The Commerce Department issued notices in the Federal Register on its recently initiated antidumping and countervailing duty investigations on chassis and subassemblies thereof from China (A-570-135/C-570-136). The CV duty investigation covers entries Jan. 1, 2019, through Dec. 31, 2019. The AD duty investigation covers entries Jan. 1, 2020, through June 30, 2020.
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.
Ambiance Apparel and its owner reached a plea agreement with the Department of Justice concerning charges of undervaluing imported garments to avoid customs duty costs, the U.S. Attorney’s Office for Central District of California said in an Aug. 26 news release. The Los Angeles company and its owner, Sang Bum Noh, agreed to plead guilty and to pay nearly $118 million, the release said. “Ambiance Apparel -- the operating name for two corporations, Ambiance U.S.A. Inc. and Apparel Line U.S.A., Inc. -- agreed to plead guilty to eight counts, including conspiracy, money laundering, and customs offenses,” it said.
Five people are facing federal charges over allegations of illegal filing of drawback claims, the U.S. Attorney's Office for the Northern District of California said in a news release. An Aug. 12 grand jury indictment, which was unsealed Aug. 25, charged Dale Behm of Shell Knob, Missouri; Yong Heng Liang of Daly City, California; Joshua Stanka of Katy, Texas; Joshua Clark of Fair Oaks Ranch, Texas; and Michael Choy of Etobicoke, Ontario, Canada, “with conspiracy, wire fraud, and related charges related to an alleged scheme to submit fraudulent claims for refunds on import duties,” the release said.
CBP didn't deviate from an established classification treatment for imported bike seats for kids when it applied a higher duty classification than what was sought by the importer, the Court of International Trade said in an Aug. 25 decision. The finding is the result of a lawsuit filed by Kent International, which said CBP didn't give Kent the same treatment as competitors when it classified Kent child bicycle seat entries in heading 8714, dutiable at 10 percent, rather than in a duty-free provision of subheading 9401.80. CBP declined to reliquidate the entries in 2015 (see 1504290018).
During the second of two hearings aimed at satisfying primarily Florida and Georgia farmers frustrated with lost market share to Mexican competitors, officials from the Commerce Department, the U.S. Department of Agriculture and the Office of the U.S. Trade Representative on Aug. 20 heard vastly different views of how Mexican vegetable and fruit producers deserve to be treated (see 2008180034). Blueberry, zucchini, cucumber and bell pepper farmers from Georgia testified again and again that Mexicans can sell these items cheaper than they can, because of much lower labor prices, because of stricter environmental regulations in the U.S., and because Mexican producers have gotten government help to build shade houses, greenhouses and hoop houses.
Light-emitting diode tail lights for trucks are classifiable as lighting equipment for motor vehicles under heading 8512, and not as LED lamps of heading 8539, CBP said in a ruling issued months ago but not publicly released on the Customs Rulings Online Search System until Aug. 11. The reference to “lamps” in heading 8539 refers to what would be called bulbs in the U.S., so the tail light assemblies are beyond that heading's scope, CBP said in HQ H301947, issued in January.
Some “high tech” goods of Chinese origin sent to Mexico for minimal handling and then to the U.S. are eligible for USMCA tariff treatment, CBP said in an Aug. 7 ruling. Jose Fierro, an El Paso, Texas, customs broker, requested the ruling less than a week after USMCA entered into force July 1. The broker said that a client “has contracted with a Mexican maquiladora facility to provide certain logistical services” and inquired whether USMCA treatment would apply.
The Customs Rulings Online Search System (CROSS) was updated Aug. 11 The following headquarters rulings were modified recently, according to CBP:
The broader impact of CBP's ruling on unsold low-value goods imported under Section 321 exemptions may be somewhat limited, industry experts said in recent interviews. The ruling (see 2007310036) laid out how the agency determines what entities can be considered a “person” for unsold Section 321 shipments.
There are no plans to automatically extend Section 301 tariff exclusions, U.S. Trade Representative Robert Lighthizer said in answers to written questions from senators on the Finance Committee and members of the House Ways and Means Committee. When he was asked repeatedly by members of Congress if the exclusions would be extended automatically to help small businesses struggling due to the COVID-19 recession, he said no and that “USTR has not decided whether to possibly extend again the exclusions extended until the end of 2020.” Lighthizer testified at the hearings in June (see 2006180029 and 2006170008).