JAS USA COMPLIANCE

News & Insights from JAS Worldwide Compliance

JAS Forwarding (USA), Inc.

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Atlanta GA, 30328
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BANKRUPTCY BILL

April 3, 2024

JAS Forwarding (USA) Inc.’s VP Compliance, Laurie Arnold and Compliance Operations Manager and NCBFAA Legislative Committee Chair, Leah Ellis, has diligently championed to help pass the Customs Business Fairness Act (CBFA) for many years alongside the National Customs Brokers & Freight Forwarders Association of America (NCBFAA).  In a significant victory for Customs Brokers the bill was included in a continuing resolution bill that passed both the House and Senate.  The CBFA has finally come to fruition.  “The CBFA bill has been a long-standing passion of mine to help prevent Customs Brokers from having to return customs duties when an importer has filed bankruptcy and at long last (20 years) this bill has passed and signed into law and I am very happy to have been a part of the march to protect the Customs Brokers of our industry,” said Laurie Arnold when asked for her reaction on the passing of CBFA.

The CBFA, a long-standing initiative of the NCBFAA, aims to protect customs brokers and their employees by advocating for changes in bankruptcy laws. The bill seeks to grant "subrogation" rights to customs brokers, allowing them to assume the priority rights of U.S. Customs and Border Protection (CBP) when importers file for bankruptcy. This would prevent payments made to CBP through customs brokers from being subject to preference payment recovery actions during the 90-day period preceding the importer's bankruptcy filing.

NCBFAA President Jose D. (JD) Gonzalez lauded the passage of CBFA, emphasizing its importance to the customs broker industry. He credited the dedicated efforts of the association's Legislative Committee leadership, Legislative Advisor Nicole Bivens Collinson, and member companies for lobbying lawmakers and pushing for the bill's passage.

Special recognition was extended to Rep. Andrew Garbarino (R-NY) for his role in championing CBFA in the House of Representatives. Garbarino reintroduced the bill at the association's request in 2023, garnering bipartisan support with 28 co-sponsors. NCBFAA expressed gratitude to its members for their engagement in advocacy efforts, including letter-writing campaigns urging Representatives to support the bill.

NCBFAA also acknowledged the contributions of individuals and organizations who worked tirelessly over the past two decades to advance CBFA. Past and current leaders of the association's Legislative Committee, along with former NCBFAA Legislative Representative Jon Kent, were recognized for their efforts. Additionally, the longstanding lobbying efforts of organizations such as the New York/New Jersey Foreign Freight Forwarders & Brokers Association, JFK Airport Customs Brokers and Forwarders Association, and International Trade Surety Association were highlighted as instrumental in the bill's progress.

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DERIVATIVE LIST

On February 11, 2025, the President issued a proclamation regarding the importation of steel and aluminum articles, increasing tariff rates to 25% from all countries. As part of that proclamation, it was announced that there would be expanded 25% tariffs to include key downstream products (derivatives) for both steel and aluminum. The Annex containing those products has been drafted and is expected to be officially published in the Federal Register on February 18, 2025.

Key Points:

• There are 167 new codes for steel downstream products (derivatives) subject to the 25% tariff referenced in this proclamation (covering 4 different chapters of the HTSUS).

• There are 123 new codes for aluminum downstream products (derivatives) subject to the 25% tariff referenced in this proclamation (covering 11 different chapters of the HTSUS).

To read the draft Federal Register, and access our Excel listing of HTS affected, click the links below:

In the spotlight Jacquelyn

For February, we are highlighting Jacquelyn Bakker, our CHB Manager in the JAS Chicago office.  Jacqulyn started her career in the industry in 2012 in an accounting role before moving into the brokerage side in 2014.  In her words, that’s when she “found my niche.”  Jacquelyn joined JAS in 2018.  After being named as the Brokerage Supervisor, Jacquelyn decided to take on the “daunting task” of obtaining her broker’s license.  After 3 months of studying, Jacquelyn was able to pass on the first try!  Jacquelyn manages a team of 6 entry writers in our Chicago branch and CHB manager.  Jacquelyn is detail oriented and attentive to the needs of her clients internally and externally!

Jacquelyn has a 19-year old daughter, loving fiance and 2 dogs at home.  She enjoys family time BBQing in the summer, taking the dogs for longs walks, playing Pokemon Go with family and seeing movies in the theater.

Jacquelyn is yet another great example that People Make the Difference!

Forced Labor feb 2025

CBP is leading global efforts in combating forced labor by imposing import bans on goods produced with forced labor.  This has inspired international action, including the European Union’s adoption of similar measures and the inclusion of forced labor prohibitions in the USMCA.  CBP’s actions have also driven labor reforms, notably in Malaysia, which launched a National Action Plan on Forced Labor and ratified an international protocol to combat forced labor.  These advancements demonstrate CBP’s significant influence in shaping global supply chain accountability and driving positive change.

Read more about it by checking out the link below:

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