CBP Targeting Electronics Imports in Stepping Up Section 301 Enforcement

As tech companies ponder “mitigation strategies” to reduce the cost impact of tariffs on Chinese imports, be aware Customs and Border Protection's Office of Regulatory Audit has confirmed it’s beefing up enforcement for imported electronics, blogged Baker McKenzie customs compliance lawyer Ted Murphy Tuesday. Expect the agency in two-four weeks to send out the first wave of CF-28 forms -- requests for information -- since the imposition of the Trade Act Section 301 tariffs, said Murphy. “Billions of dollars in revenue are at stake for the U.S. government, and CBP is intent on collecting that revenue.” The agency recognizes importers “are under pressure to reduce the Section 301 impact and, therefore, may (intentionally or unintentionally) act in a manner contrary to U.S. customs laws and regulations,” he said. CBP justifies targeting electronics “given the conclusions of the Section 301 investigation,” which found China “engages in intellectual property theft and forced technology transfers to support its industrial advancement goals,” he said. “Targeting electronics aligns with the legal basis for the Section 301 duties and the administration’s messaging around China’s unfair policies.” Companies pursuing Section 301 mitigation strategies “should tread cautiously,” because such strategies are “likely to draw scrutiny from CBP,” said Murphy: Anyone receiving a CF-28 “should escalate the matter to the company’s legal department.”