CBP's Automotive and Aerospace Center of Excellence and Expertise “continues to issue an inordinate number of informed compliance letters compared to the other Centers and in a manner inconsistent with CBP laws, regulations and policy,” the National Customs Brokers & Forwarders Association of America said in an April 27 letter to the agency. The NCBFAA previously mentioned the issue to the director of the Center, “but feel[s] it is necessary to seek additional improvement at the Headquarters level,” it said.

Industry voices were united in telling the Commerce Department that its Information and Communications Technology and Services rule (see 2102190033) is so broad that it is practically unworkable and that it must narrow the scope of the rule. Many trade groups also said the rule should be put on hold until the pre-clearance or licensing process is established. In 18 comments, from trade groups, broader business groups and others, industry told the government that if there isn't either a carve-out or segmentation in how different imports are treated, compliance will be expensive, or even catastrophic, if pre-clearance reviews can't be done quickly.

CBP will take a look at how it can bring foreign-trade zones into the Customs-Trade Partnership Against Terrorism, Thomas Overacker, CBP executive director-cargo and conveyance security, said April 28 during the virtual National Association of Foreign-Trade Zones spring seminar. “We've committed to explore how we can incorporate FTZs into the CTPAT program,” he said. “We've long considered the documentation and internal controls of your industry as best practices for security and supply chain integrity. It only makes sense that you receive the recognition that you deserve.”

U.S. Trade Representative Katherine Tai heard many bipartisan complaints about the pain of both Section 301 tariffs and Europe's retaliatory tariffs in response to steel tariffs, but stood her ground on both during a hearing in front of a Senate Appropriations subcommittee responsible for funding the Office of the U.S. Trade Representative.

A newly issued CBP ruling further clarifies how the agency determines country of origin for electric motors. After having recently found that the stator and the rotor are the “most essential components” of an electric motor and, under a substantial transformation analysis, determine the country of origin (see 2104210041), the agency on April 22 issued another ruling that considered motors where the rotor and stator were made in different countries, and found the stator assembly controlling.

International Trade Today is providing readers with the top stories from April 19-23 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.

New authorized economic operator or trusted trader programs aimed at increasing data sharing within e-commerce are among the options suggested for reducing the information gaps at CBP, in a new report led by the University of Houston. “The team found that providing AEO certification to compliant stakeholders and developing a new federated data platform and information and communications technology infrastructure can both increase the probability of CBP gaining accurate data as well as increase economic efficiency for customers, importers and other relevant stakeholders,” the Department of Homeland Security said in a news release. The report was prepared by the Borders, Trade, and Immigration Institute at the University of Houston, which is sponsored by the DHS Science & Technology Directorate.

Presidential Climate Envoy John Kerry, when asked about the utility of a domestic carbon tax, said the idea is under consideration. “President [Joe] Biden, I know, is particularly interested in evaluating the carbon border adjustment mechanism, he wants to look at that and see whether that’s something that we need to deploy,” Kerry said. “Europe is already looking at that in depth and may well wind up deploying it if they don’t get satisfaction from China and other countries with respect to the transition off of coal and their effort to try to do their part in reducing emissions.”

CBP is looking into making admissibility decisions earlier on for importers that give the agency more information about their supply chains, Garrett Wright, director of trade modernization at CBP, told an April 22 meeting of the Commerce Department's Advisory Committee on Supply Chain Competitiveness. The agency is looking at some broad changes to its processes as part of the CBP work on the 21st Century Customs Framework (see 2011120010). The effort's five main “bucket areas” include "updates that improve the timeliness and the quality of data that we receive or is made available to us so we can reengineer our entry processes so we are able to clear lawful trade more quickly,” he said.

The Office of the U.S. Trade Representative announced a technical correction that allows refunds for products exported after the tariffs were hiked from 10% to 25% but on the water at the time the increase was announced. The notice, set for Federal Register publication April 26, says goods that left China before May 10, 2019, and entered the U.S. before June 15, 2019, and are covered by a Section 301 exclusion, are now excluded.