Legal and Policy Update Jeremy Baskin Legislative Update

Legal and Policy Update Jeremy Baskin

Legislative Update Unrestricted Legal and Policy June 21, 2007 2

Proposed Legislation DRAWBACK § Legislation needs to be passed before programming can begin § Will allow for much needed automation § Will remove the subjectivity currently associated with drawback § Purpose of legislation is to: § Automate drawback claims consistent with ACE programming § Simplify drawback law § Enable CBP to protect revenue Unrestricted Legal and Policy June 21, 2007 3

ACE Federal Register Notices Unrestricted Legal and Policy June 21, 2007 4

Mandatory e-Manifest Filing: Informed and Enforced Compliance Phases § First Cluster: Arizona, Washington, specific ports in North Dakota 71 FR 62922: Published October 27, 2006 § Phase 1 January 25, 2007 § Phase 2 April 26, 2007 § Phase 3 May 26, 2007 § Second Cluster: California, Texas, and New Mexico § 72 FR 2435: Published January 19, 2007 § Phase 1 April 19, 2007 § Phase 2 June 19, 2007 § Phase 3 July 19, 2007 Unrestricted Legal and Policy June 21, 2007 5

Mandatory e-Manifest Filing Informed and Enforced Compliance Phases (con’t) § Third Cluster: Michigan and New York § 72 FR 8109: Published February 23, 2007 § Phase 1 May 24, 2007 § Phase 2 July 23, 2007 § Phase 3 August 22, 2007 § Fourth Cluster: Vermont, North Dakota, and New Hampshire § 72 FR 18574: Published April 13, 2007 § Phase 1 July 12, 2007 § Phase 2 September 12, 2007 § Phase 3 October 12, 2007 Unrestricted Legal and Policy June 21, 2007 6

Mandatory e-Manifest Filing Informed and Enforced Compliance Phases (con’t) § Fifth Cluster: Idaho and Montana § 72 FR 25965 : Published May 8, 2007 § Phase 1 August 6, 2007 § Phase 2 October 5, 2007 § Phase 3 November 5, 2007 Unrestricted Legal and Policy June 21, 2007 7

e-Manifest Trucks Deployment FRNs e-Manifest Trucks § Federal Register Notices published to date, announcing ACE deployment clusters § Specified ports in the state of Texas § 71 FR 3875, published January 24, 2006 § Specified ports in the states of Texas, New Mexico, and California § 71 FR 23941, published April 25, 2006 § Specified ports in the state of New York § 71 FR 42103, published July 25, 2006 § Specified ports in the state of Vermont § 71 FR 77404, published December 26, 2007 Unrestricted Legal and Policy June 21, 2007 8

e-Manifest Trucks Deployment FRNs § Remaining ports in the state of North Dakota § 72 FR 5070, published February 2, 2007 § Ports in the State of Idaho/Montana: § 72 FR 7058, published February 14, 2007 § Ports in the State of Maine and New Hampshire: § 72 FR 14127, published March 26, 2007 § Ports in the State of Minnesota: § 72 FR 32135, published June 11, 2007 Unrestricted Legal and Policy June 21, 2007 9

e-Manifest Trucks Deployment FRNs Remaining Deployment Cluster to be Published: §Alaska Remaining Mandatory Deployment Clusters to be Published §Maine/Minnesota §Alaska Unrestricted Legal and Policy June 21, 2007 10

Third Party Manifest Filing § 72 FR 12181, Published March 15, 2007 § Announced the ability of third parties to submit a manifest on behalf of a carrier via the ACE Secure Data Portal § Carriers with current ACE portal accounts will be able to do so from their current accounts § Currently third parties can file manifests via EDI Unrestricted Legal and Policy June 21, 2007 11

ACE Portal Application Process § Revised Application § CBP has recently streamlined the ACE Secure Data Portal application process § The Account Owner Designation/Authorization form has replaced the Power of Attorney and Additional Account/Account Owner Information documents § Terms and Conditions § On May 16, 2007, CBP published a Federal Register Notice (72 FR 27632) addressing the Terms and Conditions of access to the ACE Secure Data Portal § Publication of the Terms and Conditions in the Federal Register replaces the current requirement to sign and submit the paper document to CBP § This supersedes any previous versions of the Terms and Conditions that were submitted to CBP Unrestricted Legal and Policy June 21, 2007 12

Federal Register Notices: To Be Published Additional Release Types § Announces that the following additional shipment release types are now available via the ACE Secure Data Portal § General Note 1 Exemptions as provided in General Note 3(e) of the Harmonized Tariff Schedules of the United States; § CBP Form 7523 (Free of Duty); § CBP Form 3299 (Unaccompanied Goods); and § CBP Form 3311 (Free Returned U. S. Goods). § Where applicable, the appropriate Customs forms and supporting documentation will be required in order to effectuate release of the cargo Unrestricted Legal and Policy June 21, 2007 13

FRNs: To Be Published (cont’d) Periodic Monthly Statement § Announcement of liquidated damages for late or non-payment of estimated duties through periodic monthly statements Unrestricted Legal and Policy June 21, 2007 14

FRNs: To Be Published (cont’d) Anti-Dumping/Countervailing Duties (AD/CVD) & Reconciliation § CBP will announce a voluntary program for importers who have entries with lines subject to AD/CVD § Will allow for the paperless filing of AD/CVD entries § Entries of AD/CVD merchandise subject to AD/CVD, and reconciliation entries filed under this test, may be filed using remote location filing procedures § Will allow CBP to liquidate all issues on underlying flagged entries except the final AD/CVD duty rate issue, which will be transferred to a reconciliation entry § All AD/CVD entry summary lines filed under this test with identical importer of record, case number, continuous bond, and period of review will be grouped on one reconciliation entry § Liquidation of the reconciliation entry will be suspended until CBP receives liquidation instructions from the Department of Commerce Unrestricted Legal and Policy June 21, 2007 15

10+2 Advance Trade Data Elements BACKGROUND: § The recent passing of the SAFE Port Act requires CBP to obtain additional information for improved high-risk targeting. § CBP is to seek out advanced information about cargo destined for importation into the United States before it is loaded on ships at foreign ports. § In consultation with the trade community, CBP has developed a draft proposal to be used as a “straw man” to facilitate the development of regulations. § In keeping with the parameters of the Trade Act of 2002, the additional data elements requested under the proposal will be used for security and enhanced targeting and are not intended for commercial or trade enforcement purposes. Unrestricted Legal and Policy June 21, 2007 16

10 + 2 Advance Trade Data Elements (cont’d) Proposed Requirements: 10 + 2 § In addition to the current data elements specified under the 24 -Hour Rule, CBP proposes to require the following 10 additional set of data elements 24 hours prior to vessel loading: § § § § § Manufacturer Name and Address Seller Name and Address Container Stuffing Location Consolidator Name and Address Buyer Name and Address Ship to Name and Address Importer of Record Number Consignee Number Country of Origin of the Goods Commodity Harmonized Tariff Schedule Number Unrestricted Legal and Policy June 21, 2007 17

10 + 2 Advance Trade Data Elements (cont’d) In addition to the 10 data elements outlined above, CBP will require ocean carriers to provide two additional data sets to complete the security filing: §Vessel Stow Plan §Container Status Messages Unrestricted Legal and Policy June 21, 2007 18