Tim Warren

President Donald Trump will nominate Acting CBP Commissioner Kevin McAleenan for CBP commissioner, the White House said in a March 30 news release (here). McAleenan became acting deputy commissioner in 2013 and ascended to commissioner on an acting basis after Gil Kerlikowske stepped down with the change of administration in January (see 1611090035). Despite McAleenan's long history within CBP's leadership, this will be his first post at the agency to require Senate confirmation, a CBP spokeswoman said.

The Trump administration is considering a push for new World Trade Organization trade facilitation commitments as part of NAFTA renegotiations, according to a draft notice from Acting U.S. Trade Representative Stephen Vaughn (here). That would mean new rules requiring NAFTA countries to conduct "customs operations with transparency, efficiency, and predictability, and that customs laws, regulations, decisions, and rulings are not applied in a manner that would create unwarranted procedural obstacles to international trade," it said. Those commitments were included in a list of three main "customs matters" in the draft. Congress earlier this week (see 1703290038) received the draft, which, once finalized, would formally initiate a consultation period ahead of NAFTA discussions.

A customs broker can be employed by a brokerage and a freight forwarding company simultaneously as long as the freight forwarder isn't involved in customs business, CBP said in a Feb. 7 ruling (here). The ruling came at the request of Jesse Weisman, CEO of JW Customs Brokers (JWCB) and JW Transport (JWT), a freight forwarding company. Weisman sought CBP's input on "whether a conflict arises from a customs broker’s simultaneous employment with a brokerage and freight forwarding entity, and whether a customs broker so employed may receive a salary from both entities," CBP said.

CBP will test automated processing of maritime processing fees as part of a revenue modernization effort, the agency said (here). "These changes will enable CBP personnel to collect payment and issue electronic eReceipts quickly and efficiently, while providing the trade with the ability to pay maritime processing fees online," CBP said. Fees to be automated in the pilot include "Animal and Plant Health Inspection (APHIS) fees, CBP user fees (barge/bulk carriers and commercial vessel), Navigation fees and Tonnage Taxes, Special Tax and Light Money," CBP said in a frequently asked questions publication about the pilot (here). There will be two phases as part of the modernization, CBP said.

CBP may demand redelivery of goods subject to a withhold release order (WRO) related to the suspected use of forced labor, said Lisa Burley, chief, Cargo Security, Carriers and Restricted Merchandise Branch at CBP, during the Georgetown Law Center International Trade Update on March 10. Asked whether CBP would require redelivery in cases in which a withheld shipment is among a series of shipments from the same exporter to the same importer, Burley said the agency has demanded redelivery in such situations previously. CBP makes that decision "import by import" and is also dependent on the specifics of the WRO, she said. "If we are aware of a time frame of when things are exported to the United States, then that may dictate whether we demand redelivery on all of them."

A wide range of legal issues around CBP's new processes for antidumping or countervailing duty evasion allegations under the Enforce and Protect Act (see 1608190014) (EAPA) will require litigation to clarify, panelists said March 9 at the International Trade Update. For example, if CBP decides to impose higher bonding requirements on an alleged evader, can the importer then file for a temporary restraining order or preliminary injunction with the Court of International Trade to stop CBP, asked Jonathan Stoel, a lawyer with Hogan Lovells. Practical scenarios like that will need to be played out to give a better look at the possible strategies for lawyers involved, according to panelists at the event hosted by the Georgetown University Law Center.

A customs brokerage that is ending operations can transfer clients to a new broker through a "single blanket power of attorney" only if the original POA includes specific successorship provisions, CBP said in a Jan. 23 ruling (here). The ruling was in response to a request from the National Customs Brokers & Forwarders Association of America, which inquired as to whether a blanket POA would suffice for the transfer. "NCBFAA states that customs brokerage entities concluding a corporate transaction such as a merger or sale must transfer clients from the entity ceasing to legally exist, to the new entity acting as its replacement," CBP said.

Crystals used within various types of machinery to gauge maximum heat points that are then imported into the U.S. for measurement readings aren't classifiable as a medium for carrying business records, CBP said in a Jan. 11 ruling (here). The crystals, which are sold by LG Tech-Link and exported to its customers, are reviewed for heat-related physical changes following exposure, the company said. "According to LG, the crystals are used for analysis because they are a medium for carrying business information" and therefore exempt from customs duties.

Regulatory reform efforts are underway as officials from CBP and the departments of the Treasury and Homeland Security (DHS) asked for industry help in identifying regulations that should be eliminated, during the March 1 Commercial Customs Operations Advisory Committee (COAC) meeting. The request follows the new administration's efforts to reduce the number of regulations in effect (see 1702070048). "We're looking for regs that can be eliminated," said Timothy Skud, deputy assistant treasury secretary for tax, trade and tariff policy. "We're very interested" in suggestions from the COAC or from individuals on regulations that could be fully or partially ended, he said.

Despite size characteristics of a tote bag, "hobo" bags with short straps can be classified as a handbag, CBP said in a Jan. 30 ruling (here). The ruling follows a further review of protest from Target Customs Brokers for Target General Merchandise regarding the classification of a women's hobo bag on three entries in 2013. CBP liquidated the entries as tote bags under subheading 4202.92.4500, which covers a travel, sports or similar bag. CBP often looks to the size of a bag to differentiate between tote bag and handbag classifications in subheading 4202.22 (see 1611020020).