UPS Requests Fewer Classification Codes for Low Value Shipments to Match Canada
The U.S. should simplify the classification requirements for shipments valued between $800 and $2,500, UPS said in comments to the Office of Management and Budget's Office of Information and Regulatory Affairs. The Canada Border Services Agency uses only six classification codes for "casual business/consumer-to-consumer import shipments valued at less than US$500 per item" and the U.S. would benefit from a similar policy, UPS said. The comments were filed in the docket for the U.S.-Canada Regulatory Cooperation Council's request for public input on aligning regulatory requirements between the two countries (see 1810120028).
Reducing the number of codes "helps exporters by simplifying the process and increases efficiency in Customs Entry submission because of how it reduces the number of classification lines for reporting to customs agencies," the company said. Simplified codes for imports worth between $800 and $2,500 would streamline "brokerage practices," which would have "a ripple effect for the whole commercial network of low-value shippers," UPS said. "Simplified, generic classification codes reduce the administrative costs of determining classification codes and ultimately contributes to improved time-in-transit -- especially given the integrated nature of supply chains across North America. To complement this solution, UPS also proposes having simplified tariff classifications for commercial exports."
UPS also offered support for the further development of cargo pre-clearance, as mentioned in the U.S.-Mexico-Canada FTA. "Development of these programs would secure the supply chain and enhance before-the-border entry processing by removing redundant clearance steps," the company said. Such efforts should also be expanded "to encompass express delivery shipments and cover all modes of transportation," it said. The Certificates of Origin process needs modernization and "full adoption of an electronic format would reflect the nature of modern, internet-based commerce," it said. CBP's recent blockchain test for the certificates (see 1810190049) showed the technological potential, so "we need to create the regulations to support these efforts," the company said.
The company also noted the U.S.-Mexico-Canada Agreement's call for collaboration on "single window platforms." As part of that, the U.S. and Canada should "align documentation requirements between the U.S.’s system and Canada’s Single Window Initiative." The use of "reciprocal Single Window treatment for imports into Canada improves certainty for U.S. exporters and helps integrators like UPS ensure that goods will be cleared and delivered on time," it said. Digitizing all customs forms, including Certificates of Origin and "customs Powers of Attorney/General Agency Agreements and other processes related to establishment of services," would help eliminate the need for "wet-ink signatures," UPS said.
Another commenter from US Import Meat Inspection, an official import inspection facility in Sweet Grass, Montana, suggested that the Food Safety and Inspection Service use test kits at individual facilities. Currently, the FSIS policy of "test and hold" requires an often lengthy delay as results are obtained from an Agriculture Department laboratory, it said. The use of approved test kits would "act as an indicator of adulteration and compliment the current procedures if a positive is identified" and allow for fresher meat if the result is negative, it said. Meat trade groups made a similar recommendation in comments in the same docket (see 1811190021).
The FSIS inspectors should also have authority to review label defects and allow for the inspection facility to correct or replace the label if previously approved by the importer of record, US Import Meat Inspection said. Currently, the inspection facility is required to contact the importer of record and seek approval from FSIS to relabel the shipment, it said. On weekends, such products often need to be destroyed due to the delay, it said.