Aluminum ingots - aluminum - industrial production - material pile

07/12/2024

New Priority Sectors for Uyghur Forced Labor Prevention Act: Aluminum, PVC, and Seafood

Check out this week's Customs Corner to read about the Uyghur Forced Labor Prevention Act, Customs Broker Continuing Education, and more.

Trade and Customs Updates

1) New Priority Sectors for Uyghur Forced Labor Prevention Act: Aluminum, PVC, and Seafood

Key updates include identifying new high-risk sectors for forced labor: aluminum, polyvinyl chloride (PVC), and seafood. Previous high-risk sectors like apparel, cotton, and silica-based products remain priorities. Secretary Alejandro N. Mayorkas emphasized DHS’s commitment to eradicating forced labor, describing it as modern slavery.

 

The updated strategy includes expanded enforcement actions, such as adding more entities to the UFLPA Entity List, now totaling 68 Chinese companies, and collaboration with various stakeholders. Enforcement measures also involve customs actions, economic sanctions, and visa restrictions.

 

Since UFLPA’s inception, nearly 3,500 shipments valued at over $695 million have been denied entry. The strategy aligns with a broader government effort initiated by President Biden to advance global labor rights and standards. DHS and the FLETF remain dedicated to removing forced labor from supply chains and supporting fair competition in the global market.

The DHS fact sheet details the impact of our forced labor enforcement efforts and highlights updates in the latest UFLPA Strategy.

 

2) Customs Broker Continuing Education

The Continuing Education for Licensed Customs Brokers regulation mandates that brokers complete 36 hours of continuing education every three years. This ensures they stay proficient in facilitating compliant trade and bolster security against illegal commerce entering the US. Recently, US Customs and Border Protection announced partnerships with five entities to develop accreditation standards for the Customs Broker Continuing Education (CE) program:

  1. E-Merchants Trade Council/Global Trade Professional Alliance/Practera
  2. International Compliance Professionals Association (ICPA)
  3. National Customs Brokers and Forwarders Association of America (NCBFAA) Educational Institute
  4. Sandler, Travis & Rosenberg
  5. TrüTrade Solutions
     

Although the requirement for CE credits isn't yet in effect, CBP and these accreditors are actively collaborating to establish accreditation standards and procedures. They aim to finalize the accreditation process soon and will provide detailed guidance through various channels, including the Continuing Education webpage, Federal Register Notice, and CSMS message. Notably, any training completed before the program start date won't count towards the initial triennial period (2024-2027), and accreditors won't begin evaluating activities until the CE program officially launches.
 

More information can be found here.

 

3) Quarterly IRS Interest Rates Used in Calculating Interest on Overview Accounts and Refunds of Customs Duties

Starting from July 1, the interest rate for underpayments will be 8 percent for both corporations and non-corporations. For overpayments, the rate will be 8 percent for non-corporations and 7 percent for corporations.

 

4) APHIS Provides Tips and FAQs on Wood Packaging Materials

APHIS oversees the regulation of imported and exported wood packaging material under the International Plant Protection Convention's (IPPC) ISPM 15 standard. This standard aims to prevent the introduction of harmful pests into the United States and ensures compliance with importing countries' requirements. The regulation covers various wood packaging items such as pallets, crates, and containers made from hardwood or softwood. Even if combined with exempt materials like plywood or particle board, wood packaging must be treated, marked with an ISPM 15 logo, and pest-free to enter the US. Exporters must also comply with ISPM 15 requirements of destination countries for wood packaging material.

 

The agency has provided a link that provides great resources on what is regulated and best practices for the industry.

 

5) GUIDANCE: New Document Image System (DIS) Section 201 Certification document label

Importers need to use the new “201BIFAC_CERT” label in the Document Image System (DIS) and the 54 record “Importer’s Additional Declaration” Type Code 09 starting July 2, 2024. During June 26 to July 2, 2024, filers who used the “OTHER” label must correct entries to “201BIFAC_CERT” via XML or email with document code “CBP166.” The DIS Implementation Guide will be updated accordingly. Importers can claim Section 201 exclusions for refunds if duties were paid during the effective period. The CATAIR Entry Summary has been updated to include the Type Code 09 for bifacial panels, required from June 26 to September 23, 2024.

 

Importers should refer to CSMS 39587858 and CSMS 40969690 for filing and trade remedy questions, respectively. Additional details on tariff rates and quotas can be found in the Quota Bulletin on Solar Cells/Modules amended on June 26, 2024.

 

6) Suspension of Section 232 Duties on Steel Articles from Ukraine

This suspension exempts these imports, including steel articles from the European Union melted and poured in Ukraine, from paying duties until June 1, 2025. Importers must submit a certificate of origin from Ukraine and a steel mill certificate at the time of entry summary filing. Failure to provide these documents subjects imports to a 25 percent ad valorem duty.


The Automated Commercial Environment (ACE) began accommodating this duty suspension on May 30, 2024, at 7 am EDT. Importers are directed to report specific Harmonized Tariff Schedule of the United States (HTSUS) classifications depending on whether the steel articles are accompanied by a certificate of origin from Ukraine.


Additionally, imports of steel articles from the European Union, where the steel is melted and poured in Ukraine, are subject to specific rules regarding foreign trade zones and tariff-rate quotas, as outlined in Proclamations 9705 and 10771. Specifically, these imports admitted into U.S. foreign trade zones under "privileged foreign status" before June 1, 2023, will face duties upon entry for consumption from June 1, 2025. Moreover, such imports are not eligible for the in-quota volume of the tariff-rate quota.
 

These measures are detailed in CSMS 61248591.

 

7) Revocation of 12 Section 232 General Approved Exclusions

These revocations will take effect on July 1, 2024. Importers must update their entries in the Automated Commercial Environment (ACE) by 7:00 a.m. ET on June 27, 2024, to reflect the changes.


Effective July 1, 2024, imports from countries subject to Section 232 duties on steel and aluminum articles must reference the GAE identifier, a specific 10-digit HTS classification, in ACE. Importers should not use the Section 232 Chapter 99 HTS classification for these duties. For imports subject to Section 232 quotas, a Chapter 99 HTS is required; consult the quota bulletin for the applicable classification and country of origin.


There are 81 Harmonized Tariff Schedule classifications completely excluded from Section 232 measures.
 

For detailed filing requirements and resources regarding Section 232 trade remedies, visit the Trade Remedy website on CBP.gov. Specific questions about quotas should be directed to [email protected].

 

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