Tim Warren

Ambiance Apparel and its owner reached a plea agreement with the Department of Justice concerning charges of undervaluing imported garments to avoid customs duty costs, the U.S. Attorney’s Office for Central District of California said in an Aug. 26 news release. The Los Angeles company and its owner, Sang Bum Noh, agreed to plead guilty and to pay nearly $118 million, the release said. “Ambiance Apparel -- the operating name for two corporations, Ambiance U.S.A. Inc. and Apparel Line U.S.A., Inc. -- agreed to plead guilty to eight counts, including conspiracy, money laundering, and customs offenses,” it said.

CBP didn't deviate from an established classification treatment for imported bike seats for kids when it applied a higher duty classification than what was sought by the importer, the Court of International Trade said in an Aug. 25 decision. The finding is the result of a lawsuit filed by Kent International, which said CBP didn't give Kent the same treatment as competitors when it classified Kent child bicycle seat entries in heading 8714, dutiable at 10 percent, rather than in a duty-free provision of subheading 9401.80. CBP declined to reliquidate the entries in 2015 (see 1504290018).

Five people are facing federal charges over allegations of illegal filing of drawback claims, the U.S. Attorney's Office for the Northern District of California said in a news release. An Aug. 12 grand jury indictment, which was unsealed Aug. 25, charged Dale Behm of Shell Knob, Missouri; Yong Heng Liang of Daly City, California; Joshua Stanka of Katy, Texas; Joshua Clark of Fair Oaks Ranch, Texas; and Michael Choy of Etobicoke, Ontario, Canada, “with conspiracy, wire fraud, and related charges related to an alleged scheme to submit fraudulent claims for refunds on import duties,” the release said.

International Trade Today is providing readers with some of the top stories from Aug. 17-21 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.

More companies are seeking drawback payments as the economic slowdown has increased the importance of cash on hand, CBP officials and industry executives said during the American Association of Exporters and Importers virtual conference Aug. 20. “In general, I would say COVID's had a major impact on our businesses and it's also made our company even more focused on getting cash in the door,” said Kathleen Palma, senior executive for international trade compliance at GE. “One of the levers that our leadership has been looking at has been drawback.” At the same time, Palma expects that because the company is bringing in fewer shipments, that will be reflected in fewer drawback claims going forward.

The Office of the U.S. Trade Representative will exclude two more products from the third list of Section 301 tariffs on products from China, it said in a notice released Aug. 21. The exclusions will apply retroactively to Sept. 24, 2018, the date the tariffs on the third list took effect, and through Aug. 7, 2020, it said. The new exclusions will fall under previously created subheading 9903.88.48.

CBP recently finished a “final draft” of a document creating a 21st Century Customs Framework, Vincent Annunziato, director of CBP’s business transformation office, said during the American Association of Exporters and Importers virtual conference Aug. 19. The draft includes five pillars: Enhance Facilitation and Security, Define Customs and Trade Responsibilities, Ensure Seamless Data Sharing, Employ Intelligent Enforcement, and Protect and Enhance Customs Infrastructure Through Secure Funding, he said. CBP said last year it hoped to begin introducing some policy changes around the framework this year (see 1907250028).

The Animal and Plant Health Inspection Service is no longer planning to begin Oct. 1 enforcement of Lacey Act import declaration requirements on 29 new tariff lines, the agency announced recently in an email. The delay “will give the trade community time to recover from the impacts of the COVID-19 pandemic and prepare for this change,” it said. The agency said in March it planned to implement the sixth phase of Lacey Act import requirements in October (see 2003300011).

CBP issued a withhold release order for imported "seafood harvested by the Da Wang, a Vanuatu-flagged, Taiwan-owned distant water fishing vessel," CBP said in a news release . Effective Aug. 18, CBP will stop seafood from the vessel at all U.S. ports of entry, it said.

International Trade Today is providing readers with some of the top stories from Aug. 10-14 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.