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The Import Security Filing Subcommittee of the Advisory Committee on Commercial Operations of U.S. Customs and Border Protection (COAC) recommended at the Aug. 4 COAC meeting in Detroit that CBP provide the following benefits to importers that are highly compliant with ISF requirements.
• For importers who are certified Customs-Trade Partnership Against Terrorism members, high compliance with ISF requirements should be deemed a best practice and considered with respect to elevating the importer’s C-TPAT status to the Tier 3 level. • In cases where stratified compliance exams are undertaken by CBP (where multiple shipments are under one bill of lading) and the importer is a C-TPAT member, CBP should allow sealed containers not being examined to not only move to destination but to be released by CBP. • CBP should also consider the option of releasing for distribution other bills of lading on the same entry (where the importer is a C-TPAT member). As with the above recommendation, the released containers in question would be those not designated for exam. To address potential CBP concerns, this benefit would not include containers stuffed by the same party that stuffed the container(s) designated for exam. • For small and medium-size importers that are highly compliant, CBP should consider a streamlined process for application to C-TPAT. • In the case of unified ISF filings, conditional release in the system at time of vessel departure should be provided. • Consideration of mitigation for other penalties (outside those associated with ISF compliance) should be given for highly compliant importers. • For continuous, highly compliant importers, there may be a situation where CBP identifies a problem that is very low frequency (e.g., one out of a thousand). CBP should take this into consideration with respect to penalties. The subcommittee also included information on the collateral benefits of ISF that have been identified by highly compliant importers. One such benefit is that importers have better visibility into their global supply chains since they now have a CBP process at origin. Companies can identify non-standard shipments earlier in the process, allowing them more time to address the issue prior to arrival and potential delay. In addition, because importers provide data earlier, there are fewer delays at destination. Working through the ISF requirements has also highlighted that import compliance teams need to be folded into the procurement process earlier. Finally, importers have become more engaged with parties not typically communicated with in the past, which provides more visibility and improvement in data availability and accuracy. Treasury Publishes Names of 21 Entities Determined to be “Government of Iran”
Sandler Travis & Rosenberg PA The Treasury Department’s Office of Foreign Assets Control has published the names of 21 entities it has determined to be the “government of Iran,” as that term is defined in the Iranian Transactions Regulations.
The ITR, in implementing executive orders imposing comprehensive trade and financial sanctions on Iran, prohibit various transactions, including those with the government of Iran. As defined in the ITR, that term includes (a) the state and the government of Iran, as well as any political subdivision, agency or instrumentality thereof, (b) any entity owned or controlled directly or indirectly by the foregoing, and (c) any person to the extent that such person is or has been, or to the extent that there is reasonable cause to believe that such person is or has been, acting or purporting to act directly or indirectly on behalf of any of the foregoing. OFAC is now publishing the names of 21 additional persons it has determined to fall within this definition, and the names of these persons will be added to Appendix A to Part 560 of the ITR at a later date. OFAC emphasizes, however, that Appendix A is not a comprehensive list of persons falling within the definition of “government of Iran.” Even if a person is not listed in Appendix A or has not otherwise been specifically determined by OFAC to be the government of Iran, if the person satisfies the definition of the term, U.S. persons and others engaging in transactions subject to the ITR are prohibited from engaging in transactions with that person, regardless of its location, to the same extent they are prohibited from engaging in transactions with other restricted persons. U.S. persons and others engaging in transactions subject to the ITR are also prohibited from engaging in most transactions with any person located in Iran, even if that person does not come within the definition of the term “government of Iran.” Finally, a person listed in Appendix A or otherwise specifically determined to be the government of Iran may also be subject to other sanctions programs administered by OFAC, in which case that person’s name would also appear in the list at Appendix A to 31 CFR chapter V or on OFAC’s Specially Designated Nationals and Blocked Persons List. Maritime Cargo Security Bill - AAEI (American Association of Exporters and Importers)
Senate Commerce, Science and Transportation Committee Chairman Jay Rockefeller (D-WV) and Ranking Member Kay Bailey Hutchison (RTX) on July 22 introduced the “Maritime Transportation Security Act” (S.3639). The legislation addresses some aspects of the Security and Accountability for Every (SAFE) Port Act (P.L.109-347).
The bill would focus maritime security sources more directly on global supply-chain security, develops protocols for transportation of especially hazardous cargo, and clarifies other maritime security concerns. Among the bill’s important provisions is a directive moving back from 2012 until 2015 the deadline for 100 percent scanning of U.S.-bound cargo containers.
Title II of the bill deals with the transportation of especially hazardous cargo. It authorizes the Secretary of Transportation “to initiate a work item within the International Maritime Organization that addresses the safe and secure transportation of especially hazardous cargoes.” Title III authorizes certain kinds of assistance that can be extended to foreign ports to help bring them into compliance with port security protocols and outlines a security strategic plan for such ports. Title IV addresses intermodal supply chain security. A committee summary describes the provisions in the following terms:
Section 401. Single Electronic Window for Filing Vessel, Crew and Passenger Information ― Section 401 would require the Coast Guard and the U.S. Customs and Border Protection (CBP) to establish a DHS single electronic window for collecting advance information on vessels, crew and passengers, and replace outdated paper forms. Section 402. Maritime and Cargo Security Integrated Project Teams ― Section 402 would direct the Secretary of DHS to establish integrated project teams within the Science and Technology Directorate to assist in product research, development, transition and acquisition activities for DHS port security initiatives. India's biggest container port resumed partial operations on Thursday, ending the shutdown caused by the collision of two ships in its main channel last Saturday. The Jawaharlal Nehru Port let one ship through Thursday morning and will allow vessels with a draft of up to 30 feet to move during high tide, Chief Manager S.N. Maharana told Bloomberg News. The adjacent Mumbai Port is also considering opening its channel after a meeting Thursday, said Rahul Asthana, chairman of the Mumbai Port Trust. Mumbai harbor has been closed for traffic after the collision of the container vessel MSC Chitra and the break-bulk vessel Khalizia-3, since the weekend. Salvagers are continuing to remove some of the 300 containers that spilled from Mediterranean Shipping Co.'s MSC Chitra and made the sea unsafe for passage, said Asthana. The shutdown of the two ports stranded about $4 billion worth of exports aboard some 32 ships in the two harbors. Another 80 vessels that were waiting at sea on Monday to enter the harbor have largely been diverted to other ports. The closure of the two ports, which handle about 40 percent of India's trade, hampered deliveries of oil, grains and other commodities in a country that depends on harbors for 90 percent of overseas trade. State-owned rail operator Container Corporation of India announced the launch of train services between the ports of Jawaharlal Nehru (Nhava Sheva), Mundra and Pipavav. Concor also said it will operate additional services to reroute Nehru-bound export containers, which have been booked from its northern inland container depots at Tughlakabad and Dadri, near Delhi, as well as at Jaipur and Ahmedabad, to Mundra and Pipavav. "We are not equipped to deal with these kinds of situations," said A. Sakthivel, president of the Federation of Indian Exports Organizations, which gave the $4 billion estimate. "We have asked the government to get help from foreign experts." Supported by the American Apparel & Footwear Association (AAFA) and the Council of Fashion Designers of America (CFDA), this legislation will for the first time allow creative American designers to benefit from legal protections and at the same time continue to ensure the competitiveness of the U.S. apparel and footwear industry as it delivers fashionable and affordable clothing to consumers. Senator Schumer, the AAFA, and the CFDA are confident that this legislation will bolster the American fashion industry by encouraging creativity, protecting innovation and enhancing the status of the designer. Background Truth in Fur Labeling Act of 2010 - Amends the Fur Products Labeling Act to eliminate the exemption to fur labeling requirements for products containing relatively small amounts of fur. Exempts from such Act a fur product: (1) the fur of which was obtained from an animal through trapping or hunting; and (2) that is sold by the hunter or trapper in a face to face transaction at a place such as a residence, craft fair, or other location used on a temporary or short term basis where the revenue from the sale is not such person's primary income source. Directs the Federal Trade Commission (FTC) to publish in the Federal Register notice of, and an opportunity to comment on, a review of the Fur Products Name Guide.
A Senate bill filed Thursday would give the Commerce Department and Customs and Border Protection more authority to investigate importers thought to evade antidumping and countervailing duty orders.
The Enforcing Orders and Reducing Circumvention and Evasion (ENFORCE) Act, sponsored by senators Ron Wyden, D-Ore., and Olympia Snowe, R-Maine, would give Customs and Commerce the authority to investigate whether importers are evading penalties on direct imports when they transship products subject to antidumping orders from the country of origin through an intermediary country through to the United States. The bill would also authorize greater information sharing between the two agencies. According to attorney Fred Waite, who represents U.S. companies that file antidumping complaints, the bill would broaden Commerce’s authority to investigate in evasion or transshipment cases. The bill also would require that Customs and Commerce determine within 60 days that there was a case to be made against an importer for antidumping violations. The importer would be required to pay penalties in cash until the investigation was completed. Waite said that antidumping investigations can take years.
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