Monday, January 25, 2016

2016 Customs Compliance Best Practices and Updates


During last week’s ACI customs conference held in Washington DC, I had the pleasure of presenting with two seasoned trade professionals, Ken Weigel of Alston and Bird LLP and Chris Colford of Mitsui & Co. (USA), on advanced topics in classification and compliance considerations. 

In addition to nuances between the classification of a part that involved the same construction but had a different way of being installed, myself and Chris focused on other governmental agency (“OGA”) requirements, and the importance of understanding the impact that a product’s classification could have on packaging, labeling, and shipping requirements, as well as other necessary declarations, whether upon importing into the US or when importing into another country.

Key takeaways of reoccurring themes across panels centered on the following.

   1.    Emphasizing the importance of compliance to upper management. 

Trade compliance is complicated and the costs involved can make it a subject that management may want to run away from.  No surprise.  Taking the explanation beyond the mere necessity to do so however, and showing the value that the investment in a compliance program brings to a company in whatever form it may, e.g., in terms of risk mitigation, reputation building, duty savings benefits etc., is key.  If your company does not already have a Compliance Steering Committee, key organizational partners on this team include the Finance, Trade Counsel and the Transportation/Logistics roles.

   2.    Communication across the organization. 

This is important for not only for compliance purposes but also for cost savings.  I’ll give you two examples.

Example 1.  Is a low duty rate better than a free one?  Obviously it’s not, which is why where a company’s invested in the set up of importing under a free trade agreement ("FTA"), it’s imperative that the Purchasing Dept. be aware of this effort so that they don’t opt for buying a cheaper product from a country other than the one (or ones) eligible under the chosen FTA as the resulting duty liability could end up being greater than the cost savings of sourcing from that other country.

Example 2.  The Marketing Dept. wants to highlight every feature in a big way, which is a good thing as that is what they are tasked to do.  The problem is, if what they are promoting about the product is not actually truthful, the company can run into some issues of misleading advertising claims, which could lead to penalties and fines, but it can also lead to unnecessary spending in order to change the already-paid-for marketing that needs to be redone.  Bottom line - make sure your departments are communicating with one another.

   3.    Conduct internal and vendor audits.

From sampling methods to managing expectations, the importance of reviewing the efficacy of internal processes and reexamining vendor performance to ensure compliance with contractual terms was highlighted across the conference panels.

Recommendations included to:

      a)    Put expectations into the service provider’s contract and to conduct an annual validation of them

      b)   Conduct a day+ long seminar to train them

      c)    Request necessary “proofs” on areas where questions could come back for verification by your business, e.g., certain export documents or a NAFTA certificate 

Key takeaways aside, there were some other areas of interest which included the much talked about Trans-Pacific Partnership Agreement or “TPP,” and the questionable likelihood that it will actually come to fruition this year given that we are in an election year (and no one wants to have to vote on it), along with the usage of the Centers for Excellence and Expertise (CEE) and the notice that all importers will be tied one of the CEEs across the country by the end of 2016 based on the type of goods imported, at least that is what they are aiming for according to Susan Dalpe of CBP. 


Lastly worth noting, while not all of the efforts for usage of the “single window” for import/export communications with the government are on track for timely implementation, one that is very much on track is that of the transition from the Automated Export System (AES) for export filings to that of US Customs Automated Commercial Environment (ACE).

Questions/comments?  Post below or email me at clark.deanna@gmail.com

Tuesday, January 12, 2016

Deanna Shares Her Eco-Fashion Predictions for 2016 on "Ecouterre"


It's a new year and that means it's time for new predictions by 35 Eco-Fashion "movers and shakers," including my own, as published by Ecouterre.  What do you see on the horizon?  Post below and let me know!

Saturday, January 9, 2016

Join Me at ACI's Import Compliance Conference Jan. 22, 2016 Where I'll be Speaking on Classification



I'll be speaking on a panel at this event on advanced classifications on January 22, 2015.   You can enjoy a 10% discount when you register as my guest:

Guest Discount
Colleagues and cohorts may use code S10-823-823L16.S. The discount is 10% off the regular price. Here is the event information page, and here is the registration page.

In addition to my presentation, ACI has provided that:

The agenda will cover the most critical compliance issues impacting your import operations. The program has been uniquely designed to delve into your most pressing compliance issues through practical insights, case studies, Q&A and hands-on exercises. Key sessions include:
  • Advanced Topics in Customs Valuation- Focus on Post-Entry Price Adjustments, Related Party Transactions, Assists and Other Complex Issues that Can Lead to Costly Mistakes

  • Advanced Topics in Classification – How to Decipher Intricate Classification Issues

  • Statistical Sampling in Prior Disclosures: Understanding the Methods and Benefits while Avoiding Common Errors

  • How to Properly Classify and Value Goods Related to Research & Development

Look forward to seeing you there!

Wednesday, January 6, 2016

Wishing You a Stellar 2016!


This is going to be an awesome year and I look forward to enjoying it with all of you.  Happy new year!  

Sunday, November 29, 2015

Will TPP Really Boost U.S. Exports?


The negotiation of the Trans-Pacific Partnership Agreement (TPP) concluded in Oct. 2015 between its 12 member countries, which include the United States, Australia, Brunei Dar es Salaam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

The overarching objective of the TPP is to reduce, or eliminate, tariff and nontariff barriers across virtually all goods and services traded within the member countries with the goal being, in pertinent part, to

·       Facilitate the development of production and supply chains
·       Increase transparency across country specific trade laws
·       Encourage the smooth process of customs and border procedures
·       Open up domestic markets, and
·       Raise living standards and support job creation.

It includes provisions specific to certain industries in order to promote a common regulatory approach across the TPP region, which includes medical devices, information and communications technology products, and pharmaceuticals to name a few.

It's also being angled by the U.S. Trade Representatives Office to support American workers, businesses and values first, and has a special provision designated to wearing apparel and textiles.

As stated on the USTR's website:

TPP’s Textiles and Apparel chapter will create export opportunities for Made-in-America clothes, fabrics, and yarns and support jobs in the United States. This objective is advanced by a “yarn-forward” approach that requires use of yarns and fabrics from TPP countries in end products qualifying for preferential treatment under TPP — with some flexibility so that American businesses and workers whose products depend on inputs not available within the TPP region can still benefit. The yarn-forward approach also will help to develop a regionally-integrated supply chain that will promote long-term growth and investment in this sector in the United States. The Textiles and Apparel chapter also secures close customs cooperation among TPP Parties to facilitate effective enforcement of the rules; and ensures that U.S. companies have access to temporary relief if an import surge causes, or threatens to cause, serious damage to their business.   


Only time will tell if TPP will really boost U.S. origin exports and with the drafting of laws getting underway, that day will be here sooner than later.  Stay tuned.

Monday, November 2, 2015

Supply Chain in the Fashion Industry Event Nov. 10th

Interested in the behind-the-scenes inner workings of the movement of fashion from factory to sales floor?  Come to this event!

From Runaway to Retailer 
A Panel Discussion on Supply Chain in the Fashion Industry
Panel Members: 
Jacqui Wenzel, President, Kimora Lee Simmons KLS (Luxury fashion brand)
 
David Meir Sasson,  COO, Derek Lam (Women’s designer clothing, handbags and accessories retailer)
 
Corey Weeks, Director Supply Chain, Hudson’s Bay Company (Chain of 90 department stores that operates across Canada
Moderated By Jacqueline Jenkins, Dean of Graduate Studies, LIM College.

Taking place at LIM College in Manhattan together with APICS-NYC, you can get your tickets online here:

https://apicsnyc-li.starchapter.com/meet-reg1.php?mi=f887bdb1faac9efd39000c72023efdfe&id=138

See you there!

Wednesday, October 28, 2015

Join Me Nov. 12th at 7 PM for "Fall Freight Night!"

Fall Freight Night!



I'm on the Advisory Board for the Urban Assembly's School for Global Commerce. We're hosting our annual fundraiser, Fall Freight Night, on Thursday, November 12th at 7pm

Tickets are $40 and that gets you 2 drinks and 1 raffle ticket (although you can always donate more than $40 if you want). It's going to be at Professor Thom's in Manhattan and it's going to be a stellar event. 

Feel free to invite as many people as you want - just make sure they get tickets in advance. https://2015-uasgc-fall-freight-night.eventbrite.com

Hope to see you there!