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THE C-AIR TIMES

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ISSUE #128 - 8/20/10

All prior Issues of The C-Air Times can be found at the end this current Issue in the Newsletter Section of our website:

www.c-air.com

IN THIS ISSUE :

Commerce Publishes Preliminary Reinterpretation of Novelty Candle Scope Exclusion For Petroleum Wax Candles from China

ITC Issues Final Report in Section 1205 Proceeding Textile Outer Sole Shoes

MTB Duty Benefits for HTS 9902 Begin Aug 26, CBP Refund Instructions

Mexico Revises List of U.S. Goods Subject to Higher Tariffs in Cross-Border Trucking Dispute

Iranian Embargo Set for September 29, 2010

CPSC Publishes Accreditation Requirements for Flammability Testing of Children’s Apparel, Mattresses

LA Updates its Procedures for Filing Entry Summaries without Payment

Canine discovers nearly 30 pounds of narcotics at JFK

"Every adversity, every failure, every heartache carries with it the seed of an equal or greater benefit."

~ Napoleon Hill

Commerce Publishes Preliminary Reinterpretation of Novelty Candle Scope Exclusion For Petroleum Wax Candles from China - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

Today the Department of Commerce (“Commerce”) published a notice that it has preliminarily determined to reinterpret the scope exclusion for “novelty candles” in the anti-dumping duty order covering Petroleum Wax Candles from China. This preliminary determination is further to an August 21, 2009 request for comments regarding the novelty candle exclusions. Commerce’s proposed interpretation would make the following clarifications regarding the scope of the Candles AD Order:

The scope of the order will be limited to the specifically enumerated candle shapes: tapers, spirals, straight-sided dinner candles, rounds, columns, pillars, votives, and various wax-filled containers. Candles in any other shape not specified will be outside the scope if the order.

There will be a specific exclusion for (1) “emergency,” “household” or “utility” candles1, (2) birthday candles2 and (3) birthday numeral candles3.
There will no longer be an exclusion for candles based on holiday art decorations. Thus, any candle in one of the enumerated shapes will be within the scope regardless of any etchings, prints or decorative enhancements, including holiday related art.

Commerce has requested comments from interested parties within 30 days. Parties will also be given ten days to file rebuttal comments. Failure to participate in Commerce’s proceeding will also prevent an interested party from challenging Commerce’s new scope methodology in court should such an action become necessary.

1 Defined as typically white in color, 5 inches long and .75 inches in diameter and sold in packs of two or more.

2 Defined as typically small, thin pillar shaped candles that are 2-3.5 inches in height and 0.18 – 0.25 inches in width and sold in packs of 10-24.

3 Defined as candles in the shapes of numbers that are typically between 2 and 4 inches in height.

ITC Issues Final Report in Section 1205 Proceeding Textile Outer Sole Shoes - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

On August 9, the ITC issued its final report in connection with the section 1205 proceeding that it was conducting with respect to the classification of textile outer sole shoes. The ITC recommended that a new US note be added to Chapter 64 of the Harmonized Tariff that would disregard textile components used on the external surface of the outer sole where they do not possess the characteristics usually required for normal use of an outer sole. Durability standards have not yet been announced, but we expect different standards for shoes depending on whether they are used indoors or out of doors. If Customs adopts the Martindale Abrasion test that is used in the EU to determine durability, then shoes with textiles molded into the sole should remain in Heading 6405, where they are currently classified.

Shoes that are excluded from Heading 6405 because of this new note will be classified in Headings 6402 and 6404 which generally provide for higher duty rates for those shoes. The ITC also recommended that breakouts be added to Headings 6402 and 6404 of the Harmonized Tariff which would continue the lower rates of duty for footwear that would be reclassified based on this new note. The breakouts that were adopted do not cover all of the shoes that currently benefit from lower duty rates from using textile outer soles, but additional lobbying will be done at the next stage to try to expand this list. A list of the breakouts recommended by the ITC can be provided upon request.

The next step in this process requires the US Trade Representative (STR) to review the ITC report and make a recommendation to Congress. We are urging the STR to conduct a complete review of the ITC decision and make changes which will benefit footwear importers. Once the STR has completed its review it will make a recommendation to Congress which must be considered by Congress for a minimum of sixty (60) “legislative days.” Congress is currently scheduled to be in session from mid September until the mid October 2010, and then it is scheduled to resume its session in the middle of January, 2011. This means that the sixty (60) legislative days will not occur before the end of March, 2011. When Congress has completed its review, a final recommendation is made to the President to be incorporated into a Presidential Proclamation. Any Presidential proclamation must give a 30 day grace period before it can be effective.

Mexico Revises List of U.S. Goods Subject to Higher Tariffs in Cross-Border Trucking Dispute - Sandler Travis & Rosenberg PA

U.S. exports to Mexico may face higher tariffs beginning today following the Mexican government's decision to revise the list of U.S. goods subject to retaliation for the continued U.S. failure to allow Mexican long-haul trucks to operate beyond specified border zones. Duty rates have been raised on 26 new tariff lines (and removed from 10) in an effort to increase political pressure on the Obama administration to resolve the long-running dispute. A coalition of businesses affected by the higher tariffs is also working toward the same goal.

Goods Newly Subject to Tariffs
Pork products - 0203.12.01 (5%), 0203.22.01 (5%) and 1602.49.01 (20%)
Cheeses - 0406.10.01 (25%), 0406.30.99 (25%), 0406.90.04 (20%) and 0406.90.99 (25%)
Sweet corn, frozen - 0710.40.01 (15%)
Pistachios - 0802.50.01 (20%) and 0802.50.99 (20%)
Oranges and grapefruits - 0805.10.01 (20%) and 0805.40.01 (20%)
Apples - 0808.10.01 (20%) and 0813.30.01 (20%)
Oats and grains - 1104.12.01 (10%)
Chewing gum - 1704.10.01 (20%)
Chocolate - 1806.31.01 (20%) and 1806.32.01 (20%)
Ketchup - 2103.20.01 (20%)
Polishes and adhesives - 3405.30.01 (15%) and 3506.91.03 (10%)
Rubber gloves and rubber floor coverings - 4015.19.99 (15%) and 4016.91.01 (10%)
Thermos containers - 7612.90.99 (15%)
Trench diggers - 8429.59.01 (15%)
Gas masks - 9020.00.01 (5%)

Goods Removed from Tariffs
Shelled peanuts - 2008.11.01
Dental floss - 3306.20.01 and 3306.20.99
Copy paper - 4816.20.01
Commercial catalogs - 4911.10.99
Other printing materials - 4911.99.99
Yarn - 5511.30.01
Carpets - 5704.90.99 and 5705.0099
Jewelry - 7113.19.99
Venetian blind fittings - 8302.41.01
Locks - 8302.41.04
Metal mountings and fittings - 8302.41.99
Telephone sets - 8517.11.01
Waste and scrap of battery cells - 8548.10.01
Other metal furniture - 9403.20.99

Goods Remaining Subject to Tariffs

(Note: Some of the tariff rates have changed since the publication of the original list.)

Christmas trees - 0604.91.02 (20%)
Onions and shallots - 0703.10.01 (10%)
Lettuce - 0705.11.01 (10%)
Almonds - 0802.12.01 (20%) and 2008.19.01 (20%)
Dates - 0804.10.01 (20%) and 0804.10.99 (20%)
Grapes - 0806.10.01 (20%)
Pears and quinces - 0808.20.01 (20%)
Apricots - 0809.10.01 (20%)
Cherries - 0809.20.01 (20%) and 2008.60.01 (20%)
Strawberries - 0810.10.01 (20%)
Fruit/nut mixtures - 0813.50.01 (20%)
Pasta - 1902.19.99 (10%)
Frozen potatoes - 2004.10.01 (5%)
Peas - 2005.40.01 (20%)
Peanuts - 2008.11.99 (20%)
Nuts and seeds - 2008.19.99 (20%)
Fruit and/or vegetable juices - 2009.80.01 (20%), 2009.90.01 (20%) and 2009.90.99 (20%)
Soy sauce - 2103.10.01 (20%)
Sauces and condiments - 2103.90.99 (20%)
Soups and broths - 2104.10.01 (10%)
Food preparations - 2106.90.06 (15%), 2106.90.07 (15%) and 2106.90.08 (15%)
Mineral waters - 2201.10.01 (20%)
Wines - 2204.10.99 (20%) and 2204.21.02 (20%)
Fermented beverages - 2206.00.99 (20%)
Oilcake - 2306.30.01 (15%) and 2306.49.99 (15%)
Dog/cat food - 2309.10.01 (10%)
Artist paints - 3213.10.01 (10%)
Health and beauty aids - 3304.30.01 (10%), 3304.99.99 (5%), 3305.10.01 (10%), 3305.30.01 (10%), 3305.90.99 (10%), 3306.10.01 (10%), 3306.90.99 (10%), 3307.10.01 (10%), 3307.20.01 (10%)
Plastic items - 3924.10.01 (15%), 3924.90.99 (15%), 3926.40.01 (15%)
Toilet paper - 4818.10.01 (5%)
Paper and printed matter - 4820.20.01 (5%), 4901.99.99 (15%), 4911.99.02 (15%), 4911.99.03 (15%)
Plastic ID/credit cards - 4911.99.05 (15%)
Synthetic yarn - 5511.10.01 (15%)
Tableware and kitchenware - 7013.49.03 (15%)
Curtain rods - 8302.41.02 (15%)
Metal office and desk equipment - 8304.00.99 (15%)
Refrigerators - 8418.10.99 (15%) and 8418.21.01 (20%)
Coffee makers - 8419.81.01 (15%)
Gas filtering or purifying machinery - 8421.39.99 (5%)
Dish washers - 8422.11.01 (15%)
Washing machines - 8450.12.01 (20%), 8450.12.99 (15%)
Electrothermic appliances - 8516.79.99 (15%)
Sunglasses - 9004.10.01 (10%)
Coin-operated games - 9504.30.99 (15%)
Pens - 9608.10.01 (15%), 9608.10.99 (15%), 9608.20.01 (15%), 9608.99.99 (15%)
Pencils - 9609.10.01 (15%)

MTB Duty Benefits for HTS 9902 Begin Aug 26, CBP Refund Instructions - Broker Power Inc.

U.S. Customs and Border Protection has issued its instructions regarding the extension, modification and creation of numerous HTS 9902 tariff numbers in order to suspend or reduce the duty of hundreds of imported products.¹

These HTS 9902 changes result from the enactment of H.R. 4380, the U.S. Manufacturing Enhancements Act of 2010 (also known as the Miscellaneous Trade and Technical Corrections Act of 2009, or Omnibus MTB), which became law on August 11, 2010.²

Duty-Free and Reduced Duty Changes Begin Aug 26

CBP states that HTS 9902 goods listed in the MTB (Titles I, II, and III) that are entered or withdrawn from warehouse for consumption on or after August 26, 2010, will be afforded the duty suspensions or reductions as described in the new law.

Timely ACS update expected. The Automated Commercial System is in the process of being updated to reflect the provisions of the MTB, and CBP expects these changes will be completed by the August 26 effective date.

Instructions for Filing Refunds for Jan 1 – Aug 25 Entries

Many of the HTS 9902 provisions in the enacted bill had expired on December 31, 2009, and are provided retroactive benefits for merchandise entered or withdrawn from warehouse for consumption on or after January 1, 2010 and before August 26, 2010.

Refund must be requested. CBP states it will liquidate or reliquidate articles whose expired provisions were extended by the MTB, upon a formal request filed with CBP within 180 days after August 11, 2010.

Information needed. The request must contain sufficient information to enable CBP to locate the entry or request a reconstructed entry if it cannot be located. In addition, the request must be made at the port of entry.

Refund 90 days after liq/reliq. According to CBP, any payment of amounts owed by the Government pursuant to liquidation or reliquidation of an entry shall be paid without interest, not later than 90 days from the date of the liquidation or reliquidation.

¹Affected products include loudspeakers, batteries, household appliances, bicycles, computer monitors, yarns, fibers, footwear, chemicals, and chemical products, among other items.

²Note that the MTB is part of the House Majority Leader’s “Make it in America” agenda which was announced on July 20, 2010. The agenda seeks to pass 18-20 different bills, including one on China currency.

Iranian Embargo Set for September 29, 2010 - C-Air Customhouse Brokers

As we have been noting in our previous newsletters, the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (the "Act") will prohibit the importation of Iranian-origin goods and services into the United States on September 29, 2010. There will be no exceptions. In order for importers to successfully make their final importation, entry must be made and released by Customs on or before September 28, 2010. The Office of Foreign Assets Control cannot authorize by general or specific license the commercial importation of such Iranian-origin goods on or after September 29, 2010. Please contact our office with any last minute questions you may have.

CPSC Publishes Accreditation Requirements for Flammability Testing of Children’s Apparel, Mattresses - Sandler Travis & Rosenberg P.A.

The Consumer Product Safety Commission has issued two notices of requirements that provide the criteria and process for its acceptance of accreditation of third-party conformity assessment bodies for testing pursuant to the flammability standards for clothing and mattresses, mattress pads and/or mattress sets designed or intended primarily for children 12 years of age or younger. The requirements for clothing were described here and are all but identical for mattresses. These requirements are effective as of Aug. 18 but comments on them may be submitted by Sept. 17.

LA Updates its Procedures for Filing Entry Summaries without Payment
Broker Power Inc.

The Port of Los Angeles has issued a Public Bulletin providing updated local procedures for filing entry summaries without payments, which are as follows:

Customs brokers are reminded that they have an obligation to file entry summary documentation for entries they have filed. If the importer has failed to provide the broker with payment for duties and fees, the broker must still submit the entry summary in a timely manner, albeit without payment of estimated duties.

An entry summary filed under these procedures must be accompanied by a cover letter explaining that it is being submitted without payment because payment has not been received from the importer. This will preclude the entry summary from being returned due to lack of payment.
The entry summary will be time stamped and submitted at the following locations: (1) Seaport entries will be submitted in the filer’s Entry Team box at the Shoreline building; (2) Airport entries will be submitted in the Entry Branch box, LAX Cargo Office Main Lobby.

Canine discovers nearly 30 pounds of narcotics at JFK - EmpireStateNews.com/CBP

NEW YORK – A citizen of the Dominican Republic was arrested by U.S. Customs and Border Protection for attempting to smuggle nearly 30 pounds of heroin and cocaine in sneakers and cooking pots that he placed in his checked luggage.

The incident happened August 7, at JFK Airport, but information was not released by the CPB until yesterday.

A CBP Canine alerted to a suitcase owned by Mr. Bernardo Gonzalez Garcia, who had arrived on a flight from Santo Domingo, Dominican Republic. Upon opening his luggage, CBP Officers noticed several pots, and sneakers with unusually thick soles. A more intensive inspection revealed a brown powdery substance contained within the soles of the shoes, which tested positive for heroin. A subsequent examination revealed a white powdery substance, which tested positive for cocaine, within the base of the pots.

“CBP is committed to protecting the American public from any type of threat,” stated Robert E. Perez, Director, Field Operations, New York Field Office. “CBP K-9 teams in the greater New York area are some of the best trained and most successful in detecting and intercepting contraband items, despite many cunning concealment methods.”

The narcotics seized during this inspection carried a street value over $1.4 million. The investigation by Immigration and Customs Enforcement agents is ongoing. If convicted, Mr. Garcia may face significant jail time.

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