March 2007 |
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International Trade Law Alert |
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Take This Month’s International Trade Quiz Think you’re up on all the major events in international trade? Are you ready for our version of American Idol? Think you can dance with Trade Compliance with the Stars?
If you were told that someone designed an international trade compliance training seminar that provides all your import/customs and export compliance training in one-day, that the training was not onl The Import Export Trade Compliance Conference 2007 will be held on April 27, 2007 at the Sahara Hotel & Casino in Las Vegas, Nevada. Both customs/import and export compliance will be covered. For a detailed schedule of events, click here. Seating is limited. Group discounts available. Click here for details.
C-TPAT offered huge loopholes for people who signed on early in the program’s life. The security guidelines were loosey-goosey, with many companies getting certified with the most barren of security programs. Importers would claim that CBP certified them under C-TPAT even though they had little or no supply chain security, and even though their security profiles were slapdash. The most troubling aspect is that once a company was validated (i.e., audited by CBP), the importer was home-free. There was a vague exhortation from CBP for validated importers to continually improve supply chain security, but there was no enforcement mechanism. Stranger still, only certified companies were allowed to participate in C-TPAT training programs and seminars that CBP sponsored (which begs the question, why train companies already in the program and exclude companies wanting to enroll?). Because C-TPAT is a voluntary program, CBP may have had trouble revving up the program or decided to be easier on applicants early on to entice even more companies. Once you were in, you were in. An importer could ditch its supply chain security programs after validation, and CBP would never know. My, how things have changed. Now any company in C-TPAT must adopt much more stringent supply chain security and must update that information using the C-TPAT web portal that CBP provides. Like all modern forms of digital communication, the web portal not only allows you to file information more easily, but it also allows the Governm Validation is also no longer the end-all it once was. CBP plans to revalidate companies every three years. This year, CBP will revalidate 1,200 companies. But validation is a breeze, right? No one actually gets kicked out of C-TPAT, right? Wrong. CBP reports that 201 companies have been suspended or removed for security breaches, including 128 motor carriers. CBP also kicked out 453 companies from C-TPAT for not complying with the Oct. 1 deadline for updating their security profiles on the C-TPAT Web portal. If you are not keeping up with the new C-TPAT supply chain security criteria, or if you are not periodically updating your security information through the C-TPAT web portal, you risk suspension and removal. If your supply chain security does not match what you promise or describe in your security profile, CBP will find out through the validation process. GRVR Attorneys will be hosting a free C-TPAT Power Lunch on March 28, 2007 (Wednesday), from 12 noon-1 pm, in Irving, Texas. Register by calling 214.720.7720 or emailing info@exportimportlaw.com. Seating limited.
The next customs broker exam is less than a month away. A majority of those sitting for the exam will fail (up to 97%). However, stay calm. If you will be sitting for the exam, here are a few things to help avoid last-minute jitters. First, the customs broker exam is more manageable if you prepare properly. You can greatly increase your chances of passing if you follow a proven technique. For example, our customs broker exam prep course has a 91% passing rate, and we guarantee that you will pass. Click here for more information. Second, let’s assume that you miss passing the exam by a few questions. You may be able to appeal. The customs broker exam is in multiple-choice format. It is very difficult for CBP to devise 80 questions that do not repeat past exam questions and that clearly express the current state of the law. There will be at least a couple of questions that CBP gets wrong. A question will be ambiguous or there may be more than one correct answer. In other words, it is possible that CBP made a mistake, not the person taking the exam, and it may be possible to still get a broker’s license by appealing the failing grade. How likely is it that an appeal will work? Generally, the lower your score, the less likely an appeal will succeed (although we’ve seen CBP give credit for 6 questions after appeal). It also depends on the exam. Not all exams are created equal. But it is safe to say that if you came close to passing, you should seriously consider filing an appeal with CBP. What if CBP denies your appeal? You may then sue CBP in the Court of International Trade. Fighting to over your exam scores in court can be uphill struggle, but sometimes it can also succeed. In O’Quinn vs. U.S., 100 F Supp 2d 1136 (CIT 2000), Mr. O’Quinn barely flunked by two question, and appealed six questions to CBP. CBP gave him credit for one correct answer, but that still left him one short of a passing grade. He appealed to the Court of International Trade. The Court examined each of the questions and concluded that at least one of the questions was ambiguous and that Mr. O’Quinn’s answer was as good as CBP’s. Mr. O’Quinn thus got his brokers license. Notice: GRVR will be hosting a free power lunch on Customs Brokers: Reasonable Care, Due Diligence, and Best Practices. This presentation will explore the requirements and the court cases regarding becoming a customs broker, maintaining a licenses, the due diligence and reasonable requirements of customs brokerage, and fines and penalties. Date April 23, 2007 (Monday) 12 am Central. If interested, please call 214.720.7720 or email info@exportimportlaw.com. Seating is limited.
(posted on CBP’s website, 2/26/2007) Customs and Border Protection has been working closely with the COAC subcommittee in formulating the proposed Security Filing (SF), which will require 10 additional data elements from importers 24 hours prior to foreign lading and 2 data sets from ocean carriers. CBP is currently developing a Notice of Proposed Rulemaking (NPRM), which will be published in the Federal Register along with a request for comments on the NPRM. CBP is hopeful that this Frequently Asked Questions (FAQ) document will assist the Trade Community in understanding the expectations of CBP concerning the proposed Security Filing requirements. These FAQs reflect the agency's current thinking and are subject to change. General Q: What about general confidentiality issues? Such as: a. Shippers don’t want importers to know the supplier (manufacturer) and importers don’t want the seller to know who their customers are (ultimate consignee). -and- b. Legal confidentiality issues. Q: Will the Security Filing be required in all transportation modes? Q: Will CBP implement the Security Filing immediately? Q: Bulk and break bulk cargo are treated differently under the 24-hour Manifest Rule than standard containerized cargo. Will bulk and break bulk cargo be given the same consideration for the Security Filing? Definitions Q: For “no sale” transactions, can the owner of the goods be used in lieu of the seller and buyer on the SF? Q: For Commodity 6-digit HTS number, would a 10-digit code number be acceptable? Q: What is the difference between container stuffing location and consolidator name and address? Technical Q: How should multiple country-of-origin, HTS numbers and manufacturers in one shipment be shown in the SF? Q: When data changes after vessel sailing, does the Security Filing need to be amended? On March 17 we will celebrate St. Patrick’s Day with parades, green beer, and shamrocks. But for all the celebration and cheer related to one of Christianity’s most widely-known figures very little is actually known about the historical individual. What little we know about St. Patrick is largely the result of myths and stories that cannot be verified. What can be verified about St. Patrick is that he was taken prisoner by Irish raiders when he was 16 years old. After being incarcerated for more than six years, Patrick escaped. According to his writings, St. Patrick received divine inspiration to leave Ireland and walked for over 200 miles after escape. Upon fleeing Ireland, St. Patrick once again received a divine message. This time, however, St. Patrick was inspired to return to Ireland as a missionary. St. Patrick’s return visit to Ireland was enormously successful. He converted a large portion of Ireland to Christianity and his success can largely be attributed to his ability to incorporate native culture and traditions with his lessons on Christianity. As we take time to celebrate the archetype of good fortune and luck, those of us who are attorneys should recall that the The Model Rules of Professional Conduct asks that we each devote at least 50 hours per year to public service and to helping individuals that cannot afford legal representation. But non-attorneys should also do their part and help others. After all, it doesn’t take a saint to help others keep their traditions and culture alive, sponsor a child, or help someone gain freedom or asylum from persecution and incarceration. Remember, this St. Patrick’s Day when you are drinking a green beer or enjoying a parade with friends and family that there are people that need us to be their shamrocks and four-leaf clovers. One of our favorite organizations is the U.S. Committee for Refugees and Immigrants, which seeks to “address the needs and rights of persons in forced or voluntary migration worldwide by advancing fair and humane public policy, facilitating and providing direct professional services, and promoting the full participation of migrants in community life.” To find out more, U.S. Committee for Refugees and Immigrants |
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"The best analysis anywhere of international trade news from top-notch international trade lawyers" - A Subscriber |
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In This Edition: Take This Month’s International Trade Quiz Import Export Compliance Conference 2007 - Las Vegas Bound C-TPAT: Validated Companies To Be Revalidated |
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ent to check on you more thoroughly. 