Whether or not you’re a seasoned importer or simply coming into the commerce world, maintaining with hundreds of pages of rules is usually a problem.
A said precedence of the present administration is deregulation. On January 31, 2025, President Trump signed an Government Order titled “Unleashing Prosperity Via Deregulation.” The Order requires that each time an company promulgates a brand new rule, regulation, or steering, it should determine at the very least 10 present guidelines, rules, or steering paperwork to be repealed.
Eventually month’s Commerce and Cargo Safety Summit, CBP mentioned they and their associate businesses are in search of suggestions on what rules are out of date or just don’t mirror the truth of the present commerce setting.
Right here’s a sampling of some potential obscure and out of date rules that CBP could take into account revisiting (what are your additions to this listing?):
Permitting Non-Resident Importers to Act as an Importer of File within the U.S.
Though there are numerous entities that legitimately use the exception present in 19 CFR 141.18, which permits non-resident companies to make entry of products into the U.S. (as an importer of report), firms can even achieve this with malicious intent. The non-resident entity solely wants a U.S. agent for service of course of and a customs bond. This explicit exception is one {that a} dangerous actor can use surreptitiously. For instance, a non-resident importer can create a shell entity to behave because the importer of report and/or U.S. agent that may simply shut down operations to keep away from CBP enforcement and fee of duties. That is an exception that CBP can take into account eradicating from the rules, forcing entities to be legally registered within the U.S. to turn out to be an importer of report (CBP may additionally go so far as requiring the entity to have a U.S. checking account).
Obligation-Free Bolting Material
19 C.F.R. §10.58 discusses stipulations for a duty-free importation of silk bolting material whether it is indelibly marked with the phrase: “Bolting material expressly for milling functions.” The phrase should be marked from selvage to selvage at intervals of no more than 10.16 centimeters in block letters 7.62 centimeters in top. Are these marking necessities archaic? Does the exemption mirror fashionable industrial milling, which makes use of artificial fibers resembling polyester or nylon?
Price of Obligation Dependent Upon Precise Use
19 C.F.R. § 10.131 permits importers to profit from a decrease or free responsibility charge primarily based on how merchandise is definitely used. For instance, artificial supplies can be utilized for normal business functions (increased responsibility charge) or for manufacturing particular merchandise (low or free responsibility charge). To profit from the low or free responsibility charge, the importer should meet strict necessities, together with furnishing proof of use from the tip person or the supervisor of the manufacturing plant. Is that this requirement archaic? Technically, is it not tough for CBP to implement and burdensome for importers to profit from (and maybe value eradicating)?
Nation of Origin and Marking Necessities
All merchandise imported into the U.S. should have a rustic of origin marking that designates the nation of origin. For some product classes resembling meals and textiles, the label should include much more data. Some commerce stakeholders have argued that these necessities have to be revisited and CBP ought to take into account implementing an digital labeling system. Do you agree?
Half 171, Subpart E – Restoration of Proceeds of Sale
Title 19 CFR Half 171 Subpart E units out the necessities for people or firms to request the return of proceeds from the sale of seized property. This half implements part 613 of the Tariff Act of 1930 which governs the order by which the proceeds from the sale of seized or forfeited items are utilized:
- To cowl the prices of the seizure and sale (e.g., storage, public sale charges)
- To pay any court docket prices
- To fulfill duties and taxes owed
- The remaining stability is paid into the U.S. Treasury, until somebody efficiently petitions for restoration underneath different provisions (like 19 CFR § 171 Subpart E).
Petitioning for the restoration of proceeds of sale isn’t a typical observe and it’s unclear whether or not this provision continues to be sensible and whether or not fashionable importers take into account this a viable possibility.
Half 171, Subpart F – Expedited Petitioning Procedures
The expedited petitioning procedures present a proper course of by which importers or different claimants can request quicker administrative decision of petitions for aid from Customs penalties, seizures, or forfeitures. The present course of doesn’t adequately mirror the tempo and complexity of contemporary world commerce. CBP may revisit the rules to streamline the method and supply a clearer and extra clear path to acquire an expedited evaluation (or take away it if it won’t actually be honored even when rightfully requested).
Contact Diaz Commerce Legislation for Help Navigating CBP Rules
Diaz Commerce Legislation has years of expertise navigating the advanced net of commerce guidelines and rules. Whether or not you’re growing your first compliance program or have been importing for many years, we can assist guarantee your importing practices are compliant.
These are just some of the outdated CBP rules we predict are due for a critical replace, however we all know there are lots extra on the market. What are the legacy guidelines you’d prefer to see revised or eradicated? Drop a remark or get in contact – 305-456-3830 or information@diaztradelaw.com.
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