House-Passed Miscellaneous Trade and Technical Corrections Bill (Part IV - Final)

This is Part IV, the final part of a multi-part series of summaries of H.R. 4944 and highlights various liquidation/reliquidation, technical correction, technical amendment, cigarette and smokeless tobacco, etc. sections of the bill.

After its passage by the House, H.R. 4944 was sent to the Senate where it was referred to the Senate Finance Committee, which press sources state will develop a Senate version of a Miscellaneous Trade Bill.

Liquidation or Reliquidation of Certain Entries

Liquidation/Reliq/Interest refunds for candles, roller chain, pasta, clock radios, etc. H.R. 4944 would provide for the liquidation or reliquidation of certain specified entries, in many instances requiring a request to be filed and refund any amounts owed with interest, as follows:

Specified tramway cars and associated spare parts - duty-free entry, or duty-free reliquidation, as applicable

Candles - reliquidation of listed entries without assessment of antidumping (AD) duties or interest (and refund of any previously paid AD duties and interest)

Roller chain - liquidation or reliquidation of listed entries without assessment of interest (and refund of interest previously paid)

Pasta - liquidate or reliquidate listed entries in accordance with AD case A-475-818 for the period July 1, 2001 through June 30, 2002 under CBP message 4068201

Soundspa clock radios - reliquidation at the duty rate applicable to HTS 8527.19.10 of listed entries containing any merchandise which, on the date of original liquidation, was classified under HTS 8527.19.50 (and refund any amounts owed with interest)

Interest refunds for antifriction bearings, tomato sauce preparation. H.R. 4944 also includes a provision for the reliquidation, in order to pay interest, of certain entries of antifriction bearings and tomato sauce preparations provided for in the Tariff Suspension and Trade Act of 2000 (Public Law (P.L.) 106-476) and the Miscellaneous Trade and Technical Corrections Act of 2004 (P.L. 108-429).

Interest refunds on certain entries prematurely liquidated in error. H.R. 4944 also contains a provision which requires CBP to reliquidate in order to pay interest on entries provided for in section 1511(d) of the Miscellaneous Trade and Technical Corrections Act of 2004 (certain entries prematurely liquidated in error) that were reliquidated without the payment of interest.

Miscellaneous Provisions

The miscellaneous provisions section of H.R. 4944 contains various revisions of the HTS provisions (along with conforming amendments and changes to staged duty reductions, as applicable) for the following:

rattan webbing (HTS 4601.91)

certain monochrome glass envelopes (HTS 7011.20, 9902)

certain tractor body parts (HTS 8708.29)

certain flexible magnets and composite goods containing flexible magnets (HTS 8505.19)

fine animal hair of Kashmir (cashmere) goats (HTS 9902.51)

Technical Corrections

H.R. 4944 includes numerous technical corrections affecting the following HTS Chapter 85 and 99 HTS numbers (these corrections revise the HTS article descriptions, repeal the provision, etc.):

H.R. 4944 also includes various corrections to P.L. 108-429 that correct typographical errors, etc.

Cigarettes and smokeless tobacco products. In addition, H.R. 4944 contains numerous amendments to the Tariff Act of 1930 and the Internal Revenue Code of 1986 related to cigarettes and smokeless tobacco products, which are highlighted below.

H.R. 4944 would amend the requirements in 19 USC 1681 applicable to imports of certain cigarettes by adding a new definition for "delivery sale" for cigarettes and smokeless tobacco.

("Delivery sale" would be defined as any sale of cigarettes or a smokeless tobacco product to a consumer if (a) the consumer submits the order for such sale by means of a telephone or other method of voice transmission, the mail, or the Internet or another online service, or the seller is otherwise not in the physical presence of the buyer when the request for purchase or order is made; or (b) the cigarettes or smokeless tobacco product is delivered by use of a common carrier, private delivery service, or the mail, or the seller is not in the physical presence of the buyer when the buyens¹ personal possession of the delivered cigarettes or smokeless tobacco product.)

¹This appears to be part of a typographical error in the text of H.R. 4944

H.R. 4944 also exclude cigarettes or smokeless tobacco products sold in connection with a delivery sale from receiving the benefits of the personal use exemption provided for in 19 USC 1681a(b)(1).

H.R. 4944 would add a new provision to 19 USC 1681, which allows a State, through its Attorney General, to obtain copies of any Customs certifications required for cigarette imports upon proper request by an importer, manufacturer, their authorized officials, etc.

H.R. 4944 would also amend the enforcement provisions in 19 USC 1681b(b) and would amend various provisions in 19 USC 1681a and 1681b to include the phrase "or smokeless tobacco product" after cigarette each place it appears and to add references to the Comprehensive Smokeless Tobacco Health Education Act of 1986.

In addition, H.R. 4944 would also amend Section 5761 of the Internal Revenue Code of 1986 (relating to civil penalties) by adding a new subsection (d) on Personal Use Quantities.

Amendment for Cellar Treatment of Natural Wine

H.R. 4944 would also amend Section 5382(a)(1)(A) of the Internal Revenue Code of 1986 (relating to cellar treatment of natural wine) by striking "stabilize" and inserting "correct or stabilize."

(See ITT's Online Archives or 03/24/06, 03/29/06, and 03/30/06 news, 06032405, 06032905, and 06033010, for Parts I-III.)

H.R. 4944 as passed by the House available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:h4944eh.txt.pdf.