CBP Grants NAFTA Verification Protest After Documentation Translated

CBP granted a further review of a protest filed by Jowett Garments Factory and Joy Textile after the companies provided translated documentation to prove eligibility for NAFTA treatment, the agency said in a Nov. 25 ruling (here). The companies filed the further review after the Port of Nogales, Arizona denied NAFTA treatment for imports of polyester fabrics in 2012. That denial came after the companies submitted "incomprehensible and contradictory" information that "failed to establish conclusive evidence that the products qualified for preferential tariff treatment," said CBP.

CBP determined in 2013 that the companies didn't provide enough evidence to show "the absence of commingling, and did not demonstrate that an adequate inventory control method was in place." The importers disagreed and said CBP's determination was "only based on suspicions" and "inconsistent with previous NAFTA verifications." The port said it sent several requests for translations but the companies never saw such requests, indicating an apparent "breakdown of communication" between the importer and the port, said CBP.

Although the companies eventually did provide necessary information on the NAFTA eligibility and the inventory control method, the port was right in its initial determination, said CBP. "We note that it is incumbent on the importer to present documentation which CBP personnel will be able to analyze and consider," said CBP. "Such documentation must either be in English or, if in a foreign language, accompanied by an English translation. Anything else falls short of the importer's obligation to exercise reasonable care in providing information which is necessary to enable CBP to properly assess duties, collect accurate trade statistics and determine whether any other applicable legal requirements are met."

The companies in 2015 "sufficiently demonstrated the 'trackability' of the orders," said CBP. The companies also showed "that their inventory control method is designed to avoid commingling for business reasons as well as their NAFTA preferential claim," the agency said. While the protest was granted, "the documentation submitted to the port was carelessly prepared and not sufficient to support the claim for preferential tariff treatment under the NAFTA," the agency said. "However, Protestant has now provided this office with sufficient explanation and translations to show that the goods are indeed eligible under the NAFTA."