NEW ORLEANS -- CBP has nearly fixed a series of issues surrounding release date updates in ACE that were causing CBP to mistakenly issue liquidated damages for late filing against compliant filers, said Jim Swanson, CBP director-cargo security and controls, at the National Customs Brokers & Forwarders Association of America annual conference on April 4. The agency is cancelling in full mistaken assessments of liquidated damages caused by the issues, and is currently deciding how to handle mistaken claims that have already been paid, Swanson said.
Drawback
A duty drawback is a refund by CBP of the duties, taxes, or fees paid on imported goods, which were imposed upon importation as prescribed in 19 U.S.C. 1313(d). More broadly, a drawback also includes the refund or remission of other excise taxes pursuant to other provisions of law.
NEW ORLEANS -- CBP plans to propose changes to powers of attorney and cybersecurity requirements as part of an update to customs broker regulations, said Cynthia Whittenburg, deputy executive assistant commissioner at CBP’s Office of International Trade, during the National Customs Brokers & Forwarders Association of America annual conference on April 4. The agency is the process of drafting the proposal, which will then face "extensive economic evaluation" by the Office of Management and Budget (OMB). The evaluation is a requirement of a recent Trump administration executive order that requires the repeal of two regulations for every "significant" new rulemaking (see 1702070048). Whittenburg didn't give a time frame for the proposal, but the agency recently said timing would be hard to predict (see 1703070009).
CBP sees additions of national monthly statements and line-level liquidations among the top recommendations within the agency's simplified processes initiative, said Randy Mitchell, director of the Commercial Operations and Entry Division, during a March 24 webinar sponsored by the National Customs Brokers & Forwarders Association of America. National monthly statements, which would consolidate port-specific entry statements into a single statement, would likely be phased in, he said. Line-level liquidation would be a "longer-term" goal due to some "legal and regulatory factors" involved, Mitchell said. Other "top recommendations" include monthly entry summaries and the elimination of the separate 09 entry type for reconciliation by allowing for Post-Summary Corrections instead, he said.
International Trade Today is providing readers with some of the top stories for March 13-17 in case they were missed.
Fuel for satellites used after they are launched into space is eligible for duty drawback because the launch is considered export, CBP said in a Feb. 24 ruling (here). Satellite manufacturer Thales Alenia Space asked CBP about drawback eligibility for satellite propellant, which "is solely utilized to power a satellite’s thruster system after the satellite has been launched into orbit and activated." Thales also sought CBP input on what documentation is necessary to prove export through launch.
Congress seems unlikely to provide dedicated funding for new ACE development in upcoming appropriations legislation, according to industry officials. Still, CBP may be able to funnel operations and maintenance resources to ACE development, said one industry observer. While the end to funding for new programming isn't unexpected (see 1609140034), the shift is closer to becoming a reality as the Senate and House aim to pass final Department of Homeland Security appropriations legislation by late April, industry and congressional officials said recently.
CBP provided a small update related to coming changes to drawback filing that were part of the Trade Facilitation and Trade Enforcement Act of 2015 (see 1603010043). In CBP's monthly drawback simplification newsletter (here), the agency said it "and members from the trade completed a two day in person meeting discussing all facets of the new TFTEA drawback law. The meeting went well and there was consensus on many issues." The drawback changes will take effect Feb. 24, 2018, and CBP plans to provide monthly updates through the newsletter (see 1701250037).
CBP is expected to soon announce the new deadline for ACE post-release capabilities, including drawback and reconciliation, said trade industry executives involved in ACE implementation. The mandatory use date, originally set for Jan. 14 (see 1612090030), will be announced in a Federal Register notice, said Fany Flores-Pastor, director-R&D compliance systems at Descartes. “I would say I anticipate seeing the notice in the next couple of weeks but that is just a guess,” Tom Gould of Sandler Travis recently said. “If we see a FR notice in 2 weeks it would be 6 weeks before implementation,” he said. A CBP spokeswoman on Feb. 9 said that no update was available on when the new deadline would be announced, but that CBP "will give a 30-day notice" before ACE filing is required.
CBP provided some information on drawback claims for when ACE becomes mandatory for electronic filers. "Drawback manufacturing claims for export to Canada (CA) or Mexico (MX) under NAFTA must be filed based on the ’lesser of’ either the duty paid in the United States or the duty paid in the NAFTA country," CBP said in a CSMS message (here). "In cases where the final product exported to CA/MX was manufactured from more than one imported part, ACE Drawback is designed to allow for multiple line input in the 43 record (Import Revenue Claimed). In the claim amount field, the 'lesser of' duty amount paid should be allocated across each line. An even allocation is not necessary, so long as the amount totals the lesser duty amount claimed." The agency said in another CSMS message (here) that all "substitution unused merchandise drawback claims containing exports of citrus to Canada must be filed separately." CBP hasn't released a new date for the deployment of drawback and other post-release functions in ACE after it was delayed last month (see 1701110039).
CBP issued the following releases on commercial trade and related matters: