Express Association Would Like to See Drawback for E-Commerce Returns

The Express Association of America pointed to several specific regulatory changes it would like to see CBP make, in its follow-up comments on the agency's efforts to modernize the customs framework. The EAA comments are the only ones posted since CBP reopened the comment period (see 1903110039) following a March 1 meeting on the subject (see 1903040023). Among other things, EAA said the "current drawback regulations do not support the modern B2C/e-commerce environment."

As an example of outdated drawback regulations, EAA said that if imported dresses that the customer paid duties on are returned, there "is currently no Drawback procedure that will allow retrieving the duty and refunding it to the customer." The EAA said the "current drawback process requires filing in advance of the export in order to allow CBP to decide if an exam is required. Both Canada and the EU have the option for the importer to show proof of export, and they refund the duty back to the importer without any involvement from the broker/carrier."

CBP also should update its regulations to allow for electronic signatures on customs power of attorney, the comments said. The regulations don't currently "explicitly permit the use of an electronic signature," EAA said. "Because CBP permits the use of electronic signatures in other contexts, we request that CBP amend the regulations applicable to the customs power of attorney to expressly permit the use of an electronic signature." The EAA also would like to see CBP lead a "comprehensive review" of the import and export requirements imposed by the partner government agencies, it said.

EAA also said CBP should "apply practical enforcement procedures" related to Section 321 regulations for low-value goods that limit the exemptions to one shipment per person for day. "While an individual express consignment operator can identify such shipments within their own operations, they have no ability to determine if the importer is sending similar shipments through other carriers on the same day," the trade group said. Split shipment regulations also should be updated "to allow a single entry in cases where a single shipment is split and arrives in two or more different ports of entry," which would be "in line with remote location filing and national broker permitting developments," said EAA Executive Director Michael Mullen, who filed the comments on behalf of the trade group.

CBP also should revise the regulations requiring agriculture holds at the first port of arrival, EAA said. Such holds can create an unnecessary disruption for "express consignment operator flights that are only stopping at the port for a short time for refueling and to offload a small amount of freight before proceeding to an inland express hub," it said. Instead, "CBP officers should conduct the necessary inspections and clear these shipments at the hub, which would be a more efficient approach for both industry and Government."