Updated Customs Bonded Warehouse Manual Issued
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP / www.gdlsk.com
For the first time since, 1990, U.S. Customs and Border Protection (CBP) has revised the Bonded Warehouse Manual for Customs and Border Protection Officers and Bonded Warehouse Proprietors.
The Manual is supplementary to the bonded warehouse regulations (19 C.F.R. Parts 19, 144) and is designed to assist in understanding those regulations and bonded warehouse operations in general. The manual now also address duty-free enterprise operations, with limited information on centralized examination stations (CES) and container freight stations (CFS). A copy of the manual can be downloaded (14mb – 182 pages) at –
http://www.cbp.gov/linkhandler/cgov/trade/cargo_security/cargo_control/bonded_warehouse.ctt/bonded_warehouse.pdf
CBP has requested comments on the manual. If you are interested in commenting on the manual, or have suggestions for additions, deletions or corrections, or have any questions please contact, David Murphy for assistance.
Fact Sheet: Implementation of National Defense Authorization Act Sanctions on Iran
U.S. Department of the Treasury / www.treasury.gov
2/6/12
WASHINGTON - Yesterday, President Obama signed an Executive Order (E.O.) that takes a number of actions in furtherance of the Administration’s Iran sanctions program, including measures to implement section 1245 of the National Defense Authorization Act (NDAA). Among other things, the E.O. freezes all property of the Central Bank of Iran and all other Iranian financial institutions, as well as all property of the Government of Iran, further tightening the already broad-based and stringent U.S. sanctions on Iran.
These actions underscore the Administration’s resolve to hold the Iranian regime accountable for its failure to meet its international obligations. Iran now faces an unprecedented level of pressure due to intensified sanctions applied by the United States and complementary actions by many others around the world. The new E.O. issued today reemphasizes this Administration’s message to the Government of Iran – it will face ever-increasing economic and diplomatic pressure until it addresses the international community’s well-founded and well-documented concerns regarding the nature of its nuclear program.
Additional information describing the implementation of section 1245 of the NDAA pursuant to the authorities delegated under this E.O. will be made available in the near term.
Sanctions under the New Executive Order:
On February 5, President Obama signed a new E.O. effective at 12:01 a.m. on February 6, that blocks (i.e., “freezes”) all property of the Government of Iran as well as all property of Iranian financial institutions, including the Central Bank of Iran.
1. The E.O. blocks all property and interests in property of the Government of Iran, the Central Bank of Iran and all Iranian financial institutions (regardless of whether the financial institution is part of the Government of Iran) that are in the United States, that come within the United States, or that come within the possession or control of U.S. persons. Previously, U.S. persons were required to “reject,” rather than “block,” Iranian transactions.
- Under the order, the Government of Iran, the Central Bank of Iran, and all Iranian financial institutions are now blocked (i.e. their assets within the jurisdiction of U.S. persons are frozen).
- The U.S. sanctions in place since 1995 have required most transactions involving the Government of Iran, the Central Bank of Iran and all Iranian financial institutions to be rejected – that is, they could not pass through the U.S. financial system, but instead were turned back. Under the new E.O., transactions involving the Government of Iran, the Central Bank of Iran and all Iranian financial institutions that previously would have been rejected will now be blocked.
- All entities that meet the existing definition of “Government of Iran,” such as Iranian ministries, state-owned entities and commercial firms owned or controlled by the Government of Iran, are blocked. This includes entities bearing the [IRAN] tag on the Treasury Department’s Office of Foreign Assets Control’s (OFAC) List of Specially Designated Nationals and Blocked Persons (SDN List). Transactions by U.S. persons involving such entities are now blocked unless exempt or otherwise authorized. OFAC will continue to update the SDN List and may add, delete, or edit existing entries as appropriate.
- The E.O. does not change the sanctions that may be applied against foreign financial institutions engaging in arms-length transactions with certain Iranian financial institutions, including the Central Bank of Iran. Those foreign financial institutions remain at risk of U.S. sanctions if they engage in certain significant financial transactions with the Central Bank of Iran or certain other designated Iranian financial institutions pursuant to the NDAA, or the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA).
2. Treasury is issuing general licenses to maintain existing authorizations for certain transactions that advance U.S. foreign policy interests.
- Persons who currently use general or specific licenses from OFAC for transactions involving the Government of Iran or Iranian financial institutions should consult the OFAC website for new general licenses and other information on whether those transactions remain authorized under the new E.O.
Delegations of Authority under the New Executive Order:
The E.O. also delegates other authorities provided in section 1245(d) of the NDAA.
- The E.O. delegates a number of other authorities provided in section 1245(d) of the NDAA, primarily to the Departments of the Treasury and State. These delegations will facilitate the implementation of section 1245 of the NDAA.
- Additional information describing the implementation of the NDAA under these delegated authorities will be made available in the near term.
To view the OFAC guidance on this E.O., please this link.
Port of New Orleans Closing - Februay 21, 2012
U.S. Customs & Border Protection / www.cbp.gov
Due to the local Mardi Gras Holiday, the Port of New Orleans Office (Port Code 2002) will be closed for business on Tuesday, February 21, 2012.
Filers with businesses located in or have filed (RLF) entries in New Orleans will be granted an additional day without penalty for late-filed entries or payment of duties that would become due on February 21, 2012. The new due date for payment of duties will be February 22, 2012.
If you have any questions, please contact:
Merlin Hymel
APD, Trade
New Orleans, La
(504) 670-2088
TSA Pre✓™ Pilot to Expand to Busiest US Airports
Deparment of Homeland Security / www.dhs.gov
WASHINGTON – Department of Homeland Security (DHS) Secretary Janet Napolitano and Transportation Security Administration (TSA) Administrator John S. Pistole today announced the expansion of TSA Pre✓™, a passenger pre-screening initiative, to additional airports across the country following the program’s success at seven pilot locations.
With more than 336,000 passengers screened to date through TSA Pre✓™ lanes, this screening concept enhances security by enabling TSA to focus its efforts on passengers the agency knows less about while providing expedited screening for travelers who volunteer information about themselves prior to flying.
“Good, thoughtful, sensible security by its very nature facilitates lawful travel and legitimate commerce,” said Secretary Janet Napolitano. “The expansion of TSA Pre✓™ to the nation’s busiest airports will increase our security capabilities and expedite the screening process for travelers we consider our trusted partners.”
“TSA Pre✓™ moves us closer to our goal of delivering the most effective and efficient screening by recognizing that most passengers do not pose a threat to security,” said TSA Administrator John S. Pistole. “We are pleased to expand this important effort, in collaboration with our airline and airport partners, as we move away from a one-size-fits-all approach to a more intelligence-driven, risk-based transportation security system.”
TSA Pre✓™ is currently operating with American Airlines at airports in Dallas, Miami, Las Vegas, Minneapolis and Los Angeles, and with Delta Air Lines at airports in Atlanta, Detroit, Las Vegas, and Minneapolis. US Airways, United Airlines and Alaska Airlines are all opting in new passengers and will begin operations later this year.
As part of the initiative’s expansion, TSA Pre✓™ will be implemented at the following airport locations throughout 2012:
•Baltimore/Washington International Thurgood Marshall Airport (BWI)
•Boston Logan International Airport (BOS)
•Charlotte Douglas International Airport (CLT)
•Cincinnati/Northern Kentucky International Airport (CVG)
•Denver International Airport (DEN)
•Fort Lauderdale-Hollywood International Airport (FLL)
•George Bush Intercontinental Airport (IAH)
•Honolulu International Airport (HNL)
•Indianapolis International Airport (IND)
•John F. Kennedy International Airport (JFK)
•LaGuardia Airport (LGA)
•Lambert-St. Louis International Airport (STL)
•Louis Armstrong New Orleans International Airport (MSY)
•Luis Muñoz Marín International Airport (SJU)
•Newark Liberty International Airport (EWR)
•O’Hare International Airport (ORD)
•Orlando International Airport (MCO)
•Philadelphia International Airport (PHL)
•Phoenix Sky Harbor International Airport (PHX)
•Pittsburgh International Airport (PIT)
•Portland International Airport (PDX)
•Ronald Reagan Washington National Airport (DCA)
•Salt Lake City International Airport (SLC)
•San Francisco International Airport (SFO)
•Seattle-Tacoma International Airport (SEA)
•Tampa International Airport (TPA)
•Ted Stevens Anchorage International Airport (ANC)
•Washington Dulles International Airport (IAD)
TSA will continue expanding TSA Pre✓™ to additional airlines and airports once they are operationally ready.
Eligible participants include certain frequent flyers from participating airlines as well as members of Customs and Border Protection’s (CBP) Trusted Traveler programs (Global Entry, SENTRI, and NEXUS) who are U.S. citizens and fly on a participating airline. Individuals interested in participating in the pilot can apply via Global Entry at http://www.globalentry.gov/.
If TSA determines a passenger is eligible for expedited screening following the TSA Pre✓™ vetting process, information will be embedded in the barcode of the passenger’s boarding pass. TSA will read the barcode at the security checkpoint and then may refer the passenger to a TSA Pre✓™ lane, where they will undergo expedited screening, which could include no longer removing the following items:
•Shoes
•3-1-1 compliant bag from carry-on
•Laptop from bag
•Light outerwear/jacket
•Belt
TSA will always incorporate random and unpredictable security measures throughout the airport and no individual will be guaranteed expedited screening. As part of the agency’s risk-based security initiative, TSA is currently testing several other screening initiatives, including initiatives designed to provide positive ID verification for airline pilots and the use of expanded behavior detection techniques.
Counterfeit Perfume Seizures Total $51 Million
U.S. Customs & Border Protection / www.cbp.gov
http://www.cbp.gov/xp/cgov/newsroom/news_releases/national/02072012_3.xml
Secretary Napolitano Announces Final Rule for Permanent Global Entry Program
U.S. Customs & Border Protection / www.cbp.gov
Washington —Department of Homeland Security (DHS) Secretary Janet Napolitano today announced the publication of a Final rule that would establish Global Entry—a U.S. Customs and Border Protection (CBP) voluntary initiative, which allows expedited clearance for pre-approved, low-risk travelers to streamline the international arrivals and admission process at airports for trusted travelers through biometric identification—as a permanent program.
(Final Rule ) 
“Global Entry expedites the customs and security process for trusted air travelers through biometric verification, while helping DHS ensure the safety of all airline passengers,” said Secretary Napolitano. “Making Global Entry permanent will improve customer service at airports across the country and enable law enforcement to focus on higher-risk travelers.”
Global Entry—currently available at 20 U.S. international airports—allows pre-approved members a streamlined, automated alternative to regular passport processing lines. The program currently reduces average wait times by more than 70 percent, with more than 75 percent of travelers using Global Entry processed in under five minutes.
The final rule, published today, sets forth federal regulations that replaces the current pilot with a permanent Global Entry program. The final rule provides CBP with the ability to more readily expand the program to additional U.S. international airports. In addition, age eligibility criteria have changed to allow more families to enjoy the benefits of the program. Persons under the age of 18 who meet the general eligibility criteria and have the consent of a parent or legal guardian will now be eligible to participate in Global Entry.
Those members currently participating in the pilot will not experience a break in membership or need to re-apply when the program becomes permanent. Members currently participating in the pilot will have their time credited to the five year membership as proposed in the rule.
At Global Entry kiosks, members insert their passport or lawful permanent resident card into a document reader, provide digital fingerprints for comparison with fingerprints on file, answer customs declaration questions on the kiosk’s touch-screen, and then present a transaction receipt to U.S. Customs and Border Protection (CBP) officers before leaving the inspection area.
To date, there have been approximately 1.8 million admissions with Global Entry by more than 260,000 members and more than 1 million trusted travelers receive Global Entry benefits. The program is available to U.S. citizens and U.S lawful permanent residents, as well as Mexican nationals. Citizens of the Netherlands may also apply under a special reciprocal arrangement that links Global Entry with the Dutch Privium program in Amsterdam. Canadian citizens and residents may participate in Global Entry through membership in the NEXUS program.
For more information on this or other CBP Trusted Traveler programs, or for an application to enroll in the Global Entry pilot program, please visit the CBP or Global Entry websites. ( CBP Travel Site ) ( Global Entry )
Treasury and IRS Issue Proposed Regulations Under the Foreign Account Tax Compliance Act to Improve Offshore Tax Compliance and Reduce Burden
The U.S. Department of the Treasury / www.treasury.gov
Treasury, European Governments Agree to Pursue Framework for Implementing FATCA
The U.S. Department of the Treasury and the Internal Revenue Service (IRS) today issued comprehensive proposed regulations implementing the information reporting and withholding tax provisions commonly known as the Foreign Account Tax Compliance Act (FATCA). Enacted by Congress in 2010, these provisions target non-compliance by U.S. taxpayers using foreign accounts. The regulations announced today lay out a step-by-step process for U.S. account identification, information reporting, and withholding requirements for foreign financial institutions (FFIs), other foreign entities, and U.S. withholding agents.
The proposed regulations implement FATCA’s obligations in stages to minimize burdens and costs consistent with achieving the statute’s compliance objectives. The rules and implementation schedule are also adjusted to allow time for resolving local law limitations to which some FFIs may be subject.
“When taxpayers overseas avoid paying what they owe, other Americans have to bear a disproportionate share of the tax burden. FATCA is an important part of the U.S. government’s effort to address that issue, and these regulations implement FATCA in a way that is targeted and efficient . We believe these efforts will serve as a complement and catalyst to the ongoing global efforts to combat offshore tax evasion.” said Acting Assistant Secretary for Tax Policy Emily S. McMahon.
The proposed regulations will:
- Reduce the administrative burdens associated with identifying U.S. accounts by calibrating due diligence requirements based on the value and risk profile of the account and by permitting FFIs in many cases to rely on information they already collect, including information received to comply with anti-money laundering/“know your customer” rules;
- Expand the categories of FFIs that are deemed to comply with FATCA without the need to enter into an agreement with the IRS, in order to focus the application of FATCA on higher-risk financial institutions that provide services to the global investment community; and
- Phase-in the reporting and withholding obligations of FATCA over an extended transition period to provide sufficient lead time for financial institutions to develop necessary systems and maximize the number of financial institutions that will be able to comply with FATCA.
After many months of intensive discussions with foreign governments, the Treasury Department today also jointly issued a statement with France, Germany, Italy, Spain and the United Kingdom expressing mutual intent to pursue a government-to-government framework for implementing FATCA – an important step toward addressing legal impediments to financial institutions’ ability to comply with the regulations.
The statement does not contemplate an exemption from FATCA for any jurisdiction, but instead offers a framework for information sharing pursuant to existing bilateral income tax treaties and allows FFIs to report the necessary information to their respective governments rather than to the IRS. The joint statement will serve as a model for the United States’ work with other countries, as Treasury officials continue to engage in discussions with foreign governments about the effective and efficient implementation of FATCA by their financial institutions.
FATCA was enacted in 2010 by Congress as part of the Hiring Incentives to Restore Employment (HIRE) Act. FATCA requires FFIs to report to the IRS information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. In order to avoid withholding under FATCA, a participating FFI will have to enter into an agreement with the IRS to:
- Identify U.S. accounts,
- Report certain information to the IRS regarding U.S. accounts, and
- Withhold a 30 percent tax on certain U.S.-connected payments to non-participating FFIs and account holders who are unwilling to provide the required information.
Registration will take place through an online system that will become available by Jan. 1, 2013. FFIs that do not register and enter into an agreement with the IRS will be subject to withholding on certain types of payments relating to U.S. investments.
Treasury and IRS will continue to work closely with businesses and foreign governments to implement FATCA effectively. Updates and further information on FATCA can be found by visiting the FATCA page on www.IRS.gov.
Bank of America Subsidiary Reversing or Refunding $36 Million in Fees to Resolve FTC Allegations That it Overcharged Struggling Homeowners
Federal Trade Commission / www.ftc.gov
Excessive Default-Related Fees Allegedly Violated Earlier Countrywide Settlement
A mortgage servicing subsidiary of Bank of America Corp. agreed to settle Federal Trade Commission charges that it illegally assessed more than $36 million worth of fees against struggling homeowners, in violation of an earlier settlement with the FTC.
"It's clear to us that the Bank of America subsidiary violated the 2010 court order, and as a result, they will have to return all of the money they illegally charged homeowners who were already having trouble paying their mortgages," said FTC Chairman Jon Leibowitz.
Bank of America subsidiary BAC Home Loans Servicing, LP has already reversed or refunded $28 million worth of improper fees for title and other default-related services charged to homeowners behind on their mortgages. The new settlement requires BAC Home Loans to reverse or refund the remaining $8 million in improper fees.
BAC Home Loans, which did business as Countrywide Home Loans Servicing, LP before it was acquired by Bank of America in 2008, agreed to the FTC settlement in conjunction with a $25 billion, Global Civil Settlement that Bank of America and the four other largest U.S. banks reached with the U.S. Department of Justice and state attorneys general to resolve allegations of abusive foreclosure practices.
"Associate Attorney General Tom Perrelli deserves enormous credit for leading this massive effort to benefit millions of current and future home owners, and for herding so many state and federal cats into the same agreement," said Chairman Leibowitz. "But this settlement won't be meaningful unless going forward, banks change their behavior and respect the rights of consumers. I am cautiously optimistic that this will be the case."
Mortgage servicers are responsible for the day-to-day management of homeowners' mortgage loans, including collecting and crediting monthly loan payments. Homeowners cannot choose their mortgage servicer. BAC Home Loans, which was merged into Bank of America in June 2011, is one of the nation's largest mortgage servicing companies.
As part of the Global Civil Settlement, the FTC will release all five banks, their subsidiaries, and employees from liability under the FTC Act for loan origination or servicing practices before the Global Settlement.
The FTC's new settlement with BAC Home Loans, part of the FTC's ongoing effort to protect financially distressed consumers, will give some homeowners additional compensation for improper default-related fees that is not included in the Global Civil Settlement.
It stems from an earlier FTC federal court action against Countrywide and its successor, BAC Home Loans, which was resolved with a settlement in June 2010. That settlement required the company to pay a record $108 million to reimburse homeowners whose loans were serviced by Countrywide before it was acquired by Bank of America in July 2008, and who allegedly were overcharged for services, including property inspections, maintenance services, title searches, and foreclosure trustee services. The 2010 settlement also prohibited BAC Home Loans from charging more than a reasonable fee for default-related services, and it required the company to clearly disclose default-related fees on its website.
As a result of the 2010 settlement, an administrator working for the FTC has already mailed 450,177 refund checks to consumers who were harmed by Countrywide's practices.
The FTC alleged that despite the 2010 settlement, BAC Home Loans charged many homeowners fees for default-related services that were illegal or not authorized under their loan documents. The agency also alleged that BAC Home Loans charged fees for title services that were much higher than the maximum $500 disclosed on the company's website. The FTC and BAC Home Loans will file a stipulated order resolving these new allegations, which includes a judgment against the company of $8 million.
To satisfy the $8 million judgment, BAC Home Loans must demonstrate that they have reversed or refunded all of the improperly assessed fees or must reverse or refund such charges within 180 days.
The Commission vote to authorize staff to file the proposed stipulated consent order and execute the bank liability releases was 4-0.
For more information about the case and the FTC's refund program, see www.ftc.gov/countrywide.
The Federal Trade Commission is a member of the interagency Financial Fraud Enforcement Task Force. For more information on the Task Force, visit www.stopfraud.gov