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• NCBFAAs 51st Annual Conference Nearly Sold Out, But You Can Still Attend!
• NCBFAA Mourns Passing of Darrell J. Sekin Jr.
• 2024 G▪TEC Scholarship Available to First Timers!
• NCBFAA Celebrates 127th Anniversary!
• NCBFAA Welcomes New Members!
• NCBFAA Legislative Committee Outlines Priorities for Second Session of 118th Congress
• ITT: DHS Funding Adds Nearly $20 Million to Forced Labor Enforcement
• House Passes Ocean Shipping Reform Implementation Act (H.R. 1836)
• Brokers Survived First Week of Organics Import Regulation
• CBP Extends Deadline for CBP Form 1302A Cargo Declaration – Outbound in DIS
• ACE CAMIR and CATAIR Implementation Guide Updates for FIRMS Validations
• CBP Reminder: TIN Required on Check Payments
• BIS License Requirements for OFAC SDNs
• ACE Reports – New Data Elements for Routed Exports
• U.S. Further Restricts Exports to Nicaragua
• CSCB Requests CARM Implementation Delay to Fix ‘Design Flaws’
• Follow NCBFAA on Social Media!
• NCBFAA Seeks Regular Members to Join Media Committee
• Contribute to the MMeB Member Forum!
• Transport, Logistics and Trade Sector Updates of The Week
• Customs and Cross-Border Trade Regulatory Updates of The Week
• Reminder: Ignore Questionable Communications
• Events Calendar

NCBFAA 51st Annual Conference Nearly Sold Out, But You Can Still Attend!

Special Early Bird registration pricing to attend NCBFAA’s 51st Annual Conference at the Fort Lauderdale Marriott Harbor Beach Resort & Spa on April 14-17 is nearly sold out, but there is still availability to attend this important industry event. Register today!

Keep in mind that our conference hotel group rate rooms, as well as exhibit space, are sold out, but that should not preclude any association member from attending this leading industry event.

If unfortunate circumstances require you to cancel your attendance at the Annual Conference at the Fort Lauderdale Marriott Harbor Beach Resort & Spa on April 14-17, please contact Kim O’Beirne at [email protected] immediately! Do not cancel your hotel room reservation at the NCBFAA group rate, since we can transfer those rooms to someone who might need them.

Meanwhile, there are hotels within the vicinity of our conference location, such as the next-door B Ocean Resort Fort Lauderdale. Click here for room rates and availability at the B Ocean Resort Fort Lauderdale. We also encourage you to check out hotel booking sites, such as Expedia, Travelocity, Priceline, and Trivago.

We encourage our members to attend the action-packed NCBFAA 51st Annual Conference and learn about the latest hot topics—regulatory, operational, and legislative—impacting our customs brokerage, freight forwarding, and NVOCC industry. Check out the 2024 Annual Conference agenda here.

Meanwhile, enjoy this video, courtesy of the Florida Customs Brokers and Forwarders Association (FCBF), welcoming NCBFAA 51st Annual Conference attendees to Florida.

[Be aware of companies soliciting mailing lists for our Annual Conference. These emails are spam! Ignore and delete them!]

NCBFAA wholeheartedly thanks our 2024 NCBFAA Annual Conference Sponsors!

Diamond Sponsor

Avalon Risk Management

Platinum Sponsors

Roanoke Insurance Group

Sandler, Travis & Rosenberg, P.A.

Gold Sponsors

Affiliated Presidents Network (APN)

Co/Action

GDLSK

International Bond & Marine Brokerage, Ltd.

WCAworld

Silver Sponsors

e2open, LLC

EPIC Insurance Brokers & Consultants

Louisiana Maritime International Chamber of Commerce Inc.

Raft

Venable LLP

Bronze Sponsors

Alba Wheels Up International, Inc.

Altana Technologies

Descartes Systems (USA) LLC

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NCBFAA Mourns Passing of Darrell J. Sekin Jr.

For more than 50 years, Darrell J. Sekin Jr. had the reputation as a small business pioneer who operated one of the most respected customs brokers in the United States. Sekin passed away Saturday, March 23, at the age of 74.

Sekin was born in Galveston, Texas, in 1950. He received his customs broker license in 1975 and in 1995 received a bachelor’s in business management from LeTourneau University.

Until recently, Sekin served as chairman of DJS International Services in the Dallas-Fort Worth, Texas, a customs brokerage firm which he founded in 1985 after starting his career with his father’s company in the mid-1960s. DJS International Services was acquired by BDP International in April 2021.

Sekin was an active member of NCBFAA starting in the late 1970s and served on and/or chaired numerous committees. Sekin served as NCBFAA President from 2012-2014 and Chairman from 2014-2018. Since then, he was among the NCBFAA Senior Counselors.

Sekin was also active within the industry in his home state of Texas, including the North Texas Customs Brokers and Forwarders Association and the Houston Customs Brokers and Forwarders Association. Internationally, he once served as a U.S. director of the International Federation of Customs Brokers Association.

NCBFAA Past President and Senior Counselor Federico “Kiko” Zuniga called Sekin a “true champion of our industry and a friend of many in this organization.” He added, “Darrell was always willing to stand up for what he felt was right and to protect the position of the license customs broker in international trade. I wish him the peace that he so much deserves, knowing that he is in a better place. Goodbye, my friend.”

Left to cherish Darrell Sekin’s memory are his wife, Marty, two daughters, and three grandchildren.

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2024 G▪TEC Scholarship Available to First Timers!

NEI and Avalon Risk Management are pleased to announce our 4th scholarship to the annual Global Trade Educational Conference (G▪TEC). In 2024, the conference will be held from July 28-30 in Chicago, IL. It is our intention to offer this scholarship on an annual basis to promote education and industry involvement.

NEI’s annual scholarship help cover the following cost:

• Coach Airfare
• Three nights of accommodations at the Intercontinental Chicago Magnificent Mile Hotel in Chicago
• Full Conference Registration fee

NEI is most appreciative of Avalon Risk Management’s generous support of this G▪TEC scholarship program to the international trade community.

To be eligible, the candidate must be a first-time G▪TEC conference attendee, have a minimum of two years of experience in the international trade and logistics industry, and submit an essay. The essay question is on the application form. For consideration, applications must be received on or before May 20, 2024. The scholarship recipient will be notified by May 30, 2024. At that time, the scholarship winner will be provided with all the necessary information for redeeming their scholarship award. The recipient must agree to submit a written essay after attending the G▪TEC conference summarizing their experience at the conference and explaining how their attendance will benefit them and further their career goals. Click here for more information, as well as for the scholarship application form.

If you have any questions, please email NEI Director of Media and Marketing at [email protected].

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NCBFAA Celebrates 127th Anniversary!

NCBFAA on March 22 celebrated our 127th anniversary as an association. We want to thank our more than 1,300 member companies for your support in making us the leading association of the freight forwarder, customs broker, and NVOCC industry. Since our establishment in New York in 1897, we have successfully fostered a membership that maintains highest standards of professionalism and competence in overseeing our nation’s international trade. NCBFAA leadership and staff look forward to continuing to serve you in 2024 and maintain the respected role as the “Voice of the Industry” and “Go To” organization for knowledge by both public and private sector which directs public policies in ways that enhance our industry’s profitability.

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NCBFAA Welcomes New Members!

On behalf of NCBFAA's Board of Directors, Leadership and Staff, we want to take a moment to acknowledge and welcome the following members who have recently joined our association:

• De La Cruz Customs Broker Inc., Aguadilla, Puerto Rico; Brenda de la Cruz, President (email: [email protected])  
• Hotline Delivery Systems, DFW Airport, Texas; Allen Heath, CEO (email: [email protected])  
• Nexus Fleet, Diamond Bar, California; Joanna Zhang (email:  [email protected])    
• Transworld CHB, Inc., Alhambra, California; Showpan Ng, President (email: [email protected]) 

Please join us in giving De La Cruz Customs Broker, Hotline Delivery Systems, Nexus Fleet, and Transworld CHB a warm welcome! We're so excited to have these firms join our organization and we are happy to assist in any way we can!  

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NCBFAA Legislative Committee Outlines Priorities for Second Session of 118th Congress

The NCBFAA Legislative Committee has outlined its legislative priorities for the Second Session of the 118th Congress which includes the 21st Century Customs Framework and Modernization, Section 321 De Minimis, Land Port of Entry Fund (LPOE), and Generalized System of Preferences (GSP) and Miscellaneous Tariff Bill (MTB) reinstatement. Click here for more details.

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ITT: DHS Funding Adds Nearly $20 Million to Forced Labor Enforcement

This March 21 article is re-published in the Monday Morning eBriefing with permission from International Trade Today (ITT). More information about this publication is available here.

By Mara Lee

The funding package that is expected to pass Congress later this week adds $19,968,000 in funding for DHS to detect and detain goods produced with forced labor over the amount in last year’s budget. The funding, which is meant to be spent before the end of September this year, dedicates $114.5 million annually to enforcing the ban on the importation of goods made with forced labor.

The additional appropriations for forced labor enforcement in CBP’s Office of Trade are even more than what the White House asked for—$10,534,000 more—according to a summary from appropriators. Overall, the Office of Trade will have $423,587,000 in funding, up $30,797,000 from the fiscal year that ended last September. Funding since then has been at the same level as last year, through continuing resolutions.

The spending bill also gives $19,968,000 worth of additional funding to CBP to hire 150 officers at ports of entry “to reduce wait times for people and goods entering the U.S.,” the summary said.

“More personnel will help stop the flow of illicit and counterfeit items,” appropriators said.

The bill directs the agency to classify the smuggling of illicit drugs in low-value packages under the de minimis threshold “as an additional priority trade issue under section 117 of the Trade Facilitation and Trade Enforcement Act of 2015.”

It also grants more than $400 million to CBP to buy non-intrusive inspection equipment to screen passenger vehicles at ports of entry, “since passenger vehicles are the primary means by which fentanyl is brought into the U.S. This funding will also expand CBP’s outbound operations on the southwest border with dedicated outbound capabilities to stop the flow of currency, firearms, and other contraband resulting from the sale of fentanyl,” the summary said. That is $10 million more for non-intrusive inspection equipment than in fiscal year 2023.

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House Passes Ocean Shipping Reform Implementation Act (H.R. 1836)

The House of Representatives on March 21 overwhelmingly passed the Ocean Shipping Reform Implementation Act (H.R. 1836) by a vote of 393-24. The bill, which was co-sponsored by Reps. Dusty Johnson (R-SD) and John Garamendi (D-CA), was designed to address certain matters left out of the 2022 Ocean Shipping Reform Act (OSRA 2022).

“We are finally making free trade fair trade and stopping Chinese state-controlled companies from ripping off our country and gutting our manufacturing jobs. Our implementation bill introduced today will finish the job,” Garamendi said in a March 21 press release.

H.R. 1836, however, did not include the Rail Storage Fee bill that Garamendi has been working on with co-sponsor Rep. Andrew Garbarino (R-NY). It’s also unclear when the Senate will take up H.R. 1836.

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Brokers Survived First Week of Organics Import Regulation

The rollout of the new USDA Organics Import regulation occurred March 19 and most customs brokers seemed to be well-prepared. As they experience the new requirements, many customs brokers and importers have raised questions about the NOP Import Certificate and about who needs to be certified as the Organic Importer or the Organic Exporter. The NCBFAA Regulatory Agencies (RAC) continues to work with the Agricultural Marketing Service (AMS) National Organic Program (NOP) to resolve outstanding issues.

The USDA will post FAQs on Monday or soon thereafter at this site. The link will also be posted on NCBFAA's website, alongside the Organics Toolkit.

Following are some of the latest RAC FAQs that surfaced in recent days:

Q: Did the Organics rule implementation begin on March 19 for all organic imports arriving in the U.S.?

A: No, the implementation applies to products departing from the foreign country on that date. The communication from the government created some confusion on that point.

Q: Can the Nonresident IOR (who is the certified Organic Exporter) also be listed in Box 7 of the NOP as the Recipient in the U.S. (even though he does not have a US address)?

A: Yes – though the Nonresident IOR should be aware that he must be certified as both the Organic Exporter AND the Organic Importer.

Q: My client is a Canadian company that has an affiliated U.S. company who is the Buyer, but shipments go directly to hundreds of customers' distribution centers. Can the U.S. company/Buyer be the U.S. Recipient in Box 7, even though the shipments are being delivered to hundreds of the Buyer's customers' distribution centers?

A: Yes, that is perfectly acceptable and the affiliated U.S. Company/Buyer needs to be certified as the Organic Importer. The U.S. Recipient in Box 7 of the certificate does not necessarily have to be the "Deliver to" party.

Q: We release a shipment certifying from the CF7501 with an estimated value/quantity from the Canadian shipper. The product is bulk and upon receipt by the U.S. Importer, they weigh it and provide us with a corrected invoice per the actual or verified quantity. We have entered the shipment with the NOP Import Certificate number and estimated weight, but now need to amend it for quantity/value change of the organic product to what was received. The changes are not significant, but the software does not allow transmission of an updated message set of the correct quantity to USDA.

A: The USDA will receive the corrected weight since the updates that you make are tied to the import certificate – when a report of import certs is run, the updated weight or any changes will be automatically updated in USDA's system too as they get real time (or at least updated every midnight with the lastest versions). So, if the Import Certificate said 120KG, and the broker updates the actual weight after import to 150KG, that amount would carry over – and that is the weight USDA would use.

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CBP Extends Deadline for CBP Form 1302A Cargo Declaration – Outbound in DIS

Due to increased trade participation in the ACE Electronic Export Manifest (EEM) pilot, Customs and Border Protection (CBP) said it is extending the use of the Document Image System (DIS) as an acceptable method to submit the form 1302A Cargo Declaration from April 1 to Oct. 1, 2024.

“This extension is intended to provide additional time for affected trade participants to adequately program and test with their assigned CBP Client Representatives. Trade participants currently programming and testing should work towards transitioning over to submitting 100% EEM prior to October 1, 2024,” CBP said.

The agency plans to announce in the Federal Register a Notice of Proposed Rule Making (NPRM) that will mandate the submission of the EEM. After the announcement, CBP will move to disallow the DIS as an acceptable means to submit the export manifest (i.e., CBP form 1302A and its associated documents).

Carriers submitting 100 percent EEM will no longer be required to submit CBP Form 1302A in paper or to DIS. Carriers currently submitting 100 percent EEM are identified in Appendix P of the Electronic Export Manifest Implementation Guides. 

Interested carriers, NVOCCs, and service providers should contact their respective CBP Client Representative for instructions. CBP Field Offices and Trade can also submit questions directly to the Outbound Enforcement and Policy Branch, at [email protected].

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ACE CAMIR and CATAIR Implementation Guide Updates for FIRMS Validations

Customs and Border Protection (CBP) recently deployed to the ACE Certification (CERT) Environment an update that requires the Facilities Information and Resource Management System (FIRMS) code when arriving an in-bond for Non-Air.

CBP said the following implementation guides have been updated to emphasize that the FIRMS field is mandatory when reporting the arrival for all In-Bonds:

In-Bond

• CATAIR In-bond arrival via WP application – FIRMS Location on In-Bond Arrival - Positions 48-51. For Action Code of ‘1’, ‘2’, or ‘3,’ the FIRMS Code must be reported. Please note this is not required for an Air in-bond arrival.

ACE Rail 353

• Rail X12 – 353, “Events Advisory Details Transaction Set,” for M1501 message codes of ‘1’, ‘2’, or ‘3’, the FIRMS Code must be reported in the M1517.

ACE Ocean Manifest 353 Events Advisory Details Transaction Set

• Ocean X12 – 353, “Events Advisory Details Transaction Set,” for M1501 message codes of ‘1’, ‘2’, or ‘3,’ the FIRMS Code must be reported in the M1517.

ACE Ocean CAMIR In-Bond Vessel Departure Arrival Message

• Ocean “In-Bond Vessel Departure Arrival Message” HI Application – H01 - Positions 76-79, reporting the FIRMS Code for Message Code of ‘1’, ‘2’, or ‘3,’is required.

ACE Truck Manifest ANSI X12 353 Message

• Truck ANSI X12 -353, “Events Advisory Details Transaction Set,” for M1501 message codes of ‘1’, ‘2’, or ‘3,’ the FIRMS Code must be reported in data element M1517.

Standard Truck Manifest CUSREP Conveyance Report Message

• Truck UN/Edifact – “CUSREP Conveyance Report” - BGM – Data Element 1225 - Message Function Code “64.” Reporting an in-bond arrival must also transmit the LOC record reporting the FIRMS Code of the facility at the port/point of in-bond destination, where the shipment is kept prior to entry/export in data element C519.

ACE FTZ CATAIR

• DRAFT FTZ CATAIR v3.1.1 was created to reflect these FIRMS code changes Foreign Trade Zone (v3.1.1) - Draft FIRMS Code.

To clarify the previous CSMS# 59651310 message regarding to the Foreign Trade Zone (FTZ) update, CBP said a new condition was added indicating when a FIRMS code is mandatory for reporting of FTZ Physical Arrival of Goods - FZ Application - FZ10 – record in which the Action Qualifier field is '3' and the Action Code field is 'I'. The FIRMS Code must be reported in positions 65-68. CBP noted this update is not required for an Air In-Bond Arrival.

“The changes related to this FIRMS code update will be deployed sooner than the updates to FTZ related to Ocean House bill, noted in the FTZ CATAIR v3.6 DRAFT Ocean House Bill. Therefore, FTZ CATAIR v3.1.1 DRAFT FIRMS Code was created to reflect these FIRMS code changes only. Both draft versions of the FTZ CATAIR are posted on the ‘DRAFT CHAPTERS: FUTURE CAPABILITIES’ section,” CBP said.

In addition, the Trade Manifest In-Bond UI has been updated to require the FIRMS code when arriving an in-bond. In the future, users will not be able to arrive an in-bond without entering a valid FIRMS code.

Reach out to your CBP Client Representative if you have any technical-related questions. For Policy/Operational questions about this requirement, email [email protected].

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CBP Reminder: TIN Required on Check Payments

Customs and Border Protection (CBP) in the Pembina, North Dakota port of entry issued a reminder that all persons making payment to the agency by check must provide their Taxpayer Identifying Number (TIN) when paying CBP. The TIN should be written on the face of the check. “Providing the TIN on the face of the check will facilitate payment processing,” CBP said.

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BIS License Requirements for OFAC SDNs

A Bureau of Industry and Security (BIS) final rule, effective March 21, imposes license requirements on exports, reexports, and in-country transfers of items subject to the EAR, when a party to the transaction is on one of the fourteen OFAC SDN-related programs. Eleven of the programs are new to BIS’s Export Administration Regulations (EAR) and three of them already had license requirements under the EAR, although this rule consolidated and harmonized them with the other eleven. 

The rule creates license requirements for items subject to EAR, including items outside the U.S. Some license requirements may overlap with OFAC’s license requirements or go beyond OFAC’s license requirements. If OFAC has a General License or issues a specific license that authorizes the transaction, then a license is not needed from BIS unless there is a separate/additional license requirement somewhere else in the EAR (i.e., 600 series, ECCN/list-based control). 

Association members should review this rule in its entirety and share it with their foreign offices and partners. Not only do foreign companies need to consider the risks and mitigation measures outlined in the Tri-Seal Compliance Note (see March 11 MMeB article, “U.S. Reminds Foreign Entities of Sanction and Export Control Compliance”) which BIS, OFAC, and DOJ sent out recently, they now need to consider the requirements in this new rule. Members should reach out to their principal party in interest customer when there is a red flag or compliance concern.

The rule’s saving clause allows exports that require a license because of the rule to proceed to their destination under their previous authority if they were aboard a carrier to a port by March 21 and the export is complete by no later than April 22.

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ACE Reports – New Data Elements for Routed Exports

Starting March 22, 10 additional data elements are available in the ACE export reports for routed export transactions. The Census Bureau made the announcement last week in which the below list of data elements were added to the ACE 203 export report. The NCBFAA Export Compliance Subcommittee was privileged to have the opportunity to assist Census with this project by providing input on the data elements and report examples.

• USPPI Contact Name
• USPPI Contact Phone
• Forwarder Company Name
• Forwarder Contact Name
• Forwarder Contact Phone
• Unit of Measure (Quantity 1)
• Unit of Measure (Quantity 2)
• Late File Indicator
• License Type Code
• License Number

The regulatory language in 15 CFR 30.3(e)(2), which lists data elements that the authorized agent it to provide to the USPPI in a routed export transaction, has not changed. The Export Compliance Subcommittee has requested that Census provide guidance to confirm that freight forwarders acting as authorized agents may provide USPPIs with EEI filing reports that include these additional data elements.

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U.S. Further Restricts Exports to Nicaragua

The Bureau of Industry and Security (BIS) issued a final rule, effective March 15, which expanded the controls for exports and reexports to Nicaragua of all items subject to the Export Administration Regulations (EAR).

Controls were expanded and new license requirements added by moving Nicaragua from BIS Country Group B to the more restrictive Country Groups D:1 and D:5. In addition to the ECCN list-based license requirements imposed by moving to a more restrictive country group, shipments to Nicaragua are now also subject to the military end use/user (MEU) requirements.

A savings clause allows exports that require a license because of the rule to proceed to their destination under their previously authority if they “were on dock for loading, on lighter, laden aboard an exporting carrier, or en route aboard a carrier to a port of export” on March 15 if the export, reexport, or transfer (in-country) is complete by April 15.

In line with BIS, the Directorate of Defense Trade Controls (DDTC) issued a final rule on March 15 which added Nicaragua to Part 126.1 of the International Traffic in Arms Regulations (ITAR) to prohibit imports, exports, and sales of items subject to the ITAR to or from Nicaragua.

Freight forwarders should reach out to their principal party in interest customer if they have a licensing concern.

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CSCB Requests CARM Implementation Delay to Fix ‘Design Flaws’

Candice Sider, Vice Chair of the Canadian Society of Customs Brokers (CSCB), during a March 21 hearing before Canada’s Standing Committee on International Trade (CIIT) testified that the Canadian Border Services Agency (CBSA) should delay its May 13 “big bang” implementation of the CBSA Assessment and Revenue Management (CARM) system to October 2024 until “design flaws” are sufficiently resolved.

In her prepared testimony, Sider warned that the May 13 CARM implementation could result in upheaval for Canadian cross-border trade. Canada’s customs brokers, which clear more than 90 percent of Canada’s imports, “need a functional system,” she said.

The CSCB Vice Chair peaked CIIT members’ attention when she explained how during CARM testing the system failed to detect import tariff errors which could result in improper duties and taxes being collected by the Canadian government.

Watch the recorded March 21 CIIT hearing, which includes Sider’s testimony as well as other industry leader testimony, here.

Janine Harker, CSCB President, and Deborh OsBorne, CSCB Chair, were in attendance to support the work of the CIIT Committee and would like to acknowledge CSCB Board of Directors and members for their support.

Association members of the North American Customs Brokers Alliance (NACBA) expressed “deep concern” about CARM’s implementation to CIIT in a detailed letter on March 15. NACBA consists of CSCB, Canadian International Freight Forwarders Association (CIFFA), NCBFAA, and Confederación de Asociaciones de Agentes Aduanales de la República Mexicana (CAAAREM). Read the full letter to CIIT here. 

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Transport, Logistics and Trade Sector Updates of The Week

Here is a summary of the latest legislative and regulatory transport, logistics and trade sector updates brought to you by our NCBFAA Transportation Counsel firm Venable:

Labor Negotiations at East and Gulf Coast Ports Underway

The Wall Street Journal on March 11 reported that the International Longshoremen’s Association (ILA) is threatening to initiate strikes at East Coast and Gulf coast ports unless an agreement with ocean carriers and ports can be reached before the expiration of the current agreement, Sept. 30, 2024. The union represents over 45,000 workers from Maine to Texas and has urged its local chapters to push for informal resolution with local employers by May 17, as formal negotiations would begin after local agreements are reached.

Countries Support Fee on Global Shipping Sector’s CO2 Emissions

Various news media on March 18 reported that 47 countries, including Canada, Japan, and members of the European Union, are urging support at current International Maritime Organization (IMO) meetings for new proposals that would impose a per ton fee on carbon emissions in the global shipping sector. The fees are estimated to raise over $80 billion a year, which could be reinvested into decarbonization efforts. However, opponents of the proposal such as China and Brazil assert that the fee would unfairly penalize developing economies dependent on trade.

China Invests in Modern Container Port in Peru

Bloomberg on March 20 reported on a recent Port of LA conference call where an APM terminal representative discussed China’s state-owned Cosco Shipping’s construction of a large, modern container port in Peru. The port is expected to redefine ocean transport services in and out of the west coast of South America. Cosco’s facility is expected to begin operations in late 2024 or early 2025.

MARAD Releases Strategic Plan for FY 2022-2026

The Maritime Administration (MARAD) on March 14 published its Strategic Plan for Fiscal Year 2022–2026. Among other things, the plan reiterates MARAD’s focus on US shipbuilding and repair of the industrial base to move domestic cargo.

MARAD Announces $450 Million in Port Investments

The Maritime Administration (MARAD) on March 13 published a Notice of Funding Opportunity (NOFO) for $450 million through its Port Infrastructure Development Program (PIDP) to support the modernization of US coastal and inland waterway ports and to strengthen domestic supply chains. The deadline for applications is May 10, 2024. Additional information on the NOFO is available on www.grants.gov (CFDA number 20.823).

Updates for USDOT FLOW Initiative

The U.S. Department of Transportation on March 20 announced that the Freight Logistics Optimization Works (FLOW) initiative has begun publishing data on inland freight hubs to enhance visibility on future container import volumes and traffic. The announcement marks the second anniversary of the FLOW initiative.

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Customs and Cross-Border Trade Regulatory Updates of The Week

Here is a summary of the latest customs and cross-border trade regulatory updates brought to you by our NCBFAA Customs Counsel firm Sandler, Travis & Rosenberg:

$365 Million Settlement Highlights Need to Tread Carefully on Tariff Engineering

Tariff engineering is a proven and legitimate way for importers to lower their duty liability, but a major settlement announced this week illustrates that this strategy is subject to close federal scrutiny. Customs and Border Protection (CBP) must levy duties on goods in their condition as imported. This has led importers in a variety of industries where high duties prevail to import products in unfinished or embellished forms to legally take advantage of classification provisions carrying a lower or free rate of duty. For instance, components imported separately may fall into an entirely different tariff provision than the finished product and may thus be excluded from a higher duty. However, as a recent settlement in a long-running dispute illustrates, using this strategy is not without its risks. See full article here.

Fees on Ships, Other Measures Sought in New Section 301 Petition

U.S. labor groups have submitted a Section 301 petition seeking U.S. government action to counter China’s acts, policies, and practices in the maritime, logistics, and shipbuilding sector. The Office of the U.S. Trade Representative has 45 days to determine whether to initiate an investigation. The petition asserts that the U.S. commercial shipbuilding industry “is a shell of its former self,” currently ranking 19th in the world in terms of global commercial vessel production, and that “the biggest obstacle to the industry’s recovery is the unfair trade practices of the world’s largest shipbuilding nation: China.” The petition asserts that China “has seized market share, suppressed prices, and created a worldwide network of ports and logistics infrastructure that threaten to discriminate against U.S. ships and shipping companies, disrupt supply chains, and undermine vital national security interests.” See full article here.

ACE 2.0 Development Moving Ahead Slowly

Customs and Border Protection (CBP) appears to have signaled at least a slight delay in the development of a new system that will ultimately replace the Automated Commercial Environment (ACE). CBP has said that ACE 2.0 will not be a refresh of ACE or a set of incremental changes but instead is intended to be a new system designed to ensure that CBP has the technology to implement the reimagined trade processes developed as part of the 21st Century Customs Framework to align with modern supply chains. CBP states that this system will allow it and its partner government agencies to receive better-quality data much earlier in the supply chain, often in near-real time from traditional as well as non-traditional actors, which will facilitate better, faster, and earlier government responses and determinations on cargo. See full article here.

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Events Calendar

• CBP 2024 Trade Facilitation and Cargo Security Summit, Philadelphia, Pennsylvania, March 26-28. Register here.

• BIS Update Conference on Export Controls and Policy, Washington, D.C., March 27-29. Register here.

• CBP Webinar: Combating Fentanyl and Other Synthetic Drugs, April 3, 1:30 p.m. ET. Register here.

• CBP Webinar: Antidumping and Countervailing Duty Cargo (AD/CVD) Messages – Project Harvest, April 3, 3 p.m. ET. Register here.

• CBP NCSD Consumer Products and Mass Merchandising Branch 4th Annual Virtual Trade Forum, April 3-4. More details available soon.

• Missouri District Export Council and BIS Complying with U.S. Export Controls Seminar, St. Louis, Missouri, April 9-10. Register here and details here.

• NCBFAA 51st Annual Conference, Fort Lauderdale Marriott Harbor Beach Resort & Spa, Fort Lauderdale, Florida, April 14-17. Register here.

• CIFFA’s 75th Anniversary Conference and Trade Show, Westin Toronto Airport, Toronto, Canada, April 23-24, 2024. Registration and Details here.

• Diaz Trade Law—Navigating CBP Regulations: Essential Practices for Import Success, World Trade Center Miami, Miami, Florida, May 23 · 9 a.m.-12 p.m. ET. Register here.

• CBP 2024 Chicago Trade Day—Forging Partnerships, Empowering Commerce, Four Points by Sheraton, Schiller Park, Illinois, June 11, 8:30 a.m.-4:30 p.m. For registration and details, email [email protected].

• USCS-Philadelphia ACE Exports Compliance Webinar, June 11-12, 9 a.m.-1 p.m. ET. Register here.

• CESAC, In-Person Only, USDA APHIS Conference Center, Riverdale, Maryland, June 25-26 (June 25 - Trade Only).

• VMA24: International Trade Symposium, Norfolk, Virginia, Oct. 8-10. More details here.

• CESAC, In-Person Only, USDA APHIS Conference Center, Riverdale, Maryland, Oct. 22-23 (Oct. 22 - Trade Only).

As a service to our members, NCBFAA Leadership engages in an enormous amount of internal work and external engagement with the U.S. government and other members of our trade community. We report these meetings as an FYI to our membership. All meetings with an asterisk (*) are for Leadership or invite-only. For more information about other meetings, please contact us.

• Monday - *Officers Call, *Legislative Committee Leadership Call, *Customs Committee Leadership Call
• Tuesday - NCBFAA Staff Meeting
• Wednesday - *APN Committee Call
• Thursday - *21CCF Task Force Call
• Friday - *Week in Review Board Leadership Call

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