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Partner Government Agencies (PGAs)

Updated CBP document on entry types by PGA – shows FTZ flexibility

Tuesday, July 25th, 2017

cbp entry type pgaOn July 18th, 2017 CBP posted the recently updated ‘Entry Types by PGA’ document.  This document advises the trade which CBP entry type codes will require Partner Government Agency data, and when; either at cargo release, summary or other.

The majority of PGA’s require that their PGA Message Set be sent at the time of Entry (Cargo Release).

However, with the implementation of ACE, and based on feedback from the Trade, some flexibility has been provided for Foreign Trade Zone (FTZ) entries.  For instance, with FTZ for Vehicles & Equipment regulated by the EPA, filers have the option of filing the EPA message set at the time of filing the type 06 Entry (Cargo Release) or, if utilizing the weekly entry process, they can send it at the time of transmitting the Entry Summary.

Lost your tariff number? Wondered the status of GSP? Read on…

Wednesday, July 12th, 2017

HTS UPDATE IMAGE

 

On June 29th CBP published CSMS message no. 17-000381 announcing the availability of Harmonized System Update (HSU) 1704, which went into effect on July 1, 2017.

This USHTS update contains modifications mandated by the 484 F Committee (the Committee for Statistical Annotation of Tariff Schedules), adjustments to several Participating Government Agency (PGA) indicators, and staged rate duty reductions as a result of Presidential Proclamation 9466 (to Implement the World Trade Organization Declaration on the Expansion of Trade in Information Technology Products and For Other Purposes).

The modified records are available to all ABI participants and can be retrieved electronically via the procedures indicated in the CATAIR.  CustomsNow clients have the ability to review the HTS numbers that are valid on/after July 1st and mass update their product classifications accordingly.  The official HTS 2017 and update change record can be viewed at the USITC website.

In addition to these updates, CBP advised that as of its publication, the latest GSP proclamation had not been signed.  CBP is expecting the proclamation to have a July 1st effective date as well, but due to recent differences between the draft documentation and the final legislation, CBP was unable to make the necessary modifications until the proclamation is official.  Once it has been signed, CBP will begin updating the system. When the changes have been completed another HTS update will be created and the associated CSMS message will be posted.

W Coast Trade Symposium recap: E-commerce is THE hot topic

Wednesday, May 31st, 2017

2017 w coast trade symp

 

CustomsNow attended CBP’s West Coast Trade Symposium last week in Phoenix.  The theme was “Looking Ahead Together: What’s Next for Trade?”  Generally, CBP stated that they would continue to focus on the Priority Trade Issues, as well as the Executive Orders issued by the Trump Administration in 2017.

CBP also intends to build on the foundation of ACE to perform smarter targeting of inbound cargo and will be working to reduce the amount of regulations as required (for every new regulation two must be eliminated.)

Finally, CBP is struggling to stay on top of the explosive growth in the number of small packages shipments driven by e-commerce.

E-commerce is clearly a pressing issue for CBP and here is why:

  • E-commerce sales were valued at $3.4B on Black Friday and are expected to exceed $500B annually by 2020
  • 52M small packages are shipped annually via express carriers
  • 130M small packages ship via air cargo
  • 275M small packages ship via the mail.  This compares to 100M in 2010, up 20% year over year
  • In a recent 5-day operation at JFK airport, CBP checked 3000 mail packages and seized over 1500 due to Intellectual Property Right (IPR), Agriculture, and illegal drugs reasons.  The operation was halted in just 3 days due to the sheer number of seizures.

CBP is just not staffed to handle and examine this volume of packages and they are trying to overcome this shortfall.  For instance, CBP will be piloting a program in Dallas whereby any small package shipments that need to be examined will have to be delivered to a Centralized Examination Station (CES) as opposed to CBP inspectors driving to the various air carrier facilities.

It was explained that most air and express carriers do a good job of prescreening their shipments to the US to ensure they are compliant with US laws and regulations.  Therefore, the criminals are turning to shipping via the mail since there is no prescreening performed at present.

The United States Postal Service is not required to provided CBP with advanced data that would allow CBP to target suspect shipments as they do with all other modes of transportation.  The STOP Act, which is working its way through congress, will address this deficiency.  The Global Direct Entry program is also helping the postal service to identify Trusted Traders for certain wholesalers so that CBP can concentrate on those shippers which are not in this program.

Another concern is that many of these packages fall under the $800 de minimis amount, also known as a Section 321 entry, and, therefore, do not have to be entered with CBP.  The intent of the de minimis rule is that a formal entry must still be made if “additional information, bonding or protection is required.”  Many shippers ignore this requirement and are therefore not declaring their drug shipments to the appropriate Partner Government Agency (PGA), specifically the FDA.

CBP is very concerned with the increase in small packages moving via the mail that contain Fentanyl, a very dangerous synthetic opioid and they shared this story.  Recently an Inspector brushed the lapel of his uniform to remove a substance.  He later overdosed on Fentanyl but, thankfully, survived. CBP is looking at utilizing spectrometers to examine small packages.  This would allow them to screen for illegal drugs without having to open the packages.

Incidentally, the only way, presently, to declare a Sec. 321 shipment to CBP is via the manifest.  E-commerce providers want the ability to declare them via ABI and CBP is investigating this option.  CustomsNow learned that the Trade Leadership Council is considering the creation of a new entry type code of ‘86’ for Sec. 321 shipments.  This way the appropriate PGAs can be declared and there will be no duties or fees due to CBP (in 2010 Congress estimated that if the de minimis amount was raised to $1,000 that would result in only $42M in lost revenue compared to the total amount of duties paid annually which was $37B in FY 2015.)

In addition to illicit drugs, CBP is focused on IPR infractions (“If you can make it, the criminals will fake it.”) It is estimated that companies involved with IPR employ 42M Americans and constitute 40% of our GDP.  Unfortunately, there were 32K IPR seizures last year with an estimated value of $461B.  86% of these shipments came from China and that number climbs to 88% when you add in Hong Kong.  Many of these shipments move as small parcel.

 

US Fish & Wildlife Service even regulates “pearl parties”

Friday, May 19th, 2017

Importing oysters for a “pearl party”?  Better read this….

USFWS Pearl Parties Memo

EPA imports: New enforcement of HTS flagging kicks in on 5/18

Monday, May 8th, 2017

From CSMS #17-000253:

On May 18, 2017, the Harmonized Tariff Schedule (HTS) flagging for all Environmental Protection Agency programs for all filersEpa-Logo will be enforced. Once the flags are enforced, the filer will either need to file the required information electronically using the PGA message set or disclaim using the appropriate code.

Reminder from EPA: The importer is responsible for knowing what to file, regardless of whether a tariff code has been flagged.

For questions regarding which imports require which EPA filing requirements, contact the following:

  • V&E Hotline: imports@epa.gov
  • TSCA Hotline: tsca-hotline@epa.gov
  • Pesticides Regional Import Coordinators: See CBP guidance

 

ATF importers: Updated ACE filing guide now available

Monday, May 1st, 2017

The latest from the Bureau of Alcohol, Tobacco & Firearms (CSMS 17-000248):atf-logo

The Department of the Treasury, Alcohol, Tobacco, Tax and Trade Bureau (TTB) has posted an updated ACE Filing Guide for TTB Related Commodities, V7.5.

A list of changes may be found on page 4 of the document.  The primary reason for the update is to provide guidance to the filer for the use of Disclaim Code “C” in the PG01 line of the TTB Message Set.

For all HTS numbers that identify a product regulated by the Alcohol and Tobacco Tax and Trade Bureau (TTB), in lieu of submitting the TTB Message Set, the filer may opt to meet TTB data requirements through other approved means.  Disclaim Code “C” is used to indicate that the filer is opting to meeting TTB data requirements through such means.  Refer to TTB regulations for more information about the requirements that apply to importers who elect not to file TTB data electronically.

TTB is also implementing business rules to enforce the regulatory requirements that have already been spelled out in the IG. If certain data is not provided, it will result in warnings to trade. Specifically:

  • for malt beverages, wine and distilled spirits, two PG14s must be provided
  • If a PG29 is present, the allowed unit of measure is only PCS
  • For a small set of TB1 flags, disclaim codes A and C are allowed; otherwise, only C is allowed.

Finally, TTB will begin enforcing their HTS flags per the schedule below.

  • TTB business rules in CERT: Expected no later than May 18, 2017
  • TTB flagging enforced in PROD: June 22, 2017

 

 

 

 

 

 

ACE: CBP updates PGA Filing Status document

Tuesday, April 25th, 2017

US Customs has posted an updated version of the PGA Filing Status document.

The updated version includes the status of import and export PGA pilots, the accepted electronic filing methods, and indicates those PGAs that are no longer accepting paper filings. For reference, this document also contains the relevant PGA announcements in the Federal Register, as well as agency contacts for filing questions.

ACE PGA Filing Status Apr 2017 update (1)

 

Importers: This could be the cause of your FDA rejects

Monday, April 24th, 2017

From CSMS #17-000227:fda1

CBP and FDA are in the process of updating the ACE PGA flags for FDA requirements.  Specifically, the tariff numbers that had flags for ACS OGA of FD0 are getting ACE PGA requirements updates to have either no FDA flag, FD1 (FDA May Be Required) or FD2 (FDA Required).

In the meantime, following is a spreadsheet of the FDA HTS codes and their associated flags in ACE. Trade can use this as a reference in investigating any rejects they may be getting when filing entries. FD0 flags do not exist in ACE.

If you have questions about the HTS flags please contact FDAImportsInquiry@fda.hhs.gov or Ted.Poplawski@fda.hhs.gov

CBP spreadsheet >> FDA HTS codes and flags

 

 

 

 

 

Food importers: Are you ready for new FSVP requirements on May 30?

Wednesday, April 19th, 2017

produce

 

 

Starting May 30, 2017, FDA will begin implementing the FDA’s Food Supplier Verification Program (FSVP).

Under new FDA regulations, US food importers for the first time must ensure that imported food for humans and animal is as safe as domestically produced food. It is up to each importer to establish their own FSVP.

In addition, as of May 30, each entry filing of food products offered for import into the U.S. must include the name, contact info, and DUNS # of the FSVP Importer.

See our previous blog post on this topic for more details and requirements.

 

ACE: New and updated PGA info posted on CBP.gov

Tuesday, March 14th, 2017

pgasseal_aceCBP has recently posted new and updated information on ACE and Partner Government Agencies on CBP.gov.

 

++++++++++

Also posted on CBP.gov:

FDA Webinar – January 31, 2017fda1
The purpose of this webinar was to review updates to FDA’s Supplemental Guidance for ACE Version 2.5 and the related PGA samples. FDA also addressed trade questions during the webinar.
Webinar Recording | Transcript | Presentation | Technical Guides