Global Trade Pros Converge in Chicago for Cutting-Edge Industry Insights
Global Trade Educational Conference (GTE), hosted by NCBFAA, celebrated its 10th year by bringing together over 300 importers, exporters, customs brokers, freight forwarders, service providers, and global logistics professionals from across the United States. For two days in Chicago, international trade professionals had the chance to update themselves on industry developments and connect with both new and familiar colleagues.
Participants learned from industry subject matter experts about pressing issues in international freight and CBP regulations. They gained fresh ideas through networking at various social venues and received updated knowledge about upcoming regulations from government agency representatives. Additionally, attendees had the opportunity to voice their questions to industry experts about the latest issues affecting their businesses.
Important Tips from the Global Trade Educational Conference
1. AES Compliance for USPPIs & Filers
- Awareness of Regulations: Regardless of company size, exporters must be knowledgeable about regulations governing Customs regulations. Ignorance of the law is not an excuse and can lead to significant penalties, delays, and even legal action. Staying informed about changes in regulations and seeking guidance from experts such as Customs Brokers at NUCO Logistics can help mitigate risks and facilitate successful global business transactions.
- Key Questions for Exporters:
- What is the final destination of their export cargo?
- What is the cargo used for at the destination?
- Who is the final consignee?
- Upcoming Changes: Major changes are expected by the end of September 2024, including improved instructions for shipments transiting the US and increased reviews of Electronic Export Information (EEI) filings by Partner Government Agencies (PGA).
- Electronic Export Manifest (EEM): Soon to be activated, requiring filers or exporters to complete it as part of their export documentation process. This new requirement aims to streamline and modernize the export reporting system, enhancing the accuracy and efficiency of data collection. BY transitioning to an electronic format, the EEM will facilitate quicker processing times and improve compliance with international trade regulations. Exporters must familiarize themselves with the EEM procedures and ensure they are prepared to submit the necessary information electronically to avoid any disruptions in their export activities.
2. Anti-Dumping and Countervailing Duties (AD/CVD)
Antidumping (AD) and Countervailing Duties (CVD) are trade remedies used to protect domestic U.S. industries from unfair competition. Antidumping duties are imposed when a foreign company sells a product in the U.S. at a price lower than its fair market value, which can harm U.S. businesses. Countervailing duties, on the other hand, are levied to counteract subsidies provided by foreign governments to their exporters, which can also distort fair competition.
These duties help ensure a level playing field for domestic industries by offsetting the advantages gained through unfair pricing or subsidies. Understanding and complying with AD and CVD regulations is crucial for businesses involved in international trade to avoid penalties and ensure smooth operations.
- Retroactive Nature: AD/CVD duties are retroactive.
- Continuous Bond Evaluation: Importers of Record (IOR) must ensure their Continuous Bond covers the entire 12 months of imports or consider increasing it. Insufficient bonds may require filing a Collateral, which can be challenging to obtain.
- Exclusions: Duty Drawback (DDB) and Foreign Trade Zones (FTZ) are not applicable for AD/CVD cases.
- Supply Chain Importance: Brokers and surety companies are crucial components of the supply chain.
3. Foreign Trade Zone (FTZ) & Duty Drawback (DDB)
- Benefiting Industries: Industries that benefit from FTZ include:
- Shipyards/Offshore Drilling Rig Production
- FTZ Warehouses
- Pharmaceutical/Chemical
- Oil Refineries
- Machinery/Equipment
- Electrical Machinery
- Engine Production
- Consumer Electronics
- Medical Equipment
- Section 301 Duties: Eligible for duty drawback as per CSMS Message 18-00419.
- Waiver of Prior Notification (WPN): A waiver of prior notification allows exporters to bypass the requirement of notifying customs authorities before exporting or destroying merchandise that may be eligible for a drawback claim. This waiver can streamline the export process by reducing administrative steps and expediting the handling of goods. To apply for this waiver, exporters must submit a written application to the appropriate customs office, detailing their eligibility and compliance with relevant regulations. This process is particularly beneficial for businesses looking to enhance efficiency and reduce delays in their export operations. A privilege of DDB, allowing export without advance notification to US Customs, granted after approval of the drawback privilege application.
These tips were part of the valuable information shared at the Global Trade Educational Conference (GTE), hosted by NCBFAA, highlighting the critical need to stay informed and compliant in the ever-evolving field of international trade.
If you are interested in learning more about the new Electronic Export Manifest, Waiver of Prior Notification or navigating through customs duties requirements and regulations, please contact NUCO Logistics. and one of our in-house experts can go over the program with you, providing detailed guidance and support to ensure you are fully prepared for these changes. Our team is dedicated to helping you understand and comply with all necessary procedures, making your export process as smooth and efficient as possible.
Discover more from NUCO Logistics
Subscribe to get the latest posts sent to your email.