Monday Morning eBriefing

During this past week, the U.S. Government activated various enforcement agencies to do “boots on the ground” outreach to the trade, including freight forwarders. This has consisted of onsite visits, calls, and follow-up emails.

It has come to NCBFAA’s attention that some of our members (particularly our smaller members) are encountering attempts by ocean carriers to amend, alter or otherwise deviate from agreed-to terms and conditions in valid service contracts. We understand in some cases, carriers are seeking to cancel existing contracts, as well.

Here is a summary of the latest legislative and regulatory transport, logistics and trade sector updates brought to you by our NCBFAA Transportation Counsel firm Venable:

NCBFAA on March 10 responded to a Department of Homeland Security (DHS) notice requesting comments regarding methods to prevent imports into the U.S. of goods mined, produced, and manufactured in China using forced labor, especially from the Xinjiang Uyghur Autonomous Region. The DHS request for comments was facilitated by the Uyghur Forced Labor Prevention Act (UFLPA) and the U.S. government’s Forced Labor Enforcement Task Force (FLETF).

The just-passed omnibus spending bill includes a small but important feature: a provision to add $250 million for the USDA’s Agriculture Quarantine Inspection (AQI) program. USDA APHIS collects the AQI fees which are then used to pay for the CBP agriculture inspectors. The last-minute emergency request for funds from USDA was the result of a shortfall in fee collections due to reduced trade and travel during the pandemic. The additional funds will keep the AQI going through FY2023.

The NCBFAA Transportation Committee’s Logistics Subcommittee is regularly collecting data on the nation’s rail delays and port congestion that are impacting the supply chain and your business operations.

The NCBFAA Transportation Committee’s Logistics Subcommittee is regularly collecting data on the nation’s rail delays and port congestion that are impacting the supply chain and your business operations.

The NCBFAA Export Compliance Subcommittee has previously reported that all the HTS and Schedule B codes in 15 CFR 746 Supplement #4 now require licenses. We have since received further clarification from the Commerce Department’s Bureau of Industry and Security (BIS) which advises that only the products covered by the product descriptions on the chart need licenses. The agency’s intention was not to include all products that could fall into the HTS or Schedule B categories. BIS advises that this clarification will be included in forthcoming FAQs.

The Food and Drug Administration (FDA) is launching the National Drug Entry Review Pilot, starting March 13, to conduct entry reviews of drug shipments on a national basis, rather than the current port-by-port entry review approach. Entry review staff for drug entries will operate on a 24/7 basis, covering all 336 ports of entry. The pilot will continue for 90 days.

The Consumer Product Safety Commission (CPSC) announced improvements in is its timing algorithm for automated May Proceed messaging. In CSMS #51003279, the Commission explains that the five-minute “after arrival review time” was not firing as often as planned. This modification should result in improved times for May Proceed messaging for some brokers and for 5-10% of CPSC reviews.

The U.S., along G7 members from Canada, France, Germany, Italy, Japan, and the U.K. as well as the European Union, announced on March 11 it will take steps to revoke Russia’s Most-Favored-Nation status in solidarity against Russia’s invasion of Ukraine.

On behalf of NCBFAA's Board of Directors, Leadership and Staff, we want to take a moment to acknowledge and welcome the following members who have recently joined our association:

The Ex Works Watchdog keeps clients informed about the issues facing airport and seaport truckers.

For imported merchandise where Internal Revenue Tax (IRT) was paid to Customs and Border Protection (CBP), any related IRT drawback claim calculations must reflect IRT refunds paid by the Tobacco Tax and Trade Bureau (TTB), CBP said.

Customs and Border Protection (CBP) announced the selection of 15 stakeholders to participate in its Reimbursable Services Program (RSP), as provided for under Section 481 of the 2002 Homeland Security Act.

The ports of Los Angeles and Long Beach have continued to postpone their “Container Dwell Fee,” and said they will reconsider its possible imposition on Feb.18.

The ports of Los Angeles and Long Beach have continued to postpone their “Container Dwell Fee,” and said they will reconsider its possible imposition on Feb.11.

Due to the NCBFAA Legislative Committee’s continued lobbying on Capitol Hill, the Customs Business Fairness Act (CBFA) (H.R. 4186) has recently gained its 21st congressional co-sponsor.

NCBFAA, in conjunction with other trade associations, recently commented on the Transportation Security Administration (TSA) ITS amendment which directly affects our members.

When the Fish & Wildlife Service’s (FWS) filing in ACE becomes mandatory later this year, customs brokers will be required to have a single corporate eDecs filer account. Many customs brokers have over time created multiple eDecs filer accounts. It is important for a customs broker to track down these “rogue” accounts now and work with FWS to cancel them, rather than waiting until the last minute.