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US customs to bring in new ruling to tackle counterfeiting

Tax | | MIC Customs Solutions |

Section 321 is to be amended to prevent counterfeiters taking advantage of a legal loophole.


The US Customs and Border Patrol (CBP) is to bring in a new ruling aimed at tackling the flood of counterfeit goods entering the country from abroad.

Under a law known as Section 321, goods valued at $800 (€679) or less and imported by one person on one day have been able to enter the US duty-free and without formal entry procedures at customs since 2016.

It was supposed to make it easier for importers to save time and money through not having their packages held up by the rigorous inspections necessary for more high-value shipments.

However, the reduced scrutiny proved to be an invitation to exploit the law for those looking to transport and distribute counterfeit products, with a recent US Department of Homeland Security (DHS) report stating the rapid growth of e-commerce has since resulted in a "flood" of pirated goods.

"Counterfeiting is no longer confined to street-corners and flea markets. The problem has intensified to staggering levels," it warned.

Indeed, recent data from the Organization for Economic Cooperation and Development found a 154 per cent increase in goods traded internationally between 2005 and 2016, taking the total value from $200 billion to an enormous $509 billion.

As such, the DHS said it would take immediate action to increase the scrutiny of the Section 321 environment and recommended that the US government do the same.

Now, the Wall Street Journal reports US customs officials will issue a new ruling this week to amend Section 321 and give border agents more information about the origin of the imports they receive.

As a result, shippers are expected to be required to include new information alongside their goods heading to the US going forward.

Although the precise details have not yet been confirmed, the CBP carried out a pilot project last year to test the acceptance of advance data from e-commerce supply partners.

This included information such as planned port of entry, shipper name and address, country of origin and fair retail value, so it is likely the updated ruling will feature much of the same.

 


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MIC - Customs and Trade Compliance Software Solutions worldwide

Multinational companies are facing greater compliance challenges when addressing the continuously evolving international legal requirements. Customs and trade compliance management has a significant impact on production location and purchasing decisions, delivery times, cost savings and competitive advantages. Thus, it is crucial to establish processes that are accurately, effectively, and efficiently managed utilizing proven global IT solutions.

The international requirements for companies regarding customs and trade compliance management are complex and subject to ongoing legal changes covering a multitude of topics, such as: Correct product classification, compliance with export control regulations, numerous sanction list screenings, calculation of origin based on ratified free trade agreements, supply chain security initiatives, and management of special customs regimes as part of the import and export clearance processes. In addition, country-specific legal requirements that include legislative and technical changes make it increasingly difficult to completely fulfill the requirements of international customs and trade compliance.

A partnership with MIC strengthens a company’s ability to deal with the daily operational challenges of international customs and trade compliance management. MIC has a trendsetting Global Trade Management (GTM) software solution that allows companies to standardize and automate their customs and trade compliance processes. MIC’s software solution is available on 6 continents and can be configured according to the company’s specific needs to significantly improve legal compliance, thus saving time, money, and eliminating future business disruptions.

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There are various customs regulations and requirements programs throughout the world. Examples include ACE, FTZ and Duty Drawback in the USA, IMMEX in Mexico, the Union Customs Code (UCC) in the EU (and its various national characteristics), the Free Zone in Thailand, and the China Single Window. All of these have the objective of making customs procedures simpler, more modern and more efficient.

MIC Global Trade Management (GTM) software helps companies maintain international visibility and to take advantage of these program changes in legislation. We know the intricacies of national and regional customs and export control requirements. Our software takes account of the respective regulations and uses similarities in global customs and export control law. This is done in 55+ countries on 6 continents with regularly updated trade content for 150+ countries. In addition, our data analytics & visualization tool enables improved decision making by identifying optimization potentials and supply chain trends across global customs and trade compliance processes. As a result, global business processes can be designed and automated more efficiently. This not only increases compliance, but also saves time, money and increases global competitiveness.

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