CBP has started to shift its enforcement focus to Type 86 entries as use of the relatively new entry type for de minimis shipments grows and the agency sees a "large percentage of violations" related to use of the entry type, CBP's James Moore said during an April 5 webinar hosted by the agency.
U.S. Trade Representative Katherine Tai reassured the members of the National Council of Textile Organizations that the Office of the U.S. Trade Representative has no interest in loosening rules of origin for clothing made in Central America and the Dominican Republic. Some have argued that the CAFTA-DR has not lived up to its potential because its rules are too restrictive (see 2112030045 and 2104140047).
CBP is opening up its Section 321 data pilot beyond the initial nine participants, and extending the pilot an additional two years, until August 2025, the agency said in a notice released Feb. 15. CBP also will allow submission of new, optional data elements as part of the pilot.
CBP is still aiming to propose rules for a Section 321 data collection process that are based on the Section 321 data pilot and Entry Type 86 test (see 2101290033), said Christopher Mabelitini, acting director, Intellectual Property Rights & E-Commerce Division, July 18 during CBP’s Trade Facilitation and Cargo Security Summit. "What we're working on, to expand off of the current pilots we have now and to bring the two together, is a draft regulatory framework that's being drafted this year," he said. Mabelitini said he expects a two- to three-year time frame to get the draft notice out for public comment.
FORT LAUDERDALE -- Legislative proposals on customs modernization are getting a “lot of traction” in a “seriously divided” Congress, with bipartisan support and “some urgency to bring this matter to a close,” said AnnMarie Highsmith, CBP executive assistant commissioner for trade, in remarks at a conference June 14.
A panel of industry, trade group representatives and a customs broker disagreed on the proper approach to changing domestic de minimis policy, or even if it should be changed, but agreed that it's perverse that warehouses in Canada and Mexico are serving as way stations for small packages destined for U.S. consumers.
Descartes Systems Group bought NetCHB for $40 million, "plus potential performance-based consideration," the companies said Feb. 10. NetCHB, headquartered in Arizona, helps in automating customs broker filings, including for Section 321 Type 86 entries, Descartes said. "The maximum amount payable under the all-cash performance-based earn-out is $60.0 million, based on NetCHB achieving revenue-based targets over the first two years post-acquisition," it said.
The U.S. Chamber of Commerce hopes to be able to support the House China package, since the trade group supported the U.S. Innovation and Competition Act, but said the House bill "continues to include numerous policies that would undermine U.S. competitiveness, and Members are being denied the opportunity to vote on amendments to address these issues." The Chamber said it will push during the conference process to get better bill.
House Ways and Means Trade Subcommittee Chairman Rep. Earl Blumenauer said Congress would never have raised the minimis level to $800 if it had known how many products would be sold through e-commerce channels from China and shipped directly to customers. "It was never intended to be anything like this, and not only are they evading payment of duty, but they are escaping any sort of meaningful oversight," he said in a phone interview from Oregon with International Trade Today. "And as you know, we're deeply concerned about forced labor."
The House Ways and Means Trade Subcommittee chairman's bill that would restrict the use of de minimis for Chinese sellers has already inspired a coalition of opponents, including the U.S. Chamber of Commerce, the Express Association of America, National Retail Federation and others. The Import Security and Fairness Act was introduced Jan. 18.