Earlier this month, Nasim Deylami, USCIB’s manager for customs and trade facilitation, led a group of members in meetings with Congressional staff from the House Subcommittee on Trade to relay USCIB’s comments on the Customs Trade Facilitation and Enforcement Act (H.R. 6642) and the Customs Enhanced Enforcement and Trade Facilitation Act (H.R. 6656).

The bills, released by the majority and minority leaders of the House Subcommittee on Trade, were introduced at the end of the 112th Congress to give stakeholders an opportunity to comment on the legislation, a step that was welcomed by the trade community after several years of waiting for a customs re-authorization bill.

The bills would codify new pilot programs, such as Centers for Excellence (CEE), authorize critical funding for crucial programs such as the Automatic Commercial Environment (ACE), and mandate public-private partnerships between the Department of Homeland Security, the Department of Treasury, Customs and Border Protection, and the private sector. The two drafts are virtually identical in content, except for Title III on Prevention of Evasion of Antidumping and Countervailing Duty Orders.

“USCIB applauds the common ground struck in the remaining sections of the bills, and we remain very hopeful that the parties will soon reach an agreement on the two percent that differs,” said Jerry Cook, vice president of government and trade relations with Hanesbrands and chair of USCIB’s Customs and Trade Facilitation Committee  “We cannot afford to let the opportunity to achieve a long awaited customs reauthorization bill pass by and we encourage Congress, CBP and the trade community to work together to strike a balance between trade facilitation and enforcement measures.”

In addition to Cook and Deylami, USCIB was represented by members from DHL; UPS; eBAY; Sandler, Travis & Rosenberg; Barnes, Richardson, and Colburn; 3M; TechAmerica; and Oracle.

Staff contact: Nasim Deylami

More on USCIB’s Custom and Trade Facilitation Committee

Distributor uses ATA Carnets to showcase mission-critical testing devices

By Bill Armbruster for USCIB

When you are traveling with high-value goods overseas, it helps to have things nailed down in advance.

Gregory Young, vice president of International Bolting Technologies Inc., remembers the hassles he used to have when traveling outside the U.S. to demonstrate to potential foreign customers sophisticated electronic equipment. To ensure that the product cleared Customs, Young hired a Customs broker in the foreign country to file documents for temporary admission and airfreighted the equipment four weeks before his (Young’s) arrival to demonstrate the equipment.  Once the job was complete, he again airfreighted the product back to the U.S. using a second broker to clear U.S. customs.

“Depending on the country, those steps alone could cost up to $2,000,” says Young.  “Furthermore, many countries require that goods brought in under temporary admission be returned to their original point of entry, so making a multi-country trip is not practical.”

The USM-3 Ultrasonic Bolt Meter measures bolt stretch, as little as 0.00001 inch or 0.0001 millimeter, and diagnoses problems caused by the over- or under-tightening of bolts.  “Improper bolt stretch can result in catastrophic failure,” adds Young.  Industries using the USM-3 range from aerospace – it was used on the payload of a space shuttle mission to repair the Hubble space telescope – to automotive, mining and petrochemical refineries.  International Bolting Technologies, based in Orange City, Florida, is a distributor for Norbar USA, which manufactures the bolt meter in Connecticut.

In 2008, when a customer recommended to Young that he try an ATA Carnet for demonstrating his equipment to Finland and Russia to potential customers there, Young was all ears.  “The U.S. Export-Import Bank had mentioned the ATA Carnet to me previously, but at that time I did not grasp how it could truly benefit my situation,” Young says.

An ATA Carnet is an internationally agreed customs document that allows for the temporary tax- and duty-free entry of goods into 71 countries. USCIB administers Carnets in the United States, under appointment by U.S. Customs and Border Protection.

Customs duties and VATs (value-added taxes) vary widely around the world.  In the European Union, the minimum VAT is 15 percent with Finland at 23 percent.  In Mexico, the VAT ranges from 10 to 16 percent.  Duty is imposed on top of the VAT.

The USM-3 is an expensive, cigar box-sized device.  Carrying it by hand, before he started using Carnets, caused Young a lot of anxiety, as he was often required by customs to surrender physical possession of the unit.  “Customs forms ask whether you have any commercial merchandise to declare. Due to the high value of the goods, Customs would take them from me and place them in storage, leaving me with just a receipt.  They would only return the goods after a customs broker had filed the necessary documents for temporary admission,” Young says.  “Customs clearance could take days, depending on the country,” he adds.  With the Carnet,

Young carries the USM-3 with him and clears customs without the aid of a broker.

Young has used Carnets five times, most recently in October on a trip to the International Mining Expo in Acapulco, Mexico.  “The Carnet made everything a lot smoother,” he says, noting that the equipment attracted considerable attention. He expects the leads he developed at the Acapulco show will translate into sales for his three-person company.  Exports account for about half of its business, so by cutting red tape, Carnets allow Young to concentrate on sales.

Young notes that it only takes two or three days to receive his Carnet from USCIB after he applies for it. “It’s a short turnaround, and it’s very affordable,” he says. Carnets cost $215 to $355, depending on the value of the product. “The people at USCIB are very professional and very helpful,” citing, in particular, Carnet staffers Kristi Bang and Fred Mardis.

Young expects that his next overseas trip will be a two-week visit to three or four countries in Europe next May. Asked whether he plans to use the Carnet then, he replied, “Absolutely. It would be too time-consuming and expensive to go back to the old method. I would never even consider taking one of my products to another country without a Carnet.”

Learn more about the ATA Carnet Export Service