Automated Enforcement Coming for Entry Type 86 Transactions
March 28, 2024 – U.S. Customs and Border Protection (CBP) announced that the
Automated Commercial Environment (ACE) will be updated soon to require
importers to file Entry Type 86 transactions prior to or upon the arrival of the
cargo.
In a bulletin last week, CBP said if an importer files an Entry Type 86 after the
cargo has arrived, the entry will be rejected, and the cargo will be held until a different and appropriate entry is
made. That could include a release from manifest or an Entry Type 01 or 11 filing.
CBP notes that goods subject to a Partner Government Agency (PGA) requirement are ineligible for release from
manifest entry procedures.
CBP modified its plan for Entry Type 86 transactions in January with a superseding notice that changed the filing
deadline from “within 15 days” of the arrival of the cargo to “upon or prior to arrival.”
OSRA 2.0 Passes House; Rail Storage Issues Unaddressed
March 28, 2024 – The House of Representatives overwhelmingly passed the Ocean Shipping Reform
Implementation Act of 2023 (OSRA 2.0) last week. The bill was sponsored by Reps. Dusty Johnson (R-SD) and
John Garamendi (D-CA) and focuses on limiting the influence of the Chinese government on the U.S. shipping industry.
The legislation would prohibit U.S. port authorities from using LOGINK or any similar Chinese state-affiliated
software. It would also allow the Federal Maritime Commission (FMC) to investigate foreign shipping exchanges
like the Shanghai Shipping Exchange. It would authorize the FMC to streamline data standards for maritime freight
logistics.
The bill does not address the issue of rail storage costs affecting U.S. businesses. The Ocean Shipping Reform Act
of 2022 (OSRA22) did not address the challenge of rail storage charges.
For more information, read the letter AAEI signed on to, and Rep. Johnson’s news release.
NGO Finds Forced Labor in India’s Shrimp Supply Chain
March 28, 2024 – A report this month by a non-governmental organization (NGO) alleges that India, the world’s number one supplier of shrimp to the U.S., relies on
forced labor in the shrimp production process.
For about a decade, the report by Corporate Accountability Lab (CAL) says, India
has been the leading exporter of shrimp to the US. Indian market share for shrimp
imports in the US increased after findings of forced labor in Thai shrimp supply chains. The report states that when
Thai labor practices improved, thus increasing their shrimp prices, US importers shifted to Indian shrimp. By 2013,
India overtook Thailand’s market share of imports, and became the largest exporter of shrimp to the US. By 2023,
India contributed to about 40% of all US shrimp imports.
CAL’s investigation revealed several instances of forced labor across the Indian shrimp industry’s supply chain,
particularly impacting communities such as Dalits, Adivasis, and fisher communities. The researchers found that
workers are often held in debt bondage or are restricted to company property through employer-provided housing.
They also noted the use of child labor in processing facilities. In addition to forced labor, CAL highlighted
environmental concerns, including potential harm to ecosystems and groundwater near facilities across the supply
chain.
Despite the presence of certification schemes like Best Aquaculture Practices (BAP) and Aquaculture Stewardship Council (ASC), which claim ethical production, CAL states that violations were widespread, even within certified
facilities.
For more information, read the report here.
Funding Package Includes Additional Million for DHS Forced Labor Enforcement
March 28, 2024 – President Biden signed a government funding package last weekend that includes an additional
$20 million above last year’s level to detect and seize imported goods produced with forced labor. The money is
part of the Department of Homeland Security (DHS) budget but would be allocated to U.S. Customs and Border
Protection’s (CBP’s) Office of Trade.
The funding package includes money to hire 150 additional CBP officers to reduce wait times for people and
goods entering the U.S.
In all, the package provides $423,587,000 to CBP’s Office of Trade, more than $10 million over what was
requested, to “restore proposed cuts to CBP’s combating forced labor activities.”
For details on DHS funding, please click here
CBP Planning to Add Data Fields to Importer Entry Summary Form
March 28, 2024 – U.S. Customs and Border Protection (CBP) issued a notice this week seeking comments on
proposed changes to Entry Summary Form 7501.
CBP wants to add data fields for certain steel and aluminum imports.
- For importers entering classifications of steel imports, CBP wants to require entering the country where the
steel used in the manufacture of the product was melted and poured; the country where the steel used in
the manufacture of the product was melted and poured applies to the original location where the raw steel
is first produced in a steelmaking furnace in a liquid state; and then poured into its first solid shape. - For importers entering classifications of aluminum, CBP wants to require the countries where the largest
and second largest volume of primary aluminum used in the manufacture of the imported aluminum
product was smelted; and the country where the aluminum used in the imported aluminum product was most recently cast. The fields requiring identification of the countries where the largest volume of primary
aluminum used in the manufacture of the product was smelted applies to the country where the largest
volume of new aluminum metal is produced from alumina (or aluminum oxide) by the electrolytic process. Importers may be required to report if primary aluminum from specific countries is used
in the imported aluminum product, if required by law and/or Presidential Proclamation. - Importers of both steel and aluminum products or inputs will be required to report the steel country of melt and pour and aluminum countries of smelt and cast for imports under those steel and aluminum HTS
classifications subject to the Commerce Department’s steel and aluminum import license applications, and where applicable, the section 232 steel and aluminum measures.
The deadline for comments is Wednesday, April 24, 2024.
FWS Seeks Recommendations for Changes to CITES
March 28, 2024 – The U.S. Fish and Wildlife Service (FWS) announced last week that it is seeking public input on
topics for discussion at the upcoming 20th Conference of the Parties (CoP20) meeting of the Convention on
International Trade in Endangered Species (CITES). In the Federal Register Notice last week, FWS requested
recommendations for potential amendments to Appendices I and II of CITES, in addition to suggestions for
resolutions, decisions, and agenda items for discussion during CoP20.
The agency emphasized that further notices will seek feedback on specific proposals. FWS plans to conduct a
hearing before CoP20, tentatively scheduled for the second half of 2025. However, the date and time have not yet
been announced. Comments are due on May 21, 2024.
For more information, see the Federal Register Notice here.
Census Issues New AES NAC Codes for Semiconductor Exports
March 28, 2024 – The U.S. Census Bureau notified export filers in an email to the
industry this week about two new license codes in the Automated Export
System (AES) for License Exception Notified Advanced Computing (NAC). The
two new codes accommodate the exception introduced by the Bureau of
Industry and Security (BIS) last year for certain semiconductor exports that fall below BIS’s most recently updated chip control parameters. The email said that exporters should use the new Code C67 (NAC) for when an export requires advance notification to BIS. The new
code C68 (NAC) should be used when no advance notification is required.
For more information, see the complete list of all the AES License Codes and reporting instructions.
