HOLIDAY SCHEDULES:
- PNCT: Thursday, 11/24, PNCT will be CLOSED Thanksgiving Day. Friday, 11/25, PNCT will be OPEN.
- PierPass: Terminals at the Ports of Los Angeles and Long Beach have announced truck gate schedules for the Thanksgiving holiday period of Thursday, November 24, through Sunday, November 27. The schedule is pasted below, and a PDF of the schedule can be downloaded at http://www.pierpass.org/wp-content/uploads/2016/11/Thanksgiving-Weekend-2016.pdf. Please continue to monitor the websites of individual terminals for updates.
Changes to the Reconciliation Program Set for January 2017 - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
Significant changes to the Reconciliation Entry Program are scheduled to soon take effect. Included among these changes are the elimination of blanket entry flagging, a simplification of the application process and changes to the reconciliation transmission procedures. It is imperative that importers and their customs brokers utilizing the reconciliation program understand the impact of these changes in advance of their implementation.
As part of its transition from the Automated Commercial System (“ACS”) to the Automated Commercial Environment (“ACE”), U.S. Customs & Border Protection (“CBP”) has announced changes to the way in which importers will file reconciliations and CBP will process them. CBP’s current target date for the modifications to become effective is January 1, 2017.
As discussed below, the most immediate change for current reconciliation participants relates to the way CBP entries will be identified, or “flagged,” for reconciliation. CBP will no longer automatically “blanket flag” entries for reconciliation. Instead, importers will be responsible for flagging their own entries. Therefore, it is critical that reconciliation participants coordinate with their customs brokers to ensure that any entry subject to reconciliation reporting will be appropriately flagged by the broker. Brokers (and self-filers) will need to either manually flag each entry summary or program their own software to perform blanket flagging.
Additional modifications announced by CBP include changes to the way new participants will join the reconciliation program and the manner in which reconciliation entries will be filed.
Background
Now in its eighteenth year, CBP’s reconciliation program is used by importers to report financial adjustments, including year-end transfer price adjustments, assists, and dutiable royalties (as well as other information relevant to the valuation of merchandise) to CBP after the entry summary has been processed. Prior to reconciliation, importers were required to provide this information via prior disclosure or similar ad hoc reporting.
Under the reconciliation program, the “flag” (notice of intent) identifies that there are issues to be reconciled later, which are separated from the entry summary so that the entry may otherwise be finalized and liquidated. The flag indicates to CBP that a specific data element on the entry summary (e.g., entered value) is not final at time of entry and is subject to future adjustment. Importers have up to 21 months to file a reconciled entry summary (12 months for certain FTA claims). The reconciliation is itself an entry and after CBP review, the reconciliation entry itself will liquidate, with the reconciliation resulting in a single refund or payment of duties, taxes and fees, as appropriate.
Importers may use reconciliation to seek post-entry section 520(d) refunds under the North American Free Trade Agreement (and certain other FTAs), to report changes relating to merchandise imported under Heading 9802, and to report valuation issues, including but not limited to upward and downward transfer price adjustments.1 With respect to tariff classification, an importer may use reconciliation if it has separately established the classification issue by means of a protest, pending administrative ruling, or pending court action.
Modifications to the Program Announced by CBP
Starting on or about January 1, 2017, CBP will implement the following modifications relating to the filing of reconciliation entries designed to further automate the process and remedy existing problems with the program. Those changes include:
• Application Process – New participants will no longer need to apply to CBP Headquarters to join the program. Instead, interested importers will simply need to (1) have a continuous bond on file (single transaction bonds are not allowed); (2) file a reconciliation bond rider; and (3) begin flagging entries for reconciliation.
• Entry Flagging – As noted above, CBP will no longer blanket flag entries. Instead, importers will be responsible for flagging their own entries. Customs brokers (and self-filers) will need to either manually flag each entry summary or program software to perform blanket flagging.
• Reconciliation Transmission – Reconciliation entries will be submitted electronically only in ACE and will not be accepted in ACS. Further, a hardcopy of the line item spreadsheet on disc will no longer be required.
• Reconciliation Reporting – In what CBP expects to be an improvement over the old system, ACE will automatically populate the original value, duties, taxes, and fees relating to the underling entries covered by the reconciliation. Importers will be responsible for reporting the reconciled amounts, as the original entry data will be pulled automatically from the associated underlying entries covered by the reconciliation. CBP has also added a number of program indicators to the reconciliation transmission, requiring importers to provide certain additional information when transmitting a Type 9 Reconciliation Entry (for example, CBP has added fields to indicate whether a prior disclosure has been filed against one or more of the flagged entries covered by the reconciliation and to indicate the relevant protest number, administrative ruling number, or court action number, when the reconciliation relates to a classification issue, etc.).
• ITRAC Reports – CBP will no longer issue Importer Trade Activity (“ITRAC”) reports detailing an importer’s entry activity on an entry line-by-line basis. Instead, ITRAC reports will be replaced by ACE reports.
Certain elements of ACS Reconciliation will remain the same once CBP transitions to ACE Reconciliation, including:
• the types of issues subject to reconciliation (e.g., value, certain classification issues, 9802, and FTA issues);
• the deadlines for filing (12 months for entries flagged for FTA issues, 21 months for entries flagged for other reconciliation issues such as value, classification, and 9802); and
• the types of reconciliation filings (entry-by-entry and aggregate).
If you have any questions regarding this development, please contact Kevin Leonard at k
USITC Institutes Section 337 Investigation of Certain Mobile Electronic Devices - United States International Trade Commission
The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain mobile electronic devices. The products at issue in the investigation are electronic mobile devices that include hardware and software components within the mobile electronic devices, such as integrated circuits, cameras, RF transmitters, capacitors, and System-on-chips.
The investigation is based on a complaint filed by Qualcomm Incorporated of San Diego, CA, on October 14, 2016. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain mobile electronic devices that infringe patents asserted by the complainant. The complainant requests that the USITC issue a limited exclusion order and cease and desist orders.
The USITC has identified the following as respondents in this investigation:
Zhuhai Meizu Technology Co., Ltd., of Zhuhai, Guangdong, China;
Zhuhai Meizu Telecom Equipment Co., Ltd., of Zhuhai, Guangdong, China;
Dest Technology Limited of Shenzhen, China;
LGYD Limited of Shenzhen, China; and
Overseas Electronics, Inc., of Chicago, IL.
By instituting this investigation (337-TA-1029), the USITC has not yet made any decision on the merits of the case. The USITC’s Chief Administrative Law Judge will assign the case to one of the USITC’s administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.
The USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.
PetSmart Agrees to Pay $4.25 Million Civil Penalty, Compliance Improvements for Failure to Report Defective Glass Fish Bowls and Misrepresentation - Consumer Product Safety Commission
WASHINGTON, D.C. – The U.S. Consumer Product Safety Commission (CPSC) announced that PetSmart Inc., of Phoenix, Arizona, has agreed to pay a $4.25 million civil penalty for failing to immediately report to CPSC that “Grreat Choice” and “Top Fin” brand fish bowls contained a defect that could create a substantial product hazard or that the fish bowls created an unreasonable risk of serious injury. CPSC staff also alleged that PetSmart knowingly misrepresented to CPSC the scope of the products that were subject to a recall.
Between August 2011 and January 2014, PetSmart received at least 19 reports of fish bowls cracking, breaking, or shattering during normal use, resulting in serious injuries to consumers in at least 12 cases. The injuries included deep lacerations requiring stitches and severed tendons that required surgery. PetSmart failed to immediately notify CPSC of the defect or risk posed by the fish bowls, as required by federal law.
During CPSC’s investigation, PetSmart failed to identify the correct amount and distribution dates of the fish bowls that posed a laceration hazard to consumers. Consequently, the recall announced in April 2014, involving 10,200 fish bowls sold from February 2013 to September 2013, had to be reannounced and expanded in 2015. PetSmart had failed to identify 81,300 additional fish bowls sold before February 2013 that posed the same hazard, requiring the expansion of the recall in November 2015.
The recalled fish bowls were sold at PetSmart stores nationwide from March 2010 through September 2013 for about $20.
In addition to paying the $4.25 million civil penalty, PetSmart has agreed to maintain an enhanced compliance program to ensure compliance with the Consumer Product Safety Act (CPSA). PetSmart will also maintain a related system of internal controls and procedures.
PetSmart’s settlement of this matter does not constitute an admission of CPSC staff’s charges.
The penalty agreement has been accepted provisionally by the Commission by a 4 to 1 vote.
FAA Offers Air Travel Safety Tips - Federal Aviation Administration
November 15- Federal Aviation Administration (FAA) Administrator Michael Huerta is encouraging travelers to Fly Smart this holiday season.
“I’m asking air travelers to take an active role in aviation safety when they fly this holiday season,” said FAA Administrator Huerta. “Fly Smart and be prepared. Your actions can save your life and those around you.”
Flying is incredibly safe. In fact, this is the safest period in aviation history. Government and industry have significantly reduced the risk of accidents by working together on airplane design, maintenance, training, and procedures – but emergencies can happen.
“While tens of millions of passengers will rely on air travel this holiday season to connect them to destinations around the world, pilots across the country stand ready. On each and every flight, pilots and crewmembers work together to ensure that the passengers and cargo we carry arrive safely and efficiently to their destinations. Over the next few weeks, airports and aircraft will be a little more crowded, and as always, we encourage passengers to be patient and listen carefully to crewmember instructions. Aviation is the safest mode of transportation in the world, and passengers have played an important role in maintaining that incredible record by working with crewmembers and complying with federal guidelines,” said Capt. Tim Canoll, Air Line Pilots Association, International President.
"Bring a spirit of community, watch the safety briefing and listen to your Flight Attendants. As aviation's first responders we are proud to help usher you safely and securely on your travels," said Sara Nelson, International President of the Association of Flight Attendants.
Travelers can make their flight even safer by taking a few minutes to follow these guidelines:
- In the unlikely event that you need to evacuate, leave your bags and personal items behind. Your luggage is not worth your life. Passengers are expected to evacuate an airplane within 90 seconds. You do not have time to grab your luggage or personal items. Opening an overhead compartment will delay evacuation and put the lives of everyone around you at risk.
- Pack safe and leave hazardous materials at home. From lithium batteries to aerosol whipped cream, many items can be dangerous when transported by air. Vibrations, static electricity, and temperature and pressure variations can cause hazardous materials to leak, generate toxic fumes, start a fire, or even explode. When in doubt, leave it out.
- Leave your Samsung Galaxy Note7 smartphone at home. You are prohibited from transporting this recalled device on your person, in carry-on baggage, or in checked baggage on flights to, from, or within the United States.
- If you have spare batteries, pack them in your carry-on baggage and use a few measures to keep them from short circuiting: keep the batteries in their original packaging, tape over the electrical connections with any adhesive, non-metallic tape, or place each battery in its own individual plastic bag. You cannot fly with damaged or recalled batteries.
- Prevent in-flight injuries by following your airline’s carry-on bag restrictions.
- Use your electronic device only when the crew says it’s safe to do so.
- Pay attention to the flight attendants during the safety briefing and read the safety briefing card. It could save your life in an emergency.
- Buckle up. Wear a seatbelt at all times.
- Protect young children by using a child safety seat or device. Your arms cannot hold onto a child during turbulence or an emergency. An FAA video shows how to install a child safety seat on an airplane.
Fly Smart this holiday season and learn more at FAA.gov/passengers. Watch this one-minute video of FAA Administrator Huerta discussing traveler safety.
CBP Officers Locate Nearly Four Tons of Marijuana in Cargo - U.S. Customs & Border Protection
OTAY MESA, Calif. — U.S. Customs and Border Protection officers at the Otay Mesa Cargo Port of Entry seized almost four tons of marijuana last week hidden in a cargo shipment.
“My officers used tools at their disposal to find and seize this large shipment, potentially taking millions of dollars from a criminal organization,” Otay Mesa Cargo Port Director Rosa Hernandez said. “Not only do they enforce typical import and export laws, but they are also vigilant for smuggling attempts like this, she added.”
At approximately 3 p.m. on Wednesday, Nov. 9, CBP officers encountered a tractor pulling a trailer that entered the cargo facility carrying a manifested shipment of “electronics.” The CBP officer conducting the inspection referred the truck and shipment for an x-ray examination.
While the conveyance was in line to be x-rayed, a CBP officer with a human-narcotic detector dog screened the truck, and the canine alerted to the trailer.
During the x-ray exam, CBP officers identified an anomaly and sent the truck and shipment to the dock for a more intensive examination. Officers opened the trailer and found boxes containing more boxes with plastic-wrapped packages. In total, officers found 319 packages hidden inside the boxes, containing about 7,600 pounds of marijuana. The estimated value is approximately $3.8 million.
CBP officers seized the tractor, trailer, cargo shipment and narcotics.
Port of Los Angeles Records Best Month Ever for a Western Hemisphere Container Port - Port of Los Angeles SAN PEDRO, Calif. — November 14, 2016, - Cargo volumes at the Port of Los Angeles increased nearly 16 percent in October compared to the same period last year, marking the busiest month ever at a Western Hemisphere container port, according to data collected by the American Association of Port Authorities.
Total volumes registered at 814,574 Twenty-Foot Equivalents (TEUs), eclipsing the previous record of 800,063 TEUs at the Port of Los Angeles in October 2006.
"We applaud our container terminals, labor and all of the stakeholders in our supply chain that drove this record-breaking volume with speed, efficiency and reliability," said Port of Los Angeles Executive Director Gene Seroka. "It's encouraging to see that when cargo surges, we have the infrastructure, equipment and human capital to keep the boxes moving."
October imports increased 16.4 percent to 417,311 TEUs. Exports jumped 23.3 percent to 166,406 TEUs. Along with a 18.3 percent surge in empty containers, overall October container volumes were 814,574 TEUs.
With total cargo volumes through the first 10 months of 2016 at 7,182,682 TEUs, it represents an increase of 5.25 percent compared to the same period in 2015. Current and past data container counts for the Port of Los Angeles may be found at: http://www.portoflosangeles.org/maritime/stats.asp
FCC Warns Consumers of Scam Using Callers Posing as Utility Employees - Federal Communications Commission
CONSUMER ALERT: UTILITIES CALL SCAM - Beware of Callers Posing as Utility Employees Demanding Immediate Payment
WASHINGTON, November 15, 2016 – The Federal Communications Commission is alerting consumers to be on the lookout for callers pretending to be utility company employees demanding immediate payment, often by prepaid debit cards, credit cards, or gift cards. As American consumers prepare for winter months when many people would be endangered by an interruption to heating fuel, the FCC’s Consumer and Governmental Affairs Bureau wanted to make consumers aware of this scam and prepared to protect themselves.
Key Consumer Tip: If consumers receive a call warning them of a balance they do not believe they owe their utility, they should hang up, independently look up their utility company’s phone number on a recent statement or legitimate website, and call that number to verify the legitimacy of the call. In this scam, the caller typically poses as a representative of the consumer’s actual local utility, stating that immediate payment will ensure that the consumer’s heating service will not be disconnected. The scammers are known to spoof utility company telephone numbers so the caller ID makes it appear to be a call from the utility company. These scammers often use automated interactive voice response calling systems that mimic legitimate providers’ calls. After consumers, many of whom are older adults, follow instructions via interactive prompts, they are connected to a live “customer service representative” who asks for the access code for a credit, debit, or gift card. This information allows the scammer to cash out the card or sell it to a third party.
Anyone who believes they have been targeted by this scam should immediately report the incident to their actual utility company, to local police, to the Federal Trade Commission’s Complaint Assistant, and to the FCC’s Consumer Help Center. Consumers should always be on alert for this scam and others.
The following tips can help ward off unwanted calls and scams:
- Do not answer calls from unknown numbers. Let them go to voicemail.
- If you are unclear if a caller is legitimate, hang up, look up the company’s phone number independently on your recent bill or their legitimate website, and contact them through an official number, web form or email address to see if they called you. By initiating the communication yourself, you can verify that the request for payment is legitimate
- If you answer and the caller (often a recording) asks you to hit a button to stop getting the calls, just hang up. Scammers often use these tricks to identify – and then target – live respondents.
- If you receive a scam call, write down the number and file a complaint with the FCC and other appropriate authorities so we can help identify and take appropriate action to help consumers targeted by illegal callers.
- Ask your phone service provider if it offers a robocall blocking service that allows subscribers to block unwanted calls. If not, encourage your provider to start offering a blocking service. You can also visit the FCC’s website on “Web Resources for Blocking Robocalls” for information and resources on available robocall blocking tools to help you reduce unwanted calls.
- Legitimate utility companies will not demand payment via gift cards. As the agency that implements and enforces the Telephone Consumer Protection Act, the FCC reviews all consumer complaints and will continue, when appropriate, to issue consumer alerts based on those complaints and other public information related to possible scams and frauds.
This is part of a new, standing series of consumer alerts from the FCC in hopes of informing, protecting, and empowering consumers. Office of Media Relations: (202) 418-0500 TTY: (888) 835-5322 Twitter: @FCC
www.fcc.gov/office-media-relations