CBP Requests ISA Self-Assessments for Wooden Bedroom Furniture

CBP recently contacted members of the Importer Self-Assessment program asking that the companies perform a self-assessment to determine whether Chinese furniture was imported that falls within a recent Commerce Department scope ruling, said Ted Murphy, a lawyer with Baker & Mckenzie. The letter, dated Feb. 12, raises some question as to CBP's authority to request specific self-assessments for ISA members, said Murphy in a blog post (here). The letter from Therese Randazzo, CBP director in the Commercial Operations and Entry division, comes in response to a Commerce Department ruling last year that found Ethan Allen wooden chests from China to be subject to antidumping duties (see 14060403).

Due to the scope ruling, CBP "has reason to believe that several importers may have imported wooden chests from China which fall within the scope" of the order "as a consumption entry type 01," said CBP in the letter. "As an ISA member, CBP is requesting that a self-assessment be conducted to determine if you imported wooden chests from China" within the scope of the order under subheadings 9403.50 and 9403.60. The agency also asked that ISA-members "kindly submit the results of your self-analysis and corrective action" by March 20. While similar to a recent CSMS message that asked importers to review records for such imports (see 1502180022), unlike that message the ISA letter gives a deadline for a response

It's not clear, though, that CBP can require that ISA members perform self-assessments, said Murphy. The ISA program, which is voluntary, allows importers to avoid the regulatory audit pool for Focused Assessments. Instead of CBP doing its own assessment, as it could, "CBP is asking ISA members to do so, requiring them to share the results with CBP and requiring them to take certain corrective actions (e.g., requiring them to file a prior disclosure)," said Murphy. "CBP is trying to use the companies' participation in a voluntary program (which is not governed by statute or regulation) to do something it could not otherwise do." This could create "dangerous precedent" as "there would seem to be nothing stopping CBP from issuing similar generic letters requiring all ISA members to conduct a self-assessment on any number of issues (e.g., assists, transfer price adjustments, royalties, NAFTA claims, etc.) and file a prior disclosure or post-entry amendment if errors are found," he said. CBP didn't respond a request for comment.

Email ITTNews@warren-news.com for a copy of the letter.