Paper imported into the U.S. shouldn't be appraised based on the price between the purchaser and related manufacturer, CBP told DHL Global Forwarding in response to a prospective ruling request (here). DHL sought the ruling for its client, April Fine Paper Trade, Hong Kong, regarding AFP Hong Kong's possible role in several transactions. The agency also ruled against the proposed use of a sale between unrelated parties in Indonesia as proof of an "arm's length" transaction.
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.
The Animal and Plant Health Information Service would disrupt important trade relationships between the U.S. and Canada if the agency continues forward with a rulemaking to cut out exemptions to wood packaging requirements, said U.S. and Canadian trade groups in an April 1 letter (here). The 38 groups asked that APHIS "terminate the current rulemaking process and actively engage with stakeholders" to consider whether the rulemaking is the best course to address invasive species problems. The regulatory change in question would subject wood packaging materials made from Canadian wood to the same ISPM-15 treatment and marking requirements currently applicable to all other countries.
Sales of samples classified under a duty-free HTS subheading will maintain the tariff treatment as long as the transaction is completed while within a Foreign Trade Zone, CBP said in a Jan. 7 ruling (here). CBP's ruling follows a similar ruling request from the importer, J. Jill, in which CBP found (here) a slightly different sale wouldn't be eligible for duty-free treatment. While J. Jill requested a reconsideration of the previous ruling, due to a changed circumstances of the proposed transaction and the draft contract between J. Jill and the buyer CBP issued a "new ruling based on the changed facts," it said.
CBP is announcing the calendar year 2016 tariff-rate quota for tuna in airtight containers (here). It said 15,350,636 kilograms of tuna in air-tight containers may be entered and withdrawn from warehouse for consumption during 2016, at the rate of 6% ad valorem under HTS subheading 1604.14.22. Any such tuna which is entered or withdrawn from warehouse for consumption during the current calendar year in excess of this quota will be dutiable at the rate of 12.5% ad valorem under HTS subheading 1604.14.30.
The final six Centers of Excellence and Expertise began handling the post-release operations for the respective industries on March 23, said a CBP guidance to the trade community (here). The CBP guidance outlines the agency's delegation order that gives CEE directors authority over some processing. As a result, all 10 CEEs are now authorized to oversee post-release processing for those industries. CBP said last month that it would move forward with those CEEs at a slightly accelerated pace (see 1602080029).
The Ocean Carrier Equipment Management Association adopted a "best practice" process document to satisfy coming verified container weight requirements, OCEMA said in a news release (here). The group, made up of 18 ocean carriers, developed the process document (here) and map (here) "in an effort to facilitate compliance with the [International Maritime Organization’s] Verified Gross Mass rule," it said. There's ongoing controversy about U.S. implementation of the IMO rules under the Safety of the Life at Sea Convention (SOLAS) that will require container weight verification starting July 1 (see 1603030014).
An importer of "reclaimed" silicon wafers is right to use computed value, not the transaction value, for appraisement purposes, CBP ruled in response to an internal advice request (here). The internal advice request from the Port of Portland involved Shin-Etsu Handotai America (SEHA) in relation to a Focused Assessment of the company. Located in Vancouver, Washington, SEHA is a subsidiary of Shin-Etsu Handotai in Japan and makes silicon wafers to sell to semiconductor manufacturers, said CBP.
Some ocean carriers are asking that shippers certify "both the cargo and the carrier's container" as a result of coming container weight verification requirements, said a group of trade associations in a March 14 letter to Commandant of the Coast Guard Adm. Paul Zukunft (here). That's a problematic approach and the Coast Guard should continue to pursue the issue with a hands-off approach, as it has (see 1603030014), the groups said in the letter. There's ongoing controversy over International Maritime Organization rules under the Safety of the Life at Sea Convention (SOLAS) on container weight verification set to take effect on July 1.
CBP's new use of live entry requirements for certain steel imports is seen as a potential model for other higher-risk products across all industries, said Troy Riley, executive director, commercial targeting and enforcement at the agency. Riley and other CBP officials discussed the new effort against antidumping/countervailing duty evasion with reporters on March 2. The White House announced the new live entry requirements when President Barack Obama signed customs reauthorization legislation into law last month (see 1602250021). Filers for goods subject to the requirements must provide all entry documents and duties before the cargo is released.
The Coast Guard currently lacks the regulatory authority to enforce coming container weight requirements, it said in a list of Frequently Asked Questions from the Coast Guard’s assistant commandant for prevention policy, Rear Adm. Paul Thomas (here). The FAQs are meant to address some of the ongoing controversy related to the July 1 effective date for new International Maritime Organization rules under the Safety of the Life at Sea Convention (SOLAS) that require shippers to list verified gross mass (VGM) on bills of lading starting on July 1. The Coast Guard previously said it doesn't plan to enforce the SOLAS requirements (see 1602190034).