U.S. Customs Finalizes Its Durability Test For Footwear With Textile Outer Soles
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP / http://www.gdlsk.com/firm-news/296-us-customs-finalizes-its-durability-test-for-footwear-with-textile-outer-soles-.html
On November 13, 2013, U.S. Customs and Border Protection (“CBP”) issued a General Notice to inform the public how it will administer Additional U.S. Note 5 to chapter 64 of the Harmonized Tariff Schedule of the United States (“HTSUS”).
U.S. Note 5 specifies that to be classified as footwear having a textile outer sole in Chapter 64, HTSUS, the textile outer sole must possess “the characteristics usually required for normal use of an outer sole, including durability and strength.” See Customs Bulletin and Decisions, vol. 47, No. 45, pages 57-67 (November 13, 2013). If textile sole components meet the durability standard then the shoes will be classified in Heading 6405, HTSUS. If the textile sole components do not meet the durability standard, then the textile will be disregarded and the footwear will generally be classified in Headings 6402 and 6404, HTSUS, and possibly subject to higher duty rates.
In this publication, CBP accepted the standard that it previously proposed to interpret U.S. Note 5. The applicable test will be ISO 20871 (“Footwear – Test Methods for Outsoles – Abrasion Resistance”) which is published by the International Organization for Standardization and available for purchase at http://www.iso.org/iso/home.html. CBP characterized the test procedure in ISO 20871 as a good measure of the “wearability” of the constituent material of outer soles without regard to specific conditions of use (age, weight, and particular usage) or commercial acceptability.
The test procedure will apply only to “outdoor footwear” because presumably textile soles on indoor shoes do not need to be as durable as the textile soles on outdoor shoes. CBP will determine on a case-by-case basis “whether testing is required” to determine whether a particular article is “indoor” footwear, including “house slippers” defined in Note 1(d) to Chapter 64, HTSUS. The test procedure will also apply only to textile material that has been added to, or incorporated into, a substrate of another material such as rubber or plastic. Testing will not be required where the textile material is the only constituent material of the outer sole. This category of shoes with only textile soles will be relatively small in the overall context of footwear imports.
CBP has also stated that it will apply the ISO 20871 test procedures, but not the ISO 20871 test standard. This means that three samples must be tested in accordance with the testing specifications in ISO 20871. However, the test results will not be measured quantitatively, as specified in ISO 20871. Instead, the footwear will pass the test for CBP purposes (that is, classifiable as footwear having textile outer soles for purposes of Note 5) “if textile material is present on any one of the three samples taken from the footwear sample and tested in accordance with ISO 20871.” We understand that CBP interprets “present” to mean visible to the naked eye.
One commenter noted that patterned outer soles having recesses and protrusions might prevent the abrader in ISO 20871 from coming into contact with the textile material in the recesses, thus ensuring its survival during testing and skewing the test results. CBP agreed that in many cases outer soles have patterns that make it “impracticable” to collect a flat sample. Noting that the test protocol requires the three samples be taken from the portion of the outer sole that comes “in contact with the ground,” CBP stated that it has not determined the maximum depth, if any, at which point recessed material will no longer be “in contact with the ground” and disregarded for purposes of evaluating the test results.
CBP suggests that importers test the footwear under ISO 20871 prior to importation in order to demonstrate the exercise of reasonable care in classification in heading 6405. However, there does not appear to be any need to test footwear if the importer intends to classify such footwear in Headings 6402 and 6404, HTSUS. CBP reserves the right to request a copy of the test results from the importer, request the importer to conduct testing, or request footwear samples from the importer in order to conduct its own testing at the CBP Office of Laboratory and Scientific Services.
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OTEXA Announcement / http://otexa.ita.doc.gov/
CBP implements new rules (see pages 57 – 68) governing the use of textile outsoles on footwear for duty relief purposes.
Port of Long Beach Repeals Cargo Fee
Port of Long Beach / http://www.polb.com/news/displaynews.asp?NewsID=1227&TargetID=1
Collection of surcharge was repeatedly postponed
The Long Beach Board of Harbor Commissioners on Monday, Nov. 18, unanimously repealed a cargo fee that has been on the Southern California seaport’s books since 2008 but implementation was delayed repeatedly and the fee was never collected.
The repealed fee would have been a charge on each cargo container to help fund roadway and railway improvements in and around the ports of Long Beach and Los Angeles. The “Infrastructure Cargo Fee” when adopted in 2008 was started in conjunction with the Port of Los Angeles, which also never collected the fee and also repealed the fee recently.
Although the fee was never implemented, the Port of Long Beach has moved forward with its efforts to modernize and make capital improvements using other revenue sources.
U.S. Marshals Seize More than $2 Million in Adulterated Dietary Supplements from Georgia Company
U.S. Food & Drug Administration / http://www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ucm375458.htm
FDA acts to prevent distribution of products containing unapproved food additive
At the request of the U.S. Food and Drug Administration, U.S. Marshals seized dietary supplements manufactured and held by Hi-Tech Pharmaceuticals, Inc., located in Norcross, Ga., after FDA investigators found the products contained 1, 3-Dimethylamylamine HCl (DMAA) or its chemical equivalent. The retail value of the seized products is more than $2 million.
A complaint filed in the U.S. District Court for the Northern District of Georgia alleged that the products were adulterated according to the Federal Food, Drug, and Cosmetic Act because they contain DMAA, an unapproved food additive that is deemed unsafe under the law.
The FDA is urging consumers not to buy or use supplements containing DMAA, which can elevate blood pressure and could lead to cardiovascular problems, including heart attack, shortness of breath and tightening of the chest. Given the known biological activity of DMAA, the ingredient may be particularly dangerous when used with caffeine. Consumers should check labels and avoid any dietary supplements containing DMAA, which is referred to on different product labels by 10 possible names. The FDA has warned consumers about the health risks of DMAA on its web site.
On Nov. 12, 2013, U.S. Marshals seized more than 1,500 cases of finished goods and more than 1,200 pounds of in-process/raw material goods from the Hi-Tech Pharmaceuticals, Inc. facility.
“This company has a responsibility to ensure its products are safe for distribution and human consumption,” said Melinda K. Plaisier, the FDA’s associate commissioner for regulatory affairs. “We have taken action to protect consumers and demonstrate our commitment to their safety by keeping these products from entering the distribution system.”
During the FDA’s inspection of Hi-Tech Pharmaceuticals, Inc., which began in October, investigators identified eleven products that were labeled as containing DMAA or its chemical equivalent. These products included Black Widow, ECA XTREME, FASTIN, FASTIN-XR, Lipodrene, Lipodrene HARDCORE, Lipodrene XR, Lipodrene XTREME, LIPOTHERM, Stimerex-ES, and YELLOW SCORPION. The investigators also observed bulk DMAA raw ingredients at the facility. Prior to the seizure, on Nov. 1, 2013, the FDA issued an administrative detention, temporarily holding the products until they were seized.
To date, the FDA has received numerous reports of illnesses and death associated with supplements containing DMAA, including heart problems and nervous system or psychiatric disorders. Consumers can report an adverse event or illness they believe to be related to the use of a dietary supplement by calling 1-800-FDA-1088 or online. Your health care provider may also report this by calling the FDA's MedWatch hotline at 1-800-FDA-1088.
Dietary supplements containing DMAA are illegal and the FDA is using all available tools at its disposal to remove these products from the market. In 2012, the FDA issued warning letters to companies notifying them that products containing DMAA need to be taken off the market or reformulated to remove this substance.
Commerce Preliminarily Finds Dumping of Imports of Diffusion-Annealed, Nickel-Plated Flat-Rolled Steel from Japan
International Trade Adminisration / http://enforcement.trade.gov/download/factsheets/factsheet-diffusion-annealed-nickel-plated-steel-prelim-12nov13.pdf
Fact Sheet
CBP, CPSC Seize 200K Toy Dolls at U.S. Ports
U.S. Customs & Border Protection / http://www.trade.gov/press/press-releases/
Washington — U.S. Customs and Border Protection officers and Consumer Product Safety Commission investigators have seized more than 200,000 toy dolls arriving from China due to high levels of phthalates, a group of banned chemical compounds. Officials seized a total of 10 shipments valued at nearly $500,000 at the ports of Chicago, Dallas, Los Angeles, Norfolk, Va., Memphis, Tenn., Newark, N.J., Portland, Ore., and Savannah, Ga.
The Commercial Targeting and Analysis Center targeted the shipments beginning in April because of the potential that the products presented a safety threat to the American public, particularly children, and contained items prohibited in the U.S. Although dispersed across the county, officials flagged the shipments as high risk after CTAC identified key commonalities in the hazardous products.
“Using advanced technology to track certain shipments before they reach our shores is helping CPSC better protect America’s consumers,” said CPSC Chairman Inez Tenenbaum. “CPSC and CBP are working in partnership to detect and detain violative imports. Through the use of a risk management system, we are targeting those shipments most likely to contain dangerous goods, while also allowing for faster processing of compliant products. Expanding our port surveillance program is key to preventing injuries and achieving our long-term vision.”
Since April 2010, CPSC has maintained permanent staffing at CTAC in Washington, D.C. In addition, CPSC compliance investigators are assigned to several major ports across the country and work side-by-side with CBP officers to examine shipments of potentially unsafe imported consumer products to help prevent them from reaching the hands of America’s consumers. In Fiscal Year 2012, CTAC targeting efforts resulted in the seizure of more than 1.1 million unsafe products.
“The Toy Industry Association commends CBP and CPSC for their diligence and hard work at the ports to ensure that products violating strict federal safety laws never reach consumers,” said Ed Desmond, TIA executive vice president of external affairs. “TIA and its members are committed to safety — we work year-round to ensure that toys are designed and produced with safety in mind. We proudly support the efforts of these federal agencies to identify and seize products that could put a child at risk.”
CTAC combines resources, personnel and expertise from various government agencies to protect the American public from harm caused by unsafe imported products. The CTAC accomplishes this through better communication, information-sharing and by reducing redundant inspection activities.
“Interagency collaboration at the CTAC truly exemplifies working together as one U.S. Government at the border to protect American consumers,” said Consumer Products and Mass Merchandising Center Director, Petrina Evans. “The Center of Excellence and Expertise will leverage these agency partnerships to drive greater trade facilitation and product compliance.”
Dulles CBP Seizes Firearms Cache from Iraq
U.S. Customs & Border Protection / http://www.cbp.gov/xp/cgov/newsroom/news_releases/local/11202013_6.xml
Sterling, Va. – U.S. Customs and Border Protection (CBP) officers seized a cache of firearms, which included AR-15s and AK-47s, as unmanifested freight at Washington Dulles International Airport Tuesday.
The firearms – 22 AR-15s, six AK-47s, one Glock 19 pistol, and one Night Sprint NVG night vision monocular – were discovered among a larger manifest of weapons that a U.S.-based international security firm imported from Iraq via charter cargo flight August 2.
“We believe the firearms were erroneously inventoried or shipped to the United States. The security firm has declined interest in the firearms and so Customs and Border Protection seized the unmanifested firearms,” said Christopher Hess, CBP’s port director for the Port of Washington, D.C. “This seizure clearly illustrates how closely Customs and Border Protection examines import manifests and identifies anomalies that could potentially harm our nation or our citizens.”
Background checks on the firearms proved negative.
CBP has alerted other federal agencies. If the firearms remain unclaimed, they’ll most likely be destroyed.
The security firm initially notified CBP that they intended to import a shipment of firearms that they exported to Iraq between 2004 and 2009. CBP is not identifying the international security firm as no criminal charges have be assessed against the firm.
CBP detained the entire shipment when it arrived at Washington Dulles International Airport August 2. Between August 19 and November 6, CBP officers inventoried the shipment of more than 6,000 items and discovered firearms in excess of the security firm’s itemized inventory list.
CBP offered the security firm an opportunity to amend their manifest to include the excess firearms, but the company declined and stated that the firearms did not belong to it.
CBP routinely conducts inspection operations on arriving and departing international passengers and cargo, and searches for terrorist weapons, illicit narcotics, unreported currency, counterfeit merchandise, and prohibited agriculture and other products.
United States, Morocco Sign Bilateral Trade Facilitation Agreement
Office of the United States Trade Representative / http://www.ustr.gov/press-office/press-releases/2013/November/US-Morocco-Trade-Facilitation-Agreement
Washington, D.C. – U.S. Trade Representative Michael Froman and Moroccan Minister of Economy and Finance Mohamed Boussaid today signed a Trade Facilitation Agreement that represents a forward-leaning, 21st century agreement on modernizing customs practices. The agreement, which builds on the United States-Morocco Free Trade Agreement (FTA), includes provisions covering internet publication, transit, transparency with respect to penalties, and other issues that will further boost Morocco’s competitiveness and benefit its trade environment. Morocco is the first country in the region to conclude a bilateral trade facilitation agreement, as well as to endorse joint principles on investment and information communication technology services trade with the United States. These important initiatives reflect our common commitment to building stronger economic ties with and among the region.
“Morocco has a strong commitment to continuing its efforts to build a modern economy for the 21st century” Ambassador Froman said. “This agreement will make doing business both easier and more transparent for both American and Moroccan companies.”
Ambassador Froman and Moroccan Minister of Industry, Trade, Investment and the Digital Economy Moulay Hafid Elalamy also pledged today to advance future work under a bilateral action plan aimed at supporting job creation by increasing trade and investment opportunities.
The U.S.-Moroccan economic relationship has grown significantly since our bilateral FTA entered into force in 2006. Overall trade between the United States and Morocco has increased more than 300 percent, with U.S. exports up more than 350 percent and Moroccan exports to the United States more than doubling. U.S. foreign direct investment (FDI) in Morocco has quadrupled over the same period, amounting to $613 million in stock investment in 2012.
International Trade Administration - PRESS RELEASES
ITA / http://www.trade.gov/press/press-releases/
11/12/13 - Commerce Preliminarily Finds Dumping of Imports of Diffusion-Annealed, Nickel-Plated Flat-Rolled Steel from Japan
11/14/13 -
Statement from U.S. Commerce Secretary Penny Pritzker on International Trade in Goods and Services in September 2013 [ Fact Sheet ]