Merchandise Processing Fee Increased to 0.3464%

Congress has voted to increase the Merchandise Processing Fee collected by U.S. Customs on every formal entry to 0.3464% of the FOB value from the current 0.21% of FOB value.  This increase has not affected the minimum MPF charged of $25.00/formal entry nor the maximum MPF of $485.00/formal entry.  However, due to the higher MPF rate, more lower value shipments will now be above the $25.00 minimum and more higher value shipments will now reach the $485.00 maximum.

U.S. Customs has announced that it will provide a week's notice prior to beginning to assess the increased MPF.

Due to the increase being effective as of October 1, 2011, Customs plans to generate bills for the additional fees due on entries filed from October 1 through the day before the higher MPF rate is actually implemented. These bills are expected to be sent out to the importer of record of any entry where the difference between the old MPF and the new MPF is greater than $20.00.

The new MPF rate of 0.3464% is legislated to remain in effect until June 30, 2021.

If you have questions about how this change affects your shipments, please contact us to discuss your situation.

Merchandise Processing Fees / Generalized System of Preferences

Increase in Merchandise Processing Fees
A bill is expected to be signed by the President on Friday, 10/21, which will increase the Merchandise Processing Fee paid on Formal Entries from the current 0.21% to 0.3464% of the Entered Value.

Although the cap of $485.00 for formal entries is not increased, the increased MPF rates will result in the cap being reached more often – on formal entries valued at $140,011 or more (rather than $230,952 or more, as is now the case).

Also, due to the higher MPF rate, the minimum MPF will be paid more often – on formal entries valued at $7217 or less (rather than $11,904 or less as is now the case).

This increase represents the first legislative change to the MPF since 1995 and will be used to address the increased costs U.S. Customs and Border Patrol has incurred as a result of increased volume of trade and additional operational initiatives.

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U.S. Renews Generalized System of Preferences
President Obama is expected to sign a bill on Friday, October 21, that will retroactively renew the Generalized System of Preferences program.  The GSP provision will take effect 15 days after the date the President affixes his signature – approximately November 5, 2011.  It will be retroactive to January 1, 2011 and carry us through until July 31, 2013.

Goods entered on or after the effective date, which are eligible for duty-free treatment under GSP, will be entered duty free.

Goods which have been entered after GSP expired on 12/31/2010 but before the renewal date will be eligible to be liquidated with a refund of duty.  As long as your entry was filed with a GSP SPI indication, no further action will be necessary.  Your duties will be refunded to you automatically by U.S. Customs at the time of entry liquidation.

FDA Affirmation for Prior Notice

If your imported products require Prior Notice to be filed with the FDA (this includes all food/drink for human consumption and food for animals), please instruct your supplier to add a certification statement to each commercial invoice as follows:

"I hereby certify that the products on this invoice have not previously been refused entry to any other country."

Or:

"I hereby certify that the products on this invoice have previously been refused entry to _(state country's name)_."

One of the above statements  (or words to the same effect) have been required on all commercial  invoices of FDA Prior Notice goods since September 6, 2011.  Please make sure your suppliers are in compliance with this statement of disclosure.

For further info, please refer to the 2nd rule at the following web address: http://www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ucm253983.htm

FDA Begins to Implement New Re-inspection Fees

As of October 1, 2011, the USFDA began implementation of collecting fees for re-inspection and for non-compliance with recall orders.  USFDA recognizes the particular complexities involved in the re-inspection of imported products.  They are evaluating comments received in response to the Federal Register notice establishing fee rates for Fiscal Year 2012.  FDA is not in a position to assess import re-inspection fees until the agency has resolved these issues and the agency notifies the public.

However, the FDA does intend to assess facility re-inspection fees in circumstances where the initial facility inspection begins on or after October 1, 2011.  It will also assess fees for not complying with a recall order.

The FDA recommends that all firms assess their compliance with all statutory and regulatory requirements.

For more info on the new fees, please go to: http://www.fda.gov/Food/GuidanceComplianceRegulatoryInformation/
GuidanceDocuments/FoodSafety/ucm274176.htm

Importing an FDA regulated food product that was previously refused by another country?

In accordance with the Food Safety Modernization Act, the U.S. Food and Drug Administration will require all importers of products which require Prior Notice, including food and food for animals, to submit information reporting the name of any country to which the article of food has previously been refused entry.

As of September 6, 2011, importers must inform the FDA if any country has refused entry to the same product.  Please ask your suppliers to place a certification statement on each commercial invoice stating whether the products covered by that invoice have ever been refused entry to another country.  If the products being imported have been refused entry previously, the supplier must list which country or countries have refused entry. 

For further information, please see:

http://apps.cbp.gov/csms/viewmssg.asp?Recid=18428&page=&srch_argv=FDA&srchtype=&btype=&sortby=&sby

It's Your Duty!

We are encouraging our customers to apply for an ACH number. This allows us to pay duties and user fees on your behalf electronically. It’s a very simple process and we will be happy to walk you through it.

Never again will you be scrambling to get your duty payments made on time. Never again will you need to worry about late filing penalties from U. S. Customs.

Once you receive your ACH number it’s as easy as 1, 2, 3!

1. Flegenheimer Intl. receives a preliminary statement report from Customs approximately 9 days after your shipment is released by U.S. Customs. We send this to you via email or fax to let you know it will be debited from your account. 
2. We transmit the payment to Customs using your ACH payer number. We receive a payment acceptance, letting us know the payment has been properly applied. 
3. The following day we receive a final statement from Customs. We will fax or email this to you for your records.

We also encourage clients to set up a separate "duty trust account". The only use for this bank account should be your ACH transactions for U.S. Customs Duties. If you ever have a U.S. Customs Audit, you will be able to easily show these specific bank statements to the U.S. Customs Auditors and verify that you've paid your customs duties with your ACH account.

For further information please go to: http://www.cbp.gov/xp/cgov/trade/automated/automated_systems/ach/debit_details.xml and http://www.cbp.gov/xp/cgov/trade/automated/automated_systems/ach/faqs.xml

To enroll in Automated Clearinghouse, please contact Flegenheimer International Inc.

Important updates for dairy and rice importers

GOT MILK?

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Effective August 1, 2011, an assessment (tax) on imported dairy products goes into effect.  Each importer of dairy products will be required to pay an assessment rate of $00.01327/kilogram (kg) on milk solids for dairy products.  The products affected are any that contain milk or milk solids including but not limited to: milk, cream, buttermilk, sour cream, yogurt, cheese, butter, margarine, lactose and lactose syrup, chocolate and food preparations containing cocoa, ice cream, casein, milk albumin, and food products containing dried milk. 

For more detailed information on this assessment and the products affected, please go to: http://www.gpo.gov/fdsys/pkg/FR-2011-03-18/pdf/2011-6322.pdf

 

MEET THE BEETLES

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U.S. Customs and Border Protection will enforce a federal quarantine order beginning July 30 that restricts the importation of rice into the U.S. from countries with known Khapra beetle infestations.  There have been an increasing number of detections of infested shipments at U.S. ports which pose a serious threat to stored agricultural products in the United States.

Commercial shipments of rice originating from several near Eastern, middle Eastern and African countries  - including India, Pakistan, Turkey, Sudan, Egypt and others - where the Khapra beetle is known to occur must now be inspected and must be accompanied by a phytosanitary certificate with an additional declaration stating that the shipment was inspected and found free of Khapra beetles.

For more detailed information, please go to: http://www.cbp.gov/xp/cgov/newsroom/news_releases/national/07252011.xml