JFK Trade Update Cargo Enforcement Reporting and Tracking System Date in 25 point Arial, Cool Gray 6 C Long Island Import Export Association Thursday, April 19, 2012
CBPOs Control the movement of cargo Conduct security measurement examinations to ensure: cargo security trade compliance Interdict violative cargo and enforce the regulations of other government agencies (OGA) Issue liquidated damages and penalties for violations against carriers Conduct Post Audits (airline manifests) 2
Agriculture Specialists Protect America s agricultural resources Inspect cargo for: Plant health discrepancies; plant diseases or insects Animal health discrepancies; foreign animal diseases Enforce Wood Packaging Materials (WPM) Regulation 7 CFR Part 319 Issue civil penalties 3
Import Specialists Classify merchandise; ascertain applicable revenue collection Possess expertise in commodity specific requirements Appraise merchandise Conduct Free Trade Agreement / Special Trade Program verifications Enforce intellectual property rights Conduct importer premises visits 4
Entry Specialists Work in all aspects of the entry filing process Provide the technical processing expertise required to file the necessary paperwork Perform quota/selectivity processing Process collections Enforce broker compliance; conduct broker interviews; facilitate broker licensing Foster relationships with the brokerage community Protest/Liquidation processing (Liquidation Specialists) 5
Other Government Agencies CBP acts in an administrative capacity for permits, licenses or other certification that may be required from other government agencies, depending on the commodity that is being shipped. As such, importers/exporters should always be aware of any requirements that are related to a specific commodity, including those of other federal agencies. The links to other government agencies and departments can be found at USA.gov. 6
CBP focuses its border enforcement efforts on rights that are recorded. To be eligible for recordation with CBP, trademarks must first be registered with the Principal Register in the U.S. Patent and Trademark Office, (www.uspto.gov) of the U.S. Department of Commerce; copyrights must be registered with the U.S. Copyright Office of the Library of Congress (www.loc.gov). CBP s on-line recordation system, Intellectual Property Rights e- Recordation (IPRR), allows rights owners to electronically record their trademarks and copyrights with CBP. The Intellectual Property Rights Search (IPRS) database contains CBP recorded trademarks, trade names, and copyrights which are available for viewing by right holders and the public. The IPRR application and IPRS database can be found on CBP.gov. 7
e-allegations is an on-line trade violation reporting system on CBP.gov that was established on June 17, 2008 to provide concerned members of the public a means to confidentially report suspected trade violations to CBP. These violations include: Misclassification of merchandise False country of origin markings Health and safety issues Valuation issues Intellectual Property Rights Privacy Act and Trade Secrets Act laws prevent CBP from disclosing the results of any research conducted as the result of an e-allegation. An immediate threat to public health and/or safety should also be reported to CBP s 1-800-BE-ALERT. 8
Free Trade Agreement Update U.S.-Korea Free Trade Agreement (UKFTA) On March 12, 2012 Presidential Proclamation 8783 was posted on CBP.gov and published in the Federal Register. This proclamation notified the Trade that on March 15, 2012 the UKFTA enters into force and applies to goods entered or withdrawn from warehouse for consumption in the U.S, and U.S. exports to Korea. On March 13, 2012, Cargo Systems Messaging Service (CSMS) message #12-000079, notified the Trade of this agreement. 9
Free Trade Agreement Update U.S.-Korea Free Trade Agreement (UKFTA) Information on the Agreement is available at CBP.gov: type Korea FTA in the search link to access the implementation instructions and additional Agreement information The text of the Agreement is posted on the U.S. Trade Representative s website at the following URL: http://www.ustr.gov/trade-agreements/free-tradeagreements/korus-fta/final-text 10
Free Trade Agreement Update On October 21, 2011 the President signed Free Trade Agreements (FTAs) with Columbia and Panama, but the agreements have not been implemented. Additional information on FTAs is available at CBP.gov and at the Office of the United States Trade Representative (USTR.gov). 11
Food and Drug Administration (FDA) Refusal Notices Informational Pipeline No. 12-004-JFK, Amendment #1. Effective December 16, 2011, the JFK Entry Branch, Entry Specialist Team (EST) 2T2, assumed responsibility for processing all Refusal Notices issued by the FDA on commodities that are handled by JFK Commodity Specialist Teams (CSTs). One uniform set of procedures have been established for the importing community to follow with respect to the submission of documents to CBP/FDA in response to a Notice to Redeliver issued by EST 2T2 concerning FDA refused merchandise. 12
Food and Drug Administration (FDA) Refusal Notices Two copies of the FDA Refusal Notice and Notice to Redeliver (CBPF 4647) with Section III completed by the importer or Customs broker with original signatures. If intended for export, three (3) copies of an original and duly completed CBPF 7512. All forms must have original signatures of the exporter and carrier. If intended for destruction, three (3) copies of an original duly completed CBPF 3499. All forms must have original signatures of the importer or Customs broker. 13
Post Entry Amendments (PEAs) The PEA process allows importers to amend previously filed entry summaries (not informal entries) prior to liquidation. PEAs provide a method for filers to request corrections to entry summaries filed with CBP, which may result in requests for refunds or the submission of additional monies owed prior to liquidation. All PEAs can be submitted anytime post summary filing up to 20 working days prior to the scheduled liquidation date. This will provide Customs and Border Protection sufficient time to review all entry summaries covered in a submission. 14
Protests 19 USC 1514 (Protest) provides the legal vehicle for importers and interested parties to administratively contest CBP decisions related to imported merchandise. Resolution of issues associated with liquidated entries. Protest Statute states, in pertinent part, that certain decisions of Customs become final and conclusive upon all persons (including the United States and any officer thereof) unless a protest is filed. It is the timely filing of such a protest that suspends the finality of liquidation. For merchandise entered or withdrawn from warehouse on or after December 18, 2004, a protest may be filed within 180 days after the date of liquidation, reliquidation, or the date of the decision being protested. 15
Post-Importation Preference Program Claims under 19 USC 1520(d) 520(d): Post-entry request filed within one year after importation on goods qualifying as originating for which no claim for preferential treatment was made at the time of entry. Only classification or valuation changes that result in a line meeting a preference program rule of origin are permitted under 19 USC 1520(d). North American Free Trade Agreement (NAFTA) Chile Free Trade Agreement (CFTA) Oman Free Trade Agreement (OFTA) Dominican Republic-Central American Free Trade Agreement (DR-CAFTA) Peru Trade Promotion Agreement (PTPA) U.S.-Korea Free Trade Agreement (UKFTA) 16
Substantiation for Post Entry Amendments (PEAs), Protests, and 520(d)s CLASSIFICATION What is needed? Sample Schematic drawing Photograph Picture from importer s web site How is the commodity used? Detailed description 17
Substantiation for Post Entry Amendments (PEAs), Protests, and 520(d)s VALUE What is needed? A copy of the wire transfer A copy of the bank draft A copy of the check Proof that shows the amount of money paid to the seller from the buyer 18
Substantiation for Post Entry Amendments (PEAs), Protests, and 520(d)s Whenever you submit either a PEA, protest, or 520(d) to CBP: Imagine that you are the CBP official making the decision to approve/deny, agree/disagree with the petition. Then, ask yourself, Is the information I am providing to CBP to validate the claim accurate? 19