Thursday, October 10, 2019
12:00 PM – 1:00 PM

Many companies are looking for opportunities to reduce or eliminate duties on products they import.  In 2015, Congress passed legislation codifying a duty reduction process, known as the Miscellaneous Tariff Bill (MTB), that reduces duties assessed on more than a thousand imported raw materials and intermediate

Effective May 10, 2019 importations of merchandise covered under the Section 301 third tranche, manufactured in China and entered into the U.S., are subject to the increase in additional duties from 10 to 25%.  However, according to U.S. Customs and Border Protection updated guidance, the increased duties of 25% will not apply to goods a)

On Monday, March 4th, President Trump announced that India and Turkey will no longer benefit from the United States’ Generalized System of Preferences (“GSP”) program.  The GSP program, established by the Trade Act of 1974, is designed to promote economic development by eliminating duties on certain eligible products when imported from a beneficiary

Today Customs and Border Protection (CBP) published an updated version of its “Guidance for Reimbursement Certificates”; see https://www.cbp.gov/document/guidance/guidance-reimbursement-certificates.

In the memorandum, CBP reminds the public that regulations by the Department of Commerce (“DOC”) require that importers must file a certificate advising whether the importer has entered into an agreement, or otherwise has received reimbursement of AD duties, prior to liquidation of the entry.

Failure to file reimbursement certificates (stating that importer was not reimbursed) may double importer’s antidumping duties upon liquidation.  CBP’s memorandum offers specifics on how to file the certificates and includes an example of a blanket reimbursement form.

The memo also outlines procedures for filing in ACE and ACS.  Although CBP will accept paper reimbursement certificates, it is encouraging importers to file electronically.

CBP addresses other guidelines for filing reimbursement certificates, including the following:
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One of the potential consequences of the U.S.-China trade dispute is that more companies may consider supply chain sourcing from third countries such as Mexico.   This may include direct sourcing in the third country or the processing of Chinese components into finished products in third countries prior to entry into the United States.  There are a number of issues to consider where the processing of Chinese products subject to section 301 duties occurs in third countries prior to importation in the United States.

For example, the imported Chinese components processed in a third country may nonetheless be subject to section 301 duties when imported into the United States unless they are “substantially transformed” into a new and different article of commerce in the third country.  This is a product-specific analysis and involves a review of components and production steps. Recently, the Court of International Trade ruled that mere assembly of foreign component parts does not constitute substantial transformation. (Energizer Battery Inc. v. United States, 190 F. Supp. 3d 1308 (Ct. Intl. Trade 2016). The decision noted that, “whether there has been a substantial transformation depends on whether there has been a change in the name or use of the components.”  The court focused not on whether “the components as imported have the form and function of the final product” but rather “whether the components have a pre-determined end-use at the time of importation.”  The court suggested that the imported parts would need to undergo “further work” beyond mere assembly to be considered substantially transformed.


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US Customs and Border Protection has finally released the much anticipated proposed changes to the drawback regulations. (See FRN August 2)

Drawback provides an opportunity for importers to apply for refunds of duty payments upon exportation of the same or similar product. It is also a terrific opportunity for importers of components to receive

The United States Court of International Trade recently overturned a U.S. Customs and Border Protection (CBP) denial of a protest, in which Quaker Pet Group, LLC contested CBP’s classification of its pet carriers.  The five pet carriers at issue in Quaker Pet Group, LLC v. United States, Slip Op. 18-9 (Ct’ Intl. Trade 2018) are used to carry cats, dogs or other pets and are made of mesh and cloth.  CBP classified the carriers under Harmonized Tariff Schedule of the United States (HTSUS) subheading 4202.92.30, a provision which covers “travel, sport and similar bags” made of textile material that are designed for “carrying clothing and other personal effects during travel.” 
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U.S. Customs and Border Protection has been preparing for more than one year for security at this year’s Super Bowl.  In coordination with the Department of Defense, other federal agencies, and local law enforcement, CBP’s mission is to be the “eyes in the sky” and help keep the air space around the stadium safe.

CBP

According to the Acting Commissioner of Customs, Kevin McAleenan, and other senior staff, the ports are open and Customs is coordinating with the over 40 partner government agencies with representatives at the ports. Customs will continue to process cargo and collect duties. Import and entry specialists are working as are the Centers of Excellence and