WEBVTT

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Border Protection (CBP)'s office from

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trade relations and thank you for joining

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us for the De minimis 101 Webinar.

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We have a few housekeeping items. 

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Everyone will be kept on mute during the

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presentation so we can keep likelier up

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background noise.  If you have questions

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or comments we ask you type them into the

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chat box any time during the presentation.

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 We will answer as many questions from the

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chat box at the end of the presentation. 

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This time I would like to turn it over to

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the office of trade and Deputy executive

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Commissioner Mr. John Leonard.

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JOHN LEONARD:   Welcome everybody to our

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De minimis 101 Webinar on small packages

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arriving overseas.  2400 people have

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registered for this webinar so obviously

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interest is very high.

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E-commerce drives the volume to CBP demand

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is an express consignment, mail and air

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cargo and we see it across environment

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border and maritime.  There have been

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references in various forms across the

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past few months into minimus as a loophole

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to avoid legitimate duty.  This is an

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accurate and it's a legitimate process

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under U.S. law for valued goods and ease

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burden for business, customers and border

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protection.  However there are risks for

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narcotics, IPR infringing goods, forced

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labor and health and safety concerns.

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Just be aware despite the millions of

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packages we get every day, CBP screens

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targets and interjects regardless of

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value.  The bulk of seizures in the

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commercial environment occur in this

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domain.  Today's webinar will cover

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several areas: the process itself and how

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to comply, expansion of 321 Data Pilot and

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CBP's future plans, which we have been

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working with the trade community on for a

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number of years and we will continue to

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see you so.  We will give insight on what

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is happening in that space.  This will be

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very informative and take your questions

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in the chat at the end of the program. 

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Let me kick it over to James Moore.

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JAMES MOORE:  Thank you very much, sir,

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and to everyone who has joined.

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I&M Program Manager of cargo security in

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the office of field operations, OFO we are

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really excited you are here and have a lot

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of information to give.

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I'm going to go off camera so we can save

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bandwidth.  Thank you to everyone who is

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helping explain the sound and how to get

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the sound, either: or change your audio

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settings.

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We do have the presentation of and

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hopefully everybody can see that is wild.

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If you can go to the next slide.

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We are going to start off talking about

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did Ms. Kara the point of the

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presentation.

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What is the minimus?

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We are referencing 19 USC 1321,

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specifically referencing (a) 2 c that

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talks about goods under $800.  Only talk

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about to minimus today we will really

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reference 19 USC 1321 a 2 c.  How did we

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get here and start? Where are we at now?

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Today we will explain the history and

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where we are at and seeing and what do

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medicine will look like in the future.  A

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provision with was created as five dollars

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in 1938 referred to as a gift provision.

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There was no such thing as electronic

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transaction back then, so that really

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applied to someone who buys something

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overseas and bringing it to the United

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States with them or some other type of

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transportation service to the United

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States as a gift.  What we have really

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seen is kind of the modernization of the

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gift provision or what we talk about is an

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administrative exemption to duties, taxes

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and fees.

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As you can think we have had a lot of

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updates to Section 1321 and the dollar

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amount it is associated with.

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The last major update we had was in 2016,

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underTFTEA Trade Facilitation Trade

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Enforcement Act and raise the value from

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$200-$800.  A lot of people always assumed

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that opened the floodgates.

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The reality is that is not what

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necessarily have an.  We really have to

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start this conversation with Tim minimus

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several decades ago when we talked about

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the inclusion of the Internet and possible

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electronic transactions that have occurred

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with this domain is transaction.  What we

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have seen is a continual rise and emphasis

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on electronic purchases.  We have seen

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this certainly in the U.S. and purchases

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online.  We saw a steady incline and the

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number of purchases that were happening

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even before 2016, we were on an upward

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trajectory.

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What happened with the change from

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$200-$800, it wasn't so much all of a

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sudden a ton of volume came into the U.S.,

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but we saw more marketplaces and

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businesses take interest into what was

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happening in this regard.

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There were a lot more ways than

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marketplaces and businesses could reach

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consumers electronically.  That really

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factored in to the mindset that was

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happening.  We already saw growth from

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people bind purchases online, and

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electronic purchases, and we have seen a

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growth in these areas, and we really did

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not see the rise in value.  It wasn't all

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of a sudden devalued in the goods all of a

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sudden went somewhere between 200 and

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$800.  Relatively the price still remained

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well under $200.  What we did, like I

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said, businesses started to change their

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ideas about is a something they could use?

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We have a lot of numbers associated with

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that change.

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In 2016 we had around 220 million to

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minimus shipments.  That was certainly a

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lot for customs to handle, a significant

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portion what was coming into the U.S. 

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Would be sought after 2016, not only that

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continuous right but a major shift, and

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their steady rise go to an explosion of

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E-commerce transactions.  You see the

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numbers there.  And 2022 shipments have

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risen to 685 million, a 410% increase in

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seven years.

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You can imagine, and one thing we will

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talk about existing today, that volume is

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a significant challenge for CBP.  We will

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talk about ways we are hoping to identify

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some ways of dealing with that, not only

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tremendous growth, but this volume

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represents the same threat as any other

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type of volume coming into the United

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States.

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This volume could have the same volatile

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type element coming in, so what we can

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do -- what can we do to really competitive

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event? Staffing and resources largely

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remained the same dupe one of the things

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mentioned briefly here, is we had to come

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out and kind of define who was eligible

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for bringing in administrative exemption.

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Who is eligible for this?

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Somebody has to claim that exemption.

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It should be somebody picking that

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purchase or bringing that in.  We like to

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talk about the owner/purchaser.

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The ultimate set.

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These are people claiming the exemption.

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That can have in paragraph one of the

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people that are not eligible, if the

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ultimate (Unintelligible) is not

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identified.

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Administrative ruling we talked about for

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moment centers and domestic warehouses,

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they don't qualify as a one person per day

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up to $800 Fair Market Value in the

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country of shipment, if it is unsold

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merchandise.  So we really want to make

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sure you're factoring in who is that

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person claiming the exemption.

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I am going to talk more a little bit about

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the volume.  We talked about the trend we

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were seen in this kind of represents the

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explosion.  For the first time in at least

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a decade, but probably more than a decade,

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the demand is -- to minimus volume

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plateaued. --

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De minimis volume plateaued.  It doesn't

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mean we were able to handle the volume

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better but it did mean we finally see what

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is currently the plateau of de minimis

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volume.

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So that is really where we have come from.

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 That has presented some extreme

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challenges.

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One of the things happening before this it

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was a very cumbersome process for de

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minimis.

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In some circumstances we had a basic

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clearance of the manifest process and how

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a lot of freight was clearing in this de

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minimis realm.  That can be labor

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intensive, and exchange that happens.  It

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means there is not a lot of information

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electronically in this system, so the

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officer has to be physically involved in

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the transaction in order for that to

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process.

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We saw there was a significant weight with

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whole times as so shipments had to be

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cleared manually.  We also had an

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electronic process in certain forms. 

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Really, what we wanted to do is find a way

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to have a better process.  With that

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volume we are trying to minimize

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resources, and work more efficiently

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paragraph one of the ways is really bad

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electronic process, so we are trying to

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offer that a lot of chronic release that

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will save the trade time.

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A lot of what we want to talk about is

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ways that we can partner together, ways

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that we can work together.  I kind of

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mentioned we haven't had a significant

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increase in staffing in some resources,

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but were trying to work smarter, trying to

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element better technology solutions,

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including nonintrusive technology.  We are

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also trying to make sure we have the right

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technology cut data to the officers so

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they can make better decisions.

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I kind of mentioned a moment ago one of

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the main things that we want to stress is

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a partnership with the trade community. 

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We really want to figure out a way that we

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can work better to come up with some of

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the solutions to some of the problems and

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challenges we are seeing.

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I want to turn it now over to Christine

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Hogue and she will talk a little what we

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are doing right now.

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CHRISTINE HOGUE:  Good afternoon everybody

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my name is Christine Hogue the branch

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chief are E-commerce with the office of

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trade.

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I am now going to go off screen now that

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you have seen.  As James was talking, we

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had a huge amount, a lot of people changed

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business practices once we introduced

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entry type 86 because custom saw the need

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for PGA clearances through that the

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minimus realm and you can clear anything

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subject to a partner and agency

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regulation.

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In the past like type XI or type I entry

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and with entry type 86 it has been a huge

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game changer because we have flagged

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shipments in there that have to have a

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data set that goes to the partner

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government agency so we can make sure the

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rate data is submitted.

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The aim of this is to improve Emperor

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safety and security by providing us with

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more visibility, you know, of the manifest

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we don't receive the classification, which

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is turned out to be very helpful.

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I know a lot of people wonder why do we

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have to classify it if there's no duty?

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For customs we tied the classification

270
00:17:59.956 --> 00:18:01.956
numbers to PGA requirements.

271
00:18:01.956 --> 00:18:04.652
And that is why it is so important to us

272
00:18:04.653 --> 00:18:06.653
to have the right classification is.

273
00:18:06.653 --> 00:18:10.684
One of the things entry type 86 did was

274
00:18:10.685 --> 00:18:15.086
allow for Claire's.  I like visuals so I

275
00:18:15.087 --> 00:18:18.510
put my unofficial mascot of the turtle,

276
00:18:18.510 --> 00:18:22.422
because I was trying to figure out what

277
00:18:22.422 --> 00:18:25.845
could represent how slow clearance was off

278
00:18:25.846 --> 00:18:29.758
the manifest.  At times who were 10/50

279
00:18:29.758 --> 00:18:32.692
days behind in clearing shipments because

280
00:18:32.692 --> 00:18:37.093
it took so long for an officer or officers

281
00:18:37.093 --> 00:18:40.516
to review manifest and make the risk

282
00:18:40.517 --> 00:18:43.451
analysis and determine what shipments they

283
00:18:43.451 --> 00:18:47.852
wanted to look at.  When we created entry

284
00:18:47.852 --> 00:18:52.253
type 86 which is still a clearance off the

285
00:18:52.254 --> 00:18:55.677
manifest because there is no summary, I

286
00:18:55.677 --> 00:18:59.589
chose – sorry, guys, I chose the turtle

287
00:18:59.589 --> 00:19:03.501
because snail mail was taken and I thought

288
00:19:03.502 --> 00:19:06.925
the turtle represented that slow weight of

289
00:19:06.925 --> 00:19:11.326
glory thanks.  Entry type 86 we strapped a

290
00:19:11.326 --> 00:19:15.727
rock to his back and put it on a

291
00:19:15.728 --> 00:19:19.151
skateboard and now you receive the benefit

292
00:19:19.151 --> 00:19:21.151
of a quick clearance.

293
00:19:21.151 --> 00:19:25.003
Okay, so what is required for Entry Type

294
00:19:25.003 --> 00:19:28.886
86? One, you have to provide an accurate

295
00:19:28.890 --> 00:19:30.889
classification.

296
00:19:30.889 --> 00:19:35.192
These are what type to the other

297
00:19:35.196 --> 00:19:39.350
government agency regulations so they

298
00:19:39.350 --> 00:19:45.166
clear properly and meet all regulations. 

299
00:19:45.167 --> 00:19:51.815
There are a few exceptions that are not

300
00:19:51.815 --> 00:19:56.798
allowed paragraph if the merchandise is

301
00:19:56.798 --> 00:20:00.952
subject to antidumping or countervailing

302
00:20:00.953 --> 00:20:07.599
duties it must be filed as type 803.

303
00:20:07.600 --> 00:20:11.044
Any tax imposed by the Internal Revenue

304
00:20:11.046 --> 00:20:15.474
Code and the biggest one coming to mind is

305
00:20:15.478 --> 00:20:19.906
alcohol and tobacco and there is an IR tax

306
00:20:19.909 --> 00:20:23.845
and we should not see anything clearing de

307
00:20:23.847 --> 00:20:28.275
minimis and should be cleared as a type of

308
00:20:28.279 --> 00:20:33.199
11 or type a one so they can pay the

309
00:20:33.202 --> 00:20:35.202
accurate IR tax.

310
00:20:35.202 --> 00:20:38.198
Entry type 86 allows for brokers to file

311
00:20:38.198 --> 00:20:42.597
and now they have the piece of the pie to

312
00:20:42.597 --> 00:20:46.995
be able to file and get into some of this

313
00:20:46.995 --> 00:20:50.514
de minimis clearance.  For entry type 86

314
00:20:50.515 --> 00:20:54.473
you have to be a broker to transmitted and

315
00:20:54.473 --> 00:20:57.551
the standard is care is still reasonable

316
00:20:57.552 --> 00:20:59.752
care, which means we expect

317
00:20:59.752 --> 00:21:02.390
classifications to be accurate, values to

318
00:21:02.390 --> 00:21:06.349
be accurate.  It takes the same care as

319
00:21:06.349 --> 00:21:10.748
you would with a type XI or type I entry.

320
00:21:10.749 --> 00:21:15.725
And some of the stuff that we have been

321
00:21:15.729 --> 00:21:20.152
seen as we have seen a lot of

322
00:21:20.157 --> 00:21:23.475
misclassification, we are seeing values at

323
00:21:23.477 --> 00:21:25.689
zero or a dollar.

324
00:21:25.691 --> 00:21:30.307
So this is stuff that we are actually

325
00:21:30.309 --> 00:21:34.925
looking at and trying to quantify all of

326
00:21:34.927 --> 00:21:39.543
this, because we are seeing it.  That

327
00:21:39.545 --> 00:21:43.584
reasonable care standard is serum and I

328
00:21:43.586 --> 00:21:48.202
want to remind everybody it is there and

329
00:21:48.204 --> 00:21:52.820
we expect the same regardless of what type

330
00:21:52.822 --> 00:21:55.130
of entry it is.

331
00:21:55.131 --> 00:21:58.281
Next slide, please.  You guys have

332
00:21:58.283 --> 00:22:00.983
probably already heard in many speeches

333
00:22:00.985 --> 00:22:04.585
before in 2019 we convened a task force

334
00:22:04.588 --> 00:22:08.188
made up of industry people and CBP and

335
00:22:08.190 --> 00:22:11.340
they all came together to decide what

336
00:22:11.343 --> 00:22:14.043
additional information to the menu for

337
00:22:14.044 --> 00:22:17.644
Stata would be helpful for CBP to assess

338
00:22:17.647 --> 00:22:21.247
risk? We don't want to stop things unless

339
00:22:21.250 --> 00:22:25.750
we know we've got a problem there.  So we

340
00:22:25.753 --> 00:22:28.903
want to know the entity responsible for

341
00:22:28.905 --> 00:22:32.955
the movement.  We also want to know the

342
00:22:32.958 --> 00:22:36.558
exact contents of the box, want to know

343
00:22:36.561 --> 00:22:40.161
what is in the box, and final destination

344
00:22:40.163 --> 00:22:44.663
of where it is going to once again is to

345
00:22:44.666 --> 00:22:47.816
the United States.  We conducted this

346
00:22:47.819 --> 00:22:50.519
palace over with nine participants and

347
00:22:50.520 --> 00:22:54.120
last year we had 161 million Section 321

348
00:22:54.123 --> 00:22:56.123
Data Pilot transmissions.

349
00:22:56.123 --> 00:22:59.293
So here is a list, and you might have seen

350
00:22:59.293 --> 00:23:02.726
it on our website – these are the data

351
00:23:02.727 --> 00:23:06.162
events we are looking for.  We want to

352
00:23:06.163 --> 00:23:09.219
know where it is coming from, who the

353
00:23:09.220 --> 00:23:12.270
seller is, we want to know the shipper.

354
00:23:12.271 --> 00:23:18.001
As far as contents in the box you will see

355
00:23:18.006 --> 00:23:21.444
enhanced descriptions.  He wouldn't buy

356
00:23:21.446 --> 00:23:26.030
something that said "pants " if you are

357
00:23:26.034 --> 00:23:28.034
shopping online.

358
00:23:28.034 --> 00:23:30.106
Personally I am looking for something that

359
00:23:30.110 --> 00:23:33.036
does not wrinkle, look for a certain

360
00:23:33.038 --> 00:23:35.546
color, certain size, certain material. 

361
00:23:35.549 --> 00:23:38.475
That is usually in the description when

362
00:23:38.478 --> 00:23:41.822
you are buying it online, and that is

363
00:23:41.825 --> 00:23:44.751
exactly what customs needs and the more

364
00:23:44.753 --> 00:23:47.679
information the better we can assess risk

365
00:23:47.682 --> 00:23:49.682
on it.

366
00:23:49.682 --> 00:23:51.848
There is a few that have options and these

367
00:23:51.848 --> 00:23:53.848
are all when they applied.

368
00:23:53.848 --> 00:23:58.554
A link to the product; the URL.  If you

369
00:23:58.557 --> 00:24:02.936
submit is the link to the URL the officer

370
00:24:02.937 --> 00:24:07.315
can go to that link and know what exactly

371
00:24:07.317 --> 00:24:11.210
that person bought, and it makes it easier

372
00:24:11.211 --> 00:24:14.616
to make that determination.  You probably

373
00:24:14.617 --> 00:24:18.017
heard James mention about a rail mount,

374
00:24:18.021 --> 00:24:22.401
and the officer had a link and it was

375
00:24:22.401 --> 00:24:26.780
amount for a flashlight.  Had we not had

376
00:24:26.781 --> 00:24:29.212
that information the officer probably

377
00:24:29.212 --> 00:24:33.102
would have placed it on hold, would have

378
00:24:33.105 --> 00:24:36.512
incurred storage charges, what had to have

379
00:24:36.512 --> 00:24:40.891
wait for the officer to get out there and

380
00:24:40.893 --> 00:24:44.297
have the officer release it when they

381
00:24:44.297 --> 00:24:46.724
found out it was legit.

382
00:24:46.730 --> 00:24:54.032
They say a picture tells a thousand words.

383
00:24:54.032 --> 00:24:56.958
That really helps us.  If we can see what

384
00:24:56.959 --> 00:25:00.180
it is you are buying, and we know it is a

385
00:25:00.183 --> 00:25:02.183
product considered a health and safety

386
00:25:02.183 --> 00:25:04.578
risk or dangerous for somebody.  If we saw

387
00:25:04.579 --> 00:25:06.579
something and say it wasn't airbag,

388
00:25:06.579 --> 00:25:08.974
obviously we are going to want to look at

389
00:25:08.975 --> 00:25:10.975
that.

390
00:25:10.975 --> 00:25:15.750
And that helps us make our determination.

391
00:25:15.750 --> 00:25:19.042
We want to know the quantity and the

392
00:25:19.042 --> 00:25:22.744
weights, we want to see the price that was

393
00:25:22.747 --> 00:25:26.042
paid on the website, and of course the

394
00:25:26.042 --> 00:25:28.099
tariff classification, and there's an

395
00:25:28.100 --> 00:25:30.981
option for a security scan paragraph for

396
00:25:30.982 --> 00:25:33.864
the security scan if it is scanned

397
00:25:33.866 --> 00:25:37.158
overseas, and you have a security report. 

398
00:25:37.159 --> 00:25:41.279
Would be our looking for is a way it will

399
00:25:41.279 --> 00:25:44.153
be transmitted in the system, is the

400
00:25:44.158 --> 00:25:47.040
report number, but you will have to

401
00:25:47.041 --> 00:25:49.101
provide this scan upon request.

402
00:25:49.102 --> 00:25:52.206
And then where is it going?

403
00:25:52.209 --> 00:25:56.089
We want to know who the final delivered

404
00:25:56.093 --> 00:26:00.458
party is and who is the buyer.  Some

405
00:26:00.462 --> 00:26:04.827
people ask "Isn't this all the same?"  I

406
00:26:04.831 --> 00:26:09.681
could be the buyer but I bought it for my

407
00:26:09.685 --> 00:26:13.565
sister so she is the final delivery party

408
00:26:13.569 --> 00:26:17.449
so we want to know everybody in that

409
00:26:17.452 --> 00:26:20.362
transaction because that helps us make

410
00:26:20.365 --> 00:26:22.365
further decisions.

411
00:26:22.365 --> 00:26:26.519
With entry type 86 it accounts for over

412
00:26:26.519 --> 00:26:31.054
43% of all Customs and Border Protection

413
00:26:31.054 --> 00:26:36.237
(CBP) importations.  Last year we had 333

414
00:26:36.237 --> 00:26:38.237
million transactions.

415
00:26:38.237 --> 00:26:41.456
When we look at all of the entries as

416
00:26:41.459 --> 00:26:44.946
total, about 85 to 95% of everything, all

417
00:26:44.950 --> 00:26:47.130
the importations was de minimis.

418
00:26:47.131 --> 00:26:51.640
And out of that 43% of that 85% was

419
00:26:51.640 --> 00:26:54.642
entered through an entry type 86.

420
00:26:54.644 --> 00:27:03.434
The rest were divided between mail,

421
00:27:03.434 --> 00:27:15.154
Express and some still were clearing it of

422
00:27:15.154 --> 00:27:18.084
the manifest.

423
00:27:18.084 --> 00:27:20.084
Okay.  So the goal of the pilot and the

424
00:27:20.084 --> 00:27:22.084
test is we are working on.

425
00:27:22.084 --> 00:27:24.084
.

426
00:27:24.084 --> 00:27:26.150
.

427
00:27:26.150 --> 00:27:28.768
Where looking to integrate the best of

428
00:27:28.770 --> 00:27:31.388
both and take the additional data elements

429
00:27:31.391 --> 00:27:35.131
and give you also the speed.  It is kind

430
00:27:35.134 --> 00:27:38.500
of a give-and-take.  We went the data, you

431
00:27:38.503 --> 00:27:41.869
want the speed.  So what that equates to

432
00:27:41.872 --> 00:27:45.238
is the future.  My little turtle here, the

433
00:27:45.241 --> 00:27:48.607
shield is all the data that is going to

434
00:27:48.610 --> 00:27:51.228
protect consumers and help us with risk

435
00:27:51.230 --> 00:27:53.848
analysis, and we upgraded from the rocket

436
00:27:53.850 --> 00:27:57.590
and the skateboard to a Cape Cod so he can

437
00:27:57.594 --> 00:28:00.586
fly a lot quicker, we can assess risk

438
00:28:00.588 --> 00:28:03.206
faster and the quicker you get your

439
00:28:03.209 --> 00:28:05.209
shipments.

440
00:28:05.209 --> 00:28:08.920
Next slide, please.

441
00:28:08.920 --> 00:28:16.777
What the NPRM looks to do is implement a

442
00:28:16.777 --> 00:28:22.880
new data requirements for de minimis. 

443
00:28:22.883 --> 00:28:28.992
Sorry, first shipments choosing to use his

444
00:28:28.993 --> 00:28:30.993
enhanced process.

445
00:28:30.993 --> 00:28:33.594
There will still be clearance of the

446
00:28:33.594 --> 00:28:36.854
manifest, but in the future you will have

447
00:28:36.856 --> 00:28:40.118
to provide these data elements to get the

448
00:28:40.118 --> 00:28:43.381
fast clearance.  It will clarify who is

449
00:28:43.382 --> 00:28:45.827
eligible paragraph and then it will

450
00:28:45.827 --> 00:28:49.088
address trade liability.  Some of it is

451
00:28:49.089 --> 00:28:51.128
reasonable care, some is reasonable

452
00:28:51.130 --> 00:28:53.573
alliance, depending on the data elements.

453
00:28:53.575 --> 00:29:00.456
Entry 86 the entry test will continue

454
00:29:00.456 --> 00:29:08.319
until the NPRM is finalized.  We will

455
00:29:08.319 --> 00:29:15.199
continue the Data Pilot and looking at

456
00:29:15.200 --> 00:29:20.115
additional data elements and technologies

457
00:29:20.115 --> 00:29:27.978
that can just enhance what we are putting

458
00:29:27.978 --> 00:29:29.978
out now.

459
00:29:29.978 --> 00:29:31.978
JAMES MOORE:  Like to stop would be our

460
00:29:31.978 --> 00:29:33.978
scene right now.

461
00:29:33.978 --> 00:29:37.111
We started to look more closely 86 at

462
00:29:37.111 --> 00:29:39.111
entry type and certainly one of the heirs,

463
00:29:39.111 --> 00:29:41.123
everything that we want to look at coming

464
00:29:41.124 --> 00:29:43.868
into the country, because of the biggest

465
00:29:43.868 --> 00:29:47.396
from an entry type LXXXVI we are trying to

466
00:29:47.397 --> 00:29:50.925
cook up our focus on that area and make

467
00:29:50.926 --> 00:29:52.926
sure the people applying for

468
00:29:52.926 --> 00:29:54.926
administrative exemption to it it

469
00:29:54.926 --> 00:29:57.591
correctly.  What we have seen is

470
00:29:57.592 --> 00:30:00.336
corresponding to the number.  There is

471
00:30:00.337 --> 00:30:03.081
also a large percentage of violations in

472
00:30:03.082 --> 00:30:06.218
this realm and seen large violations in a

473
00:30:06.218 --> 00:30:08.962
number of categories, not just high risk

474
00:30:08.963 --> 00:30:12.491
items.  We are also seen different type of

475
00:30:12.492 --> 00:30:15.628
violations.  We see a lot of Ms.

476
00:30:15.629 --> 00:30:18.373
classifications.  We see a lot of

477
00:30:18.374 --> 00:30:21.510
undervaluation.  We are seeing a lot of

478
00:30:21.511 --> 00:30:24.647
this manifests a and I think it really

479
00:30:24.648 --> 00:30:27.784
speaks to the idea in this realm that

480
00:30:27.784 --> 00:30:30.920
customs has for a long time some problem

481
00:30:30.921 --> 00:30:33.665
with the data quality that we were

482
00:30:33.666 --> 00:30:37.194
receiving.  That is one of the reasons why

483
00:30:37.195 --> 00:30:40.331
we talked about some data elements we want

484
00:30:40.332 --> 00:30:43.860
to get.  We want to make sure we're

485
00:30:43.861 --> 00:30:46.213
getting better data quality paired with

486
00:30:46.213 --> 00:30:49.349
entry data 86 and Section 321 in general

487
00:30:49.350 --> 00:30:52.878
we want to make sure you're getting me to

488
00:30:52.879 --> 00:30:56.015
data and entry type LXXXVI is an example

489
00:30:56.016 --> 00:30:59.544
and we need to make sure we are getting

490
00:30:59.545 --> 00:31:02.681
that Mr. data from people supplying it and

491
00:31:02.682 --> 00:31:06.210
we are going to start to focus on this

492
00:31:06.211 --> 00:31:09.347
area to make sure everyone is doing their

493
00:31:09.348 --> 00:31:11.348
due diligence.

494
00:31:11.348 --> 00:31:15.179
We have encountered a lot of volatile

495
00:31:15.179 --> 00:31:20.215
items.  We encountered silences and IPR,

496
00:31:20.220 --> 00:31:23.820
pharmaceuticals, a lot of agriculture

497
00:31:23.822 --> 00:31:25.822
violations.

498
00:31:25.822 --> 00:31:28.972
These are all things we are seeing right

499
00:31:28.972 --> 00:31:31.638
now, and in entry type 86 and it is very

500
00:31:31.643 --> 00:31:34.795
concerning for us, and we really want to

501
00:31:34.798 --> 00:31:37.556
make sure that we are highlighting that

502
00:31:37.559 --> 00:31:39.923
there are some expectations with entry

503
00:31:39.926 --> 00:31:41.926
type 86.

504
00:31:41.926 --> 00:31:45.425
Some expectations we want to make sure

505
00:31:45.429 --> 00:31:50.140
they are met so people can qualify

506
00:31:50.144 --> 00:31:52.836
properly for that administrative

507
00:31:52.838 --> 00:31:54.838
exemption.

508
00:31:54.838 --> 00:31:58.357
Next slide.

509
00:31:58.358 --> 00:32:02.222
CHRISTINE HOGUE:  A comment on the last

510
00:32:02.225 --> 00:32:05.606
slide paragraph the picture was that in

511
00:32:05.608 --> 00:32:08.506
the middle of the pharmaceuticals, just

512
00:32:08.508 --> 00:32:11.889
wanted to let everybody know that was

513
00:32:11.892 --> 00:32:13.892
fentanyl.

514
00:32:13.892 --> 00:32:19.591
Sentinel was found in that box, and the

515
00:32:19.591 --> 00:32:25.891
other one to the right, the Botox.

516
00:32:25.900 --> 00:32:28.789
I don't know if anybody has heard but I

517
00:32:28.789 --> 00:32:31.351
heard there are Botox parties.  Kind of

518
00:32:31.354 --> 00:32:33.599
like in the old days the Tupperware

519
00:32:33.599 --> 00:32:35.846
parties, but they do Botox parties, and

520
00:32:35.846 --> 00:32:38.088
the people are probably buying the fake

521
00:32:38.091 --> 00:32:40.657
stuff, and to know switches in the fake

522
00:32:40.657 --> 00:32:42.657
stuff.

523
00:32:42.657 --> 00:32:45.921
This is why we are so interested in what

524
00:32:45.921 --> 00:32:47.921
is coming in and what is exactly in the

525
00:32:47.921 --> 00:32:49.921
box.  Next slide, please.

526
00:32:49.921 --> 00:32:55.694
So you might have seen in the Federal

527
00:32:56.101 --> 00:33:02.023
Register notice that we are expanding the

528
00:33:02.023 --> 00:33:06.253
pilot to additional participants, looking

529
00:33:06.253 --> 00:33:13.021
to go from nine to a lot more.

530
00:33:13.022 --> 00:33:15.022
We believe that allowing additional

531
00:33:15.022 --> 00:33:17.022
companies and will give you the

532
00:33:17.022 --> 00:33:19.022
opportunity to develop your processes for

533
00:33:19.022 --> 00:33:21.022
gathering the data.  We understand that

534
00:33:21.022 --> 00:33:23.451
you may not have all the data and you

535
00:33:23.451 --> 00:33:25.451
might have to find out how you are going

536
00:33:25.451 --> 00:33:27.451
to get a or who you are going to get it,

537
00:33:27.451 --> 00:33:29.639
but you will have to transmit it through a

538
00:33:29.759 --> 00:33:32.188
single entity.  So people need the time to

539
00:33:32.189 --> 00:33:34.348
figure this out.  So this is the

540
00:33:34.348 --> 00:33:36.508
opportunity to get ahead of it before the

541
00:33:36.509 --> 00:33:38.509
regulation comes out.

542
00:33:38.510 --> 00:33:40.686
We also believe this will assist us in

543
00:33:40.686 --> 00:33:42.791
identifying future trade benefits. 

544
00:33:42.791 --> 00:33:45.315
Customs and Border Protection (CBP) is

545
00:33:45.317 --> 00:33:48.262
always to looking to facilitate trade and

546
00:33:48.263 --> 00:33:51.630
we want to be able to give benefits

547
00:33:51.630 --> 00:33:54.576
wherever we can, within reason of course,

548
00:33:54.577 --> 00:33:57.944
and were hoping to get better ideas that

549
00:33:57.944 --> 00:34:01.733
if you supply us with data or data and

550
00:34:01.733 --> 00:34:04.258
more data, additional data elements from

551
00:34:04.259 --> 00:34:08.047
the optional list, what can we do to make

552
00:34:08.047 --> 00:34:10.047
things better for you?

553
00:34:10.047 --> 00:34:13.649
And then, obviously we want to continue

554
00:34:13.653 --> 00:34:15.893
exploring the different technologies.

555
00:34:15.895 --> 00:34:19.055
I know we have talked at the very

556
00:34:19.057 --> 00:34:22.217
beginning a couple years ago that what we

557
00:34:22.218 --> 00:34:25.378
ultimately want is for each party in the

558
00:34:25.380 --> 00:34:28.145
transaction to be able to transmit their

559
00:34:28.146 --> 00:34:31.306
piece of the pie.  Unfortunately we a

560
00:34:31.308 --> 00:34:34.073
little head of overtime and the technology

561
00:34:34.074 --> 00:34:37.234
does not exist yet but we are working

562
00:34:37.236 --> 00:34:41.186
towards that.  For now it will have to be

563
00:34:41.188 --> 00:34:43.558
transmitted through a single entity; a

564
00:34:43.559 --> 00:34:45.559
gatekeeper.

565
00:34:45.559 --> 00:34:47.698
Next slide, please.

566
00:34:47.698 --> 00:34:54.583
So how do you participate?

567
00:34:54.583 --> 00:35:01.217
Well, we are looking for carrier, brokers,

568
00:35:01.217 --> 00:35:05.949
freight forwarders, online marketplaces to

569
00:35:05.953 --> 00:35:08.795
participate with us.

570
00:35:08.797 --> 00:35:11.918
You would have to have what is called an

571
00:35:11.918 --> 00:35:14.000
MQ connectivity capability and this is

572
00:35:14.001 --> 00:35:16.083
what will help transmit this data.

573
00:35:16.083 --> 00:35:20.727
We are looking – participants may

574
00:35:20.727 --> 00:35:24.597
authorize a carrier/broker that already

575
00:35:24.597 --> 00:35:26.597
participates.

576
00:35:26.597 --> 00:35:30.240
So you yourself does not have to be the

577
00:35:30.240 --> 00:35:34.568
one that sends information.  If you go

578
00:35:34.569 --> 00:35:38.897
through express you can reach out to them

579
00:35:38.897 --> 00:35:43.766
and say I want to partner with you because

580
00:35:43.766 --> 00:35:49.176
they are LinkedIn.  All you have to do is

581
00:35:49.177 --> 00:35:51.341
give them your information.

582
00:35:51.341 --> 00:35:56.509
And then you need to email us at

583
00:35:56.509 --> 00:35:59.739
ecommerce@cbp.dhs.gov and in the subject

584
00:35:59.739 --> 00:36:04.261
line put"application for Section 3 21 Data

585
00:36:04.261 --> 00:36:06.261
Pilot".

586
00:36:06.261 --> 00:36:09.471
I believe were received 18 volunteers are

587
00:36:09.472 --> 00:36:14.698
more and our meeting with him, going over

588
00:36:14.709 --> 00:36:19.287
the requires, asking any questions and it

589
00:36:19.287 --> 00:36:23.865
is looking very promising, so I encourage

590
00:36:23.866 --> 00:36:29.098
you to get ahead of things because when

591
00:36:29.099 --> 00:36:33.677
the regulation comes out you will have

592
00:36:33.677 --> 00:36:38.909
time to get everything in place but why

593
00:36:38.910 --> 00:36:44.796
not jump on board now and work out your

594
00:36:44.797 --> 00:36:50.029
bugs and help us to create benefits for

595
00:36:50.030 --> 00:36:52.030
you?

596
00:36:52.030 --> 00:36:55.244
JAMES MOORE:  We are going to take some of

597
00:36:55.248 --> 00:36:57.528
those and director Christopher Mabelitini

598
00:36:57.530 --> 00:37:01.634
is going to present them to us and we

599
00:37:01.638 --> 00:37:06.198
won't get to all of them but we will do

600
00:37:06.202 --> 00:37:10.306
our best after the webinar to get to as

601
00:37:10.309 --> 00:37:12.309
many as we can.

602
00:37:12.309 --> 00:37:18.418
CHRISTOPHER MABELITINI:  The first

603
00:37:18.418 --> 00:37:29.728
question I have here would be - what about

604
00:37:29.728 --> 00:37:39.780
ADC CBP merchandise or Section 3 one, are

605
00:37:39.782 --> 00:37:46.065
those eligible under de minimis

606
00:37:46.066 --> 00:37:48.065
requirements?

607
00:37:48.066 --> 00:37:50.066
CHRISTINE HOGUE:  Antidumping encounter

608
00:37:50.066 --> 00:37:52.065
ability merchandise is not, however if

609
00:37:52.066 --> 00:37:54.420
something is subject to 321 duties it can

610
00:37:54.421 --> 00:37:56.420
come through the de minimis process.

611
00:37:56.421 --> 00:37:58.420
CHRISTOPHER MABELITINI:  A U.S.

612
00:37:58.421 --> 00:38:00.421
corporation that resides inside the United

613
00:38:00.421 --> 00:38:02.420
States within a corporation qualify for

614
00:38:02.421 --> 00:38:04.421
one person per day under de minimis?

615
00:38:04.421 --> 00:38:08.712
CHRISTINE HOGUE:  If they are the one

616
00:38:09.781 --> 00:38:15.407
claiming the exemption, they would be the

617
00:38:15.407 --> 00:38:22.641
name.  Correct me if I'm wrong, James, and

618
00:38:22.642 --> 00:38:30.680
it would be up to $800 per day for them.

619
00:38:30.680 --> 00:38:33.802
CHRISTOPHER MABELITINI:  One of the issues

620
00:38:33.805 --> 00:38:36.927
this seems to get overlooked is small

621
00:38:36.929 --> 00:38:39.159
volume shipments to AWS etc.

622
00:38:39.161 --> 00:38:42.386
and one is larger carriers

623
00:38:42.386 --> 00:38:46.256
(Unintelligible) as de minimis and are

624
00:38:46.256 --> 00:38:51.416
there plans to allow de minimis entries to

625
00:38:51.416 --> 00:38:53.416
the PGA data?

626
00:38:53.416 --> 00:38:57.607
CHRISTINE HOGUE:  Yes, that is what our

627
00:38:57.611 --> 00:39:01.335
entry type LXXXVI is for you have

628
00:39:01.338 --> 00:39:03.998
merchandise subject to partner in

629
00:39:04.000 --> 00:39:07.724
government agency you would want to use

630
00:39:07.727 --> 00:39:11.983
entry type LXXXVI to clear the de minimis

631
00:39:11.987 --> 00:39:15.711
freight, to clear it straight off the

632
00:39:15.714 --> 00:39:20.502
manifest, you would have to move that to a

633
00:39:20.507 --> 00:39:25.827
01 or 11.  Entry type LXXXVI, 01, 11. 

634
00:39:25.831 --> 00:39:27.959
Those are your options.

635
00:39:27.961 --> 00:39:30.929
JAMES MOORE:  I think the question was

636
00:39:30.929 --> 00:39:32.929
more about who can file.

637
00:39:32.929 --> 00:39:37.326
So an owner or purchaser of Section 3 21

638
00:39:37.332 --> 00:39:40.368
low value shipments or when appropriately

639
00:39:40.368 --> 00:39:43.909
designated a customs broker appointed by a

640
00:39:43.910 --> 00:39:47.451
purchaser or consignee can file that entry

641
00:39:47.452 --> 00:39:52.006
type LXXXVI and so they are the ones who

642
00:39:52.006 --> 00:39:57.066
can file.  It has to be, and I believe

643
00:39:57.066 --> 00:40:01.617
that we had that earlier kind of in the

644
00:40:01.619 --> 00:40:05.160
slides, of foreign owners or sellers of

645
00:40:05.161 --> 00:40:08.197
unsold merchandise may qualify as someone

646
00:40:08.197 --> 00:40:11.232
person, provided there entity is presented

647
00:40:11.232 --> 00:40:15.279
to CBP in the total value of their

648
00:40:15.280 --> 00:40:18.822
merchandise recorded on one day is under

649
00:40:18.822 --> 00:40:21.858
$800.  The foreign shippers/seller cannot

650
00:40:21.858 --> 00:40:25.399
be the ultimate first shipment because it

651
00:40:25.399 --> 00:40:29.952
must be a party within the U.S. to whom

652
00:40:29.953 --> 00:40:34.001
the cargo will be delivered, so that U.S.

653
00:40:34.001 --> 00:40:38.048
address.  This is not to preclude the

654
00:40:38.048 --> 00:40:41.083
foreign owner seller to be named

655
00:40:41.084 --> 00:40:43.614
signing -- consigning for the shipment.

656
00:40:44.883 --> 00:40:47.913
CHRISTOPHER MABELITINI:  Thank you.

657
00:40:47.914 --> 00:40:53.322
This note question, as to the nuance of

658
00:40:53.324 --> 00:40:58.056
products that can and cannot be submitted,

659
00:40:58.059 --> 00:41:03.467
if a product is exempt from excise taxes

660
00:41:03.469 --> 00:41:08.201
can they be imported under Section 321?

661
00:41:08.203 --> 00:41:25.731
CHRISTINE HOGUE:  I do not believe that

662
00:41:25.731 --> 00:41:27.920
qualifies.

663
00:41:27.922 --> 00:41:30.854
JAMES MOORE:  That kind of talks about two

664
00:41:30.854 --> 00:41:33.124
different things.  A personal exemption, a

665
00:41:33.129 --> 00:41:35.408
U.S. citizen bringing something in kava is

666
00:41:35.409 --> 00:41:37.689
different than what we talk about with

667
00:41:37.690 --> 00:41:40.619
Section 3 21 agency.  A2 a is probably

668
00:41:40.619 --> 00:41:42.890
more representative and there may be some

669
00:41:42.896 --> 00:41:44.895
other regulations that specifically apply

670
00:41:44.895 --> 00:41:46.895
to a personal exemption for instance

671
00:41:46.895 --> 00:41:49.175
alcohol or tobacco into the U.S. with

672
00:41:49.175 --> 00:41:51.365
something they have with the.  If someone

673
00:41:51.365 --> 00:41:53.635
to import certain items those items would

674
00:41:53.641 --> 00:41:56.897
not be free of duty of taxes and fees. 

675
00:41:56.897 --> 00:41:59.177
There are certain items you cannot claim

676
00:41:59.179 --> 00:42:02.433
that type of exemption on if it is for a

677
00:42:02.433 --> 00:42:04.705
gift or something like we are talking

678
00:42:04.711 --> 00:42:06.710
about in these electronic transactions

679
00:42:06.710 --> 00:42:09.268
care that is kind of a more do was

680
00:42:09.270 --> 00:42:11.270
question, but generally there's two

681
00:42:11.270 --> 00:42:13.270
different things we are talking about

682
00:42:13.270 --> 00:42:15.548
here, and there are certainly things not

683
00:42:15.548 --> 00:42:17.548
eligible for Section 3 21, there are

684
00:42:17.548 --> 00:42:19.686
things not eligible for entry type 86.

685
00:42:19.689 --> 00:42:29.366
So the court requires those to be some

686
00:42:29.369 --> 00:42:40.258
other type of entry like Sarah one or 11

687
00:42:40.263 --> 00:42:48.733
for some types of commodities that aren't

688
00:42:48.736 --> 00:42:53.576
eligible for Section 321.

689
00:42:53.577 --> 00:42:55.577
CHRISTOPHER MABELITINI:  Data elements –

690
00:42:55.577 --> 00:42:57.577
can you explain a little bit more about

691
00:42:57.577 --> 00:42:59.577
what the security scan would be in terms

692
00:42:59.577 --> 00:43:01.577
of optional data elements within Section 3

693
00:43:01.577 --> 00:43:03.577
21?

694
00:43:03.577 --> 00:43:05.577
JAMES MOORE:  Sure!

695
00:43:05.577 --> 00:43:10.055
What we really try to do is build a future

696
00:43:10.055 --> 00:43:12.055
in corporative of many different

697
00:43:12.055 --> 00:43:14.055
scenarios.  What we often see in this

698
00:43:14.055 --> 00:43:16.055
environment it has been changing rapidly

699
00:43:16.055 --> 00:43:18.055
for quite some time.

700
00:43:18.055 --> 00:43:20.055
It sometimes takes us a little while to

701
00:43:20.055 --> 00:43:22.121
have statutes or regulations change, we

702
00:43:22.123 --> 00:43:25.787
wanted to make sure we had the flexibility

703
00:43:25.790 --> 00:43:28.538
going forward to incorporate changes in

704
00:43:28.539 --> 00:43:32.203
the environment out there.  So we wanted

705
00:43:32.206 --> 00:43:35.870
to be wide and broad enough to accommodate

706
00:43:35.872 --> 00:43:39.536
those changes that we might see in the

707
00:43:39.539 --> 00:43:43.203
future.  As mentioned we are asking for

708
00:43:43.205 --> 00:43:46.411
one of four different elements that we

709
00:43:46.413 --> 00:43:50.993
think can play a role and help us.  The

710
00:43:50.996 --> 00:43:54.202
URL or the website this somebody actually

711
00:43:54.204 --> 00:43:56.494
uses to purchase that product.

712
00:43:56.496 --> 00:43:59.976
A photo, and X-ray.  We have seen from a

713
00:43:59.979 --> 00:44:02.067
lot of countries and communication with

714
00:44:02.068 --> 00:44:05.200
the WC oh a lot of countries are currently

715
00:44:05.203 --> 00:44:08.335
using and X-ray.  If you have to already

716
00:44:08.337 --> 00:44:11.469
do and X-ray for one country maybe you can

717
00:44:11.472 --> 00:44:13.908
provide this same X-ray image to Customs

718
00:44:13.909 --> 00:44:15.909
as well.

719
00:44:15.909 --> 00:44:18.469
And the security can, which is a little

720
00:44:18.472 --> 00:44:21.370
more specific to certain industries PERC

721
00:44:21.372 --> 00:44:24.270
four is dense the express industry

722
00:44:24.272 --> 00:44:27.653
currently uses security scans most of the

723
00:44:27.655 --> 00:44:32.485
time overseas PERC so that is a way we can

724
00:44:32.488 --> 00:44:35.869
incorporate and adapt to the changes what

725
00:44:35.871 --> 00:44:39.735
is going on out there in the trade

726
00:44:39.737 --> 00:44:43.601
community and be kind of inclusive of what

727
00:44:43.603 --> 00:44:47.467
is working right now in order to provide

728
00:44:47.470 --> 00:44:51.334
CBP the information to get what we need.

729
00:44:51.336 --> 00:45:26.006
CHRISTOPHER MABELITINI:  Here's a

730
00:45:26.006 --> 00:46:14.540
question: Does that 321 Data Pilot sounds

731
00:46:14.541 --> 00:47:10.011
similar to current ISF Pilot.  Could you

732
00:47:10.011 --> 00:47:51.615
explain may be the difference there?

733
00:47:51.616 --> 00:47:53.616
JAMES MOORE:  Well, we kind of had some of

734
00:47:53.616 --> 00:47:55.616
these questions about some of the data

735
00:47:55.616 --> 00:47:57.616
elements that are being supplied and used

736
00:47:57.616 --> 00:47:59.616
for.  I think ISF is kind of a good

737
00:47:59.616 --> 00:48:01.616
opportunity and I would put ISF more in

738
00:48:01.616 --> 00:48:03.616
the category of ACAS and they represent

739
00:48:03.616 --> 00:48:05.616
quick CBP needs for security data.  When

740
00:48:05.616 --> 00:48:07.616
we get a filing like that for security

741
00:48:07.616 --> 00:48:09.616
data CBP cannot use it for admissibility

742
00:48:09.616 --> 00:48:11.616
or for trade.  That is why we oftentimes

743
00:48:11.616 --> 00:48:13.616
have multiple filings that are fairly

744
00:48:13.616 --> 00:48:15.616
similar, because under current statute

745
00:48:15.616 --> 00:48:17.616
they applied to different categories that

746
00:48:17.616 --> 00:48:19.616
we cannot use lawfully for that other

747
00:48:19.616 --> 00:48:21.616
category.  So in this realm ISF is for

748
00:48:21.616 --> 00:48:23.616
security purposes.  It is not allowed to

749
00:48:23.616 --> 00:48:25.616
be used for admissibility purposes.  What

750
00:48:25.616 --> 00:48:27.616
we are asking for we believe goes far

751
00:48:27.616 --> 00:48:29.616
beyond what we are currently seeing for

752
00:48:29.616 --> 00:48:31.616
admissibility data in the Section 3 21.

753
00:48:31.616 --> 00:48:33.616
As Christine mentioned we are still

754
00:48:33.616 --> 00:48:35.616
learning through the Section 321 Data

755
00:48:35.616 --> 00:48:37.616
Pilot and we know and that is why we are

756
00:48:37.616 --> 00:48:39.616
proceeding forward with the NMRM but we

757
00:48:39.616 --> 00:48:41.616
still want to learn how we can do better

758
00:48:41.616 --> 00:48:43.616
at some other elements, and we are

759
00:48:43.616 --> 00:48:45.616
constantly learning and growing from the

760
00:48:45.616 --> 00:48:47.616
information we get and be a force

761
00:48:47.616 --> 00:48:49.616
multiplier.

762
00:48:49.616 --> 00:48:51.616
CHRISTOPHER MABELITINI:  Several have

763
00:48:51.616 --> 00:48:53.616
asked with the new process will be

764
00:48:53.616 --> 00:48:55.616
mandatory? With that we don't have a

765
00:48:55.616 --> 00:48:57.616
definitive time frame yet.  It requires

766
00:48:57.616 --> 00:48:59.616
public comment and we are working on that

767
00:48:59.616 --> 00:49:01.616
now.  Our goal is to get the word out

768
00:49:01.616 --> 00:49:03.616
about the palace and how people can start

769
00:49:03.616 --> 00:49:05.616
participating in them and start filing the

770
00:49:05.616 --> 00:49:07.616
transactions now so as we move towards it

771
00:49:07.616 --> 00:49:09.616
future press  that people are on board

772
00:49:09.616 --> 00:49:11.616
with its.  So we don't currently have a

773
00:49:11.616 --> 00:49:13.616
definitive timeline when that notice of

774
00:49:13.616 --> 00:49:15.616
proposal will be published or when the new

775
00:49:15.616 --> 00:49:17.616
process will be operational.

776
00:49:17.616 --> 00:49:22.480
JAMES MOORE: I saw a question on a

777
00:49:22.480 --> 00:49:24.480
follow-up what I was talking about.  The

778
00:49:24.480 --> 00:49:26.480
presentation talks about full polling

779
00:49:26.480 --> 00:49:28.480
centers and domestic warehouse a that they

780
00:49:28.480 --> 00:49:30.480
are recognized as one person per day for

781
00:49:30.480 --> 00:49:32.480
these types of clearances.

782
00:49:32.480 --> 00:49:34.480
And that is correct.  If a full moon

783
00:49:34.480 --> 00:49:36.480
filming center is recognized as a one

784
00:49:36.480 --> 00:49:38.480
person per day, that means sent almost all

785
00:49:38.480 --> 00:49:40.480
of their volume is in eligible because

786
00:49:40.480 --> 00:49:42.480
they can only do that once just like

787
00:49:42.480 --> 00:49:44.480
everyone else.  So that is why did the two

788
00:49:44.480 --> 00:49:46.480
things are not exclusive and recognized as

789
00:49:46.480 --> 00:49:48.480
one person per day meaning they are not

790
00:49:48.480 --> 00:49:50.480
eligible for Section 3 21 meaning bulk of

791
00:49:50.480 --> 00:49:52.480
commodities or unsold goods are destine to

792
00:49:52.480 --> 00:49:54.480
that person and the administrative

793
00:49:54.480 --> 00:49:56.480
exemption applies to the.  One person per

794
00:49:56.480 --> 00:49:58.480
day update $100 per value, and that

795
00:49:58.480 --> 00:50:00.480
package going to domestic warehouse than

796
00:50:00.480 --> 00:50:02.480
all are in eligible for that

797
00:50:02.480 --> 00:50:04.480
administrative exemption.

798
00:50:04.480 --> 00:50:06.480
CHRISTOPHER MABELITINI:  Here is a

799
00:50:06.480 --> 00:50:08.480
question: one person per day, is this

800
00:50:08.480 --> 00:50:10.480
regardless which part the cargo comes in?

801
00:50:10.480 --> 00:50:12.480
One per day covering multiple ports?

802
00:50:12.480 --> 00:50:14.480
CHRISTINE HOGUE:  It is one per day

803
00:50:14.480 --> 00:50:16.480
nationwide.  It is not one at LAX, one in

804
00:50:16.480 --> 00:50:18.480
San Francisco, when at JFK.  So it is one

805
00:50:18.480 --> 00:50:20.480
into the United States.

806
00:50:20.480 --> 00:50:22.480
Up to $800.

807
00:50:22.480 --> 00:50:24.480
JAMES MOORE:  We often hear $800, but we

808
00:50:24.480 --> 00:50:26.480
really have to talk about the whole

809
00:50:26.480 --> 00:50:28.480
section because all of it is what makes

810
00:50:28.480 --> 00:50:30.480
that administrative decision.  It is up to

811
00:50:30.480 --> 00:50:32.480
$800 fair market retail value in the

812
00:50:32.480 --> 00:50:34.480
country of shipment.

813
00:50:34.480 --> 00:50:36.480
Like Christine said that is not limited

814
00:50:36.480 --> 00:50:38.480
with to one location and doesn't mean you

815
00:50:38.480 --> 00:50:40.480
get to send one to one port and another to

816
00:50:40.480 --> 00:50:42.480
another part, it is one per day up to $800

817
00:50:42.480 --> 00:50:44.480
Fair Market Value.

818
00:50:44.480 --> 00:50:46.480
CHRISTOPHER MABELITINI:  Thank you. 

819
00:50:46.480 --> 00:50:48.480
Several questions have been around the 800

820
00:50:48.480 --> 00:50:50.480
per day per person.

821
00:50:50.480 --> 00:50:52.480
Than.  I think that addressed a number of

822
00:50:52.480 --> 00:50:54.480
those.

823
00:50:54.480 --> 00:50:56.480
Here is a question regarding how is CBP

824
00:50:56.480 --> 00:50:58.480
monitoring and reviewing shipments for and

825
00:50:58.480 --> 00:51:00.480
a forced labor compliance?

826
00:51:00.480 --> 00:51:02.480
Happy to jump in on this one as well.

827
00:51:02.480 --> 00:51:04.480
JAMES MOORE:  If I could I guess I will

828
00:51:04.480 --> 00:51:06.480
start more broadly and get a little bit

829
00:51:06.480 --> 00:51:08.480
more specific.  I think in general we

830
00:51:08.480 --> 00:51:10.480
recognize that Section 321 represent the

831
00:51:10.480 --> 00:51:12.892
same potential risk as any other entry

832
00:51:13.431 --> 00:51:16.922
type and we are absolutely monitoring this

833
00:51:16.922 --> 00:51:18.922
type of entry type.

834
00:51:18.922 --> 00:51:22.142
We are conducting more physical exams, but

835
00:51:22.142 --> 00:51:25.361
we were always looking at this rate.

836
00:51:25.366 --> 00:51:28.614
This is something that it is not passed

837
00:51:28.617 --> 00:51:32.271
through, it is not been avoided, it is not

838
00:51:32.275 --> 00:51:34.711
anything other than what it specifically

839
00:51:34.714 --> 00:51:36.714
says.

840
00:51:36.714 --> 00:51:40.164
Is send administrative exemption were most

841
00:51:40.164 --> 00:51:42.596
of the goods are highly compliant and

842
00:51:42.598 --> 00:51:46.623
though value and is still has tremendous

843
00:51:46.624 --> 00:51:50.074
risk and we have tremendous resources

844
00:51:50.075 --> 00:51:54.100
focused on that risk associated with that

845
00:51:54.102 --> 00:51:59.852
level of risk work so we have a number of

846
00:51:59.853 --> 00:52:04.453
different tools that we use in place, and

847
00:52:04.455 --> 00:52:09.055
we certainly have what we call a layered

848
00:52:09.057 --> 00:52:14.232
approach and not one thing that we do to

849
00:52:14.233 --> 00:52:18.258
make sure this type of commodity is

850
00:52:18.260 --> 00:52:20.260
compliant.

851
00:52:20.260 --> 00:52:22.260
We have talked about some of the

852
00:52:22.260 --> 00:52:24.260
challenges PERC when we don't get the

853
00:52:24.260 --> 00:52:26.260
right data we try to partner with some

854
00:52:26.260 --> 00:52:28.260
people in the trade community.  If you the

855
00:52:28.260 --> 00:52:30.260
trade company aren't getting the right

856
00:52:30.260 --> 00:52:32.260
data we work together to make sure what is

857
00:52:32.260 --> 00:52:34.260
in the box together.

858
00:52:34.260 --> 00:52:58.958
Creates tremendous challenges.

859
00:53:16.889 --> 00:53:18.889
What is why we are doing a lot of

860
00:53:18.889 --> 00:53:20.889
different things to address those

861
00:53:20.889 --> 00:53:22.889
challenges.  We certainly are aware, we

862
00:53:22.889 --> 00:53:24.889
are looking, and we certainly are exit

863
00:53:24.889 --> 00:53:26.889
succeeding in finding a lot of violations

864
00:53:26.889 --> 00:53:28.889
and making sure they do not come into the

865
00:53:28.889 --> 00:53:30.889
United States .

866
00:53:30.889 --> 00:53:32.889
CHRISTOPHER MABELITINI:  Shipments are no

867
00:53:32.889 --> 00:53:34.889
different than any other package or entry

868
00:53:34.889 --> 00:53:36.889
type coming in.  The same screenings and

869
00:53:36.889 --> 00:53:38.889
enforcement methods.

870
00:53:38.889 --> 00:53:41.745
Would separate shipments and entries to

871
00:53:41.745 --> 00:53:43.745
the same warehouse on the same day which

872
00:53:43.745 --> 00:53:45.745
are going to the same warehouse be

873
00:53:45.745 --> 00:53:47.745
eligible for de minimis if they were

874
00:53:47.745 --> 00:53:49.745
already sold to the consumer?

875
00:53:49.745 --> 00:53:51.745
JAMES MOORE:  That is kind of answered in

876
00:53:51.745 --> 00:53:53.745
its own question, which is great, which is

877
00:53:53.745 --> 00:53:55.745
who is a person claiming the

878
00:53:55.745 --> 00:53:57.745
administrative exemption?

879
00:53:57.745 --> 00:53:59.745
If there is an individual who has

880
00:53:59.745 --> 00:54:01.745
purchased a product then that they need to

881
00:54:01.745 --> 00:54:03.745
be listed as a person claiming the

882
00:54:03.745 --> 00:54:05.745
exemption or the ultimate consignee.

883
00:54:05.745 --> 00:54:07.745
If we are provided that information the

884
00:54:07.745 --> 00:54:09.745
fact that it is flowing through a

885
00:54:09.745 --> 00:54:11.745
fulfillment center is a piece of the data,

886
00:54:11.745 --> 00:54:14.316
but it wouldn't mean that they are in

887
00:54:14.316 --> 00:54:16.595
eligible for the administrative exemption.

888
00:54:16.598 --> 00:54:20.707
 We have to have that person claiming the

889
00:54:20.708 --> 00:54:23.906
exemption and that is crucial to making

890
00:54:23.907 --> 00:54:27.558
sure they are eligible for the practice. 

891
00:54:27.558 --> 00:54:32.122
We look at all the other factors as well. 

892
00:54:32.125 --> 00:54:34.864
We have many different efforts underway

893
00:54:34.866 --> 00:54:38.517
right now to make sure people are not

894
00:54:38.519 --> 00:54:41.261
abusing the administrative exemption.  Of

895
00:54:41.262 --> 00:54:44.914
course, we always want to be more robust

896
00:54:44.914 --> 00:54:48.564
in that but we absolutely have methods and

897
00:54:48.566 --> 00:54:51.763
practices right now to make sure people

898
00:54:51.764 --> 00:54:54.502
are not abusive of the administrative

899
00:54:54.503 --> 00:54:56.503
process.

900
00:54:56.503 --> 00:54:58.615
CHRISTOPHER MABELITINI: Will CBP consider

901
00:54:58.615 --> 00:55:04.463
a CBP benefit to authorize entry 86 or

902
00:55:04.463 --> 00:55:10.311
maybe you could talk about some of the

903
00:55:10.311 --> 00:55:14.697
internal discussions we are having around

904
00:55:14.697 --> 00:55:19.083
trusted trader partnerships as it relates

905
00:55:19.083 --> 00:55:21.083
to (Unintelligible)?

906
00:55:21.083 --> 00:55:24.913
FTZ

907
00:55:24.913 --> 00:55:35.461
JAMES MOORE:  FTZ does not reside in Lopez

908
00:55:35.461 --> 00:55:46.005
and there are a lot of statutes for FTZs.

909
00:55:46.008 --> 00:55:48.008
.

910
00:55:48.008 --> 00:55:50.797
.

911
00:55:50.797 --> 00:55:52.797
It is pretty exciting because we are

912
00:55:52.797 --> 00:55:54.797
writing a brand-new program paragraph the

913
00:55:54.797 --> 00:55:58.005
way it is currently structured it would be

914
00:55:58.156 --> 00:56:00.346
difficult and impossible in some

915
00:56:00.348 --> 00:56:03.852
situations, like on the land border to get

916
00:56:03.855 --> 00:56:07.359
in the fast lane, for example.  Everyone

917
00:56:07.363 --> 00:56:11.743
in the supply chain has to be a CBP member

918
00:56:11.746 --> 00:56:13.936
in an E-commerce environment the

919
00:56:13.938 --> 00:56:17.004
likelihood of the consignee being a member

920
00:56:17.007 --> 00:56:20.511
is very limited, very unlikely pair so we

921
00:56:20.514 --> 00:56:24.018
are working on some ways where we can

922
00:56:24.022 --> 00:56:27.088
figure out how to bring E-commerce into

923
00:56:27.090 --> 00:56:30.594
the CBP process and what benefits we can

924
00:56:30.597 --> 00:56:33.663
provide based off of bringing them into

925
00:56:33.666 --> 00:56:35.666
this process.

926
00:56:35.666 --> 00:56:38.619
We are impressed with some early results

927
00:56:38.619 --> 00:56:41.714
we have seen, and I think we are going to

928
00:56:41.714 --> 00:56:44.664
be able to work on some facilitation

929
00:56:44.667 --> 00:56:47.619
benefits associated with the very low risk

930
00:56:47.619 --> 00:56:50.994
afraid, very low list companies and try to

931
00:56:50.994 --> 00:56:53.943
figure out a process going forward for

932
00:56:53.944 --> 00:56:55.942
that.

933
00:56:55.942 --> 00:56:57.988
CHRISTOPHER MABELITINI: Just to add a

934
00:56:57.990 --> 00:57:02.821
little plug, if there's any one of the

935
00:57:02.821 --> 00:57:06.444
webinar today attending the trade facility

936
00:57:06.444 --> 00:57:10.672
upcoming there will be an E-commerce break

937
00:57:10.673 --> 00:57:13.691
open a specifically addressing trusted

938
00:57:13.692 --> 00:57:19.729
trader in the work.  So if you are going

939
00:57:19.730 --> 00:57:23.352
to be there check out that.

940
00:57:23.353 --> 00:57:26.139
James and myself along with our colleagues

941
00:57:26.139 --> 00:57:28.139
from the CBP program.

942
00:57:28.139 --> 00:57:30.864
I have another question, which I think

943
00:57:30.867 --> 00:57:34.006
also helps add a little clarification on

944
00:57:34.008 --> 00:57:37.145
the requirement of one person per day.

945
00:57:37.148 --> 00:57:43.782
How many items within the shipment are

946
00:57:43.782 --> 00:57:49.470
allowed under Section 321 whether the

947
00:57:49.470 --> 00:57:54.210
manifest or entry point 86?

948
00:57:54.210 --> 00:57:56.490
JAMES MOORE:  That is a question we get a

949
00:57:56.490 --> 00:57:58.490
lot of.

950
00:57:58.490 --> 00:58:01.467
The value of good in the country of

951
00:58:01.474 --> 00:58:06.567
shipment if it is like to say Wandel a

952
00:58:06.572 --> 00:58:11.100
person could bring in 800 of those items.

953
00:58:11.103 --> 00:58:19.623
Just to kind of make the math easy for us.

954
00:58:19.627 --> 00:58:28.147
 It is not limited to one shipment per day.

955
00:58:28.150 --> 00:58:31.098
That is where I kind of go back to what I

956
00:58:31.099 --> 00:58:33.243
was describing before.  You kind of have

957
00:58:33.244 --> 00:58:35.244
to look at the entire administrative

958
00:58:35.244 --> 00:58:37.388
exemption, to understand it is up to $800

959
00:58:37.388 --> 00:58:39.388
per day, and that could mean 800 shipments

960
00:58:39.388 --> 00:58:41.388
of one dollar paragraph that is absolutely

961
00:58:41.388 --> 00:58:43.388
something we take into account when trying

962
00:58:43.388 --> 00:58:45.388
to deal with compliance of administrative

963
00:58:45.388 --> 00:58:47.388
exemption.  We want to make sure we

964
00:58:47.388 --> 00:58:49.388
understand that value to us.  It goes back

965
00:58:49.388 --> 00:58:51.388
to data quality also which is an element

966
00:58:51.388 --> 00:58:53.388
we certainly have struggled with just

967
00:58:53.388 --> 00:58:55.388
because of so much under evaluation.

968
00:58:55.388 --> 00:58:58.769
We have to make sure that evaluation is

969
00:58:58.948 --> 00:59:02.906
correct and something that could slow down

970
00:59:02.907 --> 00:59:07.997
a shipment if we are not confident or it

971
00:59:07.998 --> 00:59:13.658
is a higher risk or it is not giving us

972
00:59:13.659 --> 00:59:15.659
the right data.

973
00:59:15.659 --> 00:59:19.239
CHRISTOPHER MABELITINI:  How are you

974
00:59:19.239 --> 00:59:24.412
regulating the one person per day if a

975
00:59:24.415 --> 00:59:26.415
broker, courier etc.

976
00:59:26.415 --> 00:59:33.353
could be…simultaneously?

977
00:59:33.356 --> 00:59:36.124
CHRISTINE HOGUE:  Want to talk about the

978
00:59:36.124 --> 00:59:38.543
report cards that we are working towards?

979
00:59:38.545 --> 00:59:42.569
We actually have developed a tool to look

980
00:59:42.569 --> 00:59:46.086
at things retrospectively.  And we are

981
00:59:46.088 --> 00:59:50.613
creating what we will call for lack of a

982
00:59:50.613 --> 00:59:54.637
better term a report card where people had

983
00:59:54.638 --> 00:59:58.658
these shipments, and in there we will be

984
00:59:58.659 --> 01:00:02.177
notified broker self, you know, which was

985
01:00:02.179 --> 01:00:05.698
were potentially – because he could have

986
01:00:05.699 --> 01:00:09.218
to John Smith, you know, and different

987
01:00:09.219 --> 01:00:13.243
addresses or the same address of a junior

988
01:00:13.243 --> 01:00:16.757
and senior who orders something, but we

989
01:00:16.760 --> 01:00:20.783
are going to provide report cards so the

990
01:00:20.784 --> 01:00:24.304
brokers can then be aware of who

991
01:00:24.305 --> 01:00:27.320
potentially they are filing multiples for

992
01:00:27.320 --> 01:00:30.839
and can work with their customers that

993
01:00:30.841 --> 01:00:32.841
way.

994
01:00:32.841 --> 01:00:35.814
CHRISTOPHER MABELITINI:  There's been a

995
01:00:35.814 --> 01:00:37.814
couple of questions around that date by

996
01:00:37.814 --> 01:00:41.750
which the de minimis – by which we

997
01:00:41.770 --> 01:00:44.746
determine a trend now is eligible.

998
01:00:44.749 --> 01:00:48.187
The question, for example, if two

999
01:00:48.188 --> 01:00:52.772
shipments arrive on the same day, can one

1000
01:00:52.774 --> 01:00:57.931
be file for entry one day and the second

1001
01:00:57.933 --> 01:01:00.798
the next for de minimis?

1002
01:01:00.799 --> 01:01:04.082
JAMES MOORE: I know with some brokers

1003
01:01:04.082 --> 01:01:07.825
online we have had discussions, but I will

1004
01:01:07.828 --> 01:01:12.512
go too far into that.  For our purposes it

1005
01:01:12.513 --> 01:01:14.856
shows up to us basically.

1006
01:01:14.857 --> 01:01:19.799
So a man of his, it could be a man of his

1007
01:01:19.803 --> 01:01:23.923
boat ahead of time, but it has to be when

1008
01:01:23.927 --> 01:01:26.399
we are physically responsible for this

1009
01:01:26.401 --> 01:01:30.109
shipment is when we have two imply it's. 

1010
01:01:30.112 --> 01:01:33.408
There are nuances to.  You send something

1011
01:01:33.410 --> 01:01:36.706
on two different days and that happens to

1012
01:01:36.709 --> 01:01:39.593
be consolidated and arrive on the same

1013
01:01:39.595 --> 01:01:41.595
day.

1014
01:01:41.595 --> 01:01:43.912
There are nuances to it.

1015
01:01:43.912 --> 01:01:47.119
And CBP will be appreciative of – the

1016
01:01:47.119 --> 01:01:49.915
reality is right now they're not looking

1017
01:01:49.921 --> 01:01:53.525
at a person who might have coffee now, one

1018
01:01:53.525 --> 01:01:56.332
or two that were shipped on different

1019
01:01:56.333 --> 01:01:59.936
days.  That is not really the level that

1020
01:01:59.936 --> 01:02:03.937
we are working at right now.  We are both

1021
01:02:03.941 --> 01:02:06.745
focused on companies in this early stage

1022
01:02:06.747 --> 01:02:09.148
that are bringing thousands of shipments

1023
01:02:09.148 --> 01:02:12.750
in that we think would be in eligible for

1024
01:02:12.753 --> 01:02:15.955
Section 321 and we will continue to work

1025
01:02:15.957 --> 01:02:18.359
down our list, hopefully eliminating those

1026
01:02:18.362 --> 01:02:20.767
companies that are bringing in thousands

1027
01:02:20.767 --> 01:02:23.569
per day per the hundreds and individuals

1028
01:02:23.570 --> 01:02:25.570
shipments.

1029
01:02:25.570 --> 01:02:27.706
We look for some solutions like we talked

1030
01:02:27.707 --> 01:02:30.042
about, even possibly technology solutions

1031
01:02:30.042 --> 01:02:34.712
in the future to help us do that to make

1032
01:02:34.713 --> 01:02:37.515
sure compliance is happening in this

1033
01:02:37.516 --> 01:02:39.516
realm.

1034
01:02:39.516 --> 01:02:42.366
CHRISTOPHER MABELITINI:  Thank you.

1035
01:02:42.366 --> 01:02:44.366
I think we have time for one or two more.

1036
01:02:44.366 --> 01:02:49.695
This one regards splitting a shipment into

1037
01:02:51.062 --> 01:02:57.973
smaller batches to claim de minimis.

1038
01:02:57.977 --> 01:02:59.977
Is or is that not allowable?

1039
01:02:59.977 --> 01:03:02.081
JAMES MOORE:  I think that kind of goes

1040
01:03:02.082 --> 01:03:05.272
back to the conversation we were having

1041
01:03:05.273 --> 01:03:08.463
about who is claiming the exemption parent

1042
01:03:08.464 --> 01:03:11.656
is one person claiming the exemption on

1043
01:03:11.656 --> 01:03:13.656
that one day?

1044
01:03:13.656 --> 01:03:16.187
Is it being imported per day? Any person

1045
01:03:16.187 --> 01:03:18.187
could by multiple different things online.

1046
01:03:18.187 --> 01:03:20.616
 You may not have a lot of control over

1047
01:03:20.618 --> 01:03:23.468
when they are shipped and if you did have

1048
01:03:23.469 --> 01:03:25.999
control over when they are shipped and you

1049
01:03:26.000 --> 01:03:28.000
were claiming the exemption you are

1050
01:03:28.000 --> 01:03:30.430
allowed to receive up to $800 Fair Market

1051
01:03:30.430 --> 01:03:32.430
Value on that one day.

1052
01:03:32.430 --> 01:03:34.781
If you happen to purchase something or

1053
01:03:34.785 --> 01:03:37.556
delete arrival of your next package onto

1054
01:03:37.558 --> 01:03:41.914
the next day that we would ask is it up to

1055
01:03:41.915 --> 01:03:45.083
$800 Fair Market Value tale value? I think

1056
01:03:45.084 --> 01:03:47.460
that from my perspective, especially with

1057
01:03:47.461 --> 01:03:49.837
commercial type shipments, it is somewhat

1058
01:03:49.837 --> 01:03:53.401
easy to see what we would consider that to

1059
01:03:53.402 --> 01:03:56.966
be structuring.  We can see if things are

1060
01:03:56.967 --> 01:03:59.739
being manipulated in order to split them

1061
01:03:59.740 --> 01:04:02.908
up to claim the exemption when they are

1062
01:04:02.909 --> 01:04:05.285
not eligible paragraph we certainly have

1063
01:04:05.285 --> 01:04:08.453
an eye towards all type of violations park

1064
01:04:08.454 --> 01:04:12.414
that is what we are aware of and when we

1065
01:04:12.415 --> 01:04:15.583
continue to look for.  We certainly also

1066
01:04:15.584 --> 01:04:19.148
understand the other side.  Like I said if

1067
01:04:19.149 --> 01:04:22.317
you are buying something and want to delay

1068
01:04:22.318 --> 01:04:25.090
the shipment -- next shipment to the next

1069
01:04:25.090 --> 01:04:27.862
day that is perfectly acceptable under the

1070
01:04:27.863 --> 01:04:29.863
administrative exemption process.

1071
01:04:29.863 --> 01:04:32.306
CHRISTOPHER MABELITINI: I would like to

1072
01:04:32.306 --> 01:04:34.426
thank everyone for joining us today and

1073
01:04:34.892 --> 01:04:38.380
thank you to James and Christine and John

1074
01:04:38.380 --> 01:04:41.432
Leonard for being part of this popular

1075
01:04:41.432 --> 01:04:45.354
park we hope you found it useful, we hope

1076
01:04:45.355 --> 01:04:48.842
we gave some good information you can use

1077
01:04:48.843 --> 01:04:51.458
paragraph we put the email address

1078
01:04:51.458 --> 01:04:53.458
ecommerce@cbp.dhs.gov in the chat.

1079
01:04:53.458 --> 01:04:58.452
We have recorded today's webinar so we

1080
01:04:58.456 --> 01:05:02.956
will be posting it to CBP.

1081
01:05:02.958 --> 01:05:04.958
gov.

1082
01:05:04.958 --> 01:05:10.494
We did not get to all the questions and we

1083
01:05:10.494 --> 01:05:14.963
will do our best to answer those.

1084
01:05:14.974 --> 01:05:17.140
So with that thank you everyone.

1085
01:05:17.140 --> 01:05:23.857
Thank you for joining us and have an

1086
01:05:23.857 --> 01:05:28.056
enjoyable rest of your day.

1087
01:05:28.058 --> 01:05:33.774
End 4:06 PM (ET)