THE C-AIR TIMES|
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 ISSUE #125 - 7/30/10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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The July 15th Customs request proposed that, while the Chapter 95 note should be maintained, additional provisions should be added to restore duty-free treatment to the items that are currently excluded. Thus, depending upon the outcome of the ITC investigation, it is possible that “tableware, kitchenware, toilet articles, carpets and other textile floor coverings, apparel, bed linen, table linen, toilet linen, kitchen linen and similar articles having a utilitarian function” otherwise qualifying as festive may once again become duty-free.
It is expected that the ITC may not issue its determination for many months (or longer). Importers will be given an opportunity to provide written comments on the issue. It remains unclear how any favorable change to the tariff will be applied (e.g., only prospectively, retroactively with respect to unliquidated or protested entries, etc.). In light of the above, there are steps that importers of affected merchandise should consider at this time with respect to current and recent entries in order to maximize their chances of benefiting from any potential tariff change in this area.
Please do not hesitate to contact us with any questions regarding the above or the broader issue of duty-free opportunities with respect to “festive articles.”
The Office of Management and Budget has approved the Animal and Plant Health Inspection Service's proposed rule to establish definitions for the terms “common cultivar” (except trees) and “common food crop”, which are among the categorical exemptions to the Lacey Act Amendments requirements.
Proposed Rule Could Clarify Scope of Declaration Requirement APHIS states that these proposed definitions will clarify which plants1 and plant products are subject to the provisions of the amended Act, including the declaration requirement for imported plants and plant products. Target Publication Date for Proposed Rule is August 2010 According to OMB’s announcement on APHIS’ filing of the proposed rule, its target date for publication is August 2010, with comments due in October 2010. (The Lacey Act (16 USC 3371 et seq.) combats trafficking in “illegal” wildlife, fish, or plants. The Food, Conservation, and Energy Act of 2008 amended the Lacey Act on May 22, 2008, by making it unlawful to import, export, transport, sell, receive, acquire, or purchase in interstate or foreign commerce a broader range of plants, as well as plant products, with some limited exceptions, taken or traded in violation of the laws of the U.S., a U.S. State, or other countries. In addition, the amendments made it unlawful to make or submit any false record, account or label for any false identification of, the plants and products covered by the Act. It also introduced the requirement for an import declaration for certain plants and plant products entering the U.S. Lastly, the amendments provide for both civil and criminal penalties for failure to comply. Enforcement actions may be taken for any violations committed on or after May 22, 2008. However, that the requirement to provide a declaration under the amended Act did not become effective until December 15, 2008. Moreover, enforcement of the declaration requirement is being phased-in. The most recent enforcement phase, Phase IV, took effect on April 1, 2010.) 1Under the Lacey Act, as amended, ‘‘plant’’ means: ‘‘Any wild member of the plant kingdom, including roots, seeds, parts or product thereof, and including trees from either natural or planted forest stands.” There are some exclusions. Common cultivars (except trees) and common food crops are excluded from the definition of plant. In addition, a scientific specimen of plant genetic material that is to be used only for laboratory or field research and any plant that is to remain planted or to be planted or replanted is also excluded from the definition of plant, unless the plant is listed under the Endangered Species Act or a similar State law, or is listed in an appendix to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Note that packaging material is exempt from the Lacey Act’s declaration requirement unless the packaging material itself is the item being imported or it is used for some other purpose than supporting, protecting or carrying another item.
 House Approves Bill to Remove Labeling Exemption for Garments with Small Amounts of Fur - Sandler Travis & RosenbergThe House of Representatives approved July 28 legislation that, effective 90 days after enactment, would remove the existing labeling exemption for garments that contain small amounts of fur. The bill also directs the Federal Trade Commission to update its Fur Products Name Guide, which Rep. Paul Sarbanes, D-Md., said “has been criticized as inaccurate and outdated.”
The Fur Products Labeling Act currently requires articles of apparel containing fur to be labeled with the name of the species used, the manufacturer, the country of origin and other information but exempts from this requirement products containing a relatively small quantity or value of fur. The Federal Trade Commission has set that amount at $150 since 1998. The Truth in Fur Labeling Act of 2009 (H.R. 2480) would amend the FPLA by removing this exemption, thus requiring all apparel containing fur to be labeled with the required information regardless of the cost of the garment or the value of the fur used. Rep. Jim Moran, D-Va., said this step will extend the labeling requirement to the estimated 13% of the fur garment market that is excluded under the existing law. The bill contains one exemption from this requirement for fur products sold by hunters and trappers out of their homes or at fairs or other temporary spaces.  Washington, DC – The House of Representatives voted today in strong support of U.S. manufacturers and American workers by passing H.R. 4380, the U.S. Manufacturing Enhancement Act of 2010. The legislation contains hundreds of tariff suspensions and reductions which would help American companies grow and support further job creation. Despite opposition by the Republican House leadership, the measure passed easily by a vote of 378-43.
“This vote is a victory for jobs in America, and for U.S. manufacturers and workers who need this action to keep growing and to compete internationally,” said Ways and Means Committee Chairman Sander M. Levin (D-MI). “This was a defeat for the House Republican leadership which attempted to put partisan politics and short-term political gain above the needs of American businesses and workers.” Rank-and-file Republican Members deserted House Republican leadership, ignoring their calls for a “no” vote based on rules developed by the Republican conference which mistakenly lumped limited tariff benefits under a broad earmark moratorium. H.R. 4380 was considered under suspension of the rules, requiring two-thirds of those present to support the bill for passage. As soon as the two-thirds threshold was achieved, dozens of Republican members who had registered their vote in opposition switched their votes, abandoning their leadership. “Passage of this bill is one more step toward economic recovery and private-sector job growth in America,” Ways and Means Trade Subcommittee Chairman John Tanner said. “Working families in America will be grateful that a substantial majority of Members of this House rose above political rhetoric to do the right thing for saving and creating jobs in our country.” Background on H.R. 4380, the U.S. Manufacturing Enhancement Act of 2010: Commonly referred to as the Miscellaneous Tariff Bill (MTB), this legislation is estimated to support tens of thousands of American jobs, helping to increase U.S. production and expand gross domestic product (GDP) by billions of dollars. Provisions included in the legislation undergo an extremely thorough vetting process to ensure the benefits do not come at the expense of domestic manufacturers. During the process, the House Committee on Ways and Means and the Senate Finance Committee, the Administration, and the independent U.S. International Trade Commission thoroughly review each tariff relief request to ensure that there is no domestic opposition. The relief provided in H.R. 4380 is temporary, meaning that if a U.S. business begins manufacturing a product covered by a current MTB provision and the business objects to extending the provision when it comes up for renewal, it will not be extended. The legislation is supported by hundreds of U.S. businesses and trade associations, including the U.S. Chamber of Commerce and the National Association of Manufacturers. Please click here for more information on H.R. 4380.
Final Updated List of Products that Require Federal Contractor Certification on Child Labor - Broker Power Inc.
The Labor Department has issued a final updated the list of products, by country of origin, which the Departments of Labor, State, and Homeland Security have a reasonable basis to believe “might have” been mined, produced or manufactured by forced or indentured child labor. The list is effective July 20, 2010. (For purposes of this list, a child is defined as under 18 years of age. This list is required by Executive Order 13126 (1999) and has not been updated since 2001.) Products include Garments, Cotton, Electronics, Toys, Carpets, Coffee, Cocoa, Bricks Products on the updated list include garments, cotton, electronics, toys, teak, coffee, cocoa, bricks, rice, teak, sugarcane, rubber, gold, stone, tilapia, tobacco, carpet, shrimp, and diamonds, among other products. Certification required by Federal Contractors who Supply Listed Products, regardless of Country of Origin Federal contractors who supply products that appear on this list must certify to the contracting officer that the contractor, or, in the case of an incorporated contractor, a responsible official of the contractor, has made a good faith effort to determine whether forced or indentured child labor was used to mine, produce, or manufacture any product furnished under the contract, and that, on the basis of those efforts, the contractor is unaware of any such use of child labor. List of Products that “Might Have” Been Made with Child/Forced Labor The following is a list of products, identified by their country of origin, which “might have” been mined, produced or manufactured by forced or indentured child labor: (Carpets from India are still pending consideration for this list, and are not included.)
DOL website on child and other forced labor available here.
 On July 23, 2010, U.S. Customs and Border Protection Commissioner Alan Bersin sent a letter to 16 trade and industry groups1 responding to a list of proposals that were presented to him to improve Customs regulations and operations. The following are highlights of his comments with regard to upcoming notices to be issued by the agency: CBP to Issue Proposed Rule on Modernizing the In-Bond Process by End of 2010 CBP has been engaging with industry about its efforts to draft regulations that would encompass a complete revision and modernization of 19 CFR Part 18 to enable the in-bond process to go from a paper-dependent entry process to an automated-paperless process. In addition to modernizing the regulations to meet the realities of the current real-time shipping environment, the proposed amendments to the regulations are being designed to provide CBP with the necessary tools to better track in-bond merchandise. Work is ongoing to draft these substantial regulatory change proposals. CBP intends to have a proposed rule published by the end of this year where it will officially be seeking public comments on its proposals. CBP to Issue Proposed Rule on Increases to De Minimis, Informal Entry Values CBP agrees, from a policy perspective, with the recommendation that the de minimis and informal entry limits should be increased. CBP has drafted a proposed rule providing for increases of both the de minimis value and the value for informal entries consistent with language in S. 1631 (the Customs Facilitation and Trade Enforcement Reauthorization Act of 2009). CBP is in the process of conducting an economic analysis and evaluating other factors required to evaluate the range of discretion available under 19 USC 1321. In addition, CBP’s proposal will need to be reviewed and agreed to by the Treasury Department. CBP expects the economic analysis to be completed within the next 60 days and intends to proceed with all due speed based on the findings of the analysis. CBP to Soon Publish Notice on Rules of Origin Issues CBP and the Treasury Department have carefully reviewed the comments submitted in response to the rules of origin proposal. In particular, the agencies have heard concerns expressed about the impact that extension of the rules of origin to other than North American Free Trade Agreement (NAFTA) trade may have on the trade community. These matters are still under consideration within the agencies as part of the official rulemaking process; however, CBP expects to soon be publishing a notice on this matter in the Federal Register. (In July 2008, CBP issued a proposed rule to use uniform tariff shift and other rules for CBP determinations of the country of origin of imported merchandise, etc. CBP subsequently extended the comment period and reopened the comment period on the proposed rule. See ITT’s Online Archives or 10/31/08 news, 08103105, for BP summary announcing the reopening of the comment period.) CBP to Formally Withdraw First Sale Proposed Interpretation A Federal Register notice to formally withdraw the first sale rule proposal has been drafted. CBP expects to have it published within the next 30 days. According to CBP sources, the August 2008 interim final rule that amended 19 CFR and set the effective date for the first sale declaration effectively withdrew CBP’s proposed interpretation to require that the price paid in the last sale occurring prior to the introduction of the goods into the U.S., instead of an earlier sale, be considered the price actually paid or payable for the imported goods when sold for exportation to the U.S. However, CBP has not yet formally withdrew its proposed interpretation. (See ITT’s Online Archives or 08/22/08 news, 08082205, for BP summary of the interim final rule.) 1Air Transport Association of America, American Association of Exporters and Importers, American Trucking Association, U.S. Business Alliance for Customs Modernization, Border Trade Alliance, Canadian/American Border Trade Alliance, Canadian Chamber of Commerce, Canadian Manufacturers & Exporters, Canadian Trucking Alliance, National Association of Foreign Trade Zones, National Association of Manufacturers, National Customs Brokers and Freight Forwarders of America, National Retail Federation, Retail Industry Leaders Association, and U.S. Chamber of Commerce.
The long-running, acclaimed TV show COPS will focus on the work of U.S. Customs and Border Protection Saturday night, July 31, at 8 p.m. on the Fox network.
 "COPS: Customs and Border Protection Special Edition" marks the first time the work of CBP employees has been featured for an entire episode of the show, which has been on the air for more than 20 years providing viewers an up-close view of the world of law enforcement.
The show, which has featured law enforcement agencies from around the country, is the most-watched program in its Saturday night timeslot. In the Washington, D.C. metropolitan area, the show will be seen on Fox 5, WTTG-TV. |
OMB Approves APHIS Lacey Act Definitions Proposed Rule - Broker Power Inc.