Trade Compliance News

New Informed Compliance Publication on Rulings
U.S. Customs and Border Protection (CBP) issued a new Informed Compliance Publication (ICP) on its rulings program. The ICP provides detailed information on the process of submitting ruling requests along with instructions on how to appeal rulings and request internal advice. Click HERE to view the ICP.


Lacey Act Primer
APHIS recently posted a revised version of the Lacey Act Primer that includes a list of best practices and declaration requirements. Click HERE to view the presentation. Information about the blanket declaration program and other FAQ’s are also posted on the APHIS web site.


ACLU Obtains CBP Border Search Documents
Pursuant to a request under the Freedom of Information Act by the ACLU, Customs and Border Protection (CBP) provided documentation about its searches of electronic devices. The documents revealed that the current policy did not require CBP officials to justify the border search over 1,500 electronic devices. In addition to laptops, CBP detained or seized cell phones, digital cameras, flash drives and DVDs.

One the most significant observations is the number of transfers of electronic files to other agencies. The reports showed that electronic data belonging to travelers was transferred to other agencies almost 300 times and CBP made copies of the files in most of the transfers. This information should be a red flag for business travelers who maintain sensitive business information computers, cell phones, etc. CBP may transfer your data to other agencies without your written consent. If you are traveling overseas, you may want to consider removing any confidential information from your electronic equipment.

Click HERE for more detailed information about the documents received by the ACLU.


DHS Issues Report Card on CBP Cargo Targeting & Examination
The Department of Homeland Security’s Office of Inspector General recently issued a report evaluating CBP’s Automated Targeting System (ATS). DHS recommended two areas for improvement. First, CBP should improve documentation for inspections. In 57 out of 391 high-risk examinations, records did not contain enough information to support decisions to inspect or waive inspection of the cargo. DHS also recommended that CBP update the targeting guidelines, which largely rely on 1999 inspection procedures.

Click HERE to view the entire report.

Sleeping Giant Awakens - Has First Meal!

With so much focus and worry over the potential ISF penalties set to become effective in 2010, many importers may have forgotten about the Lacey Act. Well, the sleeping giant awakened with a ravenous appetite, which it promptly satisfied by taking a bite out of an importer in Tennessee.

Administered by the USDA’s Animal and Plant Health Inspection Service (APHIS), the Lacey Act combats trafficking in “illegal” wildlife, fish and plants. The Lacey Act requires submission of a declaration at the time of import for a wide variety of products such as live plants, lumber, paper, products containing plant material such as furniture, tools, sporting goods, printed matter, musical instruments and textiles. Importers are required to report the species of plant/wood, value, quantity and country of origin.

The sleeping giant (U.S. Fish & Wildlife) sunk its teeth into a manufacturer in Nashville, TN for its first known meal. According to press reports, federal officials were looking for evidence that the company is using illegally harvested wood imported from Madagascar, which is prohibited under the Lacey Act. FWS agents seized wood, products, computers and electronic files. The company is known for its environmental sustainability efforts and stated that it is fully cooperating with the Fish & Wildlife officials.

Penalties for violations of the Lacey Act range from forfeiture of goods to fines of up to $500,000. If the company or individual is found to have knowingly engaged in the trade of illegally sourced wood, prison time could be imposed.

Although it is early in the investigation, this should be a wake up call for all importers concerning the importance of maintaining, reviewing and verifying the sourcing arrangements involving products regulated by the Lacey Act. The giant may be full from that first feast, but it will soon be ready for another meal. Don’t let it feast on your company. Click HERE to learn more about the Lacey Act requirements.

International Trade Compliance News Summary

1. CBP Posts Schedule of Future ISF Outreach Events

CBP will offer ISF training in the following cities during the month of September.

· Miami, FL – Wednesday, September 09, 2009
· Charleston, SC – Wednesday, September 09, 2009
· Chicago, IL – Wednesday, September 23, 2009
· San Francisco, CA – Wednesday, September 23, 2009
· Washington, DC - Tuesday, September 29, 2009
· New York, NY - Wednesday, September 30, 2009
· Norfolk, VA – Wednesday, September 30,

Don’t forget to check out the penalty information published in the Customs Bulletin on July 17, 2009.


2. First Sale Indicator No Longer Required

U.S. Customs and Border Protection (CBP) issued a message informing ports and the trade community that the requirement for filing the First Sale Declaration indicator ended on August 19, 2009. Starting on August 20, 2008, importers were required to enter the letter “F” in a miscellaneous indicator field for each entry line where the declared entry value was determined by the first sale rule. CBP collected the information and forwarded it to the U.S. International Trade Commission (ITC), which will review the data for the 12-month period and report the findings to the Senate Committee on Finance and the House Committee on Ways and Means by February 10, 2010.

3. Tips for New Importers and Exporters

On August 31, CBP posted revisions to its “Tips for New Importers and Exporters.” CBP recommends that importers and exporters become familiar with CBP policies and procedures prior to actually importing/exporting" goods. To assist the trade in this process, the article provides information and links related to:

· Licenses required for import
· Other Government Agencies
· Importing into the United States Publication
· Informed Compliance Publications
· CBP Ports and Contacts
· CROSS Rulings
· Export Documents, Licenses and Requirements
· Bureau of Industry and Security (BIS)
· Customs brokers
· Bills from CBP

Click HERE to access this information.

4. CBP Posts Updated ABI Provider List

CBP updated its list of providers of data processing services to the trade community for the Automated Broker Interface (ABI). Inclusion on the list does not constitute any form of an endorsement by CBP.

The list contains software providers for :

ACE = Automated Commercial Environment
DV = Drawback
FTZ = Foreign Trade Zone
ISF= Importer Security Filing
PV = Protest
QP/WP = In-bond
V = ABI entry

Service bureaus (SB) are also included on the list. Service bureaus act as a communications source for data transmission to ACS. These organizations are in the business of transmitting and receiving Customs data for ABI participants. Be sure to check with the individual provider to determine the services offered. Each of ABI participants have successfully completed a period of intensive testing to receive approval for various levels of ABI operations.


5. Lacey Act Declaration Enforcement Delayed for Some Products

In the September 2, 2009, Federal Register, the Department of Agriculture, Animal and Plant Health Inspection Service (APHIS) published revisions to the enforcement of the requirement to file an import declaration for certain goods under the Lacey Act. Be sure to check the Federal Register and the USDA web site for changes to the Phase III requirements starting October 1, 2009, and the Phase IV requirements starting April 1, 2010.

Lacey Act Implementation Delayed

The statutory deadline for compliance with the declaration requirement under the Lacey Act amendments is December 15, 2008. To address the concern of both the trade and federal agencies, the USDA has proposed phased in enforcement of the Lacey Act starting around April 1, 2009. (April Fools Day!) Some importers may not be required to comply until July. The following is a proposed timeline for the implementation and enforcement.

December 15, 2008 - Paper declaration form available and accepted. No prosecution for failure to complete the form from December to end of March unless false information submitted.


April 1, 2008 – Enforcement of declaration requirement for HTS chapters 6 and 44. Electronic collection of required declaration available.


July 1, 2008 – Enforcement of declaration requirement for additional HTS chapters – 47, 48, 92, 94


Sept 2009 – Phased-in enforcement for additional HTS chapters 12, 13, 14, 45, 46, 66, 82, 93, 95, 96, and 97.

In case you’ve been busy resolving other trade issues and haven’t paid much attention to this one, remember that the Lacey Act requires submission of a declaration for a wide variety products such as live plants, lumber, paper, products containing plant material such as furniture, tools, sporting goods, printed matter, musical instruments and textiles. Importers will be required to report the species of plant/wood and country of origin. Check out the USDA web site for more information about the Lacey Act.