Customs Modernization Bill Introduced
On December 8, 2023 U.S. Senators Bill Cassidy, M.D. (R-LA) and Sheldon Whitehouse (D-RI) introduced a bill to modernize U.S. customs laws to meet the demands of modern trade and combat the flow of illegal and counterfeit goods into the U.S.
On December 8, 2023 U.S. Senators Bill Cassidy, M.D. (R-LA) and Sheldon Whitehouse (D-RI) introduced a bill to modernize U.S. customs laws to meet the demands of modern trade and combat the flow of illegal and counterfeit goods into the U.S.
Per Senator Cassidy’s webpage on the matter “The Customs Modernization Act of 2023 increases U.S. Customs and Border Protection’s (CBP) visibility into supply chains to resolve data collection constraints, expand the legal use of trade data, increase supply chain accountability, improve enforcement effectiveness, and bolster information sharing among government agencies.”
The Customs Modernization Act of 2023:
Expands CBP to access data by allowing access prior to the entry of goods and from parties throughout the supply chain;
Clarifies CBP’s authority to provide information to relevant supply chain parties when CBP has a reasonable suspicion that goods are counterfeit or otherwise illicit;
Reduces uncertainty for law-abiding importers while giving CBP the tools they need to hold bad actors accountable;
Enables CBP to collect more information on duty-free shipments under $800 to better counter illicit trade;
- Cuts bureaucratic red tape, increases transparency of shipments entering the U.S., and creates an appeals process for CBP decisions on imports.
China 301 Exclusion Set to Expire December 31, 2023, No Update on Additional Renewal
A reminder to Importers that as we approach year end, that the current 301 exclusions available, most recently extended back in September from September 30, 2023 to the end of the year, are still set to expire on December 31, 2023.
In a recent letter from Americans for Free Trade sent to USTR Representative Katherine Tai on the matter, they state:
“In USTR’s September 11th Federal Register notice extending the exclusions until the end of the year, the agency noted that the extension was provided “[t]o provide a transition period for the expiring exclusions and to allow for further consideration under the four-year review.” In other words, it was anticipated that USTR would conclude its four-year review of the tariffs and announce next steps – to include a determination regarding the exclusions – by the end of 2023.”
To date, USTR has yet to issue the results of the four-year review.
DHS Adds Three China Based Companies to UFLPA Entity List
On December 8, 2023 the Department of Homeland Security (DHS) on announced the addition of three China-based companies to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List. With these additions the total number of entities is now up to 30 companies.
These additions/changes took effect on December 11, 2023. The companies added are as follows:
COFCO Sugar Holding Co. Ltd.
Sichuan Jingweida Technology Group Co., Ltd.
Anhui Xinya New Materials Co., Ltd.
The complete list, along with other reference material regarding UFLPA can be found on DHS website.
SNPR Issued by CPSC to Revise the Agency’s rule for Certificates of Compliance (certificates)
The U.S. Consumer Product Safety Commission (Commission or CPSC) is issuing a supplemental notice of proposed rulemaking (SNPR) to revise the agency’s rule for Certificates of Compliance (certificates). The SNPR proposes to align the certificate rule with other CPSC rules on testing and certification, and to implement, for imported CPSC-regulated products and substances, electronic filing of certificates (eFiling) with U.S. Customs and Border Protection (CBP).
Per the SNPR:
The Commission proposes to revise the rule for certificates, codified at 16 CFR part 1110 (part 1110 or the 1110 rule) to clarify certificate requirements for all regulated products and substances, to align the rule with other testing rules, and to implement electronic filing of certificates for imported products with CBP (eFiling).[1] Only finished products or substances that are subject to a CPSC rule, ban, standard, or regulation, are required to be tested and certified, and only such finished products that are imported into the United States for consumption or warehousing would be required to eFile certificates with CBP. Section 14(g)(4) of the Consumer Product Safety Act (CPSA) (15 U.S.C. 2063(g)(4)) gives CPSC the authority to require eFiling, by rule.
The results of the e-Filing Beta Pilot will inform final rulemaking. This is only the proposed rule; final rulemaking will occur next summer.
Comments on the SNPR are due by February 6, 2024. See the link to the SNPR for instructions on providing comments.
Forest Act Reintroduced in Congress
Legislation has been reintroduced in Congress which bans the import of certain commodities grown or produced on illegally deforested land. This legislation formally known as the Fostering Overseas Rule of Law and Environmentally Sound Trade (FOREST) Act of 2023 identifies commodities like palm oil, cattle, cocoa, and rubber as high-risk.
The bill has 4 major parts:
A risk-based framework for increasing transparency and reporting in companies’ international supply chains – built from the success of the Lacey Act.
Financial and technical assistance that enable countries, companies, and the U.S. federal government to coordinate solutions to reduce illegal deforestation.
Provisions that include illegal deforestation in financial crime statutes so the Unites States can prosecute those who use the proceeds from deforestation to fund other criminal or terrorist enterprises.
- Purchasing preference for the federal government for deforestation-free products.
Trade and Customs Reminders & Events
SAVE THE DATE: US Customs and Border Protection – Trade Facilitation and Cargo Security Summit
26-28 Mar 2024
Details: March 26-28 2024: US Customs and Border Protection – Trade Facilitation and Cargo Security Summit.