DHS Releases Spring 2024 Agenda

July 24, 2024 – DHS released its Spring 2024 Agenda last week. It outlines the status of final and pending regulations from the last several months. AAEI would like to call out two items of interest:

1) Customs Broker Identification of Importers
This rule will require customs brokers to verify the identity of the importers and non-resident importers in accordance with section 116 of the Trade Facilitation and Trade Enforcement Act (TFTEA) of 2015 (Pub. L. 114-125). The regulations create an identification process for customs brokers to follow.

The process will occur at the same time as obtaining power of attorney from importers. The regulations aim to prevent fraud, ensure that all customs brokers perform due diligence to verify importers’ identities, and standardize how customs brokers verify new clients. View the rule.

2) Air Cargo Advance Screening (ACAS)
To address ongoing aviation security threats, Customs and Border Protection (CBP) amended its regulations on the submission of advance air cargo data. The new regulations implement a mandatory Air Cargo Advance Screening (ACAS) Program for any inbound aircraft carrying commercial cargo that is required to make entry under CBP regulations.

The ACAS Program requires the inbound carrier or other eligible party to electronically transmit specified advance cargo data (ACAS data) to CBP for air cargo on U.S.-bound aircraft. This must be done as early as possible, but no later than before loading the cargo onto the aircraft.

The ACAS Program enhances the security of the aircraft and passengers on U.S.-bound flights by enabling CBP to perform targeted risk assessments on the air cargo prior to the aircraft’s departure for the United States. These risk assessments identify and prevent the loading of high-risk air cargo that could harm the aircraft during flight. View the rule.

For more information, read the entire agenda.

CBP to Adjust User Fees for Inflation in FY2025

July 24, 2024 – U.S. Customs and Border Protection announced this week that it will adjust certain customs user fees and corresponding limitations established by the Consolidated Omnibus Budget Reconciliation Act (COBRA) for Fiscal Year 2025 in accordance with the Fixing America’s Surface Transportation Act (FAST Act) as implemented by the CBP regulations. The adjusted fees and limitations will be required starting October 1, 2024. Read the notice for more information.

ACE Update: $800 Daily Limit for Shipments Goes Live September 28

July 24, 2024 – U.S. Customs and Border Protection announced this week a new functionality to the Automated Commercial Environment (ACE) to enforce the $800 daily aggregated limit for de minimis shipments. This update will automate the validation process to prevent any party from receiving Section 321 clearance for more than $800 worth of shipments in a single day. CBP will provide further details in an upcoming information notice. Read CBP’s announcement.

CBP Rules MPF Drawback Calculated at Entry Summary Line Level

July 24, 2024 – U.S. Customs and Border Protection (CBP) ruled in May that drawback for merchandise processing fees should be calculated at the entry summary line level for both substitution and direct identification drawback claims.

In a CSMS message this week, CBP said the decision clarifies a dispute between CBP’s Petroleum, Natural Gas, and Minerals Center of Excellence and Expertise and “certain members of the trade community.”

CBP emphasized that MPFs must be apportioned and refunded as a percentage of the entire entry to prevent over-refunding, aligning with the Trade Facilitation and Trade Enforcement Act of 2015.

Read the ruling and the CSMS message.

BIS Amends Description of “Standards-Related Activities” Subject to EAR

July 24, 2024 – The Bureau of Industry and Security (BIS) issued an interim final rule last week, revising the Export Administration Regulations (EAR) scope and terms used to describe “standards-related activities” subject to EAR. The rule, effective July 18, 2024, aims to prevent export controls from hindering U.S. companies’ participation in these activities. Public comments are invited until September 16, 2024. Read the notice.

OFAC Updates Licensing Portal

July 24, 2024 – The Treasury Department’s Office of Foreign Assets Control (OFAC) announced last week that it has enhanced its Licensing Portal. The update includes more detailed updates on application statuses, now including ten case statuses. OFAC is also upgrading its Licensing Division hotline to a callback-only system with updated menus, aimed at reducing wait times and improving customer experience. Read OFAC’s news release.

New Democrat Coalition Urges AGOA Renewal

July 24, 2024 – The New Democrat Coalition issued a statement yesterday urging Congress to prioritize the reauthorization and modernization of the African Growth Opportunity Act (AGOA). The call came ahead of the US-Sub-Saharan Africa Trade and Economic Cooperation Forum, as AGOA approaches its 2025 expiration. The statement emphasizes AGOA’s role in boosting economic development and trade between the U.S. and Sub-Saharan Africa and stresses the need for a timely renewal to ensure continued economic growth and investment. Read the statement.