trade facilitation, regulations & tftea priorities conect

Trade Facilitation, Regulations & TFTEA Priorities

CONECT T&T ConferenceApril 11, 2018

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1. CBP’s Facilitation Versus Enforcement Mandate

2. Your “IRA” Strategy

3. Priorities & Checklist

Overview


• com·pli·ance \kəm-ˈplī-ən(t)s\• noun • 1. the act or process of complying to a desire, demand, proposal, or

regimen or to coercion • 2. conformity in fulfilling official requirements • 3. disposition to yield to others • 4. willingness to follow a prescribed course of treatment• 5. the ability of an object to yield elastically when a force is applied;

flexibility

What Does Compliance Mean to You?


TFTEA - Facilitation

1. §101 Partnership Programs

2. §108 Mutual Recognition

3. §901 De Minimis

4. §904 Chapter 98 Returns


TFTEA - Enforcement

1. §114 Criteria for IOR Numbers2. §115 New/Adjusted Import Bond Amounts3. §116 Broker Vetting IORs4. §117 Priority Trade Issues (Revenue, IPR, Agriculture, Import Safety,

Textiles, FTAs)5. §302, 303, 305 IPR Owner Info Access, National Coordination Center6. §411, 421 Antidumping/Countervailing Duties (EAPA)7. §910 Forced Labor


TFTEA – Facilitation & Enforcement

1. §104, 105 Seminars, Education, Outreach

2. §110 Centers of Excellence & Expertise

3. §201 Import Safety Working Group


Executive Order 13659 –• Streamlining the Export/Import

Process

• Complete the development of efficient and cost-effective trade processing …while reducing unnecessary procedural requirements that add costs…and promote trade facilitation.

• Establish the Border Interagency Executive Council (BIEC) to develop policies and processes to enhance coordination across customs, transport, security, health and safety…to measurably improve supply chain processes


Executive Order 13771 – January 30, 2017Reducing Regulation and Controlling Regulatory Costs

• Whenever an executive department or agency publicly proposes fornotice and comment or otherwise promulgates a new regulation, itshall identify at least two existing regulations to be repealed.

• The total incremental cost for all new regulations, including repealedregulations, to be finalized this year shall be no greater than zero,unless otherwise required by law or consistent with advice providedby the Director, OMB.

• Any new incremental costs associated with new regulations shall beoffset by the elimination of existing costs associated with at leasttwo prior regulations.


• Executive Order 13785 –March 31, 2017

• Establishing Enhanced Collection and Enforcement of Antidumping and Countervailing Duties and Violations of Trade Laws

• Appropriate bonding requirements based on risk assessments

• Security for AD/CV through bonds and other legal measures and identify other enforcement measures

• Combat violations including methods other than seizure of inadmissible merchandise through any mode of transportation

• Share with IPR rights holders any information necessary to determine IPR infringement or violation

• Recommend prosecution practices and resources for prosecutors against significant trade offenses


“IRA” Strategy

Info

rmat

ion Rulings,

DecisionsICPsTrade PublicationsCSMS, cbp.gov

Rela

tions

hips Supply Chain

CBP/CenterInternal

Auto

mat

ion Broker/IOR

ACE ReportsSoftware Solutions


Trusted Trader - Checklist• Do you regularly reach out to supply chain partners?• Do you update and refresh your risk assessment?• Do you have examples of remedial action taken?• Have you identified best practices including:

• Senior management support• Innovative business process/technology• Documented process• Checks, balances, accountability and testing• Evidence of implementation

• Have you considered incorporating the following into your program:• Security vision, responsibility• Cybersecurity• Agricultural• Financial


Trusted Trader – Checklist (2)

• Have you conducted an internal compliance review?• Have you had a third party conduct the review or at least assess it?• Are you an ISA partner and if not are you familiar with the standards?• Do you have an updated compliance manual?• Do you log changes to the manual?• Do you have pre and post entry review requirements?• How often to you conduct training and/or attend training events?• Do you have a trusted trader committee that meets periodically?


Centers of Excellence & Expertise


Centers of Excellence & Expertise- Checklist

• Have you had a meeting or conference call with your Center’s leaders?• Have you confirmed the appropriate Center for your merchandise?• Have you familiarized the Center with your company and products?• Do you keep the Center aware of changes?• Have you confirmed whether you are considered an “account?”• Have you confirmed whether you are a Center “partner?”• Have you discussed how to obtain Center benefits (facilitation)?• Are you familiar with Center enforcement initiatives?• Have you raised concerns with the Center and had them addressed?


New Importers & Bond Sufficiency - Considerations

• Merchandise class/type

• Priority trade issues/concerns

• E-commerce/321 • Informed

compliance/outreach

• AD/CVD • IPR

• Customs broker role • Partnership

opportunities


New Importers & Bond Sufficiency Checklist

• Are you aware of all IORs associated with your company?• Have you addressed IOR changes due to acquisition or merger?• Have you confirmed IOR activity via ACE?• Are you familiar with bond sufficiency standards?• Have you confirmed adequate bonds and activity with surety?• Have you assessed compliance risks that could impact bonds?• Have you taken action to address the risks?


Broker Responsibilities – Considerations• Single Permit & Permit Process – Preferred Approach• Responsible Supervision & Control – Update Standard• License Examination – Flexibility/Automate• Recordkeeping, Record Retention & Confidentiality – Business Reality• Employee & Status Reporting – Streamline/ACE• Relations Between Brokers & Importers – Direct with Importer• Fees – Flexibility/Payment Options and Increase as Needed;• Obtaining & Vetting Importer Information

• Collect information as reasonable and practicable (ACE)• Importer role in providing information• Utilize publicly available information• Reasonable and practicable review, with record


Broker Responsibilities Checklist• Do the broker and importer have an SOP in place?• Has the SOP been updated?• Are the roles, responsibilities and expectations clearly delineated?• Have the parties established communication protocols?• Do the protocols address info/data exchange and CBP inquiries?• Do the parties have review mechanisms in place?• Has the importer acted consistently with its confidentiality policy?• Do the parties have mutual vetting protocols in place?• Has the importer been subject to a broker known importer review,

reported to CBP?• Do the parties meet in person periodically to discuss changes?• Have the parties established and discussed key performance indicators?


Import Health and Safety• TFTEA establishes an interagency Import Safety Working Group• DHS required to develop a joint import safety rapid response

plan


Import Health & Safety Checklist

• Have you identified the PGAs associated with your HTSUS provisions?• Have you verified/confirmed licensing, permit requirements?• Have you advised your broker of PGA applicability?• Does your documentation and/or data flow highlight PGA issues?• Have you developed protocols to address PGA holds?• Do you attend PGA related training/outreach?• Have you established reliable contacts within the PGA?


Intellectual Property Rights Protection

IP owners with information access

Copyright protection if apply for registration

Seize and forfeit infringing technology,

product, service, device or component

National IPR Center coordinates CBP, ICE

& DHS


Intellectual Property Rights Checklist

• Have you identified all items, packaging, technology subject to IP?• Have you collected/reviewed all licensing agreements?• Have you collected/reviewed all letters of authorization?• Have you advised CBP in writing of such agreements/authorization?• Have you established protocols to ensure genuine manufacture?• Have you established protocols to ensure genuine packaging?• Have you established protocols to ensure genuine technology?• Do you have protocols to address refurbishing or remanufacture?• Do you have a process to confirm if subject to exclusion orders?• Do you have a PTO registration and CBP recordation process?


Antidumping Checklist • Have you developed procedures to ensure if goods are subject to

ADD/CVD investigations or determinations?

• Do you review Commerce and CBP information on ADD/CVD historyand orders in effect on a regular basis?

• Do you consider scope issues and opportunities?

• Do you ensure proper ADD/CVD reporting and declarations?

• Do purchase orders include proper requirements?

• Do you ensure proper parties, manufacturer and exporter, are reported?

• Do you confirm proper country of origin?

• Do you ensure statements of non-reimbursement are filed?

• Do you have protocols in place in address transshipped products withADD/CVD?

• Do you have procedures in place to question/address circumvention?


Forced Labor

• TFTEA & 19 USC 1307

• Prohibits all merchandise produced wholly or in part by forced labor

• CBP exclusion/seizure if reasonable suspicion

• Consumptive demand exception repealed

• Withhold Release Order –Reasonable, but not conclusive belief of forced labor. Goods can be excluded.

• Finding – Goods made with forced labor. Can be seized.

North Korea – Countering America’s Adversaries Through Sanctions Act• Presumption that any North Korean

nationals/citizens are forced labor regardless of origin

• Bans significant goods made in whole or in part of forced labor

• Rebut presumption through clear and convincing evidence

• Goods can be excluded, seized or destroyed


Forced Labor Checklist• Have you confirmed if your social compliance or other reviews incorporate

forced labor issues/audits on a periodic, unannounced basis?

• Do you maintain internal as well as third party audit records and review them?

• Have you reviewed employee contracts b/t your suppliers and workers?

• Do you inquire about forced labor prior to sourcing from new companies?

• Have you reviewed sourcing, manufacture and raw materials comprising goods?

• Have you developed a forced labor risk profile (location, commodity, third party labor brokers, etc.)?

• Have you documented the risks and addressed them in writing?

• Are you familiar with CBP’s and Dept of Labor’s forced labor web pages?

• Do your contracts prohibit use of forced labor and require due diligence, certification and/or corrective action?

• Have you conducted a mock review or audit consistent with CBP standards?


Action Plan

Checklist

Mapping

Manual/Narrative

Desktop Procedures


Questions?Lenny FeldmanEsquire

Sandler, Travis & Rosenberg,P.A.

Phone: 305-894-1011Email: [email protected]


mailto:[email protected]

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