DOE to Lean on Customs Brokers for Success of New ACE Requirements for Energy Efficiency Standards
Customs brokers play a central role in the Energy Department’s plans to require submission of “certifications of admissibility” data elements in the Automated Commercial Environment at time of entry for products subject to energy efficiency standards, said DOE officials speaking at a workshop held Feb. 19 in Washington. A key motive behind the agency’s proposal is that it will prompt brokers to ask their importer clients whether products included in a given entry are subject to energy efficiency standards, forcing the importer to consider whether testing and certification are required, they said.
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
Imports have been a problem area for compliance with energy efficiency standards, said Laura Barhydt, DOE assistant general counsel for enforcement. The majority of the products DOE finds to be non-compliant are imported, she said. Though lacking data or any studies on compliance levels of imported products, she said it is “extremely common” for DOE to purchase imported products and find they don’t comply. Many importers are completely unaware of DOE testing and certification requirements, she said.
By requiring the additional data elements, DOE is hoping importers will get “sucked in,” said Barhydt. Customs brokers, who are generally familiar with regulations, would be asking their clients questions about a product if it falls under an HTS number potentially subject to energy efficiency standards. “Right now, these people aren’t asked a question,” she said. DOE is currently working with CBP to set up “multiple webinars and training sessions” for customs brokers to discuss the proposal and “educate them generally.”
DOE expects a “dramatic impact” on importer compliance if the certification requirements are put into place, she said, noting that DOE’s 2011 expansion of the universe of products subject to certification report requirements drove up the level of compliance among domestic manufacturers with energy efficiency standards. “What we expect is, by putting this requirement on imported goods, we’re going to see the same sort of impact,” she said.
Trade groups had requested the workshop to explain DOE’s proposal, asking that the agency explain the proposed requirements and noting confusion with what problem the proposed new requirements are meant to resolve (see 1602120032). Under the Dec. 29 proposed rule, filers would have to submit additional data elements in ACE for products subject to energy efficiency standards, including a product’s certificate number and, if no certificate is on file, more detailed product information (see 1512290020).
According to DOE officials speaking at the workshop, CBP would only act as a “conduit” sending the information to DOE, and in most cases would not stop a shipment based on information submitted through the new data elements. The only exception would be CBP stopping shipments that are associated with non-compliant certificate numbers, said Barhydt. DOE will provide a list of these non-compliant certificate numbers to CBP, and CBP will check against the list to determine admissibility, she said.
Some representing industry at the meeting questioned the need for the detailed data DOE proposed to require. DOE seems to be placing “a lot of administrative burden on people that are compliant” to let those that aren’t in compliance know “that they are missing the boat,” said Dave Gatto, director-compliance at Westinghouse Lighting. DOE could address the issue of whether an importer knows about energy efficiency standards by simply asking whether a product is covered, and if it is certified, he said. The more detailed data CBP would require for non-certified products, meant to allow CBP to refuse non-compliant imports, may be unnecessary, said Gatto. Dishonest importers would continue to mislead. If someone is intentionally bringing in non-compliant products, “I can’t see how this is going to impact that,” he said.