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09/13/2024

CBP Enforces Precise Descriptions for Air Cargo Advance Screening (ACAS)

Check out this week's Customs Corner to read about the new CPB policy, additional duties on steel imports from Mexico, and more.

Trade and Customs Updates

1) CBP Enforces Precise Descriptions for Air Cargo Advance Screening (ACAS)

The 30-day warning period, set to end on October 6, 2024, serves as a grace period before CBP enforces rejections starting October 7, 2024. Warnings will be issued to those using vague descriptions such as “gift,” “daily necessities,” “accessories,” “parts,” and “consolidated.” The term "consolidated" is only acceptable at the master bill level, and parties are required to provide more detailed descriptions at other levels.

 

Notifications

  1. Warning Notification:
    • Sent via email to ACAS filers' point of contact daily.
    • Warnings will summarize each vague cargo description from the previous day's filings.

    • A sample email will include an attachment listing vague descriptions with associated bills.

       

  2. Rejection Notification:
    • After October 7, submissions with vague descriptions will be rejected using the error code MISSING_CARGO_DESC.
    • CBP expects corrective action and compliance with cargo declaration regulations.

 

CBP has also issued a list of vague descriptions that are not acceptable, and this list will evolve over time. ACAS filers are responsible for screening and correcting any non-compliant descriptions before submission.

Further information can be found at CSMS # 62081967

 

2) Updated Filing Requirements for Drawback Claims that Designate Hazardous Substance Superfund Taxes

CSMS # 62099262 confirms this deployment will replace the interim Superfund drawback guidance issued in CSMS messages 5848113 and 58393059. Once active, the filing process must adhere to the Drawback CATAIR, ACE Business Rules and Process Document, all relevant regulations, and the updated guidance provided by CBP.

 

Key Filing Requirements for Superfund Tax Drawback Claims:

  1. Document Uploads via the Document Imaging System (DIS): Claimants must submit the following documents with each claim:
    • A copy of IRS forms 720 (or 720(x)) and 6627, detailing the petroleum products on which the Superfund tax was paid.
    • A certification confirming that the claimant has not and will not claim any other refund, credit, or adjustment and will not enable others to do so for the Superfund tax.
    • A Superfund tax worksheet detailing relevant calculations.
  2. Adjustments for Interim Filings:
    • Claimants who filed Superfund drawback claims using interim guidance prior to September 17, 2024, must adjust their unliquidated claims by recording Superfund taxes under class code 374.
    • These claims must be resubmitted to CBP by September 27, 2024, and pass all ACE validations.
    • To facilitate this process, CBP will return affected claims to trade control around the time of the programming deployment.
  3. Future Enhancements:
    • CBP will introduce a Superfund certification indicator in the ACE drawback module as part of a future enhancement, streamlining the certification process for Superfund tax filings.

 

Claimants must ensure compliance with these updated procedures to avoid delays or rejections in their drawback claims.

 

3) Guidance: Section 232 Additional Duties on Certain Steel Imports from Mexico

On March 8, 2018, Proclamation 9705, issued under Section 232 of the Trade Expansion Act of 1962, imposed additional import duties on certain steel articles. This action was subsequently amended by Proclamation 9980 (January 24, 2020), which extended the tariffs to derivatives of steel products but excluded Mexico. CSMS # 62095799 provides guidance on the increased duties.

 

Key Provisions of Proclamation 10783 (Effective July 10, 2024)

  • Tariffs: A 25 percent ad valorem tariff is imposed on:
    • Steel articles under HTSUS 9903.81.85 that are products of Mexico but melted and poured outside Mexico, Canada, or the U.S.
    • Derivative steel articles under HTSUS 9903.81.86 that meet the same conditions.
  • Steel Mill Certificate: Importers are required to submit a steel mill certificate through the Document Imaging System (DIS) in ACE, regardless of whether a tariff exemption is claimed.
  • Melt and Pour Requirement: Effective July 10, 2024, the country of melt and pour must be reported for all applicable entries. For steel and derivative products of Mexico, a steel mill certificate and the International Organization for Standardization (ISO) country code or "other" must be reported at entry summary. The ACE system functionality to report this will be activated on November 21, 2024.

 

Covered Products

  • Steel Articles: Products falling under HTSUS headings 7206.10 through 7216.50, 7216.99 through 7301.10, 7302.10, 7302.40 through 7302.90, and 7304.10 through 7306.90.
  • Derivative Steel Products: Items such as nails, staples, bumper stampings, and body stampings of steel for certain motor vehicles and agricultural tractors, under the subheadings 7317.00 and 8708.29.

 

Foreign Trade Zones (FTZ)

  • Articles imported into an FTZ before July 10, 2024, but melted and poured in countries other than Mexico, Canada, or the U.S., will be subject to the 25 percent tariff upon consumption entry on or after July 10, 2024.

 

Exclusions

  • Exclusions, including General Approved Exclusions, will exempt relevant articles from the Section 232 tariffs imposed by Proclamation 10783. For claiming such exclusions, importers should refer to prior CSMS guidance (e.g., CSMS #55844950 and CSMS #61248079).

 

Importers of covered products must comply with these new requirements, including filing the correct HTSUS classifications and ensuring all required documents are submitted via ACE.

 

4) Cotton Fee Requirement in de Minimis Shipments

CSMS # 62049057  confirms that entries of Upland cotton that qualify for informal entry (including de minimis entries) are exempt from the Upland cotton fee. This is based on 7 CFR 1205.510(b)(4), which states:

 

"Any entry of cotton that qualifies for informal entry according to regulations issued by the Customs Service will not be subject to the assessment."

 

Additionally, the term "cotton" is broadly defined in 7 CFR 1205.500(q) to encompass both Upland cotton and the Upland cotton content of the products derived from it. Therefore, products containing Upland cotton, if entered under informal entry rules, are likewise exempt from the assessment.

 

5) Revised Agricultural Quarantine and Inspection User Fee Regulations Effective October 1, 2024

The revised AQI program user fee structure will go into effect on October 1, 2024. Stakeholders can review the new fee schedule and final rule on the APHIS AQI User Fee web page.

 

The AQI program is essential for facilitating safe agricultural trade and protecting U.S. agriculture and natural resources from invasive pests and diseases. APHIS collaborates with U.S. Customs and Border Protection (CBP) to carry out AQI inspections at all U.S. ports of entry.

 

APHIS will update its web page on October 1, 2024, to reflect the new regulations and user fee schedule. Further details about the AQI program can be found on the APHIS website.

 

6) FSIS Releases Updated Guideline on Animal-Raising and Environmental Labeling Claims

Key Updates in the Guideline:

  • Incorporation of New Information: The guideline has been revised to reflect updated scientific information, FSIS sampling data, and questions submitted through askFSIS.
  • Stakeholder Input: The update also incorporates feedback from public comments, petitions, and meetings with stakeholders to improve clarity and effectiveness.
  • Claim Support: The guideline provides detailed instructions on the type of documentation required to substantiate animal-raising and environment-related claims, such as protocols, certifications, and other relevant evidence that demonstrates the accuracy of the claims.

 

These revisions are intended to improve the transparency and accuracy of labeling practices and ensure that labels with these claims are truthful, not misleading, and compliant with FSIS regulations. FSIS continues to encourage the use of third-party certification to help substantiate claims, ensuring credibility and consumer trust.

 

Further information on current labelling requirements as well as how to submit comments can be found in the Federal Register.

 

7) CPSC Seeking Public Comments on Revised Standards to Soft Infant and Toddler Carriers

In 2014, CPSC adopted a mandatory standard for soft infant and toddler carriers, which incorporated by reference ASTM F2236-14, the then-current version of the standard (79 FR 17422).

 

ASTM F2236-14 applies to soft carriers, typically made of fabric, designed to hold infants and toddlers close to a caregiver. The standard addresses performance requirements, test methods, and includes warnings and instructions to prevent hazards.

Since the adoption of the mandatory standard, ASTM has revised the standard twice (ASTM F2236-16 and ASTM F2236-16a), but these revisions were not adopted by CPSC, as ASTM did not notify the CPSC of these updates.

 

On August 26, 2024, ASTM notified CPSC of the approval and publication of ASTM F2236-24. CPSC is now assessing this updated version to determine its effect on the safety of soft infant and toddler carriers.The Commission is inviting public comments on the revised standard to inform their assessment.

 

Comments must be submitted by September 24, 2024, to be considered, as mandated by the short statutory timeframe under the CPSIA. This is an opportunity for stakeholders and the public to weigh in on changes that could affect the safety requirements for soft infant and toddler carriers in the U.S. 

 

Further details and comment procedures can be found in the Federal Register.

 

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