In response to a report issued by the Government Accountability Office (GAO), citing weaknesses in the in-bond process, CBP has proposed the following rule changes.

Paper In-Bond Application: CBP proposes to eliminate Form 7512, except in the case of goods transported via pipeline.  The new rule would require carriers and/or their agents to electronically file the in-bond application using the Automated Commercial Environment.

In-Bond Determination:CBP has proposed requiring the following additional information in order to determine if cargo will require additional inspection and screening:

1. Either the six-digit HTSUS number or if it is not available, a detailed description of the goods including the exact type of goods in order to allow CBP to determine if such goods are subject to rule, regulation, law, standard or ban regarding health, safety and/or conservation.
2. Goods that are subject to restricted importation must be identified.
3. Any visa, permit, license or other number that is used to identify the goods if such has been issued by either the US, a foreign government or any other issuing authority.
4. Both the seal number and container number in which the goods are transported in-bond.

Cargo Diversion Approval: In-bond carriers will be required to request permission from CBP before their merchandise may be diverted to a different port.  This request will have to be electronically submitted.

Shortening of Arrival Time Reporting: Changing the current rule that requires that in-bond shipments be reported within two days of arrival to within 24 hours of arrival.  Additionally, carriers will have to electronically notify CBP of the physical location of the cargo inside the port.

Tighter Restriction on Immediate Export Entries: Trucks arriving at US ports whos goods are to be immediately exported and who only entry is an IE entry will be refused and could be turned back or allowed to submit a new entry.

Update on Conveyance Seal Options: This is an update to abandon underused and/or obsolete methods for sealing conveyances that are no longer needed or feasible.  CBP also wished to add the following new requirements

1. Either the carrier or some other authorized party must seal container and/or conveyance with seals that conform to the standards set out in 19 CFR 24.13 and 24.13a;
2. The seal numbers must be submitted to CBP as part of the in-bond application;
3. unauthorized seals may result in the imposition of liquidated damages;
4. The seal requirement may only be waived by CBP.

H.R. 4056: To amend the Federal Food, Drug, and Cosmetic Act to prevent a State or political subdivision thereof from conducting or requiring duplicative inspections of establishments in which a drug or device is manufactured, processed, packed, or held by a manufacturer or wholesale distributor of the drug or device.

The bill was introduced on February 15, 2012 by Mr. Bilbray, R-CA (for himself and Mrs. Mack, R-CA, Mr. Calvert, R-CA, Mrs. Davis, D-CA, Mr. Hunter, R-CA, Mr. Lewis, R-CA, and Mr. Royce, R-CA).  The bill was then referred to the House Committee on Energy and Commerce.

S. 2129: A bill to provide for reforming and consolidating agencies of the Federal Government to improve efficiency and effectiveness.

The bill was introduced on February 16, 2012 by Mr. Lieberman, D-CT (for himself and Mr. Warner, D-VA).  The bill was read twice and referred to the Senate Committee on Homeland Security and Governmental Affairs.

The bill was introduced as a result of President Obama’s intentions to consolidate various government trade agencies.

H.R. 4071:To amend title VII of the Tariff Act of 1930 to provide that the provisions relating to countervailing duties apply to nonmarket economy countries.

The bill was introduced on February 17, 2012 by Mrs. Baldwin, D-WI (for herself and Mr. Ribble, R-WI).  The bill was read and referred to the House Committee on Ways and Means.

The bill is an obvious attempt to address the recent decision of GPX International Tire Corp. v. US in the US Court of Appeals for the Federal Circuit.  In the decision, the Court held that the Department of Commerce could not levy counterveiling duties on non market economy countries, which includes China.  The Court found that it was not in the congressional intent to impose such duties.  This bill seeks to amend the congressional intent and thus nullify the ruling of the Court.

President Obama has announced his intention to merge 6 federal agencies in the field of trade and commerce.  The agencies that may be affected are the business and trade functions of the Department of Commerce, the Small Business Administration, the Office of the U.S. Trade Representative, The Export-Import Bank, the Overseas Private Investment Corporation, and the Trade Development Agency.

In order to combine the agencies, President Obama must obtain the proper authorization from Congress; a power that has not been granted since the Reagan administration.  With this authority, the President would be able to propose cost saving measures with final approval of the measures to be voted on by Congress within 90 days.

The proposed merger is believed to reduce costs in government overhead and promote trade by simplifying compliance measures.  The resulting savings would be the result of eliminating 1,000 – 2,000 jobs, all of which would be eliminated through attrition.

UPDATE: Legislation was introduced to the Senate on February 16, 2012 to set this plan into action.

The Department of Homeland Security recently sent out a notice that “Since the issuance of the previous notice, C-TPAT has learned that the tamper evidence element of the ISO 17712:2010 requirements (Clause 6) cannot be met. To date, no accredited independent laboratories have been willing to test and certify seals as complying with the tamper evidence requirement. Consequently, C-TPAT has determined that implementation of the new standard is not viable by the March 01, 2012 deadline.”

C-TPAT partners will be notified when the new standard will go into effect.