remember that the importer is solely responsible for submitting the information, but an agent may submit it if they have a power of attorney. For brokers, how will you manage this process with clients? What changes will need to be made to the software and other electronic data systems?

Take action now to avoid costly delays in cargo delivery later!

Customs Broker Exam Pass Rate - 20.6%

For all of you who have been patiently (or not so patiently) waiting on the results of the April 2008 Customs Broker Exam, CBP expects to have the answers posted their web site some time this week. CBP will start mailing letters at the end of this week, so you should start camping out by your mailbox next Monday.

The pass rate for this exam was 20.6%, which is higher than the 9.2% on the October exam. We’ll be watching the CBP web site for the answers so we can provide an updated list of correct answers and a list of potential protest questions. For those of you who purchased the Boskage Study Plans that included the detailed exam commentary, we’ll be completing that information and posting it as soon as possible after the official exam results are posted.

Priority Trade Initiatives

As most of the trade community may have noticed, U.S. Customs and Border Protection has been updating their web site. It may take a little extra effort to find some of the information and get used to the new format, but in time, we will enjoy the new features and expanded information. One of the new areas created during the update is the Priority Trade Issues (PTI). PTIs are identified as high-risk areas that are likely to cause significant revenue loss, economic risk to U.S. industry or health and safety concerns to citizens.

Currently, the following seven areas are identified as PTIs:

• Agriculture


• Antidumping and Countervailing Duties


• Import Safety


• Intellectual Property Rights


• Penalties


• Revenue


• Textiles

Click HERE to learn more about each PTI.

BIS Principles of Export Compliance

With increased scrutiny of export compliance, exporters should have an effective compliance system in place. At the recent BIS Export Control Forum in Newport Beach CA, Assistant Secretary for Export Enforcement Darryl Jackson gave a presentation outlining nine principles of export compliance used to evaluate the effectiveness of an export compliance program and determine whether mitigation of an administrative penalty is warranted. These nine principles include:

· Meaningful Risk Analysis
· Written Compliance Programs
· Responsibility for Oversight by a Senior Official
· Adequate Employee Training
· Adequate Customs and Transaction Screening
· Compliance with Recordkeeping Requirements
· Internal System for Reporting Violations
· Internal and External Reviews/Audits
· Remedial Actions to Address Violations

Similar to import compliance programs, exporters must be able to demonstrate that the nine principles are applied in business transactions and not just something put on paper to satisfy the government. The export compliance programs must also be reviewed and updated to reflect changes in business practices and government regulations. Click on the following links to view Jackson’s speech and presentation.

Creating Your Import Compliance Procedures

In March, we discussed the importance of having import compliance procedures and promised that we would discuss creating and customizing these procedures in April. In order to obtain all of the benefits having import compliance procedures offer, it’s important to create procedures that will be supported by executive management and useful for employees. So, how do we get started?

We’ve provided the following suggestions to help you develop your import policies and procedures:

• Obtain support of executive management.



• Identify CBP-related laws and regulations, import activities, organization and products that may require procedures.



• Draft an outline or table of contents of procedure topics.



• Collect and review any existing procedures, making notes for necessary changes.



• Collect information that will help you draft the policy or procedure.



• Select a format.



• Create drafts of procedures.



• Review the drafts and allow functional areas affected by the procedures to review and provide feedback.



• Review feedback and make changes.



• Prepare final document.



• Obtain final approval.



• Assemble the manual and make copies and/or upload procedures for employee access when using electronic media.



• Implement and communicate new procedures.



• Provide training when necessary.



• Schedule review and update.

Now that you have determined the need for the procedures and have possibly taken the first few steps to creating your own procedure manual, how are the procedures written? When writing standard operating procedures, there are a number of different ways to organize and format them. Many people fear the task of writing procedures because they do not like to write, or may not feel that their writing skills are sufficient. Generic templates can make the task more manageable because the basic information has already been created. All you have to provide is the information that pertains to your company. Your goal is to create a document that is factually and legally accurate, useful, and easy for the reader to understand. Let's look at some suggestions that may help you when writing policies and procedures.

Policies should be clear, concise, simple, understandable, factual, and logical.

You should also consider the following tips:

• Avoid using information that may be quickly outdated, such as names of employees.



• Spell out acronyms the first time they are used.



• Include step-by-step instructions for completing forms.



• Use graphs, charts, drawings, and illustrations as required.



• Be consistent with use of headings, bold, underline etc.



• Divide into sections that contain materials related to one topic or process.



• Use action verbs to begin sentences and lists when possible.



• Simplify and summarize difficult information.

Click HERE to view a generic sample of a General Order procedure.

When supported by management, your organization’s import compliance procedures can serve as an example for an overall corporate commitment to compliance. If well written, properly used and reviewed regularly, your company should experience higher levels of quality and increased employee and customer satisfaction.

Special HTSUS Change Package - Boskage Exclusive

The International Trade Commission (ITC) has revised the 2008 Harmonized Tariff (HTSUS). However, the ITC has elected NOT to print these changes.

We understand that many of our customers will want to update their printed editions, and we have a limited number of printed change packages available for sale to our customers only. This is the only available print edition of this revision.

Order now as these print editions are limited.

NOTE: If you purchased the HTSUS through Boskage, this revision is not part of regularly printed government supplements, which will still be sent to you at no charge upon release as part of your 2008 subscription.

The special change package is 198 pages. The price is $24.50 with $6.00 shipping/handling.

Please click here to get your HTSUS special change package.

If you are a Boskage OneSource CD subscriber, these changes will be made to your software the next time you access OneSource.

If you would like to purchase a special OneSource HTSUS that includes the current changes, please click here to have your CD sent today.

Potential Answers for April 2008 Customs Broker Exam

As many people sit on pins and needles waiting to see the answers posted for the most recent Customs Broker’s Exam, our very own Wizard has taken the exam and provided a list of possible answers and related regulations where the answers were found. We never know when CBP will post the answers and the wait feels like forever. The answers for the October 2007 Exam were not posted until November 13.

We invite you to post your answers, explanations, arguments and other comments. Obviously, Boskage Commerce Publications cannot guarantee the accuracy of these answers since CBP has the one and only answer key, but the Wizard has an excellent record of achieving a score of better than 90%.

Click HERE to view a copy of the Wizard’s answers for the April 2008 Exam! Additional commentary on the exam will be available to our students soon.

Note: The Wizard had the most difficulty answering the questions marked by an “asterisk” and highlighted in purple.