Ed. Note: As of Feb 1, we already have 4 pages of info, so we are sending this out today. We will likely issue an additional newsletter later in the month.
The Top Five Customs and Trade Issues for 2018 (From our friends at Sandler, Travis)
Importers, customs brokers, and supply chain service providers are likely to see important changes affecting customs and trade policy in 2018. Tighter regulation of e-commerce, tougher enforcement of laws, and new developments in trade preferences, supply chain security, and other areas will all pose challenges to even the most experienced operators. This article highlights five issues that might affect your business this year and how you can successfully respond to each. The article can be found at
Union head underscores CBP port officer shortages(From American Shipper)
National Treasury Employees Union National President Tony Reardon said that prospects of a pay freeze have been a deterrent for potential U.S. Customs and Border Protection field officers he has been trying to recruit. Unstable federal budget prospects for fiscal 2018 add another layer of uncertainty for federal wages and salaries, including for CBP field officers working at ports of entry. CBP employs about 3,700 fewer field officers than called for by its last Workload Staffing Model, completed in 2014. For more info, please go to
https://www.americanshipper.com/main/asd/union-head-underscores-cbp-port-officer-shortages---70229.aspx?utm_source=AS+Daily+Newsletter&utm_campaign=6956fbe6d4-EMAIL_CAMPAIGN_2018_01_10&utm_medium=email&utm_term=0_485fa13138-6956fbe6d4-62946101
Ed. Note: Expect significant exam delays to continue for the foreseeable future.
Truck rates to continue to rise in 2018 and beyond
Several sources are reporting that the capacity crunch we are currently experiencing will be with us for maybe a year, perhaps even longer. As a result, expect rates to increase. We have already seen rates rising 5-7%, and we are told by our trucking friends to expect increases in the 10-12% range in the near future. If we are scheduling the delivery of your cargo, we will do our best to get you a good rate, but in this market, that may not be possible. We will also do our best to get you a timely delivery, but please bear with us if it takes several days for our truckers to have availability.
Commerce submits results of national security investigation of steel imports to Trump (From American Shipper)
Commerce Secretary Wilbur Ross on Thursday formally submitted to President Donald Trump the results of an investigation led by his department into the national security impacts of steel imports. Any finding by the “Section 232” investigation that steel imports negatively impact national security would allow Trump to take broad or narrow action to restrict such imports. Trump has until April 11 to decide whether to take any action based on the results of the investigation.
https://www.americanshipper.com/main/asd/commerce-submits-results-of-national-security-investigation-of-steel-imports-to-trump-70267.aspx?utm_source=AS+Daily+Newsletter&utm_campaign=0fc4dcca75-EMAIL_CAMPAIGN_2018_01_12&utm_medium=email&utm_term=0_485fa13138-0fc4dcca75-62946101
Ed. Note: There has been no specificity as to which steel products or which countries are under this investigation. We urge those importers that import ANY steel or steel products, especially from China Vietnam, to be especially watchful for any announcements. As always, we will strive mightily to keep you abreast of any developments.
IRC/TTB tax rates reduced – sort of
MESSAGE TO ALCOHOL IMPORTERS FROM CBP AND TTB
Under the Craft Beverage Modernization and Tax Reform Act of 2017 (as contained in Public Law 115-97), appropriate procedures must be established in order for an importer to receive a lower effective excise tax rate on qualifying imports of beer, wine, and distilled spirits. The Alcohol and Tobacco Tax and Trade Bureau (TTB) and U.S. Customs and Border Protection (CBP) will be updating their websites with forthcoming guidance to importers.
Until such procedures are established and guidance is issued, importers of beer, wine, and distilled spirits seeking to qualify for excise tax relief, based on qualifying assignments made by a foreign producer, should continue to pay the full excise tax rates. Importers will be provided with the opportunity to seek the applicable excise tax relief, on entries made after the law went into effect, once forthcoming procedures and guidance have been issued.
Ed. Note: Unfortunately, importers must pay the higher rate until Customs makes changes in ABI. Meanwhile, we will request refunds on all affected entries. FYI, the NCBFAA president is personally involved in resolving this.
FDA Releases Guidance Documents for Meeting New FSMA Standards
(From FDA)
FDA has issued five guidance documents to help importers and food producers meet key food safety provisions mandated by the FDA Food Safety Modernization Act (FSMA).
The guidance documents include:
- A draft guidance on Foreign Supplier Verification Program (FSVP) rule
- A Small Entity Compliance Guide on the FSVP rule
- A draft guidance on the term “Same Level of Public Health Protection” used in both the FSVP and Produce Safety regulations
- Chapter 15 of the draft Preventive Controls for Human Food guidance regarding Supply-Chain requirements
- Enforcement Discretion guidance regarding the application of FSVP to certain importers of grain raw agricultural commodities (RACs)
These represent the latest steps FDA is taking to help food importers and producers understand and effectively implement the FSMA regulations. More information about this announcement is available in the constituent update, as well as, the webpages for the FSVP rule, the Preventive Controls for Human Food rule and the Produce Safety Rule.
CBP Increasing First Sale Rule Enforcement (From our friends at Sandler Travis)
Importers are advised to review transactions taking advantage of the first sale rule to ensure they are consistent with U.S. Customs and Border Protection’s requirements. CBP is scrutinizing imports using this valuation methodology more closely as part of a broader increase in enforcement efforts. Under the first sale rule, the entered value of a qualifying transaction may be based on the purchase price between the middleman/vendor and the manufacturer rather than the importer and the middleman/vendor. For more information, please go to
https://www.strtrade.com/news-publications-first-sale-rule-enforcement-CBP-011818.html
Contact us with any questions.
Lee Hardeman LeeH@LHCB.com Direct: 404-477-3452
Sandy Cato SandyC@LHCB.com Direct: 404-477-3454
Brittany Albaneso BrittanyA@LHCB.com Cell: 404-401-5950
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