Background

Importers are facing a substantial uptick in cargo delays due to reviews by the Consumer Product Safety Commission, ST&R attorney Lenny Feldman said in a recent Two Minutes in Trade podcast. Affected products may include children’s toys, clothing, imitation jewelry, generators, and bicycles, to a name a few.

According to Feldman, the CPSC has explained that when it receives notification of an incoming product of interest importers and their customs brokers will receive an “under review” message, signifying that the CPSC needs to review the entry. The review itself will not impact the flow of the goods unless the CPSC determines that an intensive exam is required and U.S. Customs and Border Protection CBP agrees, in which case the CPSC will notify the importer through the ACE entry system.

However, Feldman said, the CPSC presented this update through the One U.S. Government Messaging program, and it is that very 1USG message that continues to confuse traders. 

CBP explains that a 1USG message indicates that goods have arrived, that all data required for entry has been submitted, that all partner government agencies that regulate the goods have issued a “may proceed” message, and that CBP had conditionally released the goods from its custody. On the other hand, an “under review” message delays the issuance of the 1USG message until the review is completed and the goods are determined to be admissible into U.S. commerce.

Where does that leave importers with respect to CPSC and other agency scenarios? Feldman noted that importers can move cargo into the stream of commerce if it is not held for exam. However, even if a cargo review is resolved with a “may proceed” message, CBP or a PGA can issue a notice of redelivery, usually within 30 days from entry or examination. In other words, even if CBP releases the cargo and a 1USG message is received, an enforcement action is still possible if the importer cannot redeliver the goods.

These mixed messages can be confusing for importers to resolve. For more information, or assistance dealing with such cases, please contact Lenny Feldman at (305) 894-1011 or via email.

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