Tag Archives: CBP

CBP Provides Guidance on Generalized System of Preferences Refunds

Wednesday, July 22, 2015

CBP Provides Guidance on Generalized System of Preferences Refunds

The President signed the bill into law on June 29, 2015. Pursuant to Title II of the Trade Preferences Extension Act of 2015 duty-free treatment of GSP-eligible imports (for goods entered or withdrawn from warehouse) will resume effective 30 days after enactment, on July 29, 2015.

There have been a lot of questions surrounding CBP’s plans for refunding duties on the entries eligible for GSP that occurred during the lapse of the program.  As mentioned in an FHK trade alert sent on June 29, 2015, CBP would issue specific instructions about securing refunds for entries made during this time frame.

CBP plans to automatically refund GSP duties paid for eligible goods that were submitted with a GSP claim (entries with the SPI “A”, “A+,” or “A*” as a prefix to the tariff number) during the lapse period – August 1, 2013 through July 28, 2015. Therefore, a request for refund should not be made at the port of entry for any entries previously submitted with the GSP indicator.

For eligible GSP goods that were entered without the GSP indicator (SPI “A”, “A+,” or “A*”) during the lapse, the importer must request the refund in writing. The request must contain sufficient information (including the entry number, the line number, and requested refund) to enable CBP to locate the entry or to reconstruct the entry if it cannot be located. A post-entry amendment (PEA) or post summary correction (PSC) can also be submitted but is not required.

Refund requests must be received by CBP no later than December 28, 2015.

Any amounts owed by the United States pursuant to Public Law 114-27 to the liquidation or re-liquidation of any entry of an article will be paid, without interest.

For more information regarding GSP refunding:

http://www.cbp.gov/trade/priority-issues/trade-agreements/special-trade-legislation/generalized-system-preferences/faq-gsp-reauthorization

CBP Reliquidates Deemed Liquidated Entries

Tuesday, July 8, 2014

Reliquidation of “Deemed Liquidated” Entries

Recently, U.S. Customs and Border Protection (CBP) ruled they are entitled to reliquidate deemed liquidated entries 90 days from the date they give notice to the importer, rather than 90 days from the date of deemed liquidation itself.

Once suspension of liquidation is lifted on an antidumping (AD) or countervailing duty (CD) entry, CBP has six months to liquidate entries from the date of publication of the Final Results of Administrative Review issued by the Department of Commerce (DOC).

The ruling involved an AD entry filed by Consolidated Fibers in 2005. At the time of entry the foreign exporter did not have a cash deposit rate that applied to them, therefore the “all others” rate of 7.91% was applied to the entry.   After an administrative review was conducted by the DOC covering the period of 2005, DOC assigned the foreign exporter an AD rate of 48.14%. The Administrative Review of Final Results notice was published on December 10, 2007.

CBP did not liquidate the entry within the six month time period. They discovered in May, 2011, that the entry deemed liquidated on June 10, 2008. On May 6, 2011, CBP posted notice in the Customs house bulletin that the entry deemed liquidated on June 10, 2008, at the 7.91% AD duty rate. Subsequently, CBP reliquidated the entry on July 22, 2011, at the rate of 48.14% assigned by the DOC in their final results notice. The importer protested the reliquidation, but CBP denied the protest on the grounds that the Miscellaneous Trade and Technical Corrections Act of 2004, changed the statute for reliquidation, giving CBP the authority to reliquidate a liquidated entry in accordance with 19 U.S.C. 1504 within 90 days from “the date on which the notice of the original liquidation was given to the importer.” Please refer to HQ ruling H215035 for details.

 

HQ H215035

Guidance for West Coast Trade Disruption

Thursday, June 26, 2014

Guidance for West Coast Trade Disruption

A six-year pact between the Pacific Maritime Association and the International Longshore and Warehouse Union, which represents about 20,000 dock workers at 29 West Coast ports, expires June 30. These ports account for about half of all U.S. maritime trade and more than 70 percent of imports from Asia, according to the association. The potential for disruptions in the flow of commerce is creating an uncertain and fragile economic climate for many businesses.

U.S. Customs and Border Protection (CBP), in conjunction with trade stakeholders has established procedures for a possible West Coast trade disruption that could cause major delays and diversions of vessels arrival and departing.  

Please refer to the CBP’s CSMS #14-000365 for guidance.

CSMS #14-000365

CBP Announces Test of Trusted Trader Program

Monday, June 23, 2014

CBP Announces Test of Trusted Trader Program

U.S. Customs and Border Protection (CBP), in collaboration with the Food and Drug Administration (FDA) and the Consumer Product Safety Commission (CPSC) recently announced the commencement of the Trusted Trader program test. CBP plans to unify the Customs-Trade Partnership Against Terrorism (C-TPAT) program and the Importer Self-Assessment (ISA) program to promote a streamlined process through which importers can demonstrate they strive to secure their supply chains and strengthen their internal controls involving trade compliance enforced by CBP and other government agencies.

The test will run for 18 months. A company must meet certain eligibility requirements and make application to participate in the program. The test will be limited to fewer than ten participants.

Incentives for participation in the Trusted Trader program are being offered in addition to the benefits offered to C-TPAT and ISA members.

To learn more about the program, please refer to the announcement in the Federal Register, Volume 79, Monday, June 16, 2014. http://www.gpo.gov/fdsys/pkg/FR-2014-06-16/html/2014-13992.htm

Court to Review Whether to Expand Civil Penalties to Corporate Officers

Wednesday, March 26, 2014

Full Court to Review Whether to Expand Civil Penalty Liability

The Court of Appeals for the Federal Circuit (CAFC) has announced it will hear en banc (meaning all active judges may participate) the issue of whether corporate officers or shareholders qualify as “persons” under 19 U.S.C. 1592; CBP’s primary civil statute for fraud, gross negligence or negligence when importing goods.

Historically, U.S. Customs and Border Protection (CBP) has not imposed personal liability penalties on employees of a corporate importer, but it did just that in 2011 when the Court of International Trade (CIT) found Harish Shadadpuri liable for civil penalties for his actions as president of Trek Leather. Trek failed to add the cost of an assist to 72 entries which led to the underpayment of duties. The CIT ordered Trek and Shadadpuri to pay $534,420.20 each in penalties for gross negligence.

On March 5, 2014, the CAFC ordered the United States and Shadadpuri to file new briefs. The CAFC plans to review the meaning of the term “person” for purpose of Section 1592(a). If corporate officers or shareholders qualify as “persons” under the statute, they can be held personally liable for duties and penalties while acting within the course and scope of their employment on behalf of the corporation by which they are employed.

For more information please review the appeal.

CAFC Appeal