Tim Warren

A Nov. 18 CBP ruling found that a redesign of network switches imported by Arista Networks fall outside of an International Trade Commission limited exclusion order (LEO). The CBP ruling (here) marks somewhat of a win for Arista, which is in litigation with Cisco Systems over patent infringement allegations (see 1606290005). The ITC began a formal Section 337 enforcement investigation in October after Cisco filed a complaint that Arista ignored the LEO (see 1610040029).

The Department of Homeland Security (DHS) published its fall 2016 regulatory agenda for CBP (here). The agenda doesn't include any new rulemakings involving trade. Previously listed rulemakings, including on the Centers of Excellence and Expertise and Importer Security Filings, continue to be on the agenda. CBP aims to issue an interim final rules on the CEEs in December (here), it said. The agency said an ISF final rule is also planned for release in December, with an effective date in January (here).

The Fish and Wildlife Service should reconsider its approach to ACE so as to not add several new burdens to industry filers, a group of trade associations said in a Nov. 16 letter to FWS Director Dan Ashe (here). The groups, including the National Retail Federation, the National Customs Brokers & Forwarders Association of America and the U.S. Chamber of Commerce, said the FWS International Trade Data System pilot "has raised a number of concerns about the entry process and the long-term implications that could adversely affect both the agency and the industry." Among the concerns are an increase in the tariff subheadings flagged by FWS as requiring some type of filer action and the end to the Non-Designated Port Exemption Permit (DPEP) (see 1611140019). "We believe it is critical that these issues are addressed before any new mandatory ACE requirement is issued by FWS," the associations said.

Identifying information about an importer of record should not be a requirement for filing antidumping or countervailing duty evasion allegations with CBP, the Committee to Support U.S. Trade Laws (CSUSTL) said in comments to the agency (here). Such evasion often occurs through a "shell-game" of related companies, making identifying the formal importer of record very difficult, it said. The CSUSTL, largely made up of domestic producer representatives, filed the comments as part of CBP's effort to finalize AD/CV duty evasion allegation procedures at the agency under the Enforce and Protect Act (EAPA) (see 1608190014).

The Treasury Department published its fall 2016 regulatory agenda for CBP (here), which mentions new rulemakings that implement part of the customs reauthorization. The agenda includes first mentions of an increase to the de minimis value (here) and antidumping and countervailing duty evasion investigation procedures (here). While interim final rules on both were issued earlier this year, CBP sought public comments on each, so further changes may be included when the regulations are finalized. CBP is aiming to finish the AD/CV duty evasion rulemaking (see 1608190014) by March, and the de minimis rulemaking (see 1608250029) by April, it said.

CBP's proposed changes to customs broker license exams (see 1609130032) include several problems, the National Customs Brokers & Forwarders Association of America said in comments to CBP (here). The proposed changes would allow for electronic testing, increase the fees and adjust the allowed testing dates. Each of those provisions raises some issues, the NCBFAA said.

PROVIDENCE -- The addition of more Partner Government Agencies (PGAs) to ACE in coming months is likely to drive a difficult expansion in the data collected by the government, said Amy Magnus, director of customs affairs and compliance at A.N. Deringer, while speaking at the Northeast Cargo Symposium on Nov. 10. Despite significant progress in ACE in 2016, the new PGAs are bound to be a source of anxiety as 2017 approaches, she said. The "most chilling" agencies to be added are Animal and Plant Health Inspection Service "Core" and the Fish and Wildlife Service, she said.

NEW YORK -- The Centers of Excellence and Expertise are working closely with the Office of Regulatory Audit as it increasingly uses surveys to explore potential areas of compliance problems, said Todd Owen, CBP executive assistant commissioner, Office of Field Operations, Nov. 9 at the Apparel Importers Trade and Transportation Conference. Through the CEEs, "we look at all the disciplines that touch a company" so "there is that level of communication between the account managers, the import specialists and the auditors as we're going forward with this approach," he said. CBP is using “informed compliance” letters and questionnaires sent to importers as part of a broader shift toward the use of audit surveys in the agency’s compliance verification activities (see 1608090024).

NEW YORK -- Donald Trump's presidential election victory likely further reduces the chances for the approval of pending free trade agreements with Asia and Europe, trade policy experts said Nov. 9 at the Apparel Importers Trade and Transportation Conference. There also are some early indications as to who might head up trade policy under Trump, most of whom have a more "protectionist" bent, said David Spooner, a lawyer with Barnes & Thornburg who was assistant secretary of commerce for import administration under President George W. Bush. Still, the likely "chaos" from Trump's trade policy may also provide for new opportunities for positive change, he said.

The Justice Department's Antitrust Division pushed the Federal Maritime Commission to block the recently approved OCEAN Alliance (see 1610240016) in comments submitted to the agency on the proposed agreement prior to approval (here). "Applying well-accepted antitrust principles, the proposed alliance consolidation raises serious competitive concerns," the DOJ said. "The collaboration proposed here contemplates such close cooperation among its members that competition among them will be largely eliminated." The alliance includes COSCO Shipping, CMA CGM, Evergreen Marine, and Orient Overseas Container Line Limited.