The BOC Blast 368 – Information on COBRA User Fee Changes Effective October 1, 2020

CSMS #43511668 – Information on COBRA User Fee Changes Effective October 1, 2020

Pursuant to the General Notice (85 FR 45646) published July 29, 2020, various changes to user fees within the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 will take effect on October 1, 2020. The General Notice may be accessed at the link below:

https://www.govinfo.gov/content/pkg/FR-2020-07-29/pdf/2020-16450.pdf

The Merchandise Processing Fee (MPF) ad valorem rate of 0.3464% will NOT change. The MPF minimum and maximum for formal entries (class code 499) will change. The minimum will change from $26.79 to $27.23; and the maximum will change from $519.76 to $528.33.

The fee for informal entry or release (class code 311) will change to $2.18.

The surcharge for manual entry or release will change to $3.27.

The dutiable mail fee (class code 496) will change to $5.99.

Another CSMS will be sent when the changes are in the ACE Certification environment for trade testing.

The BOC Blast 365 – Update to United States Mexico Canada Agreement

Update to United States Mexico Canada Agreement

After 25 year, the old North American Trade Agreement will be replaced tomorrow July 1, 2020. Each participating country has its own name, yet all three names refer to the same trade agreement. Please see the name for each country listed below. 

  • United States-Mexico-Canada Agreement (USMCA), in the United States
  • Tratado entre Mexico, Estados Unidos y Canada (T-MEC), in Mexico.
  • Canada-United States-Mexico Agreement (CUSMA), in Canada.

US Customs and Border Patrol issued a cargo systems messaging service with the final instructions. Please see CMSM# 43215543 US-Mexico-Canada Agreements (USMCA) Implementing Instructions (Final) – July 30, 2020. The CSMA published by Customs lists the website were you can find specific information for importing under USMCA. BOC will provide a Certificate of Origin that contains all the data elements that are required for USMCA, T-MEC and CUMA with instructions, to any party requesting it.  

Cargo Systems Messaging Service CSMS #43215543
US-Mexico-Canada Agreement (USMCA) Implementing Instructions (Final) – June 30, 2020

This message is to inform the Trade Community of the release of the USMCA Implementing Instructions (Final) on June 30, 2020.  The link to this document is available below.

These USMCA Implementing Instructions replace the Updated USMCA Interim Implementing Instructions issued on June 16, 2020, and provide guidance on the new requirements under the USMCA, including information on USMCA entry, compliance, rules-of-origin, origin certifications, new auto requirements, textile requirements, and other requirements for claiming USMCA preferential treatment for goods.

The supporting USMCA regulations, the new Part 182 of Title 19, Code of Federal Regulations (19 CFR 182) that includes the USMCA Uniform Regulations, will be issued on July 1, 2020.  Additionally, the Harmonized Tariff Schedule of the United States will be amended effective, July1, 2020 to include General Note 11 (GN11) with information on the USMCA rules of origin, product specific rules, and other requirements.

Effective July1, 2020, the North American Free Trade Agreement (NAFTA) terminates and the USMCA enters into force.

Questions regarding this guidance can be directed to Maya Kamar, Director, Textiles and Trade Agreements Division at (202) 945-7228 or email FTA@CBP.DHS.GOV.

Questions regarding the USMCA automotive certification submission process for Labor Value Content certification, Steel certification, and Aluminum certification can be directed to the USMCA Center email at USMCA@CBP.DHS.GOV

The USMCA Implementing Instructions – June 30, 2020

https://www.cbp.gov/document/guidance/usmca-implementation-instructions

The USMCA Implementation Act (Public Law No: 116-113)

https://www.congress.gov/bill/116th-congress/house-bill/5430/text

The USMCA Agreement, Final Text

https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/agreement-between

USTR Federal Register Notice on USMCA Alternative Staging Regimes for Automotive Imports – 85 FRN 22238, April 21, 2020

https://www.govinfo.gov/content/pkg/FR-2020-04-21/pdf/2020-08405.pdf

CSMS #43197567 – USMCA Post-Importation Claims and MPF Processing

https://content.govdelivery.com/bulletins/gd/USDHSCBP-293247f?wgt_ref=USDHSCBP_WIDGET_2

The BOC Blast 364 – Rolled Trans-Pacific Shipments Portend

Rolled Trans-Pacific Shipments Portend

Sporadic Capacity Scarcity

Bill Mongelluzzo, Senior Editor | Jun 08, 2020 7:47AM EDT, JOC online

An unexpected surge in Asian exports to the United States in late May, causing cargo rolling at Asian ports and a spike in rates, warns of future pockets of tight capacity as shippers cautiously increase volumes and carriers plan blank sailings into August.

Tensions are rising between non-vessel operating common carriers (NVOs) and shipping lines as NVOs charge that carriers are intentionally restricting capacity and overbooking vessels in the eastbound trans-Pacific in order to push freight rates higher. For their part, carriers blame the tight capacity on their customers’ inability to accurately forecast demand during the COVID-19 crisis.

Regardless of the cause, the tensions speak to larger trends in the container shipping industry, namely carriers’ successful management of capacity to meet future volumes and general uncertainty among importers of just how much restocking is needed as the North American economy recovers from the pandemic. These conditions are expected to continue in the coming months.

Carrier executives this week told JOC.com that the tight outbound capacity at Chinese ports resulted from an unexpected late-May spike in US imports. Volumes are increasing as retailers begin to replenish inventories of merchandise that have been moving out of warehouses to store shelves as the US economy begins to reopen.

“Everyone missed the volume surge,” in their projections, a liner executive that asked not to be identified said Wednesday. “We rely on our customer forecasts,” he said.

As a result, rates from China to the US West Coast are unusually high right now, especially given the impact of the COVID-19 crisis on US imports from Asia.

Blank sailings reduce capacity in eastbound trans-Pacific. NVOs, however, charged that the spike in the West Coast rate is due mostly to carriers restricting capacity from South China to the ports of Los Angeles and Long Beach through blank sailings. Carriers this past month have blanked 36 sailings in the trans-Pacific, according to Sea-Intelligence Maritime Consulting. At the same time, import volumes have increased the past two weeks as some regions of the country reopened businesses that were closed during COVID-19 lockdowns.

“The country is opening faster than expected,” Jon Monroe, a transportation consultant who represents NVOs in Asia and the US, said in a newsletter to clients on Thursday. Carriers are managing space so tightly through blank sailings that there is a two-week backlog in South China ports for shipments destined to Los Angeles-Long Beach, he said.

For weeks 23-24 (beginning June 1 and June 8), vessel capacity in the Pacific Southwest services from South China to California is “extremely tight,” Monroe said. “All steamship lines are overbooked now.” Monroe described space on services to the Pacific Northwest and all-water strings from China to the East Coast as “tight.”

In conversations with JOC.com, carrier sources bristled at those statements from NVOs and said their decisions to cancel sailings at Asian ports, which were announced three to five weeks in advance in order to give customers time to adjust their supply chains, are based on feedback they receive from their customers.

“We have zero visibility into the supply chain on the customer side,” one carrier executive said.

A second carrier executive that asked not to be identified told JOC.com this week carriers in March and April made good-faith supply-demand forecasts in a volatile market that has been roiled by COVID-19. “There was no premeditated plan to prop up rates,” the executive said.

Jeremy Nixon, CEO of Ocean Network Express, told JOC Uncharted Wednesday that ONE is attempting to go beyond demand forecasts from customers in an effort to refine its capacity plans even further.

“If we only use forecast information four to five weeks out, we’d have some bumps in the road. But we’re using some simulation work and we’re trying to adjust some of these forecasts to make them more accurate,” Nixon said.

When US containerized imports from Asia plunged in March and April, carriers were planning their sailing schedules a month or so forward, the carrier executives said. Because they were given no insight into retailers’ plans for replenishing their inventories in May, they determined that in order to control costs, they would have to cancel sailings.

Anticipating a slow start to the peak-shipping season that runs from August through October, trans-Pacific carriers since April have canceled more than 120 sailings into July, according to Sea-Intelligence. Retailers likewise are expecting a slow summer shipping season.

The BOC Blast 363 – Additional List 4A Products Excluded from China Tariff; Act Now for Retroactive Refunds

Capacity Cut by Blank Sailings

The international trading industry continues to face challenges.  It is reported that the shipping companies suspended a large volume in May and June, leading to container freight rates rising. Ports and the container shipping industry will continue to be under pressure in the coming months.

Due to the impact of the pandemic on global trade, according to data provided by Alphaliner, as at May 11, the number of global container ships standing idle has reached 524, with a total idle standing capacity of 2.65 million TEU. It is equivalent to 11.3% of the global container shipping capacity. It has become the highest in history.

The shipping companies have announced the cancellation of a total of 478 voyages, of which 350 voyages are mainly on deep ocean routes.

TRANSATLANTIC NETWORK SEASONAL BLANK SAILING PROGRAMME UPDATE

MSC Mediterranean Shipping Company would like to inform you that in order to respond to lower demand due to the increased impact of COVID-19 across Europe and the USA, we will continue our seasonal blanking programme.

The temporary suspension of our NEUATL4 service will be extended till week 28.

(NOTE: Rotation affected by MSC NEUATL service is: Antwerp – Rotterdam – Bremerhaven – Felixstowe – New York – Savannah – Port Everglades – Charleston)

The programme will continue with the followed omissions:

  • Week 24 omission – Blanking vessel voyage 024W – ETD Antwerp 08.06.2020 
  • Week 25 omission – Blanking vessel voyage 025W – ETD Antwerp 15.06.2020
  • Week 26 omission – Blanking vessel voyage 026W – ETD Antwerp 22.06.2020
  • Week 27 omission – Blanking vessel voyage 027W – ETD Antwerp 29.06.2020
  • Week 28 omission – Blanking vessel voyage 028W – ETD Antwerp 06.07.2020 

You may continue to place bookings with limited disruption as we are arranging a contingency plan with alternative services.

Should you have any questions regarding these blanking, please contact your MSC local office.

Week# Alliance Carrier (Service String) Gateway Blank Sailing Details Alterative Update
22 Ocean Alliance *Cosco (AWE2), OOCL (ECX2),
APL (AW1), CMA (Manhattan Bridge),
EMC (NUE2)
EC – (P) M/V CMA CGM J.Madison
ETD TAO 05/25
ETD NBO 05/28
ETD SHA 05/31
ETD BUS 06/01
ETA NYC 06/25
Added
04/24 2020
22 Ocean Alliance *Cosco (CPNW), OOCL (PNW4),
APL (NP2),CMA (TPX),
EMC (PE2),
PNW M/V XIN HONGKONG
ETD HKG 05/27
ETD YTN 05/29
ETD NBO 06/01
ETD SHA 06/03
ETA PRR 06/14
Resume to Normal Revised
05/08 2020
22 The Alliance *YML, Hapag, ONE, HMM  (PS4) PSW M/V TBA
ETD XMN 05/30
ETD YTN 06/01
ETD KAO 06/02
ETD KEE 06/03
ETA LAX  06/16
Resume to Normal Revised
05/15 2020
23 2M+Zim *ZIM (ZCP), MSK (TP10),MSC (Amber Jack)
Hamburg (ASUS1),
EC – (P) M/V CAPE TAINARO
ETD XNG 06/05
ETD TAO 06/07
ETD NBO 06/09
ETD SHA 006/11
ETD BUS 06/14
ETA SAV 07/08
Added
04/24 2020
23 Ocean Alliance *Cosco (AWE2), OOCL (ECX2),
APL (AW1), CMA (Manhattan Bridge),
EMC (NUE2)
EC – (P) M/V
ETD TAO 06/01
ETD NBO 06/04
ETD SHA 06/06
ETD BUS 06/08
ETA NYC 07/02
Added
04/24 2020
23 Ocean Alliance *Cosco (GME)
CMA (GMX), EMC (GME), OOCL (GCC2)
EC – (P) M/V Cosco Auckland
ETD SHA 06/01
ETD NBO 06/02
ETD XMN 06/04
ETD YTN 06/05
ETA HOU 07/03
Resume to Normal Revised
05/14 2020
23 Ocean Alliance *EMC (NUE),
APL (AW4), CMA (Vespucci),
OOCL (ECC2), Cosco (AWE1),
EC – (P) M/V TBA
ETD TAO 06/04
ETD NBO 06/06
ETD SHA 06/08
ETD BUS 06/10
ETT SAV 07/03
Added
04/28 2020
23 The Alliance *Hapag , ONE, YML, HMM (EC5) EC – (S) M/V MOL Maneuver 052E
ETD LCB 006/06
ETD Caimep 06/08
ETD SG 06/10
ETD PKL 06/11
ETD Colomno 06/15
ETA NYC 07/06
Added
05/07 2020
23 Ocean Alliance *Cosco (CPNW), OOCL (PNW4),
APL (NP2),CMA (TPX),
EMC (PE2),
PNW M/V TBA
ETD HKG 06/03
ETD YTN 06/05
ETD NBO 06/08
ETD SHA 06/10
ETA PRR 06/21
Added
05/08 2020
23 The Alliance *Hapag,* YML, *HMM, ONE , (PN3)
Blank on WK17/19/21/23/25
PNW M/V TBA
ETD HKG 06/01
ETD YTN 06/02
ETD SHA 06/06
ETD BUS 06/08
ETA YVR 06/19
Added
04/24 2020
23 The Alliance *ONE, Hapag , YML, HMM (PN4)
Blank on WK 17/19/21/23/25
PNW M/V TBA
ETD TAO 06/06
ETD NBO 06/08
ETD SHA 06/09
ETD BUS 06/13
ETA PRR 06/22
Added
04/24 2020
23 Ocean Alliance *OOCL (PCC1), Cosco (AAC4)
APL (CC9), CMA (HIX),  EMC (PCC1)
PSW M/V TBA
ETD NBO 06/07
ETD SHA 06/09
ETD BUS 06/11
ETA LGB 06/22
Added
05/08 2020
23 The Alliance *ONE, Hapag , YML , HMM (PS3) PSW M/V TBA
ETD NHV 06/06
ETD PIP 06/07
ETD COL 06/10
ETD PKL 06/14
ETD SG 06/17
ETD Caimep 06/20
ETD HPH 06/23
ETA LAX  07/08
Added
04/24 2020
23 Ocean Alliance *CMA (Columbus PNW), APL (WAX), 
OOCL (PNW2), Cosco (MPNW), EMC (NP1),
PNW M/V :
ETD SG  06/03
ETD YTN 06/09
ETD XMN 06/11
ETD NBO 06/12
ETD SHA 06/15
ETD BUS 06/18
ETA SEA 06/28
Added
05/14 2020
24 Ocean Alliance *CMA (PRX), APL (SC1),  
OOCL (PCS1), Cosco (AAS2)
EMC (PRX), Wanhai (CP3)
-Wef  ETD FUQ May 13 – New Route
PSW M/V TBA
ETD FUQ 06/10
ETD NSA 06/12
ETD YTN 06/13
ETD XMN 06/15
ETA LAX 06/29
Resume to Normal Revised
05/25 2020
24 The Alliance *YML, Hapag, ONE, HMM  (PS4) PSW M/V TBA
ETD XMN 06/13
ETD YTN 06/15
ETD KAO 06/16
ETD KEE 06/17
ETA LAX  06/30
Resume to Normal Revised
05/19 2020
24 Ocean Alliance *Cosco (GME)
CMA (GMX), EMC (GME), OOCL (GCC2)
EC – (P) M/V Cosco Auckland
ETD SHA 06/08
ETD NBO 06/09
ETD XMN 06/11
ETD YTN 06/12
ETA HOU 07/10
Added
05/14 2020
25 The Alliance *Hapag , ONE, YML, HMM (EC5) EC – (S) M/V MOL MIssion
ETD LCB 06/20
ETD Caimep 06/22
ETD SG 06/24
ETD PKL 06/25
ETD Colomno 06/29
ETA NYC 07/20
Added
05/07 2020
25 The Alliance *Hapag,* YML, *HMM, ONE , (PN3)
Blank on WK17/19/21/23/25
PNW M/V TBA
ETD HKG 06/15
ETD YTN 06/16
ETD SHA 06/20
ETD BUS 06/22
ETA YVR 07/03
Added
04/24 2020
25 The Alliance *ONE, Hapag , YML, HMM (PN4)
Blank on WK 17/19/21/23/25
PNW M/V TBA
ETD TAO 06/20
ETD NBO 06/22
ETD SHA 06/23
ETD BUS 06/27
ETA PRR 07/06
Added
04/24 2020
25 Ocean Alliance *EMC (TPA)
APL (SC8), CMA (JDX),
OOCL(PSW8), Cosco (AAS4)
-Wef  ETD HKG 05/03 – New Route
PSW M/V TBA
ETD HKG 06/21
ETD KAO 06/24
ETD TAIPEI 06/25
ETA LAX 07/08
Added
04/24 2020
25 Ocean Alliance *CMA (PRX), APL (SC1),  
OOCL (PCS1), Cosco (AAS2)
EMC (PRX), Wanhai (CP3)
-Wef  ETD FUQ May 13 – New Route
PSW M/V TBA
ETD FUQ 06/17
ETD NSA 06/19
ETD YTN 06/20
ETD XMN 06/22
ETA LAX 07/06
Added
04/24 2020
26 Ocean Alliance *EMC (NUE),
APL (AW4), CMA (Vespucci),
OOCL (ECC2), Cosco (AWE1),
EC – (P) M/V TBA
ETD TAO 06/25
ETD NBO 06/27
ETD SHA 06/29
ETD BUS 07/01
ETT SAV 07/24
Added
04/24 2020
26 The Alliance *YML, Hapag, ONE, HMM  (PS4) PSW M/V TBA
ETD XMN 06/27
ETD YTN 06/28
ETD KAO 06/30
ETD KEE 07/01
ETA LAX  07/14
Added
04/24 2020
27 Ocean Alliance *Cosco (GME)
CMA (GMX), EMC (GME), OOCL (GCC2)
EC – (P) M/V TBA
ETD SHA 06/29
ETD NBO 06/30
ETD XMN 07/02
ETD YTN 07/03
ETA HOU 07/31
Resume to Normal Revised
05/25 2020

We thank you for your understanding and continued support

The BOC Blast 362 – Capacity Cut By Blank Sailings

Additional List 4A Products Excluded from

China Tariff; Act Now for Retroactive Refunds

Sandler, Travis & Rosenberg Trade Report | www.strtrade.com

Dozens of additional goods are being excluded from the Section 301 additional tariff (currently 7.5 percent) on List 4A goods from China. Importers of covered goods should act now to obtain refunds of Section 301 tariffs paid on such goods since Sept. 1, 2019.

For more information on this process, or on Section 301 tariffs in general, please contact Nicole Bivens Collinson, Marilyn-Joy Cerny, or Kristen Smith.

HTSUS numbers and products newly excluded from the List 4A tariff are as follows.

– HTSUS 5210.11.4040 (plain weave sheeting of cotton)

– HTSUS 5210.11.6020 (plain weave poplin or broadcloth of cotton)

– down of ducks or geese, not further worked than cleaned, disinfected, or treated for preservation, meeting both test standards 4 and 10.1 of Federal Standard 148a promulgated by the General Services Administration, with a fill power of at least 315 cm3/g but not more than 580 cm3/g (described in HTSUS 0505.10.0055)

– cyanuric chloride (IUPAC name: 2,4,6-trichloro-1,3,5-triazine) (CAS No. 108-77-0), 99.5 percent or higher in purity (described in HTSUS 2933.69.6010)

– kneeling pads of plastics (described in HTSUS 3924.90.5650)

– fittings of plastics, of a kind used to connect mop heads with mop handles (described in HTSUS 3926.90.9990)

– printed books in the Chinese language (other than dictionaries and encyclopedias, textbooks, directories, bibles, testaments, prayer books and other religious books, technical, scientific and professional books, art and pictorial books, hardbound books, and rack size paperbound books), containing 49 or more pages each (excluding covers) (described in HTSUS 4901.99.0093)

– women’s cut and sewn garden gloves, without fourchettes, cut and sewn from preexisting machine knitted fabric of polyester and cotton jersey, containing 50 percent or more by weight of rubber or plastics, clute cut (described in HTSUS 6116.10.4400)

– gloves cut and sewn of machine knitted fabric, without fourchettes, with applied polyvinyl chloride dots, such gloves containing 50 percent or more by weight of cotton, manmade fibers or wool, or any combination thereof and subject to manmade fiber restraints (described in HTSUS 6116.10.5520)

– gloves, containing less than 50 percent by weight of textile fibers, coated with rubber or plastics designed for enhanced grip (described in HTSUS 6116.10.6500)

– gloves, cut and sewn of knitted fabric in chief weight of polyester, not impregnated, coated or covered with plastics or rubber, without fourchettes (described in HTSUS 6116.93.8800)

– gloves of vegetable fibers, without fourchettes, with applied dots of polyvinyl chloride (described in HTSUS 6216.00.1720)

– shells for pillows and comforters made from microfiber fabric consisting of filament yarns not more than 1.22 decitex, such fabric with a weight of at least 55 g/m2 but not more than 155 g/m2 (described in HTSUS 6307.90.9889)

– round wire of nonalloy steel, hot-dipped galvanized with zinc, containing by weight less than 0.25 percent carbon, measuring at least 1.5 mm in diameter (described in HTSUS 7217.20.3000)

– ring binder mechanisms for loose-leaf binders, each measuring at least 132 mm but not more than 134 mm in length and at least 16 mm but not more than 18 mm in width, with two prongs seated underneath housing (described in HTSUS 8305.10.0010)

– three-way hand-operated valve part of brass, suitable for use as an input part on irrigation-grade valves (described in HTSUS 8481.90.1000)

– lithium-ion batteries of a form other than size designations of the International Electrotechnical Commission or the American National Standards Institute, each producing not more than 45 V, with a capacity of at least 6,000 milliamp hours but not more than 10 A hours (described in HTSUS 8507.60.0020)

– optical channel splitters (capable of converting between electrical signals and multiplexed optical signals) (described in HTSUS 8517.62.0090)

– television liquid crystal display main board assemblies, each consisting of a printed circuit board containing a television tuner and audio and video components (described in HTSUS 8529.90.1300)

– safety spectacle frames of plastics conforming to Occupational Safety and Health Administration standards (described in HTSUS 9003.11.0000)

– spectacle frames of plastics conforming to Food and Drug Administration regulations as approved medical devices (described in HTSUS 9003.11.0000)

– spectacle frames, other than of plastics (described in HTSUS 9003.19.0000)

– LCD modules, not capable of receiving or processing a broadcast television signal, each with a video display diagonal measuring not more than 191 cm (described in HTSUS 9013.80.9000)

– watch cases of stainless steel and titanium, not gold- or silver-plated, unassembled, each measuring at least 20 mm but not more than 48 mm in diameter and weighing at least 50 g but not more than 250 g (described in HTSUS 9111.20.4000)

– wristwatch cases of stainless steel, not gold- or silver-plated, including the sapphire crystal, the crown, and the case back, each measuring at least 39 mm but not more than 41 mm in diameter and at least 8 mm but not more than 10 mm in thickness, weighing not more than 40 g (described in HTSUS 9111.20.4000)

– watch dials of brass, each measuring at least 18 mm but not exceeding 50 mm in width and weighing at least 10 g but not more than 20 g (described in HTSUS 9114.30.4000)

– wristwatch dials of copper, each measuring at least 33 mm but not more than 35 mm in diameter (described in HTSUS 9114.30.4000)

– wristwatch hands, presented in sets each containing three hands (second, minute, and hour) of copper, each hand measuring at least 10 mm but not more than 14 mm in length, faced with lume paint (described in HTSUS 9114.90.4000)

– parts of child safety seats (described in HTSUS 9401.90.1085)

– unfinished pads and seats for weight-training exercise machines (described in HTSUS 9506.91.0030)

– fish hooks, not snelled (described in HTSUS 9507.20.8000)

– mop heads of polyester and rayon, lint free, disposable (described in HTSUS 9603.90.8050)

– tufts of swine hair bristles, oriented with the soft feather tipped ends of the hairs facing up and the hard, root ends of the hairs facing down, with the root ends of the hairs glued together to form a round bottom not more than 7 mm in diameter, for incorporation into brushes (described in HTSUS 9603.90.8050)

– electrical spark lighters (described in HTSUS 9613.80.2090)

The scope of each exclusion is governed by the specified product description and not the descriptions found in any particular request.

These exclusions, which must be claimed using new HTSUS subheading 9903.88.49, will be retroactive to Sept. 1, 2019, and remain in place until Sept. 1, 2020. Importers may utilize these exclusions for any product that meets the descriptions above, even if they did not request it.