Coinciding with an increased use of CBP's Enforce and Protect Act process for investigating possible antidumping and/or countervailing duty evasion is a feeling among importers that EAPA action is largely skewed toward the alleger. “Typically, the first notice the importer receives is after the agency has already accepted the allegation and imposed draconian ‘Interim Measures’ that treat the importers’ goods as subject to anti-dumping and countervailing duties, a process" that "has proven to be massively unjust,” Mary Hodgins, a lawyer at Morris Manning, said by email. The process is facing increased scrutiny, with several lawsuits that raise due process questions making their way through the courts.
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.
Importers must file protests to preserve their ability to obtain refunds under exclusions from Section 301 tariffs, the Court of International Trade said in a June 11 decision. Dismissing a lawsuit from importers ARP Materials and Harrison Steel Castings, Judge Miller Baker found the court did not have jurisdiction to hear their challenge since the importers did not timely file protests of the CBP liquidations assessing the Section 301 duties.
The China package once known as the Endless Frontier Act passed the Senate with 68 votes. The U.S. Innovation and Competition Act includes a trade amendment that authorizes a new Miscellaneous Tariff Bill, restarts applications for Section 301 tariff exclusions, adds an inspector general to the Office of the U.S. Trade Representative, renews the Generalized System of Preferences benefits program for more than five years and directs the CBP to increase inspections of imports with the aim of finding counterfeits. The bill passed the evening of June 8.
CBP issued the following releases on commercial trade and related matters:
The Commercial Customs Operations Advisory Committee (COAC) for CBP will next meet remotely June 23, CBP said in a notice. Comments are due in writing by June 22.
CBP may issue a penalty of up to $1.3 billion to Ford Motor Co. related to the company's classification of passenger wagons that were converted to Ford Transit cargo vans, Ford said in a June 3 Securities and Exchange Commission filing. "If such a claim is brought, CBP indicated that the penalty it may seek could be as much as $652 million to $1.3 billion," the company said. "In the event a penalty is ultimately imposed against us, the amount would be based on our level of culpability as determined by the courts. We intend to vigorously defend our actions and contest payment of any amounts set forth in the pre-penalty notice."
The Customs Rulings Online Search System (CROSS) was updated June 4. The following headquarters rulings were modified recently, according to CBP:
The Customs Rulings Online Search System (CROSS) was updated May 25. The following headquarters rulings were modified recently, according to CBP:
San Diego company EcoShield and its owner Samir Haj pleaded guilty in federal court to illicitly importing, selling and mailing a pesticide marketed as a killer of viruses such as COVID-19. According to a May 25 press release from the Office of the U.S. Attorney for the Southern District of California, Haj imported the pesticide packaged as small badges from Japan, labeled it as an air purifier and lied on declaration forms, leading to a customs duty underpayment of $33,919. Further, the product, called EcoAirDoctor, contained the ingredient sodium chlorite, which is illegal to mail because it is flammable. Haj illegally shipped the pesticide via U.S. mail. In the plea agreements, EcoShield and Haj agreed to forfeit $427,689 from the sale of the product and pay restitution of $86,754 for the unpaid duty costs and costs of disposing of the product. The defendants also paid a $42,000 fine.
Endless Frontier Act Requires More Reporting to Congress on Forced Labor, Counterfeits, Phase 1 Deal
The Endless Frontier Act, a massive bill working its way through the Senate that aims to improve the United States' ability to compete economically with China, also addresses a number of issues relevant to importers, including enforcement of the forced labor statute, seizure of counterfeits, and progress on the issues that led to the Section 301 tariffs on Chinese goods.