TradeLane

Korea is introducing a new Importer Self-Assessment (ISA) program allowing companies the opportunity to file an annual ISA report in lieu of undergoing a Customs Assessment.  It also provides the extra benefit of allowing VAT recovery on additional duties payable, which is an obstacle under the current system. 

The reality of the ISA program is that it is practically impossible for customs to verify the legality of all import declarations due to the limited manpower of the auditors. Given this circumstance, customs audits were primarily focused on the collection of additional duties. This increased the number of objections and appeals filed against Customs, proving to be a burden for both businesses and tax collection.

Whilst a few things are bigger than the original, and most are bigger than the remake, the Asbestos issue for importers in Australia is certainly up there.

First and foremost, Asbestos is no joking matter. I will refrain from the scientific explanations (not my forte) but suffice to say that Asbestos is bad and can cause significant respiratory issues, cancer, and death. Rightfully, the Australian Government has taken steps to limit people’s exposure to Asbestos and Asbestos Containing Material (ACM) by introducing, amongst other measures, a total import and export ban in 2003.

The passage of the Trade Facilitation and Trade Enforcement Act of 2015 (signed in February 2016) seems to have prompted a renewed effort by CBP to enforce regulations regarding the importation of “Merchandise Produced By Convict, Forced, or Indentured Labor.”  We have seen many instances over the last few weeks where importers have received CF28s asking about steps the importer has taken to ensure that their supply chains are free of child, forced, or convict labor.  Some of the demands are exceedingly broad:

Being the first Goods Compliance Update after the conclusion of the 2016-17 financial year, there is so much information to sift through, so for this post, I have decided just to focus on some critical themes that are watch areas for the financial year 2017-18. I have chosen these areas in particular as the statistics and information are quite alarming, and therefore indicate an increased compliance focus by the Australian Border Force (“ABF”).

If you are being attacked by a stronger opponent, sometimes you need a strong shield. Korea Customs is such an opponent with all the power of the government behind them, how can importers protect themselves?  

One defensive shield available is the ‘ACVA’ program.