Wednesday, December 14, 2011

Santa Claus Might Be a Fire Hazard

I enjoy the colorful lights that adorn the neighborhoods this time of year.   As I put up my own lights, I worried that I might be creating a fire hazard by plugging in one more string of lights than the instructions allowed.  I was also guilty of connecting two extension cords when the little plastic tag warned that two extension cords should not be plugged in together.   If plugging in one extra strand of lights or connecting two extension cords creates a fire hazard, then some of my neighbors better get out the garden hose and keep the fire department on speed dial.  I wonder if living next door to a fireman will help?  

After seeing how many extension cords, strings of lights and animated characters my neighbors have, I was feeling a better about my two little infractions, until I read the article about how Customs and Border Protection seized some counterfeit Santa lights. Working together with the U.S. Consumer Product Safety Commission (CPSC), the Import Safety Commercial Targeting and Analysis Center identified these potentially dangerous products.   In late November, CBP officers in Los Angeles seized 151 life-size decorative lights of Santa Claus, a snowman and a polar bear because the electrical adaptors contained counterfeit Underwriters Laboratories, Inc. (UL) markings.

Underwriters Laboratories is an independent global company that tests products, tools, equipment and other articles for potential risk of fire, shock and personal injury.  Certain electrical articles sold in the U.S. must comply with mandatory requirements of UL/ETL or the equivalent in order to meet federal safety standards.  Products with counterfeit marks have not been properly tested or certified and could cause safety hazards to users. How can the consumer determine if the UL mark is genuine?  UL provides a list of the four elements of a genuine mark and information about how to spot counterfeit marks.

Genuine Marks

The article should contain:
Underwriters Laboratories
  • the name and/or certification mark of Underwriters Laboratories.  The “UL” should be located in a circle.
  • the word “LISTED” in capital letters.
  • a control number consisting of four alphanumeric characters or issue number consisting of a sequence of 4 to 6 numbers. The issue number may or may not be preceded by one or two letters and the phrase “Issue No.”
  • a product identity.

Counterfeit Marks

An article may be counterfeit if the
  • product label does not contain the four elements listed above.
  • product references UL on the packaging or on the product itself but has no company name, trademark, or other designation authorized by UL.
  • packaging contains marks with the letters “UL” that are side-by-side instead of staggered, the lack of a control or issue number or the words “Approved” or “Pending” instead of “LISTED” or “CLASSIFIED.”
  • product packaging contains grammatical and/or spelling errors.
  • product is missing appropriate documentation for care, use and maintenance.

After I post this article, I will go outside to check for UL information attached to the lights, extension cords and the animated reindeer.  I will check my own lights and hope that my neighbor’s 8 ft inflatable Santa, the cute lighted polar bear, animated reindeer and long strings of lights attached to multiple extension cords contain genuine UL certification.
  
Update: My outdoor lighting sets contain the UL hologram stickers. 


Click HERE to view another recent case where a U.S. business owner pleaded guilty to trafficking in counterfeit circuit breakers.  Not only were the circuit breakers marked with counterfeit manufacturer's trademarks, but they also contained counterfeit "UL" labels.

Sources:

Underwriters Laboratories, Inc. (n.d.). How to spot fakes. Retrieved from http://www.ul.com/global/eng/pages/offerings/services/programs/anticounterfeitingoperations/fake/

U.S. Customs & Border Protection. (2011, December 13). Counterfeit Santa Lights Seized by CBP. Retrieved from http://www.cbp.gov/xp/cgov/newsroom/news_releases/local/12132011.xml

Wednesday, November 30, 2011

2012 Federal Holidays

CBP posted a list of the Federal Holidays for 2012. Mark your calendars!

Monday, January 2 - New Year's Day (observed)

Monday, January 16 - Birthday of Martin Luther King, Jr.

Monday, February 20 - Washington's Birthday

Monday, May 28 - Memorial Day

Wednesday, July 4 - Independence Day

Monday, September 3 - Labor Day

Monday, October 8 - Columbus Day

Monday, November 12 - Veterans Day

Thursday, November 22 - Thanksgiving Day

Tuesday, December 25 - Christmas Day

Tuesday, November 29, 2011

COAC Meeting December 7th – Free Live Webcast


The Committee on Commercial Operations of Customs and Border Protection (COAC) will meet at 1:00 p.m. EST on December 7 in Washington, DC.  U.S. Customs and Border Protection is providing a free webcast of the meeting.   The meeting will also be recorded and available for on-demand viewing for 30 days. 

Online registration is now open on the CBP website and closes on December 5.

Click HERE to register for webcast participation.

Click HERE for more information on COAC.

Sunday, November 27, 2011

Practice Safe Shopping on Cyber Monday



If you didn’t get enough shopping on Black Friday you will have more opportunities to snag some bargains as you head back to work on Cyber Monday. Cyber Monday kicks off the shopping season for online bargain hunters.  There are pros and cons of shopping online.  While online shopping can result in some great deals and save time waiting in long lines, it also offers more opportunity for theft and fraud.    As part of the Stop. Think. Connect. Campaign, DHS posted a list of suggestions to help shoppers protect themselves when searching for those online deals.  As you start your online shopping this year, consider the DHS ideas along with some of the other helpful hints on our list.

Consider your company’s Internet use policy.  While it may be tempting to spend some time surfing the web for bargain at work, don’t forget your company’s policy on Internet usage.  Shopping at work could land you in hot water with your boss.


Create a separate email address.  To avoid spam and other unwanted offers to your primary email address, consider creating an email address specifically for shopping online.  You can use Gmail, Hotmail, Yahoo and other email providers to create a free account.

Pay attention to website URLs.  Check the URL for the websites you visit.  Counterfeit websites sometimes use a variation in spelling or a different domain to trick users.

Look for security symbols.  Verify the website is security enabled by looking for web addresses with https// or shttp:// on the page where you enter credit card and other personal information.  Check to make sure there is a tiny closed padlock in the address bar, or on the lower right corner of the window. 

Pay with a credit card, not a debit card.  If you pay with a credit card, your transaction will be protected by the Fair Credit Billing Act and you may not have the same level of protection when using your debit card.   Cardholders are usually liable for the first $50 in unauthorized charges when fraudulent use is reported timely. If online criminals obtain your debit card information, they have the potential to empty your bank account.  Consider obtaining a temporary card from the bank with a set limit that you have loaded onto the card.

Keep a record of purchases and check your statements.  Keep a record of your purchases and compare them to your statements. If there is a discrepancy, report it immediately.  You can print all of the receipts or take a screen shot of your details and copy it into one word processing document or save the confirmation emails to save paper.

Verify your operating system, browser and antivirus software are updated.  Internet Explorer 9 is the newest version of the Microsoft web browser.  Make sure your antivirus software is running. 

Safeguard your private information.  Some fields, such as your address, are necessary to complete transactions, but some companies will ask for more.  Don’t feel obligated to provide information that is not relevant to the transaction, such as your social security number.   Don’t share your passwords or allow the computer you are using to “remember” them. Use a combination of numbers, letters, and symbols for your password instead of easy-to-find birth dates, phone numbers, or addresses.
 
Read the fine print.  Some of the terms of purchase may automatically sign you up for unwanted offers, which usually means a flood of spam to your inbox.  Be sure the “uncheck” boxes that may already contain check marks if you do not agree to the terms.

Ignore pop-up messages. Block pop-up messages. If you receive a pop-up, click on the "X" at the top right corner of the title bar to close the pop-up message.  If you can’t find the “X” or a way out, close down the site or shut down your computer, if necessary. 

Do not use public computers or public wireless to make online purchases.   Public computers may contain malware that steals your credit card information when you place your order. Criminals may be monitoring public wireless for credit card numbers and other confidential information.

If you have problems shopping online, contact the seller directly. If your problem is not resolved, check with one of the following sources.
  • Better Business Bureau at:  www.bbb.org
  • Federal Trade Commission at: www.ftc.gov/
  • Your state’s consumer protection agency.

Happy Cyber-Shopping!

Monday, November 21, 2011

Triennial Status Report and Fee for Licensed Customs Brokers Due in 2012

In accordance with the provisions of 19 CFR 111.30(d), every licensed broker must file a status report and pay the required fee every three years.  The reports and a check or money order payable to U.S. Customs for $100 must be submitted by February 29, 2012.  U.S. Customs & Border Protection will begin accepting the status reports and fees for 2012 on January 2, 2012.  Licenses for which no report was filed will be suspended by operation of law on March 1.   Brokers are required to submit the report and fee to the port that originally delivered the license to the broker.  Failure to submit the information to the correct port may result in the report being returned or denied. Although there is no required format for the report, CBP provides a template for the report and some FAQs on their website.    

Tuesday, November 15, 2011

Thanksgiving Dinner Classification

Gobble! Gobble!  As you think about what you will serve for Thanksgiving, consider the recent information provided by the American Farm Bureau Federation (AFBF).  The American Farm Bureau Federation stated that the average cost of the 2011 Thanksgiving meal would show a 13% increase, which brings the cost of a meal to feed 10 people to $49.20, a $5.73 increase from the 2010 average of $43.47.  Don’t let the numbers get you down, because the price is still less than $5 a person.  If the numbers are alarming, consider cutting back to avoid the leftovers and the extra holiday pounds,  invite more people to enjoy the feast with you or bypass the cooking and volunteer to serve meals at a local charity!     

In honor of the upcoming Thanksgiving holiday and the lack of any exciting news to report, we thought it would be fun to classify a Thanksgiving meal.  We might as well exercise our brains a little before sitting down to the big feast!   Since this is a non-profit educational blog, we don’t have any great prizes to offer, but we’ll be happy to publish the names of the contributors who provide answers to the questions.   Post your classifications for the items on our shopping list, suggest other food items and share your plans for the holiday in the “comments” section.  Let’s get started!

Update 11/28/2011
Thanks to Daniel, Marjorie, Freya and Anonymous for classifying our Thanksgiving dinner.  I hope everyone had a wonderful holiday weekend! 
                                
1.   Turkey – 16 lbs – $21.57
a.  Live - 0105.12.0000
b.  Frozen - 0207.25.4000

2.   Green beans
a.  Fresh - 0710.20.9010
b.  Frozen – not reduced - 0710.22.3700

3.   Fresh Sweet Potatoes - 0714.20.2000

4.   Cranberries
a.  Fresh - 0810.40.0030
b.  Ocean Spray Jellied Sauce - 2008.99.2010

5.   Pumpkin Pie- Frozen/Cooked - Accepted two answers.
      1901.90.5800 frozen/uncooked HQ960419
     1905.90.1041 cooked, but frozen NY L87790 

6.   Dinner Rolls - Fresh - 1905.90.1070

7.  Riesling Wine 750 ML  11.5% Alcohol  $1.25/liter - 2204.21.5046


Source:
American Farm Bureau Federation. (2011, November 10). Classic Thanksgiving dinner costing more in 2011. Retrieved from http://www.fb.org/index.php?action=newsroom.news&year=2011&file=nr1110.html


Wednesday, November 9, 2011

CBP Posts Simplified Entry Information

U.S. Customs and Border Protection (CBP) announced a plan to conduct a National Customs Automation Program (NCAP) test concerning Automated Commercial Environment (ACE) entry capability. The features in ACE will simplify the entry process by allowing entry filers to provide 12 required and three optional data elements to CBP prior to the arrival of the merchandise on the conveyance transporting the cargo to the United States. The current CBP Form 3461 contains 27 data elements; therefore, reduction to 12 required elements will provide easier and streamlined transmission of information to CBP.


The required elements include the following:

(1) Importer of Record Number.
(2) Buyer name and address.
(3) Buyer Employer Identification Number (consignee number).
(4) Seller name and address.
(5) Manufacturer/supplier name and address.
(6) HTS 10-digit number.
(7) Country of origin.
(8) Bill of lading/house air waybill number.
(9) Bill of lading issuer code.
(10) Entry number.
(11) Entry type.
(12) Estimated shipment value.

In the testing phase, the entry filer may also provide the following elements.

(13) Ship to party name and address.
(14) Consolidator name and address.
(15) Container stuffing location.

These data elements will be filed in lieu of the CBP 3461; however, filing Simplified Entry Data does not replace the requirement of filing the Entry Summary. The testing will be open to entries of informal Type 11 and formal Type 01 filed for goods transported by air. The entries must be supported by a continuous bond.

Brokers seeking to participate in the test must be C-TPAT certified and importers must be C-TPAT members with at least a Tier 2 status. Interested parties should contact CBP November 17, 2011 at cbpsimplifiedprocess@dhs.gov. The initial phase of the test is scheduled to being on December 31, 2011 and run for approximately two years.

Click HERE to view detailed information in the Federal Register.

Monday, November 7, 2011

2012 Harmonized Tariff Changes

Are you prepared? The fifth set of amendments to the Harmonized System will go into effect January 2012.

According to information on the WCO website, HS 2012 includes 220 sets of amendments, spread out among the following categories.

Agriculture98
Chemicals27
Paper9
Textiles14
Base Metal5
Machinery30
Miscellaneous37

Tables showing the correlation between the 2007 and 2012 are available on the WCO website.

Table I establishes the correlation between the 2012 version and the 2007 version of the HS. It contains remarks opposite certain correlations briefly specifying the nature of the goods transferred. In many cases, reference has also been made to the amended legal provisions. Some subheadings were deleted due to low trade volumes; however, new subheadings were created to accommodate increased trade in those goods.

Table II establishes the correlation starting from the 2007 version to the 2012 version of the HS. Since this table transposes the information found in Table I, the remarks found in Table I were not included. Table II contains the 2007 HS code number in the left-hand column, with the corresponding 2012 HS code in the right-hand column. The prefix “ex” is used in the same way as it has been used in Table I, i.e., to indicate that only a part of the subheading concerned is covered by the code number referred to in the left-hand column.

Implementation of the 2012 HTS is less than two months away. If you have already prepared for the change, then you can enjoy the holidays! If you haven’t reviewed the changes in relation to your import program, then it’s time to get started. If your company imports agricultural goods, chemicals or machinery, the changes may require a lot more work on your part, so don’t delay. If you need help, contact your customs broker or other trade compliance professional.

Stay tuned, the next round of changes will be coming in 2017!


Sources

World Customs Organization. (2011, February). New HS rules from 1 January 2012. WCO News. 64, 10.

World Customs Organization. (n.d.). Harmonized System Correlation Tables. Retrieved from http://www.wcoomd.org/files/1.%20Public%20files/PDFandDocuments/HarmonizedSystem/tools_instruments/HS_Correlation_Tables_Introduction.pdf

Friday, October 28, 2011

CBP Proposes Increase in Informal Entry Limits


Today in the Federal Register, CBP published a Notice of Proposed Rulemaking that proposes an increase the limit of informal entries from $2,000 to $2,500.  The Customs Modernization provisions under NAFTA authorized the $2,500 limit; however, the current limit of $2,000 has been in place since 1998.    Raising the limit will help address inflation since the last amount was set and reduce the administrative burden on importers and customs brokers.   Additionally, CBP proposes to change the language that requires formal entry for certain articles that were previously subject to absolute quotas. 

Comments must be submitted by December 27, 2011 using the Federal eRulemaking Portal or by mail.  Click HERE to view the details of the notice and instructions for submitting comments.   

Thursday, October 27, 2011

Cargo Systems Messaging Service


CBP has been busy this week posting announcements using the Cargo Systems Messaging Service (CSMS).  A summary of the messages is provided below, along with a link to more detailed information. 
The CSMS communicates general information of interest to the trade community including:

·         Currency exchange rates.
·         Changes to the HTS.
·         Antidumping and countervailing duty cases.
·         New or changed entry procedures.
·         Port power outages and closings.
·         Other government agency notices.

The messages are searchable using keywords and groups. The groups are set up to address specific interests such as ABI, ACE Outreach, ACE Reports, Air Manifests, Truck Manifests and more.  Individuals can receive these messages via email by registering for a free subscription. 


CSMS 11-000270
ACE Customer Satisfaction Survey Extended
Date: 10/27/2011

CBP is extending the time to respond to the 2011 ACE Customer Satisfaction Survey to midnight November 2, 2011. 

The survey may be accessed at .  The survey is voluntary and anonymous.  Unless comments are provided, the survey will take between 5-10 minutes.


CSMS 11-000269
Three New AGOA Lesser Developed Countries - Côte d'Ivoire, Guinea, and Niger
Date: 10/26/2011

Effective October 25, 2011, the President designated Côte d'Ivoire, Guinea, and Niger as eligible
for AGOA lesser developed beneficiary sub-Saharan African country preference.


CSMS 11-000267
ATPA/ATPDEA Extended Retroactively, Instructions for the Trade Community
Date: 10/26/2011

This announcement explains that the Andean Trade Preference Act (ATPA) and the Andean Trade Promotion and Drug Eradication Act (ATPDEA) have been extended to July 31, 2013.   The renewal is retroactive, which means refunds will be available for duties paid on eligible merchandise while the program lapsed. The message provides information on how to request a refund for duties paid during the lapse period.


CSMS 11-000266
Generalized System of Preference (GSP) Extended Retroactively, Instructions for the Trade Community
Date: 10/26/2011

The Generalized System of Preferences was extended to July 31, 2013.  This renewal is retroactive.  CBP will begin processing refunds for entries filed via ABI utilizing the Special program Indicator “A” for duties deposited during the lapsed period from January 1, 2011 through November 4, 2011. The notice provides instructions for filers of entries where no SPI was transmitted so that a request for a retroactive GSP claim and refund can be processed.


CSMS 11-000264
Revised Entry/Entry Summary Deletion and Cancellation Information
Date: 10/24/2011

This announcement provides an update to the original document posted on 9/21/2011.  Various errors were found in the original document, so an updated document is attached to the announcement.


CSMS 11-000262
Merchandise Processing Fee (Class Code 499) Rate Change Information
Date: 10/21/2011

This notice informs the trade that CBP is in the process of modifying ABI to accept the new MPF rate of 0.3464%.  CBP will notify the trade in future message when the changes have been made and entry summaries can be submitted using the new rate.

Click HERE to view the full text of these messages and search for other notices.