Trade groups called for simplification of the tariff schedule and alignment of free trade agreements, in recent comments to the International Trade Commission. The complicated provisions of Chapter 64 create perverse incentives for shoe designers, the Footwear Distributors and Retailers of America (FDRA) said. Misaligned free trade agreements cause importers not to use trade programs, the American Apparel & Footwear Association (AAFA) said. And differences between how countries classify semiconductors creates a compliance burden for semiconductor importers, the Semiconductor Industry Association (SIA) said. The comments were submitted for an annual ITC report on import restraints (see 1610120051).
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.
Crystals used within various types of machinery to gauge maximum heat points that are then imported into the U.S. for measurement readings aren't classifiable as a medium for carrying business records, CBP said in a Jan. 11 ruling (here). The crystals, which are sold by LG Tech-Link and exported to its customers, are reviewed for heat-related physical changes following exposure, the company said. "According to LG, the crystals are used for analysis because they are a medium for carrying business information" and therefore exempt from customs duties.
Despite size characteristics of a tote bag, "hobo" bags with short straps can be classified as a handbag, CBP said in a Jan. 30 ruling (here). The ruling follows a further review of protest from Target Customs Brokers for Target General Merchandise regarding the classification of a women's hobo bag on three entries in 2013. CBP liquidated the entries as tote bags under subheading 4202.92.4500, which covers a travel, sports or similar bag. CBP often looks to the size of a bag to differentiate between tote bag and handbag classifications in subheading 4202.22 (see 1611020020).
Lawmakers recently introduced the following trade-related bills:
CBP on Feb. 15 issued updated internal guidance (here) to allow the filing of protests for first-time post-importation claims for duty benefits under certain free trade agreements and preference programs. The updated guidance, posted by customs lawyer Ted Murphy of Baker & McKenzie to his blog (here), applies to all FTAs and preference programs not covered by the claim process of 19 USC 1520(d). Importers that had their preference claims rejected as non-protestable under the agency’s previous policy “are requested to resubmit their protests to the appropriate field offices within 180 days of the issuance of this guidance,” i.e., by Aug. 14, CBP said.
Some big decisions still need to be made for the delayed post-release ACE deployment that was previously scheduled for Jan. 14 (see 1701110039), said Valerie Neuhart, acting executive director for the CBP Office of Trade Relations. The agency has yet to decide whether it will deploy all of the post-release functions at one time, as was planned, or through multiple deployments, she said. "Is there a decision yet on if it's all together or broken up into some phased approach?" she asked. "Not that I know of," she said. Specific timing also still remains uncertain, though those functionalities will be in place during 2017, she said. Neuhart, who is now in the position previously held by Maria Luisa Boyce (see 1702020063), spoke on Feb. 14 at the National Association of Foreign-Trade Zones' Legislative Summit.
CBP published the quarterly Internal Revenue Service interest rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties (here). For the quarter which began Jan. 1 and ends March 31, the interest rates for overpayments will be 3 percent for corporations and 4 percent for non-corporations, and the rate for underpayments will be 4 percent for corporations and non-corporations. These interest rates are subject to change for the calendar quarter beginning April 1 and ending June 30, CBP said.
The Commercial Customs Operations Advisory Committee (COAC) for CBP will next meet March 1 in Washington, CBP said in a notice (here).
The following lawsuits were filed at the Court of International Trade during the week of Jan. 23-29:
The government of Canada recently issued the following trade-related notices as of Jan. 23 (some may also be given separate headlines):