Cargo Enforcement Reporting and Tracking System

Date in 25 point Arial, Cool Gray 6 C

JFK Trade Update

Long Island Import Export Association Wednesday, February 17, 2010

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JFK Trade Operations DivisionCargo Branch

Customs and Border Protection Officers (CBPOs)

Agriculture Specialists

Import Specialist Branch

Import Specialists

Entry Branch

Entry Specialists

Liquidation Specialists

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CBPOsControl the movement of cargo

Conduct security measurement examinations to ensure:

cargo security

trade compliance

Interdict violative cargo and enforce the regulations of other government agencies

Issue liquidated damages and penalties for violations against carriers

Conduct Post Audits (airline manifests)

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Agriculture SpecialistsProtect America’s agricultural resources

Inspect cargo for:

Plant health discrepancies; plant diseases or insects

Animal health discrepancies; foreign animal diseases

Enforce Wood Packaging Materials (WPM) Regulation 7 CFR Part 319

Issue civil penalties

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Import SpecialistsClassify merchandise; ascertain applicable revenue collection

Possess expertise in commodity specific requirements

Appraise merchandise

Conduct Free Trade Agreement / Special Trade Program verifications

Enforce intellectual property rights

Conduct importer premises visits

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Entry SpecialistsWork in all aspects of the entry filing process

Provide the technical processing expertise required to file the necessary paperwork

Perform quota/selectivity processing

Process collections

Enforce broker compliance; conduct broker interviews; facilitate broker licensing

Foster relationships with the brokerage community

Protest/Liquidation processing (Liquidation Specialists)

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Customs Modernization Act

On December 8, 1993, Title VI of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057), also known as the Customs Modernization Act or “Mod” Act, became effective.

Two new concepts that emerged from the Mod Act are:

Informed Compliance

Shared Responsibility

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Importer of Record’s Obligation to Provide Information to CBP

Pursuant to the Modernization Act, it is now the responsibility of the importer of record to use reasonable care to enter, classify and value the goods and provide any other information necessary to enable CBP to properly assess duties, collect accurate statistics, and determine whether all other applicable legal requirements are met.

CBP Form 7501, the entry summary, requires that the importer of record or authorized agent declare that to the best of the declarant’s knowledge, the entry fully discloses the true prices, values, quantities, rebates, drawbacks, fees, commissions and royalties, and is true and correct, and that all goods and services provided to the seller of the merchandise either free or at a reduced cost are fully disclosed.

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Informed Compliance Publications on CBP.gov

In order to provide information to the public, CBP has prepared a number of Informed Compliance publications (ICPs) in the "What Every Member of the Trade Community Should Know About: ..." series.

These series of ICPs contain information on new or revised requirements, regulations or procedures, and a variety of classification and valuation issues.

Visit the CBP.gov web site for current publications.

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Reasonable CareTreasury Decision 97-96 “Reasonable Care Checklist”

Recommend that the importing community examine the list of questions on the checklist.

The list of questions are designed to help an importer set up a system of internal controls to avoid compliance problems and meet reasonable care responsibilities.

The “Reasonable Care” ICP can be found on CBP.gov.

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Invoice RequirementsInvoices must contain accurate and complete information so that CBP may knowledgeably examine, release, assess duty, collect accurate statistics, and determine whether any other applicable legal requirements apply.

This applies to electronic and paper invoices.

Invoice must be submitted with a detailed description of the imported merchandise, as set forth in the Customs Regulations, 19 CFR 141.86 and 19 CFR 142.6.

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Other Government AgenciesCBP acts in an administrative capacity for permits, licenses or other certification that may be required from other government agencies, depending on the commodity that is being shipped.

As such, importers/exporters should always be aware of any requirements that are related to a specific commodity, including those of other federal agencies.

The links to other government agencies and departments can be found at USA.gov.

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RulingsThe purpose of a prospective ruling letter is to enable the trade to make business decisions that are dependant on how their goods will be treated on importation.

It is an important trade facilitation measure.

All ruling requests involving tariff classification, country of origin, country of origin marking, and basic eligibility for preferential treatment under a special trade program or a free trade agreement should be submitted to the National Commodity Specialist Division in New York.

All other ruling requests, such as valuation, intellectual property, foreign trade zones, carriers, etc., should be sent to the Regulations and Rulings Headquarters Office.

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RulingsInformation on how to submit a ruling request can be found on CBP.gov:

Click the “Trade” tab located on the top of the page.

Click the “CBP Legal Decisions and Publications” tab located under “Trade” on the left side of the page.

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Rulings are published on the Customs Rulings Online Search System (CROSS).

CROSS is a searchable database of CBP rulings that can be retrieved based on simple or complex search characteristics.

Can be used as a research tool.

CROSS can be found at rulings.cbp.gov

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CBP focuses its border enforcement efforts on rights that are recorded.

To be eligible for recordation with CBP, trademarks must first be registered with the Principal Register in the U.S. Patent and Trademark Office, (www.uspto.gov) of the U.S. Department of Commerce; copyrights must be registered with the U.S. Copyright Office of the Library of Congress (www.loc.gov).

CBP’s on-line recordation system, Intellectual Property Rights e-Recordation (IPRR), allows rights owners to electronically record their trademarks and copyrights with CBP.

The Intellectual Property Rights Search (IPRS) database contains CBP recorded trademarks, trade names, and copyrights which are available for viewing by right holders and the public.

The IPRR application and IPRS database can be found on CBP.gov.

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e-Allegations is an on-line trade violation reporting system on CBP.gov that was established on June 17, 2008 to provide concerned members of the public a means to confidentially report suspected trade violations to CBP. These violations include:

Misclassification of merchandise

False country of origin markings Health and safety issues Valuation issuesIntellectual Property Rights

Privacy Act and Trade Secrets Act laws prevent CBP from disclosing the results of any research conducted as the result of an e-Allegation.

An immediate threat to public health and/or safety should also be reported to CBP’s 1-800-BE-ALERT.

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First Sale UpdateTreasury Decision 96-87, General Notice, Determining Transaction Value in Multi-Tiered Transactions, sets forth the documentation and information needed to support a determination that transaction value should be based on a sale not involving a U.S. importer in a multi-tiered transaction.

Importers were required to provide CBP with an "F" indicator next to each line on the entry summary, CBP Form 7501, or its electronic equivalent, in which the declared transaction value is determined on the basis of the “first or earlier” sale.

The filing period of the First Sale Declaration indicator has ended effective August 19, 2009.

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Special Trade Programs UpdateOn December 31, 2009, a message was transmitted through the Cargo Systems Messaging Service (CSMS) as CSMS #09-000383, notifying the Trade that on December 28, 2009, the President signed a bill that renewed the Generalized System of Preferences (GSP), the Andean Trade Preferences Act (ATPA)/Andean Trade Promotion and Drug Eradication Act (ATPDEA) programs until December 31, 2010.

This message was also posted on CBP.gov on January 4, 2010.

The message additionally stated that, on December 23, 2009, the President issued Proclamations 8467 and 8468, which modified the list of beneficiary countries eligible for the GSP and the African Growth and Opportunity Act (AGOA).

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Free Trade Agreements UpdateThe United States has signed free trade agreements with Colombia, Korea, and Panama, but Congress must enact legislation to approve and implement each individual agreement in order for them to go into effect.

The most current information posted on CBP.gov (January 7, 2010):

Implementation and expiration dates for the current Free Trade Agreements and Special Trade Programs.

Side-by-side comparison of Free Trade Agreements and selected Special Trade Programs.

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Free Trade Agreements / Special Trade Programs Update

CBP.gov contains a variety of information and instructions on International Free Trade Agreements and Special Trade Programs. To locate this information on CBP.gov:

Click the “Trade” tab on top of the CBP.gov home page.

Click the “Trade Programs” tab on the left side of the page under Trade.

Click the “International Agreements” hyperlink in the middle of the page.