Two Minutes in Trade:
Podcast from Sandler, Travis & Rosenberg
By Lenny P. Feldman*
Staying on top of the international trade developments can be difficult these days but listening to St&R’s Two Minutes in Trade podcast is like having your own daily briefing.
Lenny Feldman, Senior Member, discusses the Consumer Product Safety Commission’s recent increase in cargo holds and the CBP release process. Podcast link follows or simply read below. TMIT Cargo Release.
Today’s Discussion: Let My Cargo Go! When Are Imports Actually Released?
Importers are facing a substantial uptick in cargo delays due to reviews by the Consumer Product Safety Commission (CPSC). Products can include everything from children’s toys, clothing and imitation jewelry; generators; bicycles; and flammable adult clothing articles, to a name a few.
The CPSC explained that at the same time it receives notification of an incoming product of interest, importers and their customs brokers will receive an “under review” message, signifying that CPSC needs to review the entry. The review itself will not impact the flow of the goods unless CPSC determines that an intensive exam is required and CBP agrees. If, after review, CPSC determines a shipment requires examination, the CPSC will indicate as such through the ACE entry system.
CPSC presented this update through its One U.S. Government Messaging (1USG) program, under which federal agencies with cargo hold authority participate. And it is that very 1USG message that continues to confuse traders.
CBP explains in its ACE Cargo Release Business Process that a “1USG message” indicates that merchandise has arrived, all data required for entry has been submitted, that all PGAs that regulate the merchandise have issued a may proceed and CBP had conditionally released the merchandise from its custody. In the same document, CBP explains that an “under review” message delays issuance of the “1 USG message” until review is completed, and the merchandise is determined to be admissible into U.S. commerce.
So, where does that leave us in our CPSC and other agency scenarios? We know an importer can move the cargo into the stream of commerce if not held for exam. However, regardless of resolving a cargo review with a “may proceed message,” CBP or the agency can issue a notice of redelivery, usually within thirty days from entry or examination. In other words, even if CBP released the cargo an enforcement action still is possible if the importer cannot redeliver the merchandise and may have received a 1USG message. Truly a case where traders understandably are receiving not one but numerous mixed messages from the U.S. Government when it comes to cargo release.
Lenny Feldman is a Member of Sandler, Travis & Rosenberg, P.A., resident in the Miami office and a member of the firm’s Operating Committee. He currently co-chairs the twenty-member U.S. Customs and Border Protection’s Commercial Customs Operations Advisory Committee providing strategic recommendations directly to CBP and the departments of Homeland Security and the Treasury on issues such as e-commerce policy, trade partnership programs, enforcement and facilitation mechanisms, and regulatory reform.
Mr. Feldman innovatively and resourcefully resolves complex issues pertaining to import classification compliance and tariff engineering; valuation requirements and first sale duty savings; seizure and penalty prior disclosures and mitigation petitions; antidumping and countervailing duty administration and enforcement; trade preference qualification for NAFTA/USMCA, CAFTA-DR, and other programs; intellectual property pre-compliance and forfeiture defense; importer/broker compliance reviews and cost savings analysis; export control reviews and enforcement strategies; and CTPAT/border security certification, validation, and suspension/revocation support.
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