• increasing bonding requirements and requiring IORs to maintain a minimum level of tangible domestic assets, bonding, or both;
• subjecting foreign IORs to heightened requirements for formal entry;
• limiting informal entry filings to U.S.-based IORs;
• imposing a “good standing” requirement on all IORs and their affiliates; and
• increasing vetting procedures for all individuals and entities engaged in activities directly related to the importation of goods, including foreign IORs, affiliates of IORs, customs brokers, custodians of bonded merchandise, and freight forwarders.

In addition, the order directs DHS and CBP to establish enhanced import disclosure and certification requirements and to increase customs enforcement. Among other measures, the order calls for the establishment of a minimum penalty “floor” of 50%, limiting CBP’s discretion to mitigate penalties, and directs DHS to expedite and enhance the seizure and disposal of non-compliant imports

The executive order signals a significant shift toward enhanced customs enforcement and stricter importer accountability.

Accordingly, we encourage you to take this opportunity to ensure that your company is complying with all applicable import regulations, including classification, valuation, origin disclosures, marking, etc.

Now may be the ideal time to conduct an internal audit to assess your compliance.

We are at your disposal to prepare an audit plan, review your classifications, and reconfirm your valuation methodology. To discuss the best next steps for your company, please contact us.

Key Updates from CBP

CBP reiterated prior guidance and shared the following updates:

• Only the importer or broker that has filed the entry can submit a CAPE declaration.
• A Post Summary Correction (PSC) cannot be submitted for an entry that has been processed through CAPE; however, CAPE declarations may be submitted for entries that were previously subject to a PSC.
• Submissions must be in .csv format and cannot exceed 10,000 entries.
• The header “Entry Number” in cell A1 must not be removed from the .csv file.
• If a declaration is not validated, the reason will appear in the “File Uploads” tab. When Status shows “Failed initial validation” or “Rejected by batch validation”, users must select the File Upload Job # and download the .csv file to view the errors. Corrected files may be resubmitted.
• CBP is aware of a widespread “unable to calculate duty” error and is working to resolve it .
• Where a declaration is partially accepted, CBP recommends removing successfully processed entries before resubmitting.
• CBP did not provide guidance regarding Phase 2 of CAPE.
• Interest on refunds will be calculated from the date of liquidation.

Our Recommendation

If you have not done so already, please prepare for this process by doing the following:

• Creating an ACE portal account and ensuring ACH banking information is set up for refunds.
• Compiling IEEPA entry information and categorizing entries as (i) unliquidated, (ii) recently liquidated (less than 80 days ago) and (iii) liquidated (beyond eligibility window).
• Filing protests for IEEPA entries that liquidated more than eighty (80) days ago.

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For questions or assistance with preparing for CAPE, or filing protests, please contact us.

For further information, please contact Gail Cumins at gcumins@spcblaw.com, Alli Baron at abaron@spcblaw.com or call us at 212-425-0055.

While eFiling does not change the applicable consumer product safety requirements for imported products, it introduces a new process by which the required product certificate information must be transmitted to both CPSC and U.S. Customs and Border Protection (CBP).

Specifically, eFiling requires importers to electronically submit certificate data through CBP’s Automated Commercial Environment (ACE) using the Partner Government Agency (PGA) Message Set. Proper eFiling is the importer’s responsibility.

Importers may transmit certificate data using one of two options:

• The Full PGA Message Set is the standard method for importers who import a limited amount of regulated goods, or whose shipments are covered by different product certificates. The importer provides their broker with the full product certificate for the imported product, and the broker files it in the CPSC PGA Message Set.
• The Reference PGA Message Set is recommended for importers who repeatedly import regulated consumer products covered by the same product certificate. The certificate data can be uploaded in advance and assigned a reference number. The importer or broker can then simply transmit the reference number with each entry instead of re-submitting the full certificate data.

Please contact us if you would like assistance preparing for eFiling or reviewing your products for applicable consumer product safety requirements.

For further information, please contact Gail Cumins at gcumins@spcblaw.com, Alli Baron at abaron@spcblaw.com or call us at 212-425-0055.