Tim Warren

CBP is investigating two New York companies related to allegations of antidumping and countervailing duty evasion for aluminum extrusions from China, the agency said in a May 14 notice. The investigation stems from allegations filed under the Enforce and Protect Act (EAPA) by the Aluminum Extrusions Fair Trade Committee (AEFTC) regarding Sun Bright International Corporation and Fair Importing Corporation. "Because the evidence thus far establishes reasonable suspicion that the Importers have entered merchandise into the United States through evasion, CBP has imposed interim measures," the agency said.

CBP posted its fiscal year 2017 textile and apparel enforcement statistics showing that textiles and apparel seized for intellectual property rights (IPR) violations increased from 2016. The value of goods seized for IPR violations fell by about than $4 million dollars, CBP said. The agency visited 145 factories in 10 countries to verify compliance during the year, it said. The agency performed 7,600 cargo examinations and found about 6.4 percent, or 486, to be "discrepant." That percentage is about the same as in FY16. CBP remains unable to provide statistics for fraud penalties because of the use of multiple Priority Trade Issue codes, it said. "The system does not allow for multiple PTI codes and CBP is in the process of addressing this system shortcoming," it said.

The combination of World Trade Organization rules for Most Favored Nation treatment and bound tariff rates leave the U.S. at a disadvantage within trade negotiations, Commerce Secretary Wilbur Ross said during a May 14 speech at the National Press Club. "We are now constrained by two sides of a WTO pincer," he said. The MFN, which requires level tariff rates for countries the U.S. doesn't have free trade agreements with, and Bound Tariff Rates, the ceiling on allowed tariff levels, "prevent us from having reciprocal tariffs because, in most cases, our bound rate ceiling is at or near our very low MFN applied rate, while other nations have higher levels of both." President Donald Trump has mentioned the possibility of implementing a "reciprocal tax" (see 1802120034).

The Department of Homeland Security (DHS) published its spring 2018 regulatory agenda for CBP. The agenda includes a first mention of a final rule involving vessel repair unit locations. CBP regulations require "that when a vessel subject to the vessel repair statute first arrives into the United States or Puerto Rico following a foreign voyage, the owner, master, or authorized agent must submit a vessel repair declaration to CBP." Currently, the vessel repair entry is filed at the Vessel Repair Unit in New Orleans, but the regulations confusingly list two other VRUs, CBP said. The final rule removes the mentions of other VRUs.

The Treasury Department published its spring 2018 regulatory agenda for CBP. The agenda includes two new rulemakings, one involving the prohibition on imports made through forced labor and another on intellectual property rights. The forced labor proposal, expected by August, would "would generally bring the forced labor regulations and detention procedures into alignment with other statutes, regulations and procedures that apply to the enforcement of restrictions against other types of prohibited merchandise," it said. The IPR rulemaking, expected by August, would "create a procedure for the disclosure of information otherwise protected by the Trade Secrets Act to a trademark owner when merchandise bearing suspected counterfeit trademarks has been voluntarily abandoned."

RANCHO MIRAGE, Calif. -- Customs brokers are mostly happy in dealing with the Centers of Excellence and Expertise, panelists said during a May 2 discussion at that National Customs Brokers & Forwarders Association of America's annual conference. Maureen Oliphant, regional compliance manager at Yusen Logistics, said she is seeing far fewer Requests for Information (CBP Form 28). There have even been occasions that someone from a Center called Oliphant to ask for other information rather than sending out a CF 28, she said. CBP "is a lot easier to deal with" since the Centers were added, Oliphant said.

RANCHO MIRAGE, Calif. -- The completion of "core" ACE was a proud moment for Brenda Smith, CBP executive assistant commissioner-trade, but she's aware of the remaining needs for the system, she said during a May 2 speech at the National Customs Brokers & Forwarders Association of America's annual conference. "I know we're not done," she said. "Let me say that again. I know we're not done."

RANCHO MIRAGE, Calif. -- CBP is considering offering trusted trader benefits to those in the e-commerce world as a way to improve compliance, said John Leonard, executive director-trade policy and programs at CBP, during a May 2 panel discussion at the National Customs Brokers & Forwarders Association of America's annual conference. The hope is to "incentivize all these new actors in this space to improve the platforms and marketplaces, etc., to be more compliant," he said. "Part of that could involve the Trusted Trader program" and the Customs-Trade Partnership Against Terrorism program, he said. CBP "is looking at this very closely."

RANCHO MIRAGE, Calif. -- Both the government and customs brokers will need to keep agile in light of the fast-moving changes in the world of international trade, said Brenda Smith, executive assistant commissioner-trade at CBP. "The relationship between the government and private sector is very much facilitated by the role of the customs broker," Smith said during a May 2 interview at that National Customs Brokers & Forwarders Association of America's annual conference. "I believe those that do international trade are helped by the knowledge and expertise of customs brokers. I think very often there is a financial function that customs brokers can also perform for the private sector. For CBP, I think, they help educate around requirements and we believe that's a very valuable function."

RANCHO MIRAGE, Calif. -- The Census Bureau expects to issue proposed rules for routed export transactions by the fall, said Omari Wooden, assistant division chief, International Trade Management Division at Census. Census is in the process of going through many issues raised by industry in comments to the agency (see 1712070039), Wooden said at the National Customs Brokers & Forwarders Association of America's annual conference on May 1. "We are the government, so instead of months, we give you seasons, so probably sometime in the fall we're hopeful to come out with something," he said.