Tuesday, January 24, 2012

CBP Clarifies Informal Bond Requirements


On January 24, 2012, CBP posted Administrative Message12-000019 to clarify bond requirements for informal entries. Informal entries submitted as “live” entries with a CBP 7501 and duties, taxes and fees prior to release do not generally require a bond.   

Informal entries released under the CBP3461 immediate delivery/entry process where the entry summary is filed within 10 days after the release require a continuous or single transaction bond.  Duties on informal entries filed using the CBP3461 must be paid via ACH statement process.

Sunday, January 22, 2012

Tick Tock – Your Triennial Status Report Is Due

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.   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.

Friday, January 6, 2012

CBP Posts HTS Numbers Potentially Subject to Softwood Lumber Act 2008


The Softwood Lumber Act of 2008 (SLA 2008) affects importations of certain softwood lumber and softwood lumber products imported into the U.S. from all countries. The SLA 2008 requires importers of the covered lumber products to provide on three additional data elements on the entry summary. The three data elements are:
  • the export price
  • the estimated export charge, if any
  • an importer declaration
CBP published a list of HTS numbers to assist the trade community in identifying goods potentially subject to the Act.   Please note that the tariff numbers are not the only tools necessary to determine if goods are subject to the Act.  Importers should consult the SLA 2008 Section 804(a) and 804(b) for products included and excluded by the Act. 

Click HERE to view the HTS numbers.

Click HERE to view SLA 2008 as found in 19 CFR 12.142.

Sunday, January 1, 2012

2012 HTS Update

The USITC published a preliminary version of the 2012 Harmonized Tariff Schedules of the U.S.; however, the preliminary version does not include the WCO amendments and will not be printed.  On December 29, 2011, President Obama signed a Proclamation modifying the HTS to incorporate the WCO changes. Since the amendments will not be effective until 30 days after publication in the Federal Register, the earliest effective date would have been February 1, 2012, if the Proclamation had been published on January 3, 2012.  As of January 1, 2012, the Proclamation does not appear in the online version of the Federal Register, so expect to see an effective date sometime after February 1, 2102.

Click HERE to view the preliminary version of the 2012 HTS.

CBP Commissioner Musical Chairs

Although President Obama appointed Alan Bersin as the CBP Commissioner in 2009, the Senate never confirmed the appointment.  With his term set to end on December 31, 2011, Bersin announced that he would leave his post at the end of the term.  However, Bersin wasn't unemployed long, as President Obama appointed Bersin to a newly created position as Assistant Secretary of International Affairs at the Department of Homeland Security.  David Aguilar now serves as the Acting Commissioner. As an appointed position, we'll have to wait until after the elections for a new Commissioner, so Aguilar is likely to be with us until sometime in early 2013.

How many actual and acting CBP Commissioners have we seen since 2001?


Date Name
9/2001 - 11/2005 Robert Bonner
11/2005 - 6/2006 Deborah J.  Spero (Acting)
6/2006 - 2/2009 W. Ralph Basham
2009 Jayson Ahern (Acting)
3/2010 - 12/2011 Alan D. Bersin
12/2011 - Present David Aguilar (Acting)


If you don't like today's weather (Commissioner), stick around.  It will change tomorrow."

China Imposes Dumping Duties on U.S. Vehicles

In September 2011, the World Trade Organization rejected China's appeal of a previous WTO ruling that approved the imposition of additional duties on imports of Chinese tires into the United States.  In what appears to be a retaliatory "tit-for-tat" move China announced plans to impose dumping duties on certain vehicles imported from the U.S.

The current tariff rates for cars imported to China is 25 percent.  The punitive duties will apply to vehicles with engines exceeding 2.5 liters.  Initial reports indicate that General Motors can expect to be hit the hardest with punitive duties up to 12.9 percent while BMW may not feel as much pain with additional duties of 2 percent. 

Stay tuned as the battle of tires versus vehicles continues.

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