Tim Warren

Importers can use the temporary import provisions with goods subject to Section 301 tariffs in order to pay the tariffs at current levels and avoid potential increases, CBP said in a Feb. 21 ruling, HQ H302203. Alex Romero of A.F. Romero & Co. Customs Brokers requested CBP's ruling on behalf Panacea Products Corp. Several of Panacea's products are subject to the third list of Section 301 tariffs, which were originally slated to increase from 10 percent to 25 percent on Jan. 1. That increase has since been delayed "until further notice" while the U.S. and China negotiate (see 1903010036).

The U.S. Court of Appeals for the Federal Circuit decision in Trek Leather continues even now to be a major point of contention among customs lawyers, more than four years after it was issued (see 14091703). "There's a lot of uncertainty out there," said Michael Cone, a FisherBroyles lawyer, who moderated a March 8 panel on enforcement during the International Trade Update at the Georgetown University law school. Patricia McCarthy, assistant director for the Department of Justice commercial litigation branch, said despite the concerns within the trade, there remains a high bar for individual liability in Section 1592 cases.

The question of how de minimis should fit within the new NAFTA is being grappled with in Congress (see 1902280005) and partner countries (see 1903080033), panelists said March 8 during the International Trade Update at the Georgetown University law school. There was significant pushback from Canada over increasing the value threshold, mostly due to the country's value-added taxes rather than the customs duty collections, said Christine McDaniel, senior research fellow at George Mason University's Mercatus Center.

There's a consensus that CBP's Proof of Concept (POC) for blockchain using NAFTA and CAFTA certificates of origin showed that the technology deserves further consideration, said Emily Beline, senior attorney at FedEx, which participated in CBP's test through the company's customs brokerage, FedEx Trade Networks. Despite the enthusiasm, it's clear there are also many regulatory and legal issues that will need exploration, some of which were discussed in CBP's assessment of the POC (see 1903060043). Beline and others discussed blockchain as part of a March 8 panel at the International Trade Update at the Georgetown University law school (see 1903070025).

Two hand tool sets that undergo some work in China are not subject to the Section 301 tariffs because the sets are classifiable based on the ratchets, which are of Taiwan origin, CBP said in a Feb. 14 ruling N301954. Apex Tool, through Sandler Travis lawyer Marilyn-Joy Cerny, sought CBP's advice on classification, marking and the country of origin. Unlike another recent ruling involving Cerny and Apex Tool that found the Section 301 tariffs do apply (see 1810100040), CBP said the set can be classified through General Rule of Interpretation (GRI) 3.

Most participants in CBP's Proof of Concept (POC) for blockchain using NAFTA and CAFTA certificates of origin reported general approval for the technology while noting some new redundancies created, CBP said in a newly released assessment. The assessment, dated Nov. 28, 2018, was released after allowing the Commercial Customs Operations Advisory Committee to review the document during its Feb. 27 meeting (see 1812060007). The test "produced critical feedback as well, coming most evidently from the trade community," CBP said. "Unlike other respondents, those from the trade indicated that the POC did not increase the efficiency of their workflow."

Greaseproof papers with herbs and spices used in cooking chicken or fish are best classified based on seasoning rather than the paper, CBP said in a Dec.18 ruling. Nestle USA, through Pisani & Roll lawyer Michael Roll, sought the CBP ruling in HQ H282946. Nestle said the greaseproof paper imparts the essential character of the produce and should be classified in heading 4811 as paper, but CBP disagreed.

Better sharing of data about companies with poor compliance history was among the changes cited as possible improvements during CBP's March 1 forum focused on creating a new customs framework (see 1812200003). "I'm challenged with antidumping to reach out to my importers when there's a new case to alert them of things that should be happening," said Lisa Gelsomino, CEO of Avalon Risk Management. "And while customs brokers do that too, we are all dealing with so many challenges in the supply chain today, the more that we can help people comply the better off we are and the better off CBP is."

The following customs broker's license and all associated permits are revoked for failure to "employ at least one qualifying individual," CBP said in a notice.

The American Association of Exporters and Importers is working on proposed legislation that is meant to improve and allow for a more modern customs process, the group said in comments on CBP's request for input on creating a new customs framework (see 1812200003). The proposal, which the AAEI refers to as "Mod Act 2," has been under development for more than a year. The legislation "seeks to take the process of accounting for imported goods and the collection of Customs duties thereon in a new and more modern direction," the trade group said.