Tim Warren

CBP plans to make use of the new entry type meant for low-value shipments as part of the next blockchain "use case" involving intellectual property rights licensing, said Vincent Annunziato, director of CBP’s Business Transformation and Innovation Division. "We figured out a way to make it so we're tying in the data that we're getting off the licensing to the entry," he said of the test while speaking on a panel during the stakeholder's forum of the U.S.-Canada Regulatory Cooperation Council on Dec. 5. "And we're using that new type 86 that hasn't come out yet so a lot of the companies will get a chance to experiment." The new type 86 entry is planned as a way to handle de minimis shipments in the Automated Broker Interface, with a pilot program expected during calendar year 2019 (see 1810200002).

Welke Customs Brokers USA cannot pay unlicensed sales representatives by commissions for brokerage services sold, CBP said in a Nov. 30 ruling. Welke USA (WUSA) and sister company Welke Customs Brokers Ltd. in Canada (WCAN) both employ separate sales forces, but were considering a change to the sales structure, CBP said. WUSA sought CBP input on whether the company may pay sales commissions and if WCAN can solicit business on behalf of WUSA.

Importers need to be ready to defend to CBP any changes in country of origin that moves a product outside the Section 301 tariffs on goods from China, said Doug Zuvich, a partner in KPMG's Trade and Customs Services group. Zuvich, a former customs auditor, and others at KPMG discussed rules of origin during a Nov. 30 webinar. "It's really important to know the mindset from Customs, that they're going to come at this most likely thinking the worst," Zuvich said.

CBP's Trade Remedy Law Enforcement Directorate is investigating several new cases of alleged plywood antidumping and countervailing duty evasion under the Enforce and Protect Act (EAPA) evasion enforcement process (see 1608190014), CBP said in a Nov. 20 notice that was released by law firm Wiley Rein. The investigation is focused on five companies that were alleged to be involved in transshipment and false declarations of Chinese hardwood plywood. "Because the evidence thus far establishes a reasonable suspicion that the Importers have entered merchandise into the United States through evasion, CBP has imposed interim measures," the agency said.

The Port of Laredo should not have rejected a claim for preferential treatment under NAFTA based on the use of the Document Image System, CBP said in the Sept. 14 ruling HQ H300353. The 1520(d) NAFTA preference claim -- also known as a 520(d) claim -- was filed by BASF Corporation in 2017, but the port rejected the claim because CBP stopped accepting DIS in support of protest submissions filed through ACE. BASF filed an application for further review of protest and noted CBP had not provided information on the requirements specifically for post-import NAFTA claims.

The Port of New York/Newark issued a Nov. 9 notice on the importance of validating powers of attorney "prior to transacting Customs business on behalf of the principal." Ensuring the validity of each POA allows brokers to join CBP "on the national security frontlines in verifying the data used to screen what enters this country," Port Director Adele Fasano said. "In addition to security, the broker's own professional business interest and continuing obligation to demonstrate 'reasonable care' require verification of the POA grantor's identity and legal authority (position in a company or partnership) to enter into a POA. CBP has successfully pursued administrative penalties as well as criminal prosecution against brokers who fail to obtain valid POAs."

The de minimis footnote within the U.S.-Mexico-Canada Agreement is cause for "serious concerns" for the Customs Matters and Trade Facilitation Industry Trade Advisory Committee (ITAC 12), the committee said in an addendum to its report on the trade deal. The addendum, which is dated Oct. 24 but was released by the Office of the U.S. Trade Representative this week, is among multiple reports updated after Canada agreed to join the deal between the U.S. and Mexico. While the main advisory committee offered some light criticism in its support of the deal (see 1811060023), individual ITACs included some more pointed concerns.

A first group of CBP information requests related to imports covered by the Section 301 tariffs on goods from China is expected to go out in the next couple weeks, Baker & McKenzie lawyer Ted Murphy said in a Nov. 6 blog post. CBP has said it plans to initially focus on imported electronics and will be adding new auditors to its field offices (see 1810230022). "Our contacts in Regulatory Audit have informed us that, as part of this effort, a first 'wave' of CF-28s (Requests for Information) since the imposition of the Section 301 duties will be issued in 2-4 weeks," Murphy said.

Imported enzyme-modified cheese (EMC) does not need to be "suitable for consumption in order to be classifiable as a cheese product under heading 0406," CBP said in a Sept. 12 ruling. Schreiber Foods asked CBP to reconsider a previous ruling that said the EMC could be classified in subheading 0406.30 as, “Cheese and curd, Processed (process) cheese, not grated or powdered.” The finished EMCs are used as "ingredients in other food products to adjust fat content and provide cheese flavor," CBP said.

CBP is beginning an Enforce and Protect Act (EAPA) investigation into Lyke Industrial Tool over allegations of antidumping duty evasion for diamond sawblades from China, the agency said in an Oct. 30 notice. The same company was previously subject to an EAPA investigation that determined that Lyke evaded AD duties (see 1807240015). "CBP has imposed interim measures" because the evidence shows a "reasonable suspicion" that duty evasion occurred, the agency said.