CBP should update its regulations to give more details about the processing of forced labor allegations under the Trade Facilitation and Trade Enforcement Act (TFTEA), Senate Finance Committee Chairman Orrin Hatch, R-Utah, said in an opening statement at an Oct. 24 hearing on the nomination of Kevin McAleenan for CBP commissioner. The Committee's ranking member Ron Wyden, D-Ore., also sought clarity on the forced labor regulations. McAleenan said "we want to make sure we are able to apply all effective enforcement tools in the most precise and appropriate manner to this priority mission."
Tim Warren
Timothy Warren is Executive Managing Editor of Communications Daily. He previously led the International Trade Today editorial team from the time it was purchased by Warren Communications News in 2012 through the launch of Export Compliance Daily and Trade Law Daily. Tim is a 2005 graduate of the College of the Holy Cross in Worcester, Massachusetts and lives in Maryland with his wife and three kids.
CBP is reviewing entries of oil country tubular goods (OCTG) imported by American Pacific Rubber (APAC) as part of a formal Enforce and Protect Act investigation, the agency said in an Oct. 23 notice to the company. The investigation stems from allegations submitted by Aztec Manufacturing Partnership that APAC evaded antidumping duties on the goods. "Because evidence establishes reasonable suspicion that APAC has entered merchandise into the United States through evasion, CBP has taken" interim measures against APAC, it said.
The following customs broker licenses and all associated permits are revoked for failure to "employ at least one qualifying individual," CBP said in a notice.
Freight forwarders that transfer funds to customs brokers from importers for payment to CBP are not performing "customs business," CBP said in a Sept. 6 ruling. CBP issued ruling HQ H258556 in response to a ruling request from Terra Nova Trade Services, a licensed customs broker. As long as the freight forwarder isn't involved in the actual calculation of the customs duties, CBP said, the freight forwarder is allowed to play an intermediary role. Terra Nova, through its lawyer George Tuttle, also sought CBP's input on the required power of attorney (POA) for such transactions.
A transitional period for customs after the United Kingdom formally leaves the EU "must be agreed as soon as possible," a group of trade associations from a wide range of industries said in an Oct. 18 news release. The groups -- including the World Shipping Council, The European Community Association of Ship Brokers and Agents, and the European Association for Forwarding, Transport, Logistics and Customs Services -- "strongly urge EU and UK negotiators to put legal certainty and predictability for business and trade at the top of their negotiating agenda." The UK proposed some customs arrangements over the summer that got some EU pushback (see 1708150042). An EU task force offered a position paper on the issue last month (see 1709150037).
Sterling Footwear is liable for gross negligence related to unpaid customs duties due to misclassification on hundreds of footwear entries, the Court of International Trade ruled in a Oct. 12 decision. CIT Judge Mark Barnett specifically avoided a decision on the liability of Sterling's CEO and majority shareholder, Alex Ng. The Justice Department sought a summary judgment on Ng's culpability but because some of the facts involved remain in dispute, Barnett didn't decide that issue.
An iPhone case that includes a separate screen that shows information from the phone sent through a Bluetooth connection isn't classified based on the Bluetooth capability, CBP said in an Aug. 3 ruling. The ruling, HQ H275685, came in response to an internal advice request from a customs broker for the maker of the phone case, popSLATE Media. The request went through CBP's Electronics Center of Excellence and Expertise, it said.
CBP is considering enforcement measures following reporting by The Associated Press that found North Koreans working in Chinese factories that produce goods for export to the U.S., an agency spokesman said in an emailed statement. The AP recently reported that North Korean laborers are working in Chinese factories that process seafood and others that make wood flooring and garments, though the AP only tracked seafood shipments from China to the U.S. President Donald Trump signed into law new sanctions against North Korea over the summer (see 1708020030) that prohibit imports of goods made using North Korean forced labor.
CBP is investigating two California companies over allegations of antidumping duty evasion for diamond sawblades from China, the agency said in a Sept. 22 notice. The investigation stems from allegations filed under the Enforce and Protect Act (EAPA) by the Diamond Sawblades Manufacturers Coalition (DSMC) regarding Power Tek Tool and Lyke Industrial Tool. "Because evidence establishes a reasonable suspicion that Power Tek and Lyke have entered merchandise into the United States through evasion, CBP has imposed interim measures against both importers," the agency said.
The number of colored pencils and markers helps determine the classification of drawing sets, CBP said in ruling HQ H280511. CBP issued the May 22 ruling in response to an application for further review from Target General Merchandise. Initially classified at entry under heading 9609 as "pencils and crayons," the company believes the kits are better classified in heading 4903 as coloring books. Sets are classified based on the component that gives the "essential character" to the product.