Monday Morning eBriefing

On October 31, the NCBFAA submitted comments to the Federal Maritime Commission (FMC) on their Notice of Proposed Rulemaking (NPRM) for an Interpretive Ruling on Assessing Demurrage and Detention. As a member of the coalition that originally filed a petition with the FMC almost two years ago, the NCBFAA has been outspoken in its desire to seek change to the current practices that do not encourage the efficient movement of containers. The Association appreciates the FMC's willingness to improve the current industry detention and demurrage practices and supports the proposed rule with a few modifications.

Last week, the NCBFAA was advised that the testing proctor had erroneously posted a "failed" message for applicants logging onto their post-examination system. This message does not reflect the official test result; the message has now been changed to reflect that the test was "taken" and the "fail" message has been removed. U.S. Customs and Border Protection (CBP) is the only source from which to receive official test results and notification of your pass/fail results. A CSMS message addressing this issue will be issued shortly.

As part of our on-going discussions with U.S. Customs and Border Protection (CBP) to improve the Customs Broker License Examination, the NCBFAA is soliciting feedback from our members regarding the October 17 exam and their overall exam experience. If you or someone you know participated in the most recent exam, please share any positive stories or problems you encountered with NCBFAA Executive Vice President Megan Montgomery.

On October 10, the National Customs Brokers & Forwarders Association of America, Inc. (NCBFAA) submitted comments on the Notice of Proposed Rulemaking (NPRM) entitled "Customs Broker Verification of Importer's Identity." The comments were prepared after months of discussion regarding the impact this proposed measure would have on the industry. The NCBFAA supports the proposed rulemaking, as the verification of an importer's identity will benefit the customs brokerage community and enhance U.S. Customs and Border Protection 's (CBP) efforts to protect our borders while facilitating legitimate trade, however we are providing these comments to assist the agency in developing a reasonable process to achieve these goals without creating an undue burden on the industry.

The Office of the United States Trade Representative (USTR) announced on October 2 that certain products from the E.U. would be subject to additional duty rates of either 10% or 25% effective on October 18. The tentative list of products may be found here. The definitive product coverage "will be determined by amendments to the HTSUS that USTR will publish in an upcoming Federal Register notice."

We want to thank everyone for their attendance and participation in this year's Government Affairs Conference! With 27 First Timers and approximately 172 attendees, we had a wonderful turnout. We understand that your attendance at this conference takes away from your time in the office and from home; that effort and sacrifice does not go unnoticed!

At a recent Board of Directors meeting, NCBFAA leadership discussed the need to have an accurate member count for our advocacy efforts, which amplifies our reach within the industry and on Capitol Hill. We are asking members to help support this effort by logging into your account and updating both your employee roster and reviewing your total employee count. We very much want to be able to tell Capitol Hill and the Government Agencies with which we engage the full story of our membership depth and breadth.

On September 13, the Federal Maritime Commission (FMC) announced that the Commission is seeking public comments on "its interpretation of the Shipping Act prohibition against failing to establish, observe, and enforce just and reasonable regulations and practices relating to or connected with receiving, handling, storing, or delivering property with respect to demurrage and detention. Specifically, the Commission is providing guidance as to what it will consider in assessing whether a demurrage or detention practice is unjust or unreasonable."

Two recent Headquarters' rulings have addressed the impact of China Section 301 duties on tool kits classifiable under subheading 8206.00.00, HTSUS. In the rulings, HQ H304235 (July 30, 2019) and HQ H301769 (April 10, 2019), Customs determined that such tool kits are subject to a double hit of China Section 301 duties.

Long-time lobbyist for the NCBFAA, Jon Kent has announced that he will retire before the end of the year. Jon has served the NCBFAA and our members for the better part of 40 years, and his presence, guidance and expertise will be greatly missed.

On Friday of last week, the Office of the United States Trade Representative (USTR), in response to China's announcement of additional tariffs on $75 billion worth of American Goods, said that the United States would increase existing tariffs on Chinese goods by 5%. According to the release, For the 25% tariffs on approximately $250 billion worth of Chinese imports, USTR will begin the process of increasing the tariff rate to 30%, effective October 1 following a notice and comment period. For the 10% tariffs on approximately $300 billion worth of Chinese imports that the President announced earlier this month, the tariffs will now be 15%, effective on the already scheduled dates for tariff increases on these imports.

In the August 14 edition of the Federal Register, U.S. Customs and Border Protection (CBP) has issued a proposed rule amending Section 116 of the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA) that would establish identity collection criteria and create a required verification process of the importer and nonresident importer client. CBP is requiring all brokers obtain, at a minimum, the following information from their clients:

Announced via CSMS on August 7, U.S. Customs and Border Protection (CBP) has released instructions for how to submit entries that contain products granted exclusions from Section 302 duties. Instructions for submission are as follows:

NCBFAA submitted comments last week in response to a July 10 Federal Register notice asking for comments on ways to combat counterfeit and pirated goods trafficking, particularly in e-commerce. The notice is part of an interagency review pursuant to the President's April 3, 2019, Memorandum on Combating Trafficking in Counterfeit and Pirated Goods.

On July 22, the NCBFAA filed comments on the Department of the Treasury's Office of Foreign Assets Control (OFAC) interim final rule that makes changes to the agency's Reporting, Procedures and Penalties Regulations.

In lieu of flowers, donations can be made in Wayne Wagner's memory to Saint John's Health Center Foundation, 2121 Santa Monica Boulevard, Santa Monica, CA 90404. Please write on your check that this gift supports JWCI - Research Oncology Urology Fund - in honor of Wayne Wagner, Jr., and make checks payable to Saint John's Health Center Foundation. You can also make a gift over the phone by calling Meghan Chereck at (310) 829-8394, or online at https://www.saintjohnscancer.org/make-a-donation/contact-us-donation-form/.

It is with great regret that we inform you that Wayne Wagner unexpectedly passed away on Monday, July 8th. Wayne started his career at Tower Group 35 years ago, which became FedEx Trade Networks in 2001. Wayne most recently served as the Senior Manager of Brokerage Services but had many roles in the company including General Manager of the Southwest Region. Wayne was a licensed Customs Broker, a Certified Customs Specialist and held a Bachelor of Arts degree from Whittier College in California.

The rumors that you may have heard concerning a change in the process for registering an NVOCC's bill of lading in the PRC appear to be accurate. The NCBFAA has been advised that the Ministry of Transportation for the PRC issued regulations that formally cancel all existing registrations for NVOCC bills of lading and has instituted in its place a very simple process by which each NVOCC's agent in the PRC can quickly submit the necessary registration data through an online registration process.

Last week, Acting Commissioner of U.S. Customs and Border Protection (CBP) John Sanders resigned his post effective July 5. Sanders was designated Acting Commissioner after former Commissioner Kevin McAleenan left to become Acting Secretary of Homeland Security (DHS) on April 15.

It's hard to think of a time that has been more unsteady or uneasy when it comes to all matters of trade. From Section 301 tariffs going into effect through the fall of 2018; to additional tariff threats on China (potential Tranche 4), Canada, Mexico and the EU; immigration impacts at the border with Mexico; and ongoing discussions on the USMCA, these certainly are uncertain times in our history.