Customs User Fee Changes Effective Oct. 1st
Customs and Border Protection (CBP) has adjusted certain user fees and corresponding limitations, effective Oct. 1. These adjustments are being made in accordance with the Fixing America's Surface Transportation Act of 2015 (FAST Act), Public Law 114-94. The General Notice of fees was published in this Aug. 1 Federal Register notice.
The Merchandise Processing Fee (MPF) ad valorem rate of 0.3464% will NOT change. The MPF minimum and maximum for formal entries (class code 499) will change. The minimum will change from $27.75 to $29.66- and the maximum will change from $538.40 to $575.35.
Other fees that are changing:
· Fee for Informal Entry/Release, automated and not prepared by CBP personnel (class code 311a), will change to $2.37.
· Surcharge for Manual Entry/Release (class code 500) will change to $3.56.
· Dutiable Mail fee (class code 496) will change to $6.52.
· Express Consignment Carrier/Centralized Hub Facility fee will change to $1.19 per individual waybill/bill of lading. An individual air waybill is the bill at the lowest level and is not a master bill or other consolidated document. See 82 FR 50523 (Nov. 1, 2017).
· Commercial Truck Arrival fee will change to $6.50. The Commercial Truck Arrival Fee is the CBP fee only- it does not include the United States Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) Agricultural and Quarantine Inspection (AQI) Services Fee (currently $7.55) that is collected by CBP on behalf of USDA to make a total single crossing fee of $14.05.
A CSMS will be sent by CBP when the changes are in the ACE Certification environment for trade testing.
URGENT: Renewal of FDA Food Facility Registration Begins Oct. 1
On October 1, the FDA will open its portal where food facilities must renew their food facility registrations. The window for renewal will run from October 1 until December 31. We encourage you to renew early to avoid any disruption in your shipments. All food facilities in your supply chains must submit a timely renewal. Failure to do so will cause product to be denied entry into the U.S.
This time, every registrant must have a DUNS number associated with the physical location of the food facility (a DUNS number for the corporate headquarters is not sufficient!). The FDA will no longer accept the use of "pending" in lieu of a valid DUNS number. You can apply for a DUNS number here.
A special warning: the name and contact information on the FDA food facility registration must exactly match the DUNS number contact information. If not, the registration may be cancelled. For example, if the FDA registration identifies "ABC Manufacturing" at "123 Main Street," while the DUNS number info is listed as "ABC Manufacturing LLC" at 123 Main St.," the registration will be denied. The two must be an exact match in every way.
We urge you to communicate immediately with food facilities in your supply chain, including the manufacturer or grower, the consolidator, the shipper and the Ultimate Consignee ("deliver to" party), to inform them that:
1. The U.S. FDA Food Facility Registration must be renewed from October 1 to December 31. Instructions and the portal are here.
2. A DUNS number associated with the physical location of the food facility must be provided. FDA will no longer offer flexibility. Without a valid DUNS number, the imported food shipment will not be allowed to enter the U.S. The DUNS number can be obtained here.
3. The name and contact information on the FDA food facility registration must exactly match the DUNS number contact information. If not, the registration will be rejected. For example, if the FDA registration identifies "ABC Manufacturing" at "123 Main Street," while the DUNS number info is listed as "ABC Manufacturing LLC" at 123 Main St.," the registration will be denied. The two must be an exact match in every way.
Importer Security Filing
On January 26, 2010 You MUST File a 10+2 or Face Penalties!
U.S. Customs and Border Protection is serious. On January 26, 2010 they will start issuing penalties for failure to comply with the Importer Security Filing (ISF), also known as the 10+2. We can file for you or your shipper overseas can do it, but someone must. Failure to file will result in a $5,000 per violation penalty. You can also be fined for filing incomplete or wrong information. Therefore, the total penalty per shipment could be as much as $10,000.00.
Customs' regulations require that this information be filed 24 hours prior to the loading of the vessel. In order for us to accomplish this, we need to receive the documents 4 days before departure of the vessel. This will give us ample time to file and save you from facing a penalty. If there are any corrections we will need that information immediately so we can update the information with Customs. I cannot state enough that this is YOUR responsibility and YOUR penalty.
U.S. Customs is also requiring an additional bond for the ISF. This can be done with a single ISF bond, which will carry an additional charge. The shipment and ISF can also be bonded with a continuous transaction bond.
Arizona Customs Brokers is here to assist you with this filing and the bond. On our website, arizonacustomsbrokers.com, you can download "The Importer Security Filing Data Sheet", found under forms. We have setup a special email address for you or your overseas partner to send the form and documents. This address is firstname.lastname@example.org. If you have any questions regarding the ISF or bonding requirements please give Robert Hornyan a call at 602-273-0912. We are here to assist you and keep you penalty free.
Port of Long Beach to Remove Weekend Exemption for Free Time
Port of Long Beach Executive Director Mario Cordero on July 27 announced the Southern California port authority will take steps to end the weekend exemption for free time "to incentivize the use of weekend gates by our marine terminal operators and to incentivize our shippers to take advantage of these expanded weekend gate hours."
The removal of the weekend exemption for free time will become effective Sept. 1.
"Beginning September 1, 2022, free time will be inclusive of Saturdays and Sundays (except on legal holidays) when a container terminal in Long Beach is open on either of those days," Cordero said in a statement. "I have determined that the interests of commerce and navigation require this shortening of free time for the foreseeable future, and I will revisit this matter as circumstances require."
CBP Makes Uyghur Forced Labor Prevention Act Importer Guidance Available
Customs and Border Protection (CBP) has released guidance to assist the trade with preparing for the implementation of the Uyghur Forced Labor Prevention Act (UFLPA) rebuttable presumption that will take effect June 21.
The agency said the trade should be aware that the guidance document is "intended to provide operational guidance to trade stakeholders and complements the UFLPA strategy guidance." Importers must comply with the importer guidance within UFLPA strategy. UFLPA, Section 3(b).
UFLPA was signed into law by President Biden on Dec. 23, 2021.
UFLPA establishes a rebuttable presumption that the import of any goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of of China, or produced by certain entities on the Forced Labor Enforcement Task Force (FLETF) Entity List, is prohibited by Section 307 of the 1930 Tariff Act and that such goods, wares, articles, and merchandise are not entitled to entry to the U.S. The presumption applies unless the CBP Commissioner determines that the importer of record has fully complied with the FLETF-issued importer guidance, responded to all inquiries, and determines by clear and convincing evidence, that the goods, wares, articles, or merchandise were not produced using forced labor.
Here are some important highlights:
· Effective for goods imported on or after June 21 (not entered).
· If goods were under WRO before (cotton, tomatoes, XPCC goods) they will now be under UFLPA - big difference is WRO gives three months to get information to CBP, while UFLPA gives 30 days (detention process governed by 1499).
· Importers can basically give information to CBP to have additional shipments identical to shipments that have been reviewed previously and determined to be admissible to speed up release of the identical shipments.
· Seizure is possible.
· Scope decisions are different from UFLPA exception requests.
· May have some benefits to CTPAT companies.
In addition to the guidance, CBP said the trade should "frequently check" the agency's UFLPA webpage for the latest information on the UFLPA and send inquiries to email@example.com.
Import Ban on Goods From Xinjiang, China, Takes Effect in Three Months
Under a new law the U.S. will ban imports of all goods made in whole or in part from any good from the Xinjiang Uyghur Autonomous Region in China, effective June 21, 2022. Companies need to use the next 180 days to ensure their supply chains do not include such goods.
President Biden signed into law Dec. 23 the Uyghur Forced Labor Prevention Act, which effectively deems all goods mined, produced, or manufactured in the XUAR to be produced by forced labor in China. Even those not importing directly from China may have goods detained if the materials used to produce the imported goods in a second country are tied at any level to XUAR or specific entities or commodities associated with forced labor in China.
Under this law, imports of goods from the XUAR will be banned unless U.S. Customs and Border Protection determines that:
1. the importer of record has fully complied with relevant guidance to be provided by CBP, as well as any regulations issued to implement that guidance-
2. the importer has completely and substantively responded to all inquiries for information submitted by CBP to ascertain whether the goods were made wholly or in part with forced labor- and
3. by clear and convincing evidence, the goods were not made wholly or in part by forced labor.
Any good from the XUAR that thus overcomes the rebuttable presumption of being made with forced labor will be included in a public list to be issued by CBP 30 days after making such determination.
Further, an interagency Forced Labor Enforcement Task Force will have to develop a strategy to prevent the importation of forced labor goods from China along with the following lists.
1. entities in the XUAR that produce goods with forced labor
2. entities working with the government of the XUAR to recruit, transport, transfer, harbor, or receive forced labor or Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR
3. products made wholly or in part by such entities
4. entities that exported products made with forced labor from China to the U.S.
5. facilities and entities, including the Xinjiang Production and Construction Corps, that source material from the XUAR or persons working with the government of the XUAR or the XPCC for purposes of a poverty alleviation program or pairing-assistance program or any other government labor scheme that uses forced labor
The Task Force must seek public input no later than Jan. 24, 2022, and the public will be given no less than 45 days to submit comments. A public hearing must be held within 45 days after the close of the public comment period.
The State Department must then submit a report to Congress by March 23, 2022, that provides a strategy to address forced labor in the XUAR along with lists of (1) entities in China or affiliates that use or benefit from forced labor in the XUAR and (2) foreign persons that acted as agents of such entities or affiliates to import goods into the U.S. The final strategy to be developed by the Task Force must be in place by June 21, 2022.
Importantly, the UFLPA calls for the Task Force to provide guidance to importers with respect to the following.
due diligence, effective supply chain tracing, and supply chain management measures to ensure they do not import any goods made with forced labor from mainland China and especially from the XUAR
1. the type, nature, and extent of evidence that demonstrates that goods originating in mainland China were not made wholly or in part in the XUAR
2. the type, nature, and extent of evidence that demonstrates that goods originating mainland China, including goods detained or seized pursuant to Section 307, were not made wholly or in part with forced labor
Sandler, Travis and Rosenberg, P.A., has developed a program to help companies review their supply chain visibility. The STR program first provides a stocktaking of procedures, policies, and programs in place to evaluate the level of due diligence and reasonable care. Next is testing and tracking to review a shipment to determine if the procedures in place can timely provide the necessary documents to CBP to rebut a claim of forced labor. Finally, STandR will assist in responding to any CBP-issued detentions.
For more information on this program, please contact Elise Shibles (at (415) 490-1403 or via email), Amanda Levitt (at (212) 549-0148) or via email), or David Olave (at (202) 730-4960 or via email).