Tim Warren

Royal Brush Manufacturing is being investigated after allegations of evasion of antidumping duties required on imported pencils from China, CBP said in a June 26 notice. The investigation stems from allegations filed under the Enforce and Protect Act (EAPA) by Dixon Ticonderoga Company, a Florida office and art supplies maker, CBP said. The company alleged that RBM evaded antidumping duties through transshipment.

CBP is investigating a California company for alleged antidumping duty evasion on aluminum extrusions from China, the agency said in a May 17 notice. The investigation stems from allegations filed under the Enforce and Protect Act (EAPA) by Endura Products, a domestic producer of fabricated extruded aluminum door thresholds, CBP said. The company alleged that Columbia Aluminum Products evaded antiumping duties by misclassifying door thresholds.

The Department of Justice and Temple St. Clair reached a $796,000 settlement to resolve allegations of civil fraud, the DOJ said in a news release. Temple St. Clair, "a fine jewelry designer, manufacturer, and importer based in New York, New York," was alleged to have undervalued its goods at import, the DOJ said. The company's senior leadership also allegedly carried jewelry, including a pendant valued at $83,000, into the U.S. for commercial purposes without declaration, the DOJ said. The lawsuit was initiated by a whistleblower under the False Claims Act, it said.

CBP and the Treasury Department are looking at making changes to regulations to allow for refunds for alcoholic beverage imports that are allowed a lower excise tax rate, CBP said in a CSMS message. In the meantime, "importers will continue to pay the full excise tax rate at time of entry summary filing," CBP said. President Donald Trump signed tax legislation late last year that cut excise taxes on beer, wine and distilled spirits in 2018 and 2019 (see 1712180033), though CBP has required full excise taxes as the involved agencies decide how to implement the changes (see 1801310035).

CBP's goal "is, and has always been," to publish a regulatory proposal for drawback regulations under the Trade Facilitation and Trade Enforcement Act, the Justice Department said in a June 12 filing with the Court of International Trade. The filing was part of a lawsuit brought against CBP that said the government is improperly not processing requests for accelerated payment on TFTEA drawback claims (see 1803260048). Tobacos de Wilson, Tobacco Rag Processors, Brown-USA, Nippon America, Skate One Corporation, Alliance International, C.J. Holt and Customs Advisory Services filed the suit in late March.

The reactions from industry and Capitol Hill on the Section 301 tariffs were largely split along lines previously drawn over the Trump administration's general approach to tariffs. House Ways and Means Committee Chairman Kevin Brady, R-Texas, said in a news release that while the changes from the initial list of products from China were "encouraging, " he is "alarmed that additional products are now placed on the list for possible future action." Brady called on the Office of the U.S. Trade Representative to "narrow these tariffs and implement an effective exclusion process that provides relief for American companies, unlike the problematic Commerce 232 exclusion process.”

Fossil watches that are dependent on a Bluetooth connection to a smartphone for timekeeping are best classified based on the radio transceiver, CBP said in an April 30 ruling. CBP issued ruling HQ H282905 in response to a tariff classification ruling request from Grunfeld Desiderio. Unlike this ruling, CBP has previously said that the watch function of wristwatches is determinative of the classification, even if the watch has Bluetooth capabilities (see 1606280030). On the other hand, a 2015 CBP ruling found that the essential character of smartwatches is based upon the radio transceiver that makes Bluetooth connections possible (see 1508050029).

The updated NAFTA could result in raised standards for cargo security, CBP Commissioner Kevin McAleenan said June 13 at a Wilson Center event about the U.S.-Mexico border. Asked whether NAFTA could be an instrument for promoting the use of security components in Mexico, McAleenan said "yes," and that it's "consistent with securing supply chains from start to finish." This is similar to the approach CBP is taking to e-commerce marketplaces, he said. "So much of that small package trade is going into warehouses where it's all looked at individually by a major company," he said. "Why can't we work with them on a new trusted program? I'm open to that, would welcome that conversation."

The Department of Homeland Security updated its Northern Border Strategy (NBS) for the first time since it was issued in 2012 (see 12060723), DHS said in a news release. DHS said the "strategy establishes a clear vision and concrete actions that will improve DHS’s efforts to safeguard our northern border against terrorist and criminal threats, facilitate the safe and efficient flow of lawful cross-border trade and travel, and strengthen cross-border critical infrastructure protection and community resilience."

A federal court recently dismissed a whistleblower lawsuit filed over pipes imported from China that were allegedly misclassified in order to avoid antidumping and countervailing duties. The May 23 decision in U.S. District Court for the Northern District of Illinois Eastern Division was highlighted in a Hogan Lovells blog post. The False Claims Act (FCA) lawsuit was filed by Roger Schagrin, a lawyer with experience in international trade and the steel industry, in 2014 against LDR Industries. Plaintiffs in successful whistleblower lawsuits involving defrauding the government are allowed to receive a portion of the recovered funds.