Tim Warren

Given that the merchandise processing fee (MPF) for informal entries filed for release on goods valued below the de minimis level are minimal, CBP should waive the fees for such entries, the National Customs Brokers & Forwarders Association of America said in comments to the agency. CBP requested input on how it should approach the "release from manifest" process, commonly known as a Section 321 procedure, for goods under the new $800 de minimis level (see 1608250029). "The NCBFAA believes that qualifying merchandise should be afforded the duty and tax exemptions but entered via ACE and [International Trade Data System] entry procedures thereby assuring the proper data collection and adherence to CBP and Partner Government Agency import requirements," it said.

Federal prosecutors filed a civil complaint against a garment importer, its executive and a clothing wholesaler for an alleged customs duty evasion scheme, the U.S. Attorney's Office for the Southern District of New York said in a Sept. 23 news release (here). The importer, Yingshun Garments, "avoided paying millions of dollars in customs duties" by undervaluing garments on false invoices, the USAO said in the complaint (here). The complaint was the result of an investigation by CBP and ICE's Homeland Security Investigations, ICE said (here).

The International Trade Commission released an interim final rule that details the processes for submitting applications for duty suspensions under a Miscellaneous Tariff Bill (here). The interim final rule puts in place a slew of provisions included in MTB process reform legislation signed earlier this year (see 1605200041). "The new rules identify the types of entities that may file a petition, describe the information that must be included in a petition, provide procedures for public comment, and describe the schedule for filing petitions and public comments," it said.

CBP should develop a separate "Section 321 module" for brokers to allow for easier manifest release requests on low-value imports regulated by other agencies, the Express Association of America said in comments to CBP (here). The comments were in response to CBP's regulatory changes to the de minimis value threshold (see 1608250029), a provision of the Trade Facilitation and Trade Enforcement Act (TFTEA) of 2015. Among other questions, CBP sought information on how it should approach the "release from manifest" process, commonly known as a Section 321 procedure, for goods under the new $800 de minimis level when the manifest doesn't include information required by other agencies. Unlike express couriers, customs brokers currently cannot electronically designate Section 321 clearances via manifest (see 1605160030).

A federal judge unsealed documents related to antidumping duty evasion allegations brought by a third party after the Department of Justice declined to get involved, recent court filings show. The lawsuit, brought by Customs Fraud Investigations (CFI), claimed that Mueller Industries and a subsidiary schemed to "fraudulently import its standard pipe as line pipe" to avoid antidumping duties on the product. The complaint, filed in 2014, was unsealed on Sept. 15 in U.S. District Court for the North District of Illinois Eastern Division.

CBP recently added several ports to its Advanced Qualified Unlading Approval (AQUA) program that allows some carriers to unlade cargo before meeting with CBP, the agency said in a list of frequently asked questions on the program (here). Sea carriers that are in the Customs-Trade Partnership Against Terrorism (C-TPAT) program that "have been validated and are in good standing at the time of unlading" are eligible to participate in AQUA, CBP said. The ports of Miami, Long Beach, Los Angeles, New York/Newark, Savannah and Seattle/Tacoma began participation on Sept. 15. The ports of Charleston; Houston; Jacksonville; Honolulu; Philadelphia; Boston; San Juan; Norfolk, Virginia; Wilmington, Delaware; and Wilmington, North Carolina will take part starting Dec. 15, CBP said. Initial participants were the ports in New Orleans, Baltimore, Oakland and Port Everglades, Florida (see 1511250011).

Wheatland Tube, a Pennsylvania steel tube manufacturer, filed with CBP on Sept. 14 "one of the first" antidumping and countervailing duty evasion allegations under the customs reauthorization law, the company said in a news release (here). Wheatland, a division of Zekelman Industries, filed the allegations over possible evasion of AD/CV duties on imports of Chinese circular welded steel pipe, the company said. CBP recently issued an interim final rule that detailed the agency's new processes for responding to such allegations (see 1608190014). The AD/CVD evasion investigation provision of February's customs reauthorization law became effective Aug. 22.

Work continues on a report due to Congress on how CBP can improve importer verifications through customs brokers after the Department of Homeland Security sent it back to CBP following a review, said Jerry Malmo, director of CBP's Commercial Enforcement Division. DHS sent the report back to CBP because it was "too specific on what our plans were," said Malmo, who spoke Sept. 12 at a National Customs Brokers & Forwarders Association of America conference. Still, the agency recently started briefing lawmakers on the report, which was due Aug. 22 as part of the customs reauthorization law's Section 116 (see 1608240026).

CBP is misguided in its proposal to add non-vessel operating common carriers to the definition of importer within the importer security filing (ISF) requirements (see 1607050028), the National Customs Brokers & Forwarders Association of America said in comments to the agency (here). CBP proposed adding importer status to different parties based on whether the shipment involves foreign cargo remaining on board (FROB) or other types of cargo in order to make sure the party with the access to detailed cargo information is responsible for filing an ISF. The NVOCC is "rarely, if ever," the party with best access to the required information, the trade association said.

The Federal Maritime Commission is closely watching the fallout from the Hanjin Shipping bankruptcy filing (see 1608310038) but the FMC's role is largely observational for the time being, the agency said in a statement (here). South Korea's Hanjin filed for court receivership in recent days, stirring up questions as to the effect on future shipping rates and cargo currently being handled. The FMC "will be vigilant in watching for, and quick to act on, any improper behavior by other carriers and regulated parties (such as marine terminal operators, non-vessel-operating-common-carriers, and freight forwarders) that would constitute violations of the Shipping Act," it said.