UPS Webinar: What can be expected from the Trade Facilitation and Trade Enforcement Act of 2015?

What to expect from the Trade Facilitation and Trade Enforcement Act of 2015?

March 17, 2016

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.

© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.

What can be expected from the Trade Facilitation and

Trade Enforcement Act of 2015?

• Host

• Greg Maddaleni, LCB

• Customs Brokerage Manager

Presenters

• Panelist

• Stuart Schmidt, LCB

• Trade Compliance Manager

• Panelist

• Tim Darst, LCB

• Customs Compliance Manager


© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 3

Trade Facilitation and Trade Enforcement Act of 2015

Agenda

Four key areas:

• Trade Facilitation

• Enforcement

• Process revision

• Policy

Highlights, insights and timing

Q & A



Highlight areas

Trade Facilitation

De minimis

Returned goods

New “trusted trader” programs

ACE

Enforcement

Targeting division

Priority trade issues

Process Revision

Anti-dumping / countervailing duty

Importer identification program

Importer bond program

Drawback revision

Policy

CEE’s

COAC



Timeline overview

1. Fund ACE development

2. Amend drawback

3. Increase de minimis from $200 to $800

4. Amend returned goods provision

5. Create new “trusted trader” programs

6. Create Commercial Targeting Division focusing on IPR, AD/CVD, Revenue

7. Anti-dumping / countervailing duty process

8. Create trade committee to replace COAC

9. Formalize role of the CEE’s

10. Implement other importer programs

Mar 10th

Apr 24th

Aug 22nd

Ongoing



Trade facilitation

De Minimis

• What is de minimis?

• Administrative exemption

• Value of goods (per shipment) that may be imported free of duty

• Maximum value with change from $200 to $800

• Opportunities / implications

• Existing rules don’t change

• Further facilitates eCommerce

• PGA policies not immediately changing

– Do not have a de minimis

– Being encouraged to establish

• De minimis shipments (as manifest entries) do not appear in the ACE portal



Trade facilitation

Returned Goods

• Previously exported non-U.S. goods now allowed to return, duty free

• Fungible goods, or advanced or improved abroad, will now be allowed

• Facilitates US Government owned returns

• Opportunity / implication

• Promotes commerce flexibility (alternative to FTZ’s)

• Will support government specific procurement programs

• Promotes additional cross border activity



Trade facilitation

New “trusted trader” programs

• Reserved for importers with highest compliance

• Provide preclearance of merchandise

• Expedite cargo release

• Incorporate commercially significant and measurable trade benefits

• Submit annual report to Congress


• Revision or replacement to current trader programs (C-TPAT/AEO; ISA)

• Consideration for processes such as simplified or monthly summaries



Trade facilitation

ACE

• Funds ACE development and implementation through 2018

• Sep 30 deadline to incorporate all core trade processing capabilities, including

• Cargo release, entry summary

• Export data elements

• Conform with admissibility criteria of “Single Window” / PGA portal

• Full report due Dec 31, 2016

• Opportunity /implication

• States the expectation that PGA migration will be complete by September 30th



Enforcement

Commercial Targeting Division / Intellectual Property

• Authority to establish targeted risk assessment methodologies and standards

• Focus on priority trade issues

• Leverage ACE data repository

• Intellectual property: CBP authority to provide unredacted samples and

images to owners

• When goods are suspected to be infringing

• Mandatory where examination or testing will assist to make determination

• Implications/opportunities

• Tighter protection for importers but also tight compliance expected of importers



Enforcement

Priority Trade Issues

1. Agriculture programs

2. Antidumping and countervailing duties

3. Import safety

4. Intellectual property rights

5. Revenue

6. Textiles and wearing apparel

7. Trade agreements and preference programs



Process revision

Anti-Dumping / Countervailing Duty

• Primary investigation to be conducted by CBP

• Dep’t of Commerce will maintain some authority

• Re-liquidation required to occur within 90 days of original liquidation


• Investigation will be with CBP who maintain experience in this area

• 90 day re-liquidation rule provides importers protection from reliquidation of deemed

entries years later



Process revision

Importer identification and importer bond programs

• Importer of record identification program

• CBP must create minimum standards regarding the identity of importers

• Importer Bond Program

• New bond requirements to protect the revenue of the US

• Opportunities and implications

• Importers will need to conform in order to remain compliant



Process revision

Drawback

• Changes made to simplify drawback law, including:

• Standardizing the time frames for filing drawback

• Modernizing the claimant recordkeeping requirements

• Transitions drawback to 8 digit HTS number match

• Eliminates certificate of delivery

• Amends amount of duty recovery


• Streamlining and simplify the drawback process



Policy

Centers of Excellence and Expertise

• Creates the duty to implement CEE’s built around an industry based model

• Centralize trade enforcement and trade facilitation

• Formalize an account based approach

• Facilitate more frequent interaction with the PGA’s*


• Account based importers will interact with on CEE and may want to consider how many

locations where their entries’ are processed

• PGA’s will likely become more and more integrated with the customs process

* Partner government agencies

15



Policy

“New” COAC and the Trade Support Network

• Advisory Committee on Commercial Operations (COAC) to become the

Commercial Customs Operations Advisory Committee

• Represents interests of the trade community

• Three year terms, extended from two, single renewal option

• Co-chaired by Secretary of Treasury and Secretary of Homeland Security

• CBP required to consult with Trade Support Network (TSN)

• Formalizes communications that have been voluntary to this point

• TSN instrumental in providing input during the ACE migration


• Great voice of the trade community

• Provide input / feedback to committee members



Questions?

17



Summary

18

• The Trade Facilitation and Trade Enforcement Act of 2015 went into effect February 24, 2016

• Provisions being implemented gradually over 180 days

• New provisions provide importers new opportunities but also implications requiring greater compliance and diligence

• Next webinar

• Mar 31st, 4:00p ET: Exports and ACE

• Registration link (Click here)

• Contact your UPS sales executive or UPS contact for more information

• Greg Maddaleni, LCB

– Customs Brokerage Manager

– [email protected]

https://ups.webex.com/ups/onstage/g.php?MTID=e57c885ce2d07c082e265b03de60d80d8&SourceId=web+

mailto:[email protected]

Thank you

Business

UPS Webinar: What can be expected from the Trade Facilitation and Trade Enforcement Act of 2015?