Tim Warren

Improvements to the manifest system, Post Summary Correction and reconciliation functionalities are some issues that deserve attention from CBP in order to modernize the agency's trade processing, the Trade Support Network said in comments to CBP. Tom Gould, of the TSN's Trade Leadership Council and Sandler Travis, submitted the comments on behalf of the TSN in CBP's request for input on creating a new customs framework (see 1812200003). All comments are due Feb. 4 and only two other comments were filed in the docket as of Feb. 1. Maritime Exchange for the Delaware River and Global Coalition for Efficient Logistics also filed comments.

The Section 301 tariffs still apply to textile backpacks used to hold dolls even though that product was included in the Miscellaneous Tariff Bill that became law last year (see 1809140004), CBP said in a Dec. 10 ruling. That ruling, NY N301879, follows CBP's previously announced position that the Section 301 tariffs would still be imposed on MTB goods from China (see 1810150051). While the MTB allows for duty-free treatment of the backpacks, the 10 percent tariffs apply on those goods from China, CBP said.

Steam turbine shaft assemblies and nozzle rings were properly claimed as eligible for duty-free treatment under the U.S.-Israel FTA, CBP said in a Nov. 30 ruling. The ruling, HQ H291700, was in response to an application for further review of protest submitted by Tuttle Law Offices for the importer, Ormat Nevada. The agency said the imported good satisfied the requirements of the FTA and that the protest should be granted.

CBP will delay the deployment of the CBP Form 5106 in the Automated Broker Interface if the partial federal government remains shut down as of Feb. 1, said John Leonard, CBP executive director-trade policy and programs, during a Jan. 16 conference call with industry. CBP recently set a concrete deployment date of Feb. 9 for its upcoming ACE Form 5106 input process (see 1811130052) and posted a draft version of the form (see 1812240003). "If we are happily open by Feb. 1, we will proceed with a Feb. 9 deployment for the 5106."

The partial federal government shutdown is preventing the Environmental Protection Agency's review of vehicle import compliance and paper notices of arrival for pesticides. "EPA personnel are not excepted from the shutdown for the purpose of making compliance determinations or otherwise advising CBP on the compliance of any such vehicles and engines," according to one automatic response from an EPA employee contacted by email. "In the case of any urgent need for CBP to discuss a matter with the EPA regarding the importation of vehicles and engines subject to the Clean Air Act, please contact Evan Belser at belser.evan@epa.gov or 202-564-6850. Mr. Belser is the Chief of the Vehicle and Engines Enforcement Branch at EPA HQ, and is excepted for the limited purpose of managing any such correspondence."

CBP is unable to provide support to the Office of the U.S. Trade Representative in reviewing Section 301 product exclusion requests during the partial federal government shutdown, and no more exclusions are expected while the funding impasse continues, said John Leonard, CBP executive director-trade policy and programs, during a Jan. 9 conference call with industry. CBP provides USTR with input and analysis on the feasibility of excluding individual products from the Section 301 tariffs. "That process is not happening" during the shutdown, he said. The USTR issued the first set of Section 301 product exclusions in December (see 1812240010), though CBP remains unable to implement the exclusions during the shutdown (see 1812310007).

The packaging and dilution of perfume and cologne in China don't result in a change to the country of origin, CBP said in a Nov. 28 ruling (NY N301656). The colognes and perfumes therefore are not subject to the Section 301 tariffs on goods from China, the agency ruled. The ruling request came from Fantasia Accessories through Grunfeld Desiderio lawyer Kevin Leonard.

CBP is not processing any refunds during the government shutdown, said John Leonard, CBP executive director-trade policy and programs, during a Jan. 7 conference call with industry. The agency is "not processing refunds of any kind on any type of normal entry or drawback transaction," Leonard said. The liquidation process is functioning, but "the backend refunding process and issuing of checks is not happening," he said. Interest may apply to those delayed refunds, Leonard said.

Further litigation over the final drawback rules under the Trade Facilitation and Trade Enforcement Act is widely expected, with the most likely target being the provisions on drawback for excise taxes, according to multiple lawyers watching the issue closely. One lawyer mentioned ongoing discussions with tobacco firms to file a lawsuit over the excise tax issue, while the wine industry, which could see an end to more than $50 million in annual refunds, would be another likely litigant. The so-called "double drawback" for excise taxes is the most obvious piece to be challenged, but there are some other issues that could face legal scrutiny.

CBP won't be able to implement the first group of Section 301 tariff exclusions until the impasse over government funding is resolved, the agency said in CSMS message. While the Office of the U.S. Trade Representative issued a notice on the exclusions (see 1812240010), CBP is unable to update ACE to reflect the exclusions, CBP said. "At the conclusion of the government funding hiatus, CBP will issue instructions on entry guidance and implementation," the agency said.