Major Changes Affecting U.S. Importers & Trade Community Signed Into Law

Date: February 26, 2016
Subject: Major Changes Affecting U.S. Importers & Trade Community Signed Into Law
On February 11, 2016, the U.S. Senate passed Bill H.R. 644 “Trade Facilitation and Trade Enforcement Act of 2015”. President Obama has signed the legislation into law.

This legislation presents U.S. importers and other members of the trade community with significant changes and opportunities to enhance their trade programs. Highlights of the bill include the following:

Effective March 11 this year, the value limit for ‘Sections 321’ declarations will increase from US$200 to US$800 in value (per importer and per day). The Section 321 provision allows for most manifested goods to be released by Customs without an entry being filed and free of duty or tax.

Effective April 25 this year, HTS Chapter 9801 will be amended to allow non-U.S. goods duty free entry after having been exported from the U.S. if returned within 3 years, without drawback claimed and neither advanced in value or improved in condition.

By August 23 this year, Customs will establish new importer bond guidelines and amounts based on the level of associated risk to federal revenues.

By early 2018, the U.S. duty drawback program will be simplified including standardized time frames and updated record-keeping requirements.

Customs is to create minimum standards to identify importers and establish penalties for customs brokers who do not meet those requirements.

Additional Customs resources will be dedicated to address the transshipment of illegal honey.

Bulk cargo residue, comprising 7% or less of the original load, contained in Instruments of International Traffic (IIT) being returned to the U.S., after having been exported, may be entered duty free.

The December 31, 2016 deadline for the use of the International Trade Data System (ITDS) is now codified. The ITDS allows Participating U.S. Federal Government Agencies (PGA) to more efficiently oversee the entry of import transactions and related documentation.

Delmar International offers multiple solutions, including customs brokerage, ground transportation and warehousing, to help importers take full advantage of these changes. Please contact your local Delmar International representative.

Affected parties are encouraged to review all related information and carefully consider any changes to their U.S. trade programs. Additional information regarding this bill is available through Delmar International’s U.S. Advisory Services Group in Champlain, NY at 518-206-4129 or click here.

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