Trump Era Could Mean Tougher Enforcement for Exporters, May Stop Several Export Regulations, Officials Say

NEW ORLEANS -- Exports will likely see heightened enforcement and greater “accountability” in terms of timeliness of filing and data accuracy under the new administration, said Rich DiNucci, executive director-cargo and conveyance security at CBP, during the National Customs Brokers & Forwarders Association of America annual conference April 4. Though much of the Trump administration’s tough talk so far has focused on imports, even exporters will be operating in a new environment as a shift to protectionism occurs across the globe, DiNucci said.

“There’s a lot of talk about protectionism, a lot of talk about globalization and [its] impact, the executive order. That kind of change is coming,” DiNucci said. That new environment comes as CBP continues efforts to automate exports, including through electronic pre-departure manifest filing currently in pilot mode. “I think it’s critical that we understand that’s taking place” as CBP moves forward with its automation efforts, he said. “I think you’re going to see a lot more accountability in the process.” CBP will walk a “fine line” and “look to facilitate” exports, especially given the administration’s emphasis on job creation. But if there are “questions to the accuracy and timeliness, you will see enforcement.”

CBP is now in discussions with the Office of Management and Budget to expand the truck advance manifest pilot to include more participants beyond the nine allowed by law, DiNucci said. A Federal Register notice on the pilot must come in the next 45 days, but “that’s iffy at best.” The administration’s regulatory freeze means “there’s challenges with that right now considering any regulatory move is going to be looked at skeptically,” DiNucci said. CBP hopes to issue a proposed rule in 2018 so it can finalize advance export manifest requirements.

The regulatory freeze also affects export regulations that were in the pipeline from the Census Bureau. Amendments to the Foreign Trade Regulations that incorporate new data elements, including the original internal transaction number (ITN) and an indicator for used electronics (see 1603080033), were in their final stages but now may be on hold indefinitely, said Omari Wooden of the Census Bureau’s Foreign Trade Division. Commerce Department lawyers are currently trying to determine whether they may be exempt from the executive order that set the freeze, Wooden said. The same goes for a notice of inquiry on routed export transactions that is also on hold and will be put out for comments “once we get past the regulatory freeze component,” Wooden said.