Higher Tariffs May Trigger Bond Stacking Liability for Importers
July 31, 2024 – Driven by the onset of the trade remedy tariffs in Spring 2018, duties owed on imported goods more than doubled and continues to grow, especially driven by additional duties on goods imported from China.
The impact of these additional duties has a direct impact on U.S. Customs Import Bonds, as the bond amount calculation is 10% of the total duties, taxes and fees an importer has paid in the last 12 months (subject to certain rounding rules and a $50,000 minimum bond amount). As trade remedy tariffs continue, the additional duties owed will likely increase, causing many importers to need a larger bond.
Maintaining a sufficient bond is an informed compliance requirement, but it often falls to the surety agent and the customs broker to guide the importer toward a proper bond amount. Click here to read more.
Lawmakers Release Draft Legislation to Modernize Trade Facilitation
July 31, 2024 – Two U.S. Senators, including Sen. Bill Cassidy’s (R-LA), released discussion draft of a long-awaited proposed Customs Facilitation bill. The legislation language would “modernize U.S. customs laws and streamline the movement of goods and services across our borders.”
Among the changes the bill would enact, according to Sen. Cassidy’s office, the Customs Facilitation Act of 2024 would:
- Create a real One U.S. Government at the Border through a workable one-stop-shop for data entry and decision-making.
- Streamline data requirements by providing parameters to ensure the government is receiving the data it needs without overly burdening the trade industry.
- Simplify the duty
drawback process.
For more information, read the news release.
Importers: CBP Set to Deploy $800 De Minimis Validation in ACE
July 31, 2024 – As a new functionality of the Automated Commercial Environment (ACE) platform, U.S. Customs & Border Protection (CBP) plans to enforce a daily aggregated limit of $800 for de minimis shipments.
To enforce this requirement, CBP recently announced that it began requiring the estimated date of arrival for all entry type 86 submissions. It is still uncertain how CBP plans to calculate whether a shipment exceeds the threshold based on the estimated arrival date versus the actual date of arrival.
DHS Strengthens UFLPA with Expanded Strategy
July 31, 2024 – The Department of Homeland Security (DHS) released an updated strategy for the Uyghur Forced Labor Prevention Act (UFLPA) this month, building on two years of enforcement under UFLPA. DHS says that this strategy reinforces its commitment to blocking imports of goods produced with forced labor from China. The latest update includes the addition of three new entities to the UFLPA Entity List, increasing the total number to 68.
DHS also released details on the impact of forced labor enforcement efforts and outlined key updates in the new UFLPA strategy. It includes a new focus on high-risk sectors, including polyvinyl chloride (PVC), aluminum, and seafood, “based on a finding that these industries involve a higher risk of forced labor of Uyghurs and members of other persecuted groups from” the Xinjiang Uyghur Autonomous Region (XUAR).
Read the 2024 DHS Report to Congress.
