Monday, August 29, 2011

Weekly Classification Question – August 29, 2011


Since many of you are gearing up for the October 2011 Customs Broker Exam, we wanted to provide our readers with some challenging classification questions.  Last week's question covered watches and the answer and explanation can be found at the end of this article, after this week's new question. 

Acme Glass Company imports engraved wine glasses.  The invoice quantity shows 400 boxes valued at $8.00, FOB per box.   The invoice also shows that the glasses have a lead content of 22% by weight and each box contains four glasses.  Which of the following is the correct classification of the wine glasses?

A. 7013.22.2000
B. 7013.22.5000
C. 7013.28.2000
D. 7013.28.4000
E. 7013.37.4000

______________________________________________________________________________________

Answer to August 22, 2011 Question

Answer: C
See NY F84099 and NY G81615
Chapter 91 Note 1

A and B are incorrect because Chapter 91 Note 1(b) excludes watch chains from classification in this chapter.                                                                                         
D is incorrect because the provision does not specify electronically operated.       
E is incorrect because the watch does not incorporate a band         
C is correct because the classification of the watch and chain are separate, the watch provision specifies electronic and it does not have jewels.

Thursday, August 25, 2011

COAC Meeting Update

The Commercial Operations Advisory Committee (COAC) met with CBP Commissioner Alan Bersin on August 18th . The committee of 20 representatives from the trade provides DHS and Treasury information about commercial operations related to commercial operations of CBP and functions related to DHS. Some of the topics on the agenda are listed below. Click HERE to review the materials discussed at the meeting.  The role of the broker presentation provides some interesting insight to possible changes in  the broker licensing criteria.
  • Center of Excellence and Expertise (CEE)
  • Simplified Entry Process
  • Role of the Broker
  • ITDS
  • IPR
  • Global Supply Chain Security

 
The next COAC meeting is scheduled for October 4 in El Paso, Texas.  The last meeting invited the trade to attend by webcast so watch for this opportunity in future meeting announcements.

 

Click HERE to learn more about COAC.

 

Monday, August 22, 2011

Weekly Classification Question – August 22, 2011

Since many of you are gearing up for the October 2011 Customs Broker Exam, we wanted to provide our readers with some challenging classification questions. Last week's question covered furniture and the answer and explanation can be found at the end of this article, after this week's new question.

Classify an electrically operated analog pocket watch that does not contain any jewels and is imported with a silver metal chain.

A. 9102.11.50
B. 9105.21.40
C. 9102.91.40 and 7117.19.9000
D. 9102.99.20 and 7117.19.9000
E. 9102.21.10 and 7117.19.9000


Answer to August 15, 2011 Question

Answer: A

This is a job for GRI 2a. Remember that unfinished or unassembled goods can be classified as the finished good if they have the essential character of the finished article.

B is incorrect because the provision is for wooden beds. The futon is metal. 
C is incorrect because the provision is for wood parts. The metal futon has the essential character of the seat, not a part. 
D is incorrect because the provision is only for metal parts.
E is incorrect because this answer provides for metal and wooden parts. 
A is correct because the provision specifically mentions seats that convert into beds. 

Thursday, August 18, 2011

CBP Offers Free Webinar On Post Summary Corrections

Now that Post Summary Corrections are filed electronically for ACE entry summaries , CBP wants to address questions from the trade. CBP asks that interested parties review the ACE Entry Summary Business Rules and Process document and submit questions to the following CBP employees by August 24, 2011.

Anita Brown
anita.w.brown@cbp.dhs.gov
Shari McCann
sharolyn.j.mccann@cbp.dhs.gov

Webinar Date and Time:
Thursday, September 1, 2011
1:00 – 2:30 PM Eastern Time

Click HERE to register for the Webinar.

Space is limited, so participation is currently limited to ACE entry summary filers. After the initial registration closes, the trade community at large will be invited. Participation is limited to one person per company.

Wednesday, August 17, 2011

CBP Discontinues Paper Liquidation Notices

CBP currently provides an electronic courtesy notice of liquidation to the ABI filer and a paper courtesy notice (CBP Form 4333-A) to the importer of record. Since the majority of entries are filed electronically, CBP proposed the elimination of the paper notices in an effort to streamline the notification process and reduce printing and mailing costs. CBP estimates that eliminating the paper copies for entries filed by ABI will reduce 90% of the paper notices and generate a savings of approximately $3.7 million a year. ABI filers will continue to receive electronic courtesy notices. Importers of record with ACE accounts can also monitor the liquidation status of their entries by using the reporting tools in their ACE Secure Data Portal Account. Importers whose entries are not filed using ABI will continue to receive the paper notices. The courtesy notices will be eliminated effective September 30, 2011.



Source
Courtesy Notice of Liquidation, 76 Fed. Reg. 50883 (2011) (to be codified at 19 C.F.R pt. 159) Retrieved from http://www.gpo.gov/fdsys/pkg/FR-2011-08-17/pdf/2011-20957.pdf


Monday, August 15, 2011

Weekly Classification Question - August 15, 2011

Since many of you are gearing up for the October 2011 Customs Broker Exam, we wanted to provide our readers with some challenging classification questions.  Last week's question covered textiles and the answer and explanation can be found at the end of this article, after this week's new question. 


What is the classification for a metal futon seat frame that folds flat to convert into a bed and is imported unassembled with wood slats but without the cushion?



A.       9401.40.0000

B.       9403.50.9045

C.      9403.90.7080

D.      9403.90.8041

E.       9403.90.7080 and 9403.90.8041


Answer to August 8, 2011 Question

Answer: D  6104.63.2011

Chapter 63 Note 9

GRI 3B Essential character

Customs Ruling: N140076



The first thought might be to classify the costume as a festive article; however, the Court of Appeals in Rubie’s Costume Co. v. United States stated that flimsy, non-durable textile costumes are classified under 9505.90.6000.  Textile costumes that are not flimsy and not non-durable are classified in Chapters 61 and 62.    Since this costume is not flimsy and is durable, it cannot be classified under 9505.90.6000.



Answers A and B can be eliminated by reading Chapter 61 Note 9.  Garments that cannot be identified as either men’s or boys’ garments or as women’s or girls’ garments are to be classified in the  headings covering women’s or girls’ garments.    The costumes are unisex; therefore, they will be classified as women’s garments, eliminated the men’s garments in A and B.



Next we must determine whether the costume is classified based on the shirt or the pants.  GRI 3(b)  is used when goods are classifiable under two or more headings and have been put up in sets for retail sale.   In that case, “the goods shall be classified as if they consisted of the material or component which gives them their essential character.”   The durable pants are considered to give the set their essential character, thereby eliminating Answer C.

Wednesday, August 10, 2011

Remote Location Filing Update


The original intent for the Remote Location Filing (RLF) was for information to be submitted electronically.  In the final rule, CBP introduced the hybrid process, which allows for submission of paper forms related to certain other government agencies.   They hybrid process does not apply to all entries.  Certain types of commodities will still be ineligible for RLF entry.    Click HERE for a list of forms that are not allowed for submission via the hybrid system.    Filers should remember that RLF is only valid for entry types 01 and 11.

CBP provided the following information for submitting RLF entries with OGA paper documents. 

The hybrid documentation will be presented at the port of entry. The hybrid package will consist of the CBP Form 3461 or equivalent release document, the CBP Form 7501 (where applicable) notated with the statement “Remote entry on file,” and the OGA paper document(s). CBP will review the Automated Invoice Interface (AII) information in ACS.

• For those forms that are eligible under the hybrid process, ports have the discretion to determine the manner in which the filer provides the OGA documentation; i.e., whether a fax is acceptable or if the filer must deliver the documentation to a designated location at the port. Consequently, it will be necessary for those interested in submitting hybrid RLF entries to reach out to the RLF coordinator at the port of entry to determine the port’s process prior to submission.  

• Filers are not to present hybrid documents prior to the RLF entry summary transmission in ACS or ACE.

Since the intent of RLF was for electronic submission, CBP will continue to work on improving the process so that the supporting OGA forms can be submitted electronically.  

Tuesday, August 9, 2011

CBP Website Favorite - Networking


Welcome to our weekly highlight of the U.S. Customs and Border Protection website.  This week, we focus on how CBP uses some of the social networking functions.  Clicking on CBP YouTube Videos directs the user to CBP’s YouTube site.   This site contains a collection of videos about a variety of topics.  Some of the recent videos include information about the Alcan Alaska Port of Entry, Fireworks Safety, and Field Operations.  This site also allows subscribers and comments.
CBP also uses Twitter.  From the CBP home page, click on CBP on Twitter.   CBP tweets on a variety of topics.  Scanning the list, the question about the fake watches caught my attention.   Are the watches legitimate or fake?
 
CBP also uses Flickr to post pictures of various CBP activities.  Click HERE to view the most recent pictures of the New Orleans Custom House, the Commissioner and others.

Next week we will highlight other useful information found on the CBP website.   Please share some of your favorites with our readers.