CBP

From Chaos to Compliance: A Guide for Importers

Many mistake the ease of importing to mean there is no liability or obligation on the part of the importer. Whether your company is new to importing, or has been in the business for years, CBP expects importers to use “reasonable care” to ensure compliance with relevant rules and regulations. Importers are at risk of being subject to enforcement actions by CBP if they do not comply with the reasonable care standard when importing goods into the U.S. This article provides an overview of CBP’s expectations of an importer and practical advice on what you must have in your import compliance plan.

How Did We Get Here?

December 8th, 1993, the Dow Jones reached a record high of 3734.53, Janet Jackson’s “Again” remained number one on the charts, and President Bill Clinton signed the Customs Modernization Act (Mod Act). The Mod Act altered the import compliance landscape by making it the responsibility of the importer to classify items, determine their value, etc. The law also imposed a legal obligation to use “reasonable care” in doing so, or else Customs could (and would) impose penalties.

What Exactly is “Reasonable Care”?

Reasonable care requires importers to conduct themselves as a reasonable importer would under the circumstance with respect to importing goods into the United States.

Reasonable care requires importers to:

  • Meet the standard to enter, classify and determine the value of imported goods
  • Provide other information necessary to aid CBP in properly assessing duties and collecting accurate statistics
  • Determine whether other applicable legal standards and […]
By |2024-04-19T15:30:55-04:00April 19, 2024|Import, Pre-compliance|0 Comments

The False Claims Act: Get Paid to Expose Fraud & Unfair Competition, Protect Yourself from an Investigation

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!! UPCOMING False Claims Act Webinar !!

Learn how to expose fraud, blow the whistle on unfair competition, and avoid being the target of an FCA investigation

May 9, 2024 | 12:00 PM ET

Speakers: Jennifer Diaz, President &Dana Watts, Of Counsel, Diaz Trade Law and Jonathan Tycko, Partner, Tycko & Zavareei LLP

Register HERE.

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The False Claims Act (FCA) is a powerful federal anti-fraud law that incentivizes average people to expose fraud. The law attempts to reward whistleblowers and disincentivize committing fraud and can be used to expose customs fraud.

What is the False Claims Act?

The FCA, 31 U.S.C. §§ 3729 – 3733, is a federal statute enacted in 1863 in response to defense contractor fraud during the Civil War.

The FCA provides that any person who knowingly submits, or causes to submit, false claims to the government is liable for three times the government’s damages plus a penalty. Conspiring to commit these acts also is a violation of the FCA.

The FCA allows the U.S. government to investigate perpetrators of fraud directly, but it also provides an avenue for private citizens to become whistleblowers and expose fraud.

The Department of Justice (DOJ) obtained more than $2.68 billion in settlements and judgments involving fraud and false claims in the fiscal year ending Sept. 30, 2023.

The FCA and International Trade

The FCA is commonly used to prosecute financial crime such as misuse of federal grants and healthcare related claims. However, in recent years the FCA has been increasingly used to allege customs duty […]

Updates to CBP’s Global Business Identifier Test

On February 12, 2024, CBP announced key updates to the ongoing Global Business Identifier Evaluative Proof of Concept (GBI EPoC). The agency extended the test from February 12, 2024, through February 23, 2027, clarified the purpose and scope of the test, and expanded the test to include more entry types and countries of origin.

GBI EPoC Background

The Automated Commercial Environment (ACE) is the system through which the U.S. Government processes trade-related import and export data. The transition away from paper-based procedures has resulted in faster, more streamlined processes for both the U.S. Government and industry. To continue this progress, CBP began working with the Border Interagency Executive Council (BIEC) and the Commercial Customs Operations Advisory Committee (COAC) starting in 2017, to discuss the continuing viability of the data element known as the manufacturer or shipper identification code (MID).

Although use of the MID has served CBP and the international trade community well in the past, it became apparent that the MID is not always a consistent or unique number. 

CBP thus engaged in regular outreach with stakeholders in the trade community with the goal of establishing a global entity identifier system. As a result of these discussions, CBP developed GBI EPoC, an interagency trade transformation project that aims to test and develop a single entity identifier solution. 

Through the GBI EPoC, CBP aims to develop a systematic, accurate, and efficient method for the U.S. […]

Join Diaz Trade Law at Americas Food and Beverage Show!

Americas Food and Beverage Show is one of the largest food and beverage shows with over 5,000 buyers representing Africa, Asia, Australia, the Caribbean, Central America, Europe, Middle East, North America, and South America. The show also has a conference tied to it where leading experts will provide market trends, FDA compliance tips, trends, challenges and opportunities in the food sector, and much more. Diaz Trade Law is excited to announce that our President, Jennifer Diaz, will be a featured speaker discussing “Top 10 Tips When Importing into the U.S. in compliance with CBP and FDA.”The food show and conference are happening September 18th – 20th, 2023 from 8:00 a.m. to 5:00 p.m. EST and will take place at the Miami Beach Convention Center, 1901 Convention Center Dr., Miami Beach, FL 33139.

Why Attend?

  • Over 600 Exhibitors
  • Food and Beverage Demo Stage
  • 245,000 sq. ft. of exhibition space
  • Buyers from more than 50 countries
  • Annual conference with industry experts including our very own Jen Diaz!

Register as a buyer or attendee HERE!

 

Green Trade Innovation and Incentives Forum RECAP

On July 11, 2023, U.S. Customs and Border Protection (CBP) held the Green Trade Innovation and Incentives Forum, the agency’s first conference that covered CBP’s Green Trade Strategy and related sustainable trade issues. The CBP Green Trade Strategy was formulated by the World Customs Organization (WCO) in Brussels in June of 2022 and serves as the agency’s action plan for addressing climate change’s impact on global trade. The Green Trade Strategy seeks to create business incentives that promote green investment and innovation but also includes ramped-up environmental enforcement efforts. The conference participants included multiple senior officials from CBP, and its partner agencies, as well as top executives from leading industry organizations. 

Green Trade Incentives: 

AnnMarie Highsmith, Executive Assistant Commissioner for CBP’s Office of Trade explained that the Green Strategy rests on four pillars: 

  1. Incentivizing Green Trade

  2. Strengthening environmental enforcement posture

  3. Accelerating green innovation

  4. Improving climate resilience and resource efficiency 

The first and third pillars refer to CBP’s efforts to work with its partner government agencies and industry leaders to remove barriers to sustainable trade and to promote green innovation. Multiple industry leaders at the conference proposed ways that CBP could create incentive structures that reduce the carbon footprint of global supply chains and promote green innovation.  

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