What s New with Customs from ACE to Z

Transcription

1 What s New with Customs from ACE to Z Hosted by United States Fashion Industry Association (USFIA) and GEODIS USA April 5 th, :00 P.M. Eastern/11:00 A.M. Pacific

2 At any time during the presentation, you may enter your questions here:

3 HOT TOPICS IN CUSTOMS from ACE to Z 2/1/2018

4 Woven throughout the A-Z is Enforcement Careful consideration of, and reasonable care with respect to, the different risks presented in your supply chain should always be taken into account when importing into the United States. CBP FAQ on CAATSA 4 4/5/2018

5 Deployment February 24, 2018 Drawback Reconciliation Liquidation Open issues with CORE ACE File-size limitations System stability Post-summary corrections Protest tracking and ABI protest Currency conversion Elected date of entry Automated invoice interface Release dates and messaging 5 2/1/2018

6 Kevin K. McAleenan was sworn in as Commissioner of U.S. Customs and Border Protection March 20, As the agency s chief executive, Mr. McAleenan oversees 60,000 employees, manages a budget of over $13 billion, and ensures the effective operations of CBP s efforts to protect national security while promoting economic prosperity and security. Mr. McAleenan directs CBP s three core missions: counterterrorism, border security, and trade enforcement While facilitating $4 Trillion in trade and facilitating travel of over 365 million people through ports of entry. He oversees the largest law enforcement agency and the second-largest revenue collecting source in the federal government. Confirmation gave continuity to how CBP executes their mission 6 2/1/2018

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14 What Every Member of the Trade Community Should Know: Reasonable Care Introduction general questions for all transactions: Questions arranged by Topic: Merchandise Description & Tariff Classification Valuation Country of Origin/Marking/Quota Intellectual Property Rights Forced Labor Miscellaneous Questions 14 2/1/2018

15 Forced Labor Basic question: 1.Have you taken reliable measures to ensure imported goods are not produced wholly or in part with convict labor, forced labor, and/or indentured labor (including forced or indentured child labor)? 2. Have you established reliable procedures to ensure you are not importing goods in violation of 19 U.S.C and 19 C.F.R ? 3. Do you know how your goods are made, from raw materials to finished goods, by whom, where, and under what labor conditions? 4. Have you reviewed CBP s "Forced Labor" webpage, which includes a list of active withhold release orders and findings, as well as forced labor fact sheets? 5. Have you reviewed the Department of Labor s "List of Goods Produced by Child Labor or Forced Labor" to familiarize yourself with at-risk country and commodity combinations? 6. Have you obtained a "ruling" from CBP regarding the admissibility of your goods under 19 U.S.C (see 19 C.F.R. Part 177), and if so, have you established reliable procedures to ensure that you followed the ruling and brought it to CBP s attention? 7. Have you established a reliable procedure of conducting periodic internal audits to check for forced labor in your supply chain? 8. Have you established a reliable procedure of having a third-party auditor familiar with evaluating forced labor risks conduct periodic, unannounced audits of your supply chain for forced labor? 9. Have you reviewed the International Labour Organization s Indicators of Forced Labour booklet? 10. Do you vet new suppliers/vendors for forced labor risks through questionnaires or some other means? 11. Do your contracts with suppliers include terms that prohibit the use of forced labor, a time frame by which to take corrective action if forced labor is identified, and the consequences if corrective action is not taken, such as the termination of the contractual relationship? 12. Do you have a comprehensive and transparent social compliance system in place? Have you reviewed the Department of Labor s Comply Chain webpage? 13. Have you developed a reliable program or procedure to maintain and produce any required customs entry documentation and supporting information? 15 2/1/2018

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19 On September 21, 2017 the White House released a Presidential Executive Order on Imposing Additional Sanctions with Respect to North Korea. Expands the Government s authority to target individual companies, and financial institutions that facilitate trade with North Korea." The order, which aims to cut off sources of revenue that fund North Korea's nuclear and weapons programs It targets any individual or entity that trades goods, services or technology with the North. But what does this have to do with you? You don t trade with North Korea or do you? CBP may be asking. As 90 percent of North Korea s trade is with China and includes North Korean laborers working in Chinese factories, you could unwittingly have goods produced with North Korean labor. CBP is directly contacting importers requesting answers to detailed questions for specific manufacturers 19 2/1/2018

20 CAATSA Title III Section 321(b) August 2, 2017 Countering America s Adversaries Through Sanctions Act Section 321(b), affects the entry of merchandise produced by North Korean nationals or citizens CAATSA reiterates the need for comprehensive due diligence by and on behalf of U.S. companies involved in importing goods. Careful consideration of, and reasonable care with respect to, the different risks presented in your supply chain should always be taken into account when importing into the United States. Presumption that significant goods, wares, merchandise, and articles mined, produced, or manufactured wholly or in part by North Korean nationals or North Korean citizens anywhere in the world are forcedlabor goods prohibited from importation under the Tariff Act of What steps should my company take to ensure North Korean workers are not in the supply chain? /5/2018

21 Your company should review due diligence best practices and closely reexamine your entire supply chain with the knowledge of high risk countries and sectors for North Korean workers. Due diligence will likely vary based on the size of the company and industry. Generally, human rights due diligence and related practices identify, prevent, and mitigate actual and potential adverse impacts, as well as account for how these impacts are addressed. The below steps are merely examples of actions that may be taken to ensure due diligence as it is a flexible, risk-based process and not a specific formula for companies to follow; additional steps may be required: a high-level statement of policy demonstrating the company s commitment to respect human rights and labor rights; a rigorous continuous risk assessment of actual and potential human rights and labor impacts or risks of company activities and relationships, which is undertaken in consultation with stakeholders; integrating these commitments and assessments into internal control and oversight systems of company operations and supply chains; and, tracking and reporting on areas of risk. In addition, importers have the responsibility to exercise reasonable care and provide CBP with such information as is necessary to enable CBP to determine if the merchandise may be released from CBP custody. To demonstrate reasonable care, an importer may present any material that it chooses to, which may include comprehensive due diligence efforts that may have been undertaken, such as: Information demonstrating that your company engaged meaningfully with affected stakeholders, including workers and trade unions, as part of the due diligence process; Workforce composition at the location in question; Training materials on North Korean forced labor prohibitions that have been provided to suppliers and sub-contractors; Company policies, and evidence of implementation, on using North Korean laborers; Contracts with suppliers and sub-contractors that state your policy on North Korean forced labor; Publishing the full names of all authorized production units and processing facilities, the worksite addresses, the parent company of the business at the worksite, the types of products made, and the number of workers at each worksite; Information on how and to whom wages are paid at the location; Information demonstrating that recruitment agencies are within the scope of any third-party audit with your suppliers; Documents verifying the use of authorized recruitment agencies and brokers or that you use direct recruitment; Documents verifying that the fee structure presented by the recruitment agency is transparent and has been verified through worker interviews; If you have reimbursed any fees paid, verification of such reimbursement, Demonstrated commitment to human rights and labor due diligence at the highest levels of your company; and, Results of your human rights and labor impact assessments. 21 4/5/2018

22 Generalize System of Preferences Legislation to renew the duty-free privileges and to retroactively apply duty-free status to eligible importations Effective April 22, 2018 Duties are collected during the lapse, and tracked with the anticipation that the renewal will be retroactive North American Free Trade Agreement While the renegotiations are on-going, NAFTA claims can continue to be made Any forward-looking impacts will be tied to the success or failure of the negotiations Merchandise Processing Fee Due to legislative mandate, the MPF minimum and maximum were adjusted for inflation Minimum from $25 to $25.67 and maximum from $485 to $ China 1,300 proposed HTS with 25% proposed 22 2/1/2018

23 Textile machinery on proposed list Textile printing machinery Carding machines for preparing textile fibers Textile spinning machines Machinery for producing textile yarns Weaving machines Circular knitting machines Flat knitting machines Embroidery machines Spindles and sewing machines And parts Footwear machinery on proposed list Machinery for preparing tanning or working hides, skins, leathers Machinery for making/repairing footwear 23 4/5/2018

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25 Thank you Mary Jo Muoio Senior Vice President, Trade Services

26 Thank you for attending! For additional questions and information: Phone: