ACE and U.S. Customs in 2013: The Latest Regulations and Updates (3-Part Series)
    A Zepol guest blog by John M. Peterson, international trade/Customs law expert and partner at Neville Peterson LLP


    But, perhaps, not for much longer…

It is Customs’ Automated Commercial System (ACS), currently being transitioned into the agency’s online Automated Commercial Environment (ACE). Although the ACE transition is years behind schedule, and billions of dollars over budget, the operational parts of the system are one of the most powerful engines of business intelligence data in the world. As ACE comes closer to full operational capability, the system’s potential is breathtaking.

With a touch of a few buttons, Customs officials can see almost every aspect of a company’s import activities – the commodities they import, the identities of their suppliers, the prices they pay, the ports of entry they use, the names of their brokers, forwarders, carriers and service providers, and scores of other data points.

When Customs auditors come to review a company’s import operations, they bring with them a profile of the company that rivals, in terms of quality and detail, the finest work of Wall Street industry analysts.

Zepol has released its latest and much anticipated trade data tool, ComplianceIQ™. This new product helps U.S. importers adhere to U.S. government import regulations. ComplianceIQ™ is a unique way to find all the information trade compliance professionals need in order to bring a product into the United States; it combines multiple import-compliance datasets within one online interface, which allows users to find the exact information they need, for specific HTS Codes.


ComplianceIQ™'s vast amount of information can be used to: 

• Classify your products and see how competitors classify their products
• Avoid penalties and view applicable duties and quotas
• Proactively monitor government updates via scheduled emailed reports
• Better demonstrate due diligence if an audit occurs, and much more

Zepol offers a free trial of ComplianceIQ™ and its entire suite of trade-data tools. For more information, a free trial, or free demonstration, click here.

U.S. pipe makers were pleased with the recent strict penalties that were imposed upon Chinese made drill pipes for oil drilling. The Commerce Department will raise penalties and impose a nearly 20 percent tariff on imports. The ruling concluded that China was unfairly subsidizing the steel industry and therefore selling the products below market value, causing U.S. companies a painful price disadvantage.

Executive director of the Alliance for American Manufacturing, Scott Paul, stated, “Our manufacturing sector alone has lost 5.5 million jobs in just the last decade – with 2.4 million lost or displaced as a direct result of our massive trade deficit with China. We risk losing our competitive edge as a nation unless strong enforcement of our trade laws occurs when cheating exists.” The ruling will slow down imports from China and help domestic producers become more competitive.

The graph below shows a two year trend of imports for drill and line pipe used for gas and oil drilling. Imports from China have dropped significantly in the last year and will likely remain low in the future with the increased tariffs. Even though imports from China have decreased, imports from other countries like Argentina and Czech Republic have shown increases over last year. On the downside, a decrease in imports of the lower priced products will drive the price tags up for the domestically produced pipes. Many in the pipe manufacturing business, however, seem to think the benefits outweigh the costs.

On June 16th, a hearing before the House Energy and Commerce Committee took place to discuss a new act that would put additional requirements on foreign manufacturers who import goods regulated by the Consumer Product Safety Commission, the Food and Drug Administration, and the Environmental Protection Agency. This act requires foreign manufacturers to register an agent in at least one state in order for them to accept responsibility for civil and regulatory claims.

The bill is a reaction to several import scandals, including moldy Chinese drywall and tainted Chinese pet food, where it was difficult to sue the companies at the heart of the issues. In effect, it opens up foreign manufacturers to civil and regulatory litigation in the United States. It will likely increase the cost of exporting products to the United States and make it harder for U.S. companies to find qualified suppliers.

This legislation is currently sponsored by 62 members of the House and 15 members of the Senate for a similar bill. While the bill has not yet passed, it could have major consequences for importers and manufacturers. According to many Congress watchers, passage is very likely.

How to use trade data to prepare for passage:

1. Because of the expense of maintaining an agent in the United States, smaller foreign manufacturers could be frozen out of trade. If your company uses primarily smaller manufacturers, you may need to search for new suppliers who are both financially stable and large enough to shoulder the burden of these additional costs. Searching for suppliers of specific goods and developing qualified lists of manufacturing prospects is simple with TradeIQ.


2. If you are an attorney with clients affected by a faulty imported product, finding the actual manufacturer can be difficult. With trade data, you can tie the importer back to the company that exported the goods to the U.S. and identify the parties involved in the transaction. Many of the attorneys who litigated imported goods scandals have done this with Zepol in recent cases.


3. If the imports of a non-registered manufacturer are not seized or blocked by U.S. Customs, there is an opportunity for industries to self police and ensure that all players are on an even playing field. This would require importers of the products to regularly track imports using trade data and report violations to Customs. Often there are rewards for companies that help in these investigations.