PLANNING FOR 2013
you set your business plans for 2013, consider a renewed focus on trade
• Review of government import/export data;
• Updating procedures;
• Special trade program compliance;
• Related party values;
• New business ventures;
• Record access and retention.
Office of the U.S. Trade Representative is requesting comments on the possible
withdrawal, suspension, or limitation of Generalized System of Preferences (GSP)
benefits on products imported into the U.S. from Bangladesh. Comments are due
by January 31. 78 Federal Register
(January 8, 2013).
designating South Sudan as an African Growth and Opportunity Act (AGOA)
beneficiary, removing Mali and Guinea-Bissau as AGOA beneficiaries, and removing
St. Kitts and Nevis as GSP beneficiaries. 77 Federal Register
(December 28, 2012).
APPLE RULING ON CASES
a recent ruling, Customs disagreed that iPad carrying cases should be treated as
accessories for automatic data processing (ADP) machines, and ruled that they
still function as a cover even though they incorporate magnets, function as
stands, etc. HQ
(October 9, 2012).
recent Customs ruling found that if a broker’s client provides written consent
for the broker to disclose information to a third party for security screening
purposes, the broker would not be subject to disciplinary action for violating
confidentiality requirements of
19 C.F.R. § 111.24.
(November. 21, 2012). Importers should watch for the inclusion of over-broad
consent clauses in broker powers of attorney and/or associated terms and
Customs Los Angeles/Long Beach Seaport has issued a
on the newly created Customs and Food & Drug Administration Federal Destruction
and Redelivery Team. Effective January 13, 2013, it will process documentation
concerning FDA refused merchandise at the port and notify importers with a
combined CBPF 4647 and FDA Action notice called a Refusal Redelivery Notice (RRN).
U.S. Treasury has
the planned Regulatory Agenda for Customs. Clients are encouraged to review the
subjects being worked on by Customs and to prepare for potential changes.
Miscellaneous Tariff Bill (MTB) (H.R.
including 2,000 individual duty suspension provisions was introduced in
Congress on January 1, but it was not enacted and a new MTB will need to be
introduced during the next Congressional session. Do not expect any immediate
action. Consider the alternative of using FTZ status to reduce or eliminate
Customs duties in certain instances.
former Managing Director for PPG Paint in Shanghai was
and sentenced to a year in prison, fined $100,000, and sentenced to 500 hours of
community service for her role in diverting product to an entity in Pakistan on
the Entity List.
by OFAC for unauthorized exports that involved merchandise eligible for an OFAC
license are often greatly mitigated, even when serious aggravating circumstances
are present. See
FDA has issued a
and Proposed Rule on “Hazard Analysis and Risk-Based Preventative Controls” (HARPC),
its revisions to current Good Manufacturing Practices for food. Comments are
due May 16, 2013. 78 Fed. Reg.
(Jan. 16, 2013).
FINAL RULE AND SLIs
Final Rule for the revised Foreign Trade Regulations (FTR) is expected to be
published in February. Among the expected changes is the option to include the
end user in the Automated Export System (AES). Contact Jerry Greenwell for more
have updated our Shipper’s Letter of Instruction (SLI) to include an end user,
as well as destination control statements, a continuation sheet to list more
items, permission to allow Transportation Security Administration (TSA)
screening, and instructions on whether or not the freight forwarder needs to do
restricted party screening. This SLI provides better information than the
Shipper’s Export Declaration (SED)-based SLIs still being used by many. Contact
Chuck Ballard for information on our SLI.
U.S. International Trade Commission (ITC) is soliciting comments on proposed
changes to the Harmonized Tariff Schedule. The proposed modifications affect
HTSUS Chapters 29, 30, 37, and 85. There are also corrections to HTS provisions
for chemicals. Comments are due February 22. 77 Federal Register
(December 27, 2012).
Automated Export System (AES) is now accepting 2013 Harmonized Tariff Schedule
of the United States (HTSUS) codes and any 2013 updated Schedule B codes. 2012
HTSUS codes will still be accepted through January 30.
ILLEGAL DINOSAUR FOSSILS
Florida man recently ple
to illegally importing dinosaur fossils into the U.S. from Mongolia and China by
misrepresenting the country of origin and substantially undervaluing the fossils
on Customs documentation.
is the time to order 2012 importer/exporter activity data analyses. These data
analyses are the best method we know of to identify compliance concerns before
the government does. More information is available on the firm’s
To get your Company’s 2012 records as quickly as possible in 2013 and process
them into reports, charts, and graphs, please contact Rod Baum.
INFORMAL ENTRY INCREASE
increase in the informal entry limit from $2,000 to $2,500 took effect on
January 7, 2013. CSMS
(Jan. 8, 2013).
a reminder, Customs no longer emails monthly Importer Security Filing (ISF)
Progress Reports. Importers should run, or have their brokers run, ACE ISF
on a monthly basis to track ISF compliance.
MEDICINE TO IRAN
Tucked in the new
Iranian Transactions and Sanctions Regulations, which generally made it more
difficult to export or re-export products to Iran, is a provision for a General
License to allow the export of most EAR99 medicines and many basic medical
supplies without the requirement of obtaining a license from
Contact Chuck Ballard with questions. 77 Federal Register
(October 22, 2012).
part of the National Defense Authorization Act (NDAA)
signed on January 2, Congress imposed additional sanctions on Iran. This new
enactment requires the President to freeze the property of entities identified
as “part of the energy, shipping, or ship building sectors in Iran” (including
ports), or “knowingly providing significant support” to these entities. The
NDAA also requires the imposition of sanctions on those providing support. The
President has until July 1 to implement the legislation.
Office of Foreign Assets Control (OFAC) issued an
on January 10, warning financial institutions on the use of exchange houses and
trading companies who are being used to evade U.S. economic sanctions against
recent study projects that the Trans-Pacific Partnership (TPP) agreement would
yield $24 billion in income gains for the United States by 2025 and $21 billion
in income losses for China as other Asian exporters that are TPP members would
be more competitive with China in the U.S. market.
December 17, 2012 The World Customs Organization (WCO)
changes to tariff classification decisions, as well as the Harmonized Systems
Explanatory Notes (ENs) and their classifications. Changes to the Compendium of
Classification Opinions include decisions on two types of tablet computers,
three-wheeled vehicles with enclosed rear cargo area, and a total body
cyrotherapy chamber. There are numerous changes in the ENs. Clients using the
ENs for HTS classification should carefully examine the changes.
Toyo Ink SC Holdings Co and its affiliates are to pay a $45 million
for antidumping/countervailing duties (AD/CVD) evasion. The Department of
Justice alleged misrepresentation of the countries of origin on the documents
submitted to Customs to avoid paying AD/CVD duties. The whistleblower will
receive more than $7,875,000 as his share of the government’s recovery.