More companies are seeking drawback payments as the economic slowdown has increased the importance of cash on hand, CBP officials and industry executives said during the American Association of Exporters and Importers virtual conference Aug. 20. “In general, I would say COVID's had a major impact on our businesses and it's also made our company even more focused on getting cash in the door,” said Kathleen Palma, senior executive for international trade compliance at GE. “One of the levers that our leadership has been looking at has been drawback.” At the same time, Palma expects that because the company is bringing in fewer shipments, that will be reflected in fewer drawback claims going forward.
An Aug. 20 Office of the U.S. Trade Representative, Department of Agriculture and Department of Commerce virtual hearing on import competition in seasonal produce will include testimony from two Florida and three Georgia members of Congress, a representative of the office of a third Florida Congress member, Farm Bureau executives, and vegetable and berry farmers. It will also include trade groups and a company that oppose restrictions on Mexican produce, among them the Fresh Produce Association of the Americas, the San Diego Customs Brokers Association, and milk and corn exporters. The hearing is the second of two that were originally scheduled to take place in Florida and Georgia in April.
The State Department’s Directorate of Defense Trade Controls will amend the International Traffic in Arms Regulations to reflect recent changes made by the United Nations to its Central African Republic arms embargo (see 2007200005 and 1909170054), a notice released July 21 said. The change, effective July 22, allows for more exemptions for certain exports to the region. DDTC also specified that “no broker … may engage in” CAR-related brokering activities subject to the ITAR without agency approval. The notice also makes two technical edits to ITAR language.
Companies affected by the Bureau of Industry and Security's recent rule on military-related exports (see 2004270027) were frustrated by the lack of a comment period before the rule was finalized and BIS’s decision not to postpone the effective date, industry officials said in interviews. Some officials said they were disappointed the new requirements were not first issued as a proposed rule, adding that smaller businesses with fewer compliance department employees have struggled to adjust.
The Canada government issued the following trade-related notices as of July 8 (some may also be given separate headlines):
The National Customs Brokers & Forwarders Association of America will use Sandler Travis as its new customs counsel, the NCBFAA said in a June 16 news release by email. Lenny Feldman will serve as lead counsel within the firm, it said. Sandler Travis and Feldman replace Grunfeld Desiderio and Alan Klestadt, who were the NCBFAA's customs counsel for more than a dozen years, the association said.
The Commerce Department’s increased restrictions on shipments to military end-users is causing widespread confusion and could cripple exporters struggling to survive during the global COVID-19 pandemic (see 2005010037), industry groups said. The Bureau of Industry and Security's April 28 final rule (see 2004270027), set to take effect June 29, is too complex and was released with “poor” timing and without industry input, the National Customs Brokers & Forwarders Association of America said.
The United Kingdom on June 12 announced new plans to phase in import entry requirements for goods from the European Union over a six-month period following the end of the Brexit transition period on Dec. 31, 2020. The U.K. government will also provide £50 million in additional funding for customs brokers, forwarders and express couriers for recruitment, training and information technology (IT) expenses.
Abu Dhabi’s customs authority recently introduced a series of measures to help importers during the COVID-19 pandemic, a June 8 Hong Kong Trade Development Council report said. The incentive package allows importers to defer customs duties for 90 days from the date of their customs statement, and provides “pre‑clearance services” for imports through the agency’s “customs online operations system,” which is expected to save importers time and money. The agency will also offer “self-clearance services,” allowing companies to clear cargo “without the need for intermediary customs brokers.” Certain firms may also issue a customs warehouse license without paying license fees, and deposit and withdraw goods from warehouses without paying service fees, the report said.
Singapore will update its “Strategic Goods (Control) Regulations,” including changes to record-keeping requirements, brokering activities, certain technology transfers and more, Singapore Customs said in a June 1 notice. The changes take effect Aug. 3.