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Happy New Year
This year, Chinese Lunar New Year is on Sunday, February 14.
If you are shipping to or from Southeast Asia, please keep in mind that most businesses in China will be closed from February 13, 2010 to February 19, 2010 to observe the beginning of the year of the Tiger.
Continuous Customs Bonds Processed by NFC
In the January 5, 2010 edition of the Federal Register, CBP (US Customs and Border Protection) published a notice proposing amendments to the regulations for continuous bonds as written in 19 CFR (Code of Federal Regulations).
The proposed rulemaking would centralize CBP's continuous bond program at the CBP National Revenue Division in Indianapolis. CBP expects the proposed changes to ensure "an efficient and uniform approach to the approval, maintenance, and periodic review of continuous bonds." These changes have been tested for last few years within the parameters CBP's bond centralization prototype program.
Comments must be received by CBP no later than March 8, 2010.
The full article can be found at the following links:
In text: http://edocket.access.gpo.gov/2010/E9-30920.htm
In PDF: http://edocket.access.gpo.gov/2010/pdf/E9-30920.pdf
FDA Basics
FDA launched a web-based resource called FDA Basics that provides basic information about the agency and how it does its work. This resource can be viewed via a link in the "About FDA" section of the FDA home page, http://www.fda.gov/AboutFDA/Basics.
FDA encourages all interested parties to use this resource to access information about the agency and the products it regulates. You can also view short videos that explain various agency activities and include conversations with agency personnel about their work.
There will also be online sessions where the public can learn more about a topic and ask questions to senior FDA officials about these topics. Each of these sessions will be announced on the FDA website.
The launch of FDA Basics represents the initial phase of FDA's Transparency Initiative. Phase two of the initiative will involve making information about agency activities more transparent, useful, and understandable to the public while protecting confidential information, as appropriate. The final phase of the initiative will involve FDA's transparency to regulated industries.
FDA requests that the public visits the FDA Basics resource, and let the agency know what their thoughts. The feedback provided may be used to improve the curriculum.
FDA PREDICT System Replaces OASIS System
The PREDICT (Predictive Risk-based Evaluation for Dynamic Import Compliance Targeting) system replaces the legacy OASIS (Operational and Administrative System for Import Support) system that FDA has used since 1998. It will automate many of the processes currently done by FDA agents evaluating the import shipment data transmitted to FDA via CBP. Using PREDICT, shipments requiring FDA review that are designated "low-risk" will have a better chance of immediate electronic FDA "may proceed" (release). The FDA agents will then have more time to focus on the higher risk shipments.
FDA will not advise all of the risk factors that will be used, but it can be assumed that commodity, manufacturer, country of origin, consignee, and the prior compliance history of all involved parties will be included.
PREDICT has been "beta-testing" in LA since last fall. National implementation was expected to begin in late January or early February, but as of the writing of this article, LA is still "beta-testing" the process.
For more information on PREDICT, visit the FDA basics website:
http://www.fda.gov/ForIndustry/ImportProgram/ucm172743.htm
Transportation of Lithium Batteries
In the January 11, 2010 Federal Register, the Department of Transportation (DOT) published a notice of proposed rule making (NPRM) titled "Hazardous Materials: Transportation of Lithium Batteries."
In part, this NPRM would "eliminate the regulatory exceptions for lithium cells and batteries when transported aboard aircraft," update definitions and shipping descriptions, clarify packing and stowing requirements, and consolidate the current regulations into specific areas of 49 CFR.
The public has until March 12, 2010 to comment on these proposed changes to 49 CFR.
The final rule will be published in the Federal Register after consideration has been given to the comments received from the public. 75 days after publication, the provisions of the final rule will be enforced.
For more information, visit the "Air" section of this month's eNewsletter.
The full article can be found at the following links:
Text: http://edocket.access.gpo.gov/2010/2010-281.htm
PDF: http://edocket.access.gpo.gov/2010/pdf/2010-281.pdf
ISF Enforcement Has Begun
Just prior to the end of the ISF Flexible Enforcement Period, CBP has announced that beginning January 26, 2010, there will be a gradually escalated, phased enforcement of ISF. As advised just before ISF was first required on January 26, 2009, the record of their ISF filing in 2009 will be used as a mitigating factor for importers if they receive an ISF liquidated damages claim from CBP.
Starting January 26, 2010, CBP plans on using the data from the first few months to set a baseline for future enforcement. Initially, enforcement will consist of warnings from CBP (letters, notices, and/or phone calls). By the start of summer, CBP will begin issuing liquidated damages and holds for shipments that arrive into the US without ISF filing. By the end of summer, there will be stronger enforcement on a regular basis and Customs will begin evaluating the accuracy of the data.
A Customs bond will now be required to file a valid ISF. Initially the system will allow transmission ISF without bond data, and CBP will analyze violations for the first few months. Warnings will be given and eventually transmission will not be allowed without a valid bond.
During the phased enforcement period, Customs will emphasize the receipt of complete and accurate ISF data and will not initially stress strict enforcement of the timeliness provision. ISF filings a few days after the freight is laden on the vessel may be considered acceptable. When reviewing ISF accuracy, CBP will eventually compare the ISF, AMS, entry, and CTPAT data.
Although the initial ISF liquidated damages claim will originate in the field, for at least the first year all claims will be processed and approved at CBP headquarters so that the process is handled uniformly nationwide. CBP will have the authority to waive liquidated damages during the first year of phased enforcement.
During the phased enforcement period, CBP does not plan on using the Do Not Load (DNL) option solely for failure to comply with the ISF requirements, but they reserve the right to stop shipments for serious security risk. Freight arriving in the US without having an ISF on file with CBP will be subject to a CBP ISF hold until a valid ISF transmission has been received. If an entry is filed for freight without ISF, it will not be released until the ISF hold is removed.
CBP expects that ISF will be filed with the best available information, and they will look at each incident on a case-by-case basis if that information later proves to be inaccurate.
If you have any questions or comments regarding the Compliance eNewsletter,
please contact Paul Codere from the Customs Brokerage Department. |
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