nternational trade todays ac eekly es briefcbp will make some changes from the proposal to clarify...
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WEDNESDAY, DECEMBER 28, 2016
Copyright© 2016 by Warren Communications News, Inc. • www.internationaltradetoday.com • 800-771-9202 • [email protected]
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CBP Final Rule to End Blanket Certifications for TSCA Imports as PlannedDespite some industry objections to CBP’s proposal to end the use of “blanket certification” under
Toxic Substances Control Act (TSCA) regulations, the agency declined to stray from those plans in the final rule, it said in a notice (here). Blanket certifications are used to indicate either TSCA applicability or not—called a “negative certification”—for a wide range of products subject to Environmental Protec-tion Agency reporting requirements. Commenters on the proposed changes said the end to blanket certi-fication seems to go against the ongoing efforts to streamline trade processing. The final rule is effective Jan. 26.
CBP expects any issues created by the end of blanket certifications to be short lived, it said. “CBP is aware that the transition from the paper-based system with blanket certifications to an electronic system without blanket certifications may present short-term challenges for filers and importers,” it said. “Howev-
2—ACE WEEKLY NEWS BRIEF WEDNESDAY, DECEMBER 28, 2016
Copyright© 2016 by Warren Communications News, Inc. • www.internationaltradetoday.com • 800-771-9202 • [email protected]
er, efforts to preserve the blanket certification process in combination with electronic filing th[r]ough ACE would actually restrict the system as a whole from achieving maximum efficiency as it would require all filers to undergo extra steps in the [Partner Government Agency (PGA)] message set to input information regarding whether the importer had a blanket certification on file, and for which ports.”
The agencies also maintained a requirement that contact information be provided in ACE at each line entry for entries subject to positive or negative TSCA certification. CBP and EPA need the information in order to contact the certifying individual if necessary, CBP said. “This requirement may create additional clerical work for filers,” CBP said. However, ACE will allow the requested information to be entered once at the header level using the PG00 record within the PGA Message Set, and then populated under each entry line where specified.”
CBP will make some changes from the proposal to clarify the descriptions and scopes involved, it said. For example, the phrase “chemicals not subject to TSCA” will be changed to “TSCA-excluded chem-icals,” it said. The agency also revised the definitions for different types of TSCA chemical substances, it said. “These definitions are revised and added to clarify that the certification obligations apply to both chemical substances and mixtures that are subject to TSCA, which require a positive certification, as well as those chemicals and mixtures that are not subject to TSCA, which require a negative certification (unless clearly identified as a TSCA-excluded chemical), and to ensure that terms used in the regulatory text are defined when necessary, it said.
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Copyright© 2016 by Warren Communications News, Inc. • www.internationaltradetoday.com • 800-771-9202 • [email protected]
The agencies are also aware of possible discrepancies involved in Foreign-Trade Zone entry esti-mate filing and TSCA imports. There may be occasions where a TSCA negative certification is issued by the importer in the weekly estimate, and yet the weekly summary reflects that TSCA chemical substances were in fact imported,” CBP said. The agencies “will address importers that demonstrate systematic or egregious discrepancies between weekly estimates and weekly summaries on a case-by-case basis and through available enforcement and compliance practices.” Once CBP has added ACE functionality to allow for PGA message set elements as goods are admitted to FTZs through the e-214 process, it will also consid-er whether the Notice of Arrival should be filed at time of admission into an FTZ, CBP said.
(Federal Register 12/27/16)
CBP Finalizes Changes to Vehicle Importing Requirements; Would Allow Use of ACE for EPA Forms
CBP will finalize changes to its regulatory requirements for importing vehicles and engines in order to “harmonize” the forms required by the Environmental Protection Agency, CBP said in a notice (here). CBP made some slight adjustments from its proposal, which are meant to conform the entry filing requirements in the EPA Declaration Form 3520-21 to those that currently exist for EPA Declaration Form 3520-1. The changes CBP did make came in response to commenters that sought revisions to the proposal. The rule allows importers to file required EPA forms with CBP electronically. The rule will be effective Jan. 26.
CBP clarified the rule to “include separately-imported on-highway motorcycle engines,” it said. The agency also added mentions of the permanent exemptions to the rules as mentioned in other regulations in order to avoid confusion, it said. CBP said the EPA will address some contradictory guidance documents on whether manufacturers need to file EPA Declaration Form 3520-21. “In consultation with CBP, EPA will ensure that all of EPA’s documentation regarding the amended regulations accurately reflects that OEMs importing their own certified engines do not need to file EPA Declaration Form 3520-21,” it said.
(Federal Register 12/27/16)
Miscellaneous CBP Releases (December 23, 2016)CBP issued the following release on commercial trade and related matters:
• Updated ACE AESTIR Documentation Posted (here).
CEE Participation Results in Fewer CF-28s and CF-29s From CBP, Report SaysImporters working with CBP’s Centers of Excellence and Expertise see fewer requests for informa-
tion and notices of action than their counterparts that file at ports of entry, according to a report commis-
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sioned by CBP as part of its CEE rulemaking process (here). On average, participants see 78 percent fewer CBP Form 28s and 28 percent fewer CBP Form 29s after joining a CEE, which could be a sign that staff at the CEEs is becoming more knowledgeable and has less need to request more information, said the report, which was issued in 2015 but only recently released to the public.
The decrease in requests for information results in less administrative time responding to the formal requests, which require staff time, and possibly legal review, said the report, prepared by Industrial Eco-nomics, a private consultancy. However, informal communication between the CEEs and trade participants has increased, with some issues formerly resolved through CBP Form 28s now handled by email, it said. “The increase in such communication would offset part of the administrative cost savings.”
CBP issued its interim final rule implementing the CEEs and making them permanent on Dec. 20. The end of the CEEs pilot shouldn’t add much cost for importers or CBP, the report said. With ACE fully functional, import data submitted by importers and their brokers will be automatically routed to the CEEs. CBP will see some costs associated with planning, outreach and training cease once the program is fully operational, the report said. The agency would incur personnel and operations costs regardless of whether entries are handled by ports of entry or the CEEs, the report said.
Some industry participants in the CEEs interviewed for the report said they were concerned the end of the test might mean less access to informally resolve questions on entry summaries, the report said. That might negate the reduction in requests for information and notices of action noted in the re-port, it said.
Based on fiscal year 2014 data, the report estimates that, once fully implemented, the electron-ics CEE will see the most entries, with more than 8 million entries over about 20 million entry lines valued at $388 billion. Though it will see fewer entries, the consumer products and mass merchandis-ing CEE will process the most entry lines with 27,604,167 representing $217 billion in value. The pe-troleum CEE will process by far the fewest entries and entry lines – 640,323 and 851,979, respectively – but those entries and entry lines will represent the second-highest import value of any of the CEEs, at $351 billion.
Miscellaneous CBP Releases (December 21, 2016)CBP issued the following releases on commercial trade and related matters:
• PMS and Daily Final Statements not generated to Trade (here)• New ACE Reports Dictionary for Trade Now Available (here)
5—ACE WEEKLY NEWS BRIEF WEDNESDAY, DECEMBER 28, 2016
Copyright© 2016 by Warren Communications News, Inc. • www.internationaltradetoday.com • 800-771-9202 • [email protected]
• FDA IG 2.5 Changes for Jan. 5 Deployment Now Available in CERT (here)• RESOLVED: Issue with Protest Filer Reports in ACE (here).
Miscellaneous CBP Releases (December 20, 2016)CBP issued the following releases on commercial trade and related matters:
• RESOLVED: Issues with ACE Manifest and QP/WP ABI EDI Messages Dec. 20 (here)• ACE PRODUCTION PGA deployed Dec.20 (here)• Issue with Protest Filer Reports in ACE (here).
WTO Says US Customs, Trade Remedy Policies Continue UnchangedU.S. policy for customs valuation, import licensing and rules of origin, as well as the U.S. trade
remedy regime and a range of other trade policies, have gone unchanged since the last U.S. trade poli-cy review in 2014 at the World Trade Organization, the WTO said in a summary (here). U.S. efforts to implement the single-window International Trade Data System by Dec. 31, activities to roll out ACE and work on simplified entry and trusted trader programs indicate a “long-standing” U.S. commitment to open trade policies, the WTO said. Antidumping and countervailing duties investigations rose between 2014 and 2015, with most AD investigations concentrated in the steel industry, the WTO added in its full report (here). Tariffs above 25 percent most commonly apply to agricultural, footwear and textile prod-ucts, the WTO said.
Miscellaneous CBP Releases (December 19, 2016)CBP issued the following releases on commercial trade and related matters:
• Initiations of AD/CVD Investigations: Certain Hardwood Plywood Products from China (here)• ACE PROD Cargo/Manifest/Entry Release (CQ) Query Deployment Dec. 17 (here)• CBP/FDA Supplemental Guide Version 2.5 Deployment Schedule (here)• CBP San Juan Seaport seizes hazardous holiday lights and toys from China (here).