Customs Duty

CBP will extend the comment period on its new rules for investigating allegations of antidumping or countervailing duty evasion to Dec. 20, it said in a notice (here). CBP requested comments on its interim final rules, which went into effect Aug. 22, earlier this year (see 1608190014). The interim rules implement the AD/CV duty evasion language from the customs reauthorization law's Enforce and Protect Act (see 1608190014). CBP already received at least one comment on the new processes (see 1610170012).

Cargo vans exported to Canada and retrofitted as motorhomes before being imported into the U.S. do not qualify for duty-free treatment as goods returned after alteration or repair, the Court of International Trade said in a decision issued Oct. 18 (here). The transformation from a cargo van into a motorhome changed the character of the finished product so much that the importer, Pleasure-Way Industries, can no longer claim that it is the same article that it exported for tariff classification purposes, CIT said.

CBP declined to investigate further an allegation of antidumping or countervailing duty evasion on steel pipe from China, the agency told Wheatland Tube, the Pennsylvania steel tube company that filed the allegation last month (see 1609150028). While Wheatland’s allegation reasonably suggested that an undisclosed company "imported merchandise from China that may be subject to AD/CVD order," the allegation didn't "reasonably suggest that merchandise was entered through evasion," the agency told the company, according to a Wheatland news release. "Evidence of importation, without more, is not sufficient to raise a reasonable suspicion of evasion," CBP said to Wheatland.

SAN DIEGO -- With the Centers of Excellence and Expertise handling more post-entry work, importers are seeing duty bills revised upward more often, which is leading to increased bond requirements, said Lisa Gelsomino, CEO of Avalon Risk Management, during the Western Cargo Conference on Oct. 14. When the duty bills are found to be wrong, CBP considers such improper declarations to be indicative of a higher-risk importer, which leads to a higher bonding requirement, she said. Other factors that could lead to an increased bond include fines, penalties and forfeitures, as well as surety payments, she said.

The Commerce Department issued Federal Register notices on its recently initiated antidumping duty investigations on steel concrete reinforcing bar from Japan (A-588-876), Taiwan (A-583-859) and Turkey (A-489-829), and countervailing duty investigation on steel concrete reinforcing bar from Turkey (C-489-830).

The subject of an antidumping or countervailing duty evasion investigation under CBP's new regulations deserves notification before the agency takes "interim measures," the American Institute for International Steel said in comments to CBP (here). CBP requested comments on its procedures when it issued an interim final rule implementing AD/CV duty evasion language from the customs reauthorization law's Enforce and Protect Act (EAPA) (see 1608190014). The lack of early transparency in the process also threatens supply chains and broad categories of importers, the AIIS said.

SAN DIEGO -- Early feedback from Capitol Hill and stakeholders on CBP's recently issued regulations for new antidumping and countervailing duty evasion processes (see 1608190014) was largely focused on the lack of administrative protective orders (APOs) within such allegation proceedings, said Troy Riley, executive director-Commercial Targeting and Enforcement at CBP. Riley, who spoke on a panel at the Western Cargo Conference on Oct. 14, said it's too early since the processes were put in place for CBP to really know what issues seem to cause problems, he said. Comments are due Oct. 21.

The Obama administration on Oct. 14 announced a broad series of actions to normalize U.S. trade with Cuba, building upon several reforms it has undertaken since December 2014. The White House issued a Presidential Policy Directive (here) that calls on Congress to end the trade embargo, and charts steps the U.S. can take to further ease commercial and travel restrictions short of the embargo’s repeal. Meanwhile, the Office of Foreign Assets Control and the Bureau of Industry and Security announced final rules to loosen U.S. policy constraints on bilateral financial and trade transactions. OFAC’s final rule (here) greenlights certain transactions related to Cuban-origin pharmaceuticals and joint medical research, and adds, widens, and clarifies trade and commercial authorizations, among other things. BIS’ final rule (here) will loosen license exception eligibility regulations for Cuban officials, as well as for U.S. air cargo trans-shipped through Cuba, and for sales of products directly to Cuban individuals. Both final rules take effect Oct. 17.

The International Trade Commission issued a notice (here) requesting petitions starting Oct. 14 for duty suspensions and reductions as part of its role in the federal review process for miscellaneous tariff bills (MTB), whose final approval must come from Congress. Petitions will be accepted until 5:15 p.m. Eastern time on Dec. 12. The MTB petitioning platform will ask applicants for information on customs rulings on products claimed for duty benefits, names of other importers of the products, and any antidumping or countervailing duty orders, among other things, ITC officials said during an Oct. 12 in-person walk-through of the agency’s new MTB portal. "If it’s a private-letter ruling, which is something a petitioning company would know whether it has, that would be treated as confidential," ITC MTB Program Manager Jennifer Rohrbach said during the walk-through session.

CBP recently issued a customs ruling providing further clarification of new requirements for goods returned duty-free under subheading 9801.00.10 of the tariff schedule that took effect in April pursuant to this year’s customs reauthorization law. Previously applicable only to goods of U.S. origin exported and returned to the U.S. after not having been improved or advanced in value, the Trade Facilitation and Trade Enforcement Act extended duty-free access under the subheading to goods that are not of U.S. origin, as long as they are returned within three years (see 1603010043). As a result of the change, importers that enter goods of U.S. origin under subheading 9801.00.10 within three years of export no longer need to show that an article is a product of the U.S. if it is returned within three years, though other requirements in CBP’s regulations still apply, CBP said in HQ H276787 (here).