This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
The Pacific Coast Council — San Diego, Los Angeles, Northern California, Columbia River, and Washington State customs brokers and freight forwarders — will continue its role as a member of COAC on Capitol Hill, with CBP, the FMC, and other agencies in 2020.
The independent licensed customs broker, often closest to the importer and best positioned to assure compliance, must have the same authority as all others, to facilitate direct-to-consumer de minimis imports, via Section 321 — e-commerce.
The PCC is eager to work with CBP on updating regulations to better align with the changes in supply chain and distribution channels, especially direct-to-consumer. CBP testing programs such as Entry 26 in the ocean mode and potential ocean manifest cargo release by Section 321 may conflict with ISF and other CBP security regulations.
Other government agencies continue to migrate into a single window. Compliance with APHIS Core, mandatory during 2020, poses a significant challenge. Trade remedies have created a significant new burden on international trade generally and import compliance specifically. First the importers or brokers must pay the duty, then they must file for refunds, monitor expirations, quantities, and exclusions — non-productive and costly use of personnel.
International trade processes are changing faster than federal laws and regulations can adapt. We are in the middle of an information-gathering revolution, with data pilots and blockchain pilots. Physical movement of cargo is changing with autonomous vehicles, drones, etc. Money transfers in ways unimaginable just a few years ago. CBP and other agencies struggle to keep up with the “new world.”
On exports, we are pleased that CBP is working closely with our PCC Export Committee chair to modernize export documentation compliance, reduce penalties, and restore post-departure filing.
Finally, but perhaps most importantly, USMCA must be passed and implemented. Delay is restraining growth and investment along the entire border, creating uncertainty for the customs brokers who must implement new processes and regulations stemming from the labor, intellectual property, and security provisions of USMCA.