Category Archives: Customs & Trade Updates

The following governmental notices may be of interest to our members and the trade:

CPSC’s Notices of the Adjusted Customs Value regarding the Safety Standard for Cigarette Lighters and the Table Saw Blade-Contact Injuries Special Study Report, 2017;

CBP’s Notices of Final Determinations for the Airlift PTTD Brace and Certain Jet Fuel, its December 5th Bulletin with Notice of COAC’s upcoming Federal Advisory Committee meeting and Comment Requests, as well as the latest ABI messages, including CSMS 18-000715, regarding Periodic Monthly Statement Dates for 2019, which has an Attachment listing the PMS Dates for 2019;

CPSC and FDA Recalls and Consumer Updates;

OFAC’s Notices of the Blocking of Persons and Property;

FTZ Board current notices;

ITA & ITC Monthly announcements advising of the Advance Notification of Sunset Review, Initiation of Five-Year (Sunset) Reviews and the Opportunity to Request Administrative Review, in addition to Notices of Administrative Reviews, Antidumping or Countervailing Duty Investigations, Orders or Reviews, as well as updates on Determinations, Investigations and Complaints on merchandise such as Light-Walled Rectangular Pipe and Tube from Turkey and Certain Robotic Vacuum Cleaning Devices and Components Thereof Such as Spare Parts;

California’s latest 60 Day Notices on items such as, but not limited to, certain back scratchers, Skin creams and PVC/Vinyl Backpacks; and,

Canada’s latest Consumer Alert & Recall notices.

Members wishing to learn more about any of these items are encouraged to review details on the Gemini Member Site, or to contact the Gemini team.

The following governmental notices may be of interest to our members and the trade:

CBP’s Notices of Comment Requests regarding Screening Requirements for Carriers and Vessel Entrance or Clearance Statement (Anzalduas Biometric Test); November 21st  Bulletin with Notice of Customs Broker User Fee Payment for 2019, as well as the latest ABI messages, which includes CSMS 18-000689, providing a suggestion with respect to Reconciliation Filing-Free Trade Agreements (FTA);

CPSC and FDA Recalls and Consumer Updates;

OFAC’s Notices of the Blocking of Persons and Property;

FTZ Board current notices;

ITA & ITC Notices of Administrative Review, Antidumping or Countervailing Duty Investigations, Orders or Reviews, as well as updates on Determinations, Investigations and Complaints on merchandise such as Polyester Textured Yarn from India and the People’s Republic of China and Rubber Bands from the People’s Republic of China, as well as from China;

California’s latest 60 Day Notices on items such as, but not limited to, a certain Pink Glitter Lanyard, makeup clutch kits and Charcoal grills and starters; and,

Canada’s latest Antidumping and Consumer Alert & Recall notices.

Members wishing to learn more about any of these items are encouraged to review details on the Gemini Member Site, or to contact the Gemini team.

The following governmental notices may be of interest to our members and the trade:

CPSC’s Proposed Rule addressing the Semiannual Regulatory Agenda;

CBP’s Notices of Customs Broker User Fee Payment for 2019, upcoming Meeting of the Commercial Customs Operations Advisory Committee and several Comment Requests; November 14^th  Bulletin with Notice of the Copyright, Trademark, and Trade Name Recordations, Quarterly IRS Interest Rates Used in Calculating Interest on Overdue Accounts and Refunds on Customs Duties plus several Proposed Ruling Revocations / Modifications, as well as the latest ABI messages, which includes CSMS 18-000680, advising of Initiation of AD/CVD Investigations: Magnesium from Israel and 18-000671, Announcement: Absolute Quota Steel and Aluminum Product Relief;

CPSC and FDA Recalls and Consumer Updates;

OFAC’s Rules concerning Iranian Transactions and Sanctions Regulations and Democratic Republic of the Congo Sanctions Regulations and Notices of the Blocking and Unblocking of Persons and Property;

FTZ Board current notices;

ITA & ITC Monthly notice of the Initiation of Administrative Reviews, as well as a Correction regarding a notice advising of the Opportunity to Request Administrative Review and notices of Administrative Review, Antidumping or Countervailing Duty Investigations, Orders or Reviews, as well as updates on Determinations, Investigations and Complaints on merchandise such as Large Diameter Welded Pipe from India, as well as from China;

USTR’s Notice concerning the Negotiating Objectives for a U.S.-United Kingdom Trade Agreement;

California’s latest 60 Day Notices on items such as, but not limited to, a certain Copper Wire Solid Core, PVC Coated Canvas Drop Cloth and various food products; and,

Canada’s latest Antidumping and Consumer Alert & Recall notices.     

Members wishing to learn more about any of these items are encouraged to review details on the Gemini Member Site, or to contact the Gemini team.

The following governmental notices may be of interest to our members and the trade:

CBP’s notices of Customs Broker User Fee Payment for 2019 and Comment Request, as well as the latest ABI messages, including CSMS 18-000657 UPDATE: Entry Summary Order of Reporting For Multiple HTS in ACE; 

CPSC and FDA Recalls and Consumer Updates;

OFAC’s Rule concerning Iranian Transactions and Sanctions Regulations and notices of the Blocking and Unblocking of Persons and Properties;

FTZ Board current notices;

ITA & ITC notices of the Administrative Review Antidumping or Countervailing Duty Investigations, Orders or Reviews, as well as updates on Determinations, Investigations and Complaints on merchandise such as Aluminum Wire and Cable from China and Certain Uncoated Paper from Indonesia;

USTR’s Binational Panels Roster Under the North American Free Trade Agreement Applications;

PRESIDENTIAL Administrative Orders concerning the Continuation of National Emergency regarding Iran and the Proliferation of Weapons of Mass Destruction;

California’s latest 60 Day Notices on items such as, but not limited to, certain mini strainers, flasks and Makeup Sponges;

Canada’s latest Antidumping and Consumer Alert & Recall notices.     

Members wishing to learn more about any of these items are encouraged to review details on the Gemini Member Site, or to contact the Gemini team.

The following governmental notices may be of interest to our members and the trade:

CBP’s latest ABI messages, including CSMS 18-000646 Receipt of Manually Processed GSP Lapse-Period Refunds for Claims made at Entry Summary and CSMS 18-000648 Harmonized System Update (HSU) 1819 created on October 31, 2018; 

CPSC and FDA Recalls and Consumer Updates;

OFAC’s Notice of the Blocking of Persons and Properties;

FTZ Board current notices;

ITA & ITC Monthly notices advising of the Advance Notification & Initiation of Five-Year (Sunset) Reviews and the Opportunity to Request Administrative Reviews and notices of the Administrative Review Antidumping or Countervailing Duty Investigations, Orders or Reviews, as well as updates on Determinations, Investigations and Complaints on merchandise such as Uncovered Innerspring Units from the People’s Republic of China and Laminated Woven Sacks from Vietnam;

PRESIDENTIAL Executive Orders regarding Venezuela and the Blocking Property of Additional Persons and Administrative Order addressing the Sudan’s Continuation of National Emergency;

California’s latest 60 Day Notices on items such as, but not limited to, certain handbags, shoe flats and travel sets;

Canada’s latest Antidumping and Consumer Alert & Recall notices.     

Members wishing to learn more about any of these items are encouraged to review details on the Gemini Member Site, or to contact the Gemini team.

The following governmental notices may be of interest to our members and the trade:

CPSC’s Rule regarding the Revisions to Safety Standard for Infant Bath Tubs;

CBP’s Notices of Quarterly IRS Interest Rates Used in Calculating Interest on Overdue Accounts and Refunds on Customs Duties, the current Bulletin providing Four Proposed Ruling Modifications / Revocations and Notice of a Comment Request regarding Ship’s Store Declaration and the latest ABI messages, including CSMS 18-000625 regarding the Harmonized System Update (HSU) 1818 created on October 21, 2018; 

CPSC and FDA Recalls and Consumer Updates;

OFAC’s Notices of the Blocking of Persons and Properties;

FTZ Board current notices;

ITA & ITC Notices of the Administrative Review Antidumping or Countervailing Duty Investigations, Orders or Reviews, as well as updates on Determinations, Investigations and Complaints on merchandise such as Steel Wire Garment Hangers from the People’s Republic of China and Certain Insulated Beverage Containers, Components, Labels & Packaging Materials Thereof;

USTR’s Notice of the Requests for Comments concerning the Negotiating Objectives for a U.S.-Japan Trade Agreement and the World Trade Organization Dispute Settlement Proceeding addressing United States and the Safeguard Measure on Imports of Large Residential Washers;

California’s latest 60 Day Notices on items such as, but not limited to, certain Tool Pouches, Vinyl Flask Holders and Gloves with Vinyl Components;

Canada’s latest Antidumping and Consumer Alert & Recall notices.     

Members wishing to learn more about any of these items are encouraged to review details on the Gemini Member Site, or to contact the Gemini team.

The following governmental notices may be of interest to our members and the trade:

CBP’s Notices of Accreditations and Approvals of Commercial Gaugers and Laboratories and a Comment Request; October 10th^d Bulletin with Notice of the Discontinuation of Customs Broker Importer Self-Assessment Pre-Certification Test and additional Comment Requests, as well as the latest ABI messages, which include CSMS 18-000607, advising that the Harmonized Tariff Schedule was [yet again] updated and 18-000609, Procedures & Requirements: Implementing Craft Beverage Modernization & Tax Reform of 2017;

CPSC and FDA Recalls and Consumer Updates;

OFAC’s Notice of Sanction Actions;

FTZ Board current notices;

ITA & ITC Notices of the Administrative Review, Antidumping or Countervailing Duty Investigations, Orders or Reviews, as well as updates on Determinations, Investigations and Complaints on merchandise such as Certain Uncoated Paper from Brazil, as well as from Indonesia and Portugal and recently Approved Trade Missions for 2019;

USTR’s Notice concerning the Generalized System of Preferences: Hearing for Ongoing Country Practice Reviews of Bolivia, Ecuador, Georgia, Indonesia, Iraq, Thailand, and Uzbekistan and for the Ongoing Country Designation Review of Laos;

California’s latest 60 Day Notices on items such as, but not limited to, a certain Brass Spark Light, Napkin Rings and a Black Skull Pouch; and,

Canada’s latest Antidumping and Consumer Alert & Recall notices.     

Members wishing to learn more about any of these items are encouraged to review details on the Gemini Member Site, or to contact the Gemini team.

October 15, 2018

With the signature of the President on September 13, 2018, H.R. 4318 Miscellaneous Tariff Bill Act of 2018 (MTB) became law, amending the Harmonized Tariff Schedule of the United States (HTSUS) as of this past weekend (October 13^th).  The law suspends and reduces tariffs on 1,660 products through December 31, 2020.  HOWEVER, as noted in our September Update # 3:

Importers should be aware that any tariff reductions received as a result of the Miscellaneous Tariff Bill (MTB) do NOT preclude Section 301 tariffs. The following is an example of the result for merchandise covered under the MTB that is also listed as subject to additional duty under Section 301:

Original Tariff – 4202.92.15:  6.3%

Tariff Following MTB Reduction – Free, per SEC. 1119. Doll Diaper Bags –   9902.12.37

Section 301 – 10% (additional)

Final Tariff Amount – 10 % (still a lessened rate because without the MTB, the final amount would have been 16.3%)

In that regard, there are nearly 150 items covered by the MTB that are subject to additional 25 percent tariffs under the Section 301 tariffs currently in place, according to House Ways and Means Trade Subcommittee ranking member Bill Pascrell, who stated in an earlier Press Release:

“What is confusing right now is the fact that, while the Administration continues to move forward with tariffs that will cover nearly half of all imported products from China, the MTB will reduce or remove tariffs on many of the same products.

As noted above, the MTB’s duty suspensions and reductions went into effective for goods entered or withdrawn from a warehouse for consumption on or after October 13, 2018.[1]  Accordingly, Customs and Border Protection programmed all Harmonized Tariff Schedule numbers in ACE, See CSMS 18-000606 CBP Implementation of H.R. 4813, The Miscellaneous Tariff Bill Act of 2018:

SECTION 301 TRADE REMEDIES

Since approximately half of the 1,660 MTB-eligible items are produced in China, there is overlap with Section 301 tariffs. Products of China subject to Section 301 tariffs can benefit from MTB’s suspensions and reductions for the general (column 1) rate of duty, but remain subject to the 25 percent ad valorem rate of duty imposed by headings 9903.88.01 and 9903.88.02 or 10 percent ad valorem rate of duty imposed by headings 9903.88.03 and 9903.88.04.

[1] The MTB reduces or suspends tariffs on products imported from any and all countries – not just China.

Classification as a Set Within a Subheading Not Subject Section 301 Tariffs
Doesn’t Mean that it won’t be subject to the 301 Tariffs!

A toolset that is classifiable under a subheading not covered by the Section 301 tariffs is still subject to those tariffs because one of the components is subject to the tariffs, CBP said in a recent ruling (HQ H299857), issued following a request for reconsideration.

At issue in the ruling was a 129-piece mechanic’s toolset from China, which CBP had initially ruled to be a set classified in 8206.00.00 as “tools of two or more headings 8202 to 8205, put up in sets for retail sale.” CBP further ruled that the duty rate for that subheading is based on the “rate of duty applicable to the article in the set subject to the highest rate of duty”. The filing attorney agreed with the classification but argued “that the applicable rate of duty was calculated incorrectly.”

CBP had calculated the rate of duty based on the rate for 8466.10.0175, HTSUS, which applied to five items in the set. CBP determined that the rate was 28.9 percent, based on the regular 3.9 percent rate plus the Section 301 25 percent tariff.

Even though CBP’s frequently asked questions on Section 301 tariffs state that if a set is classified outside the tariffs, the 301 duties won’t be assessed on individual components, the FAQs also explain that those instructions only apply “to sets classified in accordance with General Rule of Interpretation (‘GRI’) 3.” According to CBP, this set is instead classified by reference to GRI 1: the set is classified by reference to GRI 1. See Informed Compliance Publication “Hand Tool Sets Classified Within Subheadings 8205.90.00 and 8206.00.00” (“Subheading 8206.00.00, HTSUS, allows for tools that are put up in sets suitable for retail sale to be classified under this one subheading based on GRI 1 . . .”). This guidance therefore does not address the situation presented. Furthermore, the above reasoning is inapplicable to this set since it is unlike other sets where the duty rate used is that of the component that imparts the essential character, here the duty rate is determined based on the article with the highest duty rate and the entire set must be taken into account.

CBP said it can’t “ignore the additional duty imposed by Chapter 99 in determining what is the highest duty rate, by examining what the duty rate would have been absent the additional duty imposed by Chapter 99, and then determining if that component is subject to the 301 provisions.”