CBP, Industry Faced Challenges With PPE Export Restrictions, Export Compliance Consultant Says

CBP and industry had very little time to react to an executive order earlier this year that authorized export restrictions on certain medical equipment (see 2004080018) and had to scramble to adjust to new protocols, said Paulette Kolba, an export compliance consultant. Kolba, speaking during an Oct. 23 session of the Western Cargo Conference, said the abrupt restrictions were representative of a challenging year for export compliance professionals, who have had to deal with a range of regulatory changes and new compliance requirements.

“The regulatory landscape, just like the rest of our lives, has been confusing, sometimes a little bit chaotic,” said Kolba, who also chairs the National Customs Brokers & Forwarders Association of America’s Export Compliance Subcommittee. “What I would recommend for anybody doing export freight forwarding is that you need to be extra vigilant about what's going on.”

Kolba praised CBP for quickly coming up with a process to review exports of personal protective equipment after the administration's April executive order. She also applauded the agency for working with the Federal Emergency Management Agency to create a system for industry to gain approval for exports of PPE, which ultimately resulted in FEMA’s letter of attestation process (see 2004200019).

But the process still presented some challenges for freight forwarders, Kolba said, who were required to upload their letters of attestation, which certified that the shipment qualified for an export exemption, to CBP’s document imaging system (see 2004270031). “Freight forwarders on the export side never used the document imaging system for anything,” she said. “Nobody knew how to do it.”

The process is running more smoothly now, Kolba said. “[CBP] has several shipments under their belt. They know what they're looking for, they have a relationship with FEMA and they know what FEMA is looking for,” she said. “Very few shipments actually escalate to FEMA now, and most cargo can actually move as long as these letters are filed.” CBP didn't comment.

FEMA recently extended the export restrictions through Dec. 31 (see 2008060061), and Kolba said they will likely be extended again. She also said CBP may make more use of the document imaging system after it worked successfully for uploading letters of attestation. “I think it's going to be used for more and more things in the future,” Kolba said, “and it's really important that everybody does understand how that works on the export side.”

Kolba also said companies involved in exports should closely follow changes to the U.S.’s list of countries cooperating with an international boycott. The Treasury Department said earlier this month it is monitoring the United Arab Emirates, which may be removed from the list after it withdrew from the Arab League and a boycott against Israel (see 2010130015).

“Even if the United States removes them from that list, it's going to take companies a while [to adjust]. If there’s boycott language on documents, then you have to be responsible for it,” Kolba said. “My recommendation is to always remind staff … that the boycott even exists just so it's on their mind, because you don't see it very often.”