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Signing of the Trade Act of 2002 by President Bush on August 6, 2002 has reinstated and extended the Generalized System of Preferences (GSP) through December 31, 2006. Products entered, or withdrawn from warehouse, for consumption on or after August 6, 2002 are entitled to duty free treatment, provided they meet GSP requirements. Merchandise entered after September 30, 2001 and before August 6, 2002 shall be liquidated or reliquidated as free of duty, and Customs shall refund any duty paid with respect to such entry. According to Customs, importers should receive duty refunds on these entries within twelve weeks of August 6, 2002. To preclude immediate and/or post entry problems, importers participating in GSP entries should familiarize themselves with GSP compliance guidelines and requirements. An immediate step that should be taken is to insist that your supplier(s) include the GSP Form A with your import documents. Click here for additional information from the U. S. Customs website. The Trade Act of 2002 also renewed the Andean Trade Preference Act (ATPA) through December 31, 2006. Entries that would have qualified for duty-free treatment under ATPA had the entry been made on December 4, 2002, that were made after December 4, 2002 and before August 6, 2002 shall be liquidated or reliquidated as free of duty, and Customs shall refund any duty with respect to such entry. However, unlike GSP, refunds will only be issued by Customs upon written request by the importer or their filer. Contact us if you feel you have a duty refund coming to you under ATPA. The signing of the Act eliminated 19 USC 3203 (c), which provided duty reductions for certain goods. Effective immediately ATPA reduced rates of duty no longer apply on certain handbags, luggage, flat goods, work gloves, and leather wearing apparel. Here too, it is wise for an importer participating in ATPA to familiarize themselves with ATPA compliance guidelines and requirements. Click here for additional information from the U. S. Customs website. The U. S. Customs Service has introduced a new anti-terrorism initiative called Customs-Trade Partnership Against Terrorism (C-TPAT). C-TPAT is an initiative designed to increase cargo security while at the same time improving the flow of trade. Under this program, importers must conduct comprehensive self-assessments of their supply chain using the security guidelines developed jointly with the Customs Service, and must familiarize companies in their supply chain with guidelines and the program. In short, importers must provide Customs with specific and relevant information about themselves, employees, suppliers, type of merchandise being imported, and how cargo is routed from origin to its destination in the U. S. Among the benefits of joining and participating in C-TPAT are: expedited entry processing; reduced inspections; assignment of a Customs account manager; access to C-TPAT membership list; eligibility for account-based processing; and an emphasis on self-policing. We strongly urge our importing clients to join and participate in C-TPAT. Importers who do not choose to participate in C-TPAT could face: greater Customs scrutinizing of their merchandise; increased reviews and exams; audits; and requests for information. Click here for additional information from the U. S. Customs website. The passage of the Customs-Modernization Act (MOD-ACT) began an era of new partnership concepts between the importing community and the U. S. Customs Service. Under the MOD-ACT, Customs is committed to encouraging the importing community to share the responsibility for compliance with trade laws and regulations. In accordance with the MOD-ACT, Customs has introduced Importer Self-Assessment (ISA). ISA is a voluntary approach to trade compliance. It provides a path of recognition and support by Customs for importers who want to participate and maintain a high level of compliance. ISA potential benefits are: exemption from comprehensive compliance audits; Customs account manager/auditor consulting team assigned for compliance assistance; data analysis support; risk assessment provided by Customs; and less Customs intrusion. Since ISA is designed to complement C-TPAT, membership in C-TPAT is a prerequisite for ISA. Click here for additional information from the U. S. Customs website. The Container Security Initiative (CSI) is a government-industry program, which calls for prescreening of containers prior to their departure for U.S. Ports. Through bilateral agreements between the United States and other nations, the U.S. Customs Service can (through CSI) place inspectors in foreign seaports in order to target and prescreen U.S. bound cargo containers prior to their departure. While CSI’s primary focus is intercepting containers with contraband type cargo at foreign ports of origin, increased exams for compliance issues seem inevitable at the U.S. ports of entry. Due to staffing problems, the U.S. Customs Service will, in the near future, be conducting examinations out of one exam site only. The reduction in exam sites combined with increased exams could create potential problems. In order to relieve some of the traffic through the elected exam site, Customs will try and accomplish many of the non-intrusive type exams at the steamship lines’ terminals by the use of its three new mobile MRI units. Additional relief will come from the increased participation of importers in C-TPAT. Click here for additional information from the U. S. Customs website. |
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