Tim Warren

The use of a promotional model for demonstration purposes does not constitute a "permissible use" under drawback regulations, CBP said in a ruling decision (here). CBP said in the May 28 ruling, HQ H258306, that the demonstrations of Anritsu network testing devices prior to sale go beyond incidental usage and therefore does not qualify as unused merchandise. Anritsu is a Japanese manufacturer of network test and measurement equipment for the telecommunications industry.

CBP responded to a tariff classification request from United Cutlery for imported knives by ruling that the merchandise is actually inadmissible. CBP said in the May 29 ruling (here), HQ H26379, that importing such knives would violate prohibitions on switchblade imports. United asked CBP to rule on the correct tariff classification of a “new design folding knife” that the company considered importing, said CBP.

CBP will look to expand the full industry coverage for the other seven Centers of Excellence and Expertise within fiscal year 2016, Lori Whitehurst, acting director of the Trade Operations Division at CBP. "We're in a really good position to start making some decisions and maybe setting upcoming goals for our seven centers," she said May 27 at the West Coast Trade Symposium in Tacoma, Washington. The first three CEEs to handle entire industries -- electronics in Los Angeles, pharmaceuticals and chemicals in New York, and petroleum and minerals in Houston (see 1501210021) -- will be fully operational by the beginning of July, said Whitehurst. Following a review of how well the transition went in the initial three CEEs, CBP hopes to use those lessons to speed up the future expansions, she said.

CBP plans to bring together a "war room" of agency expertise that will address issues related to the planned Nov. 1 transition to the Automated Commercial Environment, said Deborah Augustin, acting executive director for the CBP ACE Business Office, on May 27 during the West Coast Trade Symposium in Tacoma, Washington. The group will be made up of client representatives, technical experts, and field personnel that will take questions and work to limit any effects on the flow of cargo, she said. The agency is preparing to have a similar setup for the Air Manifest transition and will consider that experience as it prepares for the November timeframe, she said.

The progress of customs legislation and the transition to the Automated Commercial Environment has drawback processes poised for some major updates, some over a decade in the making, said industry members during a June 2 panel discussion. The customs bills, now in various stages, includes a number of ideas supported by the Trade Support Network, including the elimination of rulings on drawback issues and an eight digit HTS substitution standard, said Bobby Waid, CEO of Charter Brokerage, who spoke on the panel at the American Association of Exporters and Importers conference. Recent work toward simplified process (see 1506010021) also includes potential updates to the program.

TACOMA, Wash. -- CBP is in "very early" discussions to add advanced export data reporting standards, said Todd Owen, CBP Assistant Commissioner for the Office of Field Operations at the West Coast Trade Symposium on May 27. The agency is considering the issue along with the Advisory Committee on Commercial Operations to CBP and looking at "what advanced export data is available" and how can a subset of that data help the agency target the shipments it is concerned with, he said. "We have to find a better way to allow us to target for our enforcement concerns."

CBP appears to be "on track" to meet the milestones it set for the implementation of the Automated Commercial Environment, said the Department of Homeland Security Office of Inspector General in a newly released report (here). With four of seven ACE deployments completed, CBP is on track to finish ACE by the 2016 deadline and meet other milestones, said the OIG. "However, CBP has not ensured the internal control environment has kept pace with the rapid deployment of the ACE program," it said in the report. "Specifically, CBP has not conducted risk assessments to identify potential gaps in data reliability, and has not fully developed and implemented performance measures for the program."

The Treasury Department published its spring 2015 regulatory agenda for CBP (here), which lists a planned interim final rule that would establish the Automated Commercial Environment as the only means of electronic entry filing. There's also a new rulemaking listed that would relax documentation requirements for drawback claims.The agenda lists Treasury's CBP rulemakings that are pending at the proposed, interim final, final, and completed stages, as well as rulemakings that are long-term actions. The agenda lists the regulation title; past regulation(s), if any; the timeframe for the next regulatory action(s), if any; a brief description of the regulation; and a contact party name and telephone number. The Department of Homeland Security also issued its spring 2015 regulatory agenda for CBP (see 1505220006).

The Department of Homeland Security (DHS) published its Spring 2015 regulatory agenda for CBP (here). The agenda does not include any new trade-related rulemakings, though a planned rulemaking on customs broker continuing education requirements was moved to among the agency's "long-term actions" without a target date. It also continues to include mentions of Importer Security Filing (ISF) rulemakings.

The emergence of e-commerce is requiring some new considerations as individual sellers are increasingly involved in internationals transactions, said panelists during a May 12 U.S. Chamber of Commerce event on supply chains. While the new challenges may point to the need for some revised policies, it's difficult to "inject the interests of the multitude" of stakeholders involved at the border, said Brenda Smith, CBP assistant commissioner in the Office of International Trade.