CBP published the quarterly Internal Revenue Service interest rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties. For the quarter that began Oct. 1 and ends Dec. 31, 2018, the interest rates for overpayments will be 4 percent for corporations and 5 percent for non-corporations, and the interest rate for underpayments will be 5 percent for both corporations and non-corporations. These interest rates are subject to change for the calendar quarter beginning Jan. 1, 2019, and ending March 31, 2019, CBP said.
Customs Duty
A Customs Duty is a tariff or tax which a country imposes on goods when they are transported across international borders. Customs Duties are used to protect countries' economies, residents, jobs, and environments, by limiting the flow of imported merchandise, especially restricted and prohibited goods, into the country. The Customs Duty Rate is a percentage determined by the value of the article purchased in the foreign country and not based on quality, size, or weight.
PALM SPRINGS, Calif. -- CBP is increasing staffing levels at its Office of Regulatory Audit to keep up with “the revenue on the table” from the recent imposition of new tariffs and the Trump administration’s push for more enforcement, said Tom Jesukiewicz, field director of regulatory audit’s Los Angeles office, at the Western Cargo Conference on Oct. 20.
PALM SPRINGS, Calif. -- Upcoming changes to Canadian border processes will be a “game changer” for the clearance process, Kim Campbell of Mkmarin Trade Services said on Oct. 20. The Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) is set to be implemented by the end of 2020, allowing e-commerce customers to fill out their own customs declarations and eliminating the entry process for commercial importers, she said, speaking at the Western Cargo Conference. Other initiatives will allow truck cargo to cross the border without stopping, through the use of radio frequency ID tags and facial recognition software, she said.
A domestic manufacturer is seeking the imposition of antidumping and countervailing duties on magnesium from Israel, it said in a petition filed Oct. 24 with the Commerce Department and the International Trade Commission. Commerce will now decide whether to begin AD/CVD investigations that could eventually result in the assessment of AD/CV duties. The petition was filed by US Magnesium, with the support of the United Steelworkers labor union and several other domestic producers.
DALLAS -- Audio companies are bracing for the impact of the 10 percent Section 301 tariffs on Chinese imports that took effect a month ago, and are holding out hope that the Jan. 1 increase to 25 percent won't come to pass, vendors said at the fall meeting of the Home Technology Specialists of America. JL Audio, which sells subwoofers for the home market and speakers, subs and amplifiers for the marine and automotive spaces, is raising prices 6 percent on Nov. 15 on its home product line, said Doug Henderson, senior vice president-home audio.
Two domestic bicycle manufacturers filed a petition Oct. 19 seeking new Section 201 safeguard duties on mass-market bicycles. Detroit Bikes and Bicycle Corporation of America say the dominance of imported mass-market bicycles makes it impossible for U.S. manufacturing to re-establish itself. The companies seek a tariff-rate quota over a period of four years, along with a decrease in the de minimis level for imported bikes and duty-free access for parts used in U.S. bicycle manufacturing operations. The duties would apply to bicycles from all countries, though the International Trade Commission can exempt free trade agreement partners.
PALM SPRINGS, Calif. -- CBP recently began its “360 degree” assessment of lessons learned from its “proof of concept” on the use of blockchain technology for NAFTA and CAFTA certificates of origin, said Vincent Annunziato, director of CBP’s Business Transformation and Innovation office, at the Western Cargo Conference (WESCCON) on Oct. 19. A report on the test should be done in November, though there’s no word yet on how the report will be released.
Changes to de minimis is the most significant change from NAFTA in customs administration and trade facilitation under the rewritten agreement, practitioners say, but exactly how that will work in practice is still unknown. Shipments from the U.S. or Canada into Mexico will not face duties if they are valued at less than $117, and will not have to pay tax if they are valued at less than $50. Shipments into Canada from NAFTA partner countries will be tax-free if valued under 40 Canadian dollars, and duty-free at under 150 Canadian. (Mexico's $117 limit matches C$150 at current exchange rates.)
Two domestic manufacturers filed petitions on Oct. 17 with the Commerce Department and the International Trade Commission requesting new antidumping and countervailing duties on polyester textured yarn from China and India. Commerce will now decide whether to begin AD/CVD investigations on polyester textured yarn that could eventually result in the assessment of AD/CV duties. The petition, filed by Unifi Manufacturing, Inc. and Nan Ya Plastics Corporation, America, targets yarns for use in the weaving and knitting of synthetic fabrics that are produced in a way that makes the yarn look and feel more like a natural fiber and makes it more durable, flexible and dyeable.
The Commerce Department issued notices in the Federal Register on its recently initiated antidumping and countervailing duty investigations on aluminum wire and cable from China (A-570-095/C-570-096). The CV duty investigation covers entries Jan. 1, 2017, through Dec. 31, 2017. The AD duty investigation covers entries Jan. 1, 2018, through June 30, 2018.