It is business as usual at Pacific Customs Brokers on Memorial Day, Monday, the 27th of May, 2013.
Our doors remain ALWAYS Open 24/7 regardless of public or statutory holidays.
Archive for the ‘US Customs’ Category
Memorial Day – ALWAYS Open
Pacific Customs Brokers Launches ‘Your Broker Knows’ YouTube Channel
With the shifting tides of how information is consumed these days, preferences are moving over from text and audio to video. More people are using video to find information and educate themselves on products and services in the marketplace. This has not only created a hearty appetite for video content but also made video the perfect medium for us to communicate with our audience.
With this in mind, our team at Pacific Customs Brokers has been hard at work creating videos on a variety of topics for a range of audiences. We are excited to announce the launch of our very own YouTube channel – Your Broker Knows…, which is now online and ready to view here:
Visit the YouTube Channel: Your Broker Knows …
What sort of videos should you expect on our channel?
This channel is intended to be a resource for the import and export trade community. Featuring advice from leading industry experts, we aim to guide you through the fast-paced world of international trade and bring you insight into key issues affecting Customs regulations, cross-border trade, shipping and logistics.
Our videos will include:
- Interviews with industry experts
- ‘How-to’ tutorials
- Tips on international import and export
- Answers to our audience’s most common trade questions
- Archives and/or previews of the webinars and seminars we host
- Recordings of our celebratory client events
- Introduction to new services
Reasons to subscribe:
We will be uploading videos regularly so be sure to subscribe to our YouTube channel to receive alerts and notifications of future video uploads, as well as:
- Stay in the know about international trade news and global free trade agreements.
- Learn something - This channel will be a great resource on Customs compliance, shipping, importing and exporting into Canada and the U.S., NAFTA and much more.
- Get updates on the latest Customs regulations and cross-border issues.
- Interact, share ideas, provide feedback and make connections. This will also help us gather feedback and stay on the right track.
- Share what you learn – It is important for us all to exchange and share what we learn.
- Learn more about our services – Receive updates on our service offerings.
- Just because you like us – Show your support for our company.
As we continue to expand our video playlist, please do not hesitate to let us know of ways we can improve the channel and our video content. We value your feedback, so please comment on the YouTube channel and share the videos with business partners and friends. Do check back often, as we should have some exciting new videos planned for the rest of the year.
If a picture is worth a thousand words, then video must be worth a million. Happy viewing!
Have you visited our YouTube channel - Your Broker Knows… yet? What do you think of our new channel? Share your comments with us below or email Ask Your Broker.
Highlights: CBP Annual Carriers Meeting May 8
On May 8, 2013, Pacific Customs Brokers attended the Annual Carriers Meeting hosted by U.S. Customs and Border Protection (CBP) and held at their facility at the Port of Blaine, WA.
Presenting on behalf of CBP were:
- Ken Williams – Assistant Area Port Director, Trade
- Ron McMillan – Cargo / Trade Chief
- Charlie Cunningham – Agriculture Branch Chief
While the main topic of discussion was the Cargo Pre-Inspection Pilot Program that is tentatively scheduled to commence in early June, 2013, many other items were also touched upon.
Brief highlights of these topics are listed below:
1. Cargo Pre-Inspection Pilot
The Cargo Pre-Inspection Pilot is one of the initiatives undertaken as part of the Beyond the Border Action Plan. CBP will be working in conjunction with the Canada Border Services Agency (CBSA), the Royal Canadian Mounted Police (RCMP), Public Safety Canada and Transport Canada to conduct primary truck processing on the Canadian side of the border. Only Free And Secure Trade (FAST) certified carriers are eligible to participate in this program and while it is not mandatory, CBP is encouraging all FAST carriers to participate and also to begin filing ACE electronic manifests on empty trucks.
Phase I of this pilot is scheduled to begin at Pacific Highway in early June and will run for up to six months. Subsequent to that, Phase II will go into effect at the Peace Bridge crossing between Buffalo, NY and Fort Erie, ON.
Further details of the program are outlined on this Cargo Pre-Inspection Pilot Factsheet.
2. Traffic Flow and Booth Alignment
Chief McMillan gave details of the revised traffic flow and asked that we help to distribute the following explanation and diagram. Southbound Improvements at the Pacific Border Crossing for U.S bound commercial and FAST trucks.
3. Changes to Carrier Bond Application Process
Assistant Director Williams indicated that there have been some changes to the application process to obtain carrier bonds. Carriers looking to become bonded can contact the port for details.
4. Wood Packaging Materials
Agriculture Chief Cunningham spoke about a significant increase (225%) in instances of pests and / or noxious weeds found in wood packaging materials. The result of this will be increased vigilance and more inspections. Chief Cunningham encouraged carriers to inform shippers, warehouse people and drivers to be on the lookout for non-compliant or obviously infested wood packaging materials to help avoid delays at the port of entry. Canadian shippers were informed that the use of kiln dried wood for packaging is recommended. Also, loading to allow easy access for CBP to perform wood inspection, can help reduce the need for off loading.
5. Driver Lunches
Chief Cunningham spoke about the instances of non-compliant food products found in drivers lunches. Drivers are reminded there is a $300 fine for not declaring personal food items. The percentage of non-compliance in passenger vehicles is approximately 7%, while in commercial vehicles it is approximately 20%. Chief Cunningham urged carriers to remind their drivers of the rules regarding the importation of foodstuffs, primarily fruits and vegetables, and also mentioned that they would endeavor to produce a list of non-compliant items that carriers could refer to.
6. Residual Materials
Assistant Director Williams spoke about the coming implementation of the requirement for manifesting and entry of residual material in instruments of international trade. To learn more read our recent blog on Manifesting and Entry of Residue Found in Instruments of International Traffic into the USA which also highlights a recent webinar held by CBP on this topic.
7. Sequestration
Assistant Director Williams stated that, while there was no official word on sequestration, there was some indication that its effect on CBP, and its staffing levels, may not be as dramatic as initially anticipated.
Pacific Customs Brokers would like to thank U.S. Customs and Border Protection for holding this meeting and taking the time to keep both carriers and customs brokers informed on pertinent issues. As more information becomes available, we’ll be sure to keep you informed.
Did you attend the Annual Carriers Meeting held by CBP on May 8, 2013? Share your thoughts in our comments section below.
Manifesting and Entry of Residue Found in Instruments of International Traffic into the USA
In July 2009, U. S. Customs and Border Protection (CBP) issued a ruling requiring all containers (all modes of transportation) to begin filing entry for any residue remaining at the time of entry into the United States. This was quite a reversal of previous rulings, which had allowed for instruments of international traffic which contain a residue of material be entered as empty.
This led to a great many questions and concerns from industry, and Customs and the trade community have worked hard over the past few years to come to an equitable and workable solution to the problems.
CBP is now set to implement an operational test of this rule, and a new version of the FAQ’s will be published by U.S. Customs as they prepare to launch the pilot.
U.S. Customs has provided a link to the webinar that was conducted for the trade community on April 16, 2013. A link to that webinar can be found here:
Webinar: Manifesting and Entry of Residue Found in Instruments of International Traffic
At the time of the ruling, CBP determined that the trade community needed additional time to fully understand and comply with the ruling’s requirements, and thus the ruling has been in an “informed compliance” stage for the past 24 months. While there have been a few “false starts” in this mandate, and CBP still has not scheduled a set date for the pilot, CBP now states that full enforcement of this ruling is expected to begin during this fiscal year.
The first step in this process will be publication of a Federal Register notice, at which point the test will proceed in 30 days, with an informed compliance period of 60 days, and enforced compliance after that time. U.S. Customs notes that once that test begins, all companies will be mandated to comply with the new requirements. The following is a brief highlight of the requirements:
- All Instruments of International Traffic containing residual chemicals, cargo, goods, etc. that are destined to the United States must be manifested and entered in compliance with U. S. Customs laws;
- If qualified, shipments containing residual goods can be entered as American Goods Returned (AGR);
- No additional bonding will be required. Most shipments will be released under Section 321, providing that the value of the residue is less than or equal to $200 in order to qualify;
- The manifest record is required to be retained by the carrier for a period of five years;
- Percentages vary depending on the mode of transportation – rail = 7% or less, truck & ocean = 3% or less, and air = 5% or less;
- The weight of residue will be required for all modes of transportation
We note that the webinar, linked above, is an excellent and the most current source of information regarding this issue.
We encourage you to use the short remaining time before enforcement to understand how these regulations will affect your firm, and to make the necessary adjustments within your organization to assure compliance before the enforcement date.
As always, Pacific Customs Brokers stands ready to assist you in this matter. If you have any questions about manifesting and entry of residue found in instruments of international traffic into the USA, please contact our Border Pro eManifest Team at 855.542.6644 or via email at emanifest@borderpro.ca. We also welcome your questions in our comments section below.
Would it Interest You to Partner with Customs?
We can assist you with the steps in becoming a C-TPAT and/or a PIP member.
The World Customs Organization (WCO) has stated that the “global trading system is vulnerable to terrorist exploitation that would severely damage the entire global economy. As government organizations that control and administer the international movement of goods, Customs administrations are in a unique position to provide increased security to the global supply.” The recent attempt by terrorists to send explosives via commercial shipment from Yemen to the United States illustrates that terrorists will attempt to exploit the trade chain.
Both the Canada Border Services Agency (CBSA) and the United States Customs and Border Protection (CBP) play very active roles in the efforts to combat terrorism. CBSA’s Partners in Protection (PIP), and CBP’s Customs – Trade Partnership Against Terrorism programs are voluntary government – business supply chain security programs that ask businesses to ensure the integrity of their security practices and communicate and verify the security practices of their business partners.
If you are interested in learning what this initiative is all about, but have been hearing how difficult it is to obtain certification, we invite you to attend our C-TPAT and PIP Seminar on Thursday, May 16, 9am to 2pm. This session will help clarify the expectations of each program. We will focus on familiarizing you with the processes necessary for your company to be an active member of these initiatives.
Both the C-TPAT and PIP programs are still fairly young programs and continue to evolve. The Customs agencies continue to work on developing a number of current and future benefits for companies who are participants. That being said, the challenges that come along with developing your procedures and policies will be quite unique to your company, as will the actual benefits of participation.
Some of the current tangible benefits that are realized by C-TPAT and/or PIP members include:
- Reduced number of cargo inspections
- Emphasis on self-policing as opposed to Customs verification
- Eligibility to apply to the FAST program
These benefits translate into some valuable practical considerations, including:
- Cost savings – a full Customs exam can cost upward of $500 – $1000 per container
- The more parties involved in a transaction who are C-TPAT partners, the lower the likelihood of cargo inspections.
- C-TPAT membership is considered a mitigating factor in the case of potential penalty matters
- Ongoing familiarity with the program decreases the necessary time spent and resources involved in assuring compliance.
As the program evolves, it is expected that the benefits will continue to outweigh the costs or perceived disadvantages to becoming a participant in the program. While there are no commitments from Customs, the trade has requested that Customs consider a number of added benefits for the “next generation” of C-TPAT.
Some of the next generation benefits of C-TPAT could include:
- Basing cargo release on 10+2 data and permitting monthly entry of cargo aligned with the periodic monthly statement (in the case of U.S. imports)
- Expedited responses to ruling requests
- Enhanced penalty mitigation
- Prior disclosure benefits
- Further lowering of the number of inspections
- Tax incentives for supply chain security and safety enhancements
- Mutual recognition with other countries” approved security programs
If becoming a partner and trusted trader with CBSA and CBP interests you, we encourage you to consider attending the C-TPAT and PIP Seminar on Thursday, May 16, 9am to 2pm. Attendance at this seminar includes a 30 minute scheduled consultation with one of our speakers to discuss the possible benefits and drawbacks to your firm becoming a member. Register today!
Still have questions about the C-TPAT and PIP programs? Share them in our comments section or email us at Ask Your Broker.