Changes to ISF Enforcement
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
On June 17, 2016, Customs announced that for shipments that are on the water on or before June 30, 2016, CBP ports will no longer be required to send requests for liquidated damages claims to Headquarters for review, and the “three-strikes” approach to liquidated damages claims against importers’ bonds will also end. There is no change to cargo holds for ISF non-compliance. Ports have the authority to both hold cargo and initiate liquidated damages claims.
We would expect to see an increased level of liquidated damages cases in light of the elimination of the “three strikes” policy.
Here is the link to CBP’s CSMS Notice
Holiday Port Truck Gate Schedule for July 2 through July 5, 2016
PierPass
Terminals at the Ports of Los Angeles and Long Beach have announced their schedules for the four-day period surrounding Independence Day, Saturday July 2 through Tuesday July 5. The schedule is posted below, and a PDF of the schedule can be downloaded at http://www.pierpass.org/wp-content/uploads/2016/06/IndependenceDay_2016_7.pdf.
Please continue to monitor the websites of individual terminals for updates.
TTB Finalizes Importer Permit Requirements for Tobacco Products and Processed Tobacco, and Other Requirements for Tobacco Products, Processed Tobacco and Cigarette Papers and Tubes
Department of Treasury (Alcohol and Tobacco Tax and Trade Bureau)
Washington, D.C. — On Tuesday, June 16, 2016, the Alcohol and Tobacco Tax and Trade Bureau (TTB) will publish a final rule in Federal Register adopting as a final rule, without change, a temporary rule concerning permit and other requirements related to importers and manufacturers of tobacco products and processed tobacco published in the Federal Register on June 27, 2013.
The regulatory amendments adopted in this final rule include an extension in the duration of new permits for importers of tobacco products and processed tobacco from three years to five years, a technical correction amending the definition of “Manufacturer of tobacco products” to reflect a statutory change, and a technical correction related to references to the sale price of large cigars. This final rule also permanently incorporates and reissues other TTB regulations pertaining to importer permit requirements for tobacco products as well as minimum manufacturing and marking requirements for tobacco products and cigarette papers and tubes that also were incorporated in the 2013 temporary rule.
This final rule will be effective on July 21, 2016. The public may view the rulemaking record for this rulemaking, including copies of the 2013 temporary rule and this final rule, on the “Regulations.gov” website (https://www.regulations.gov) within Docket No. TTB–2013–0006. Copies of the relevant rulemaking documents and a link to the Regulatons.gov docket may be found on the TTB website at https://www.ttb.gov.
CBP Announces 3 New Selections for Donation Acceptance Program and Year-Round Submission Window to Support Port of Entry Infrastructure and Technology Needs
U.S. Customs & Border Protection
WASHINGTON—U.S. Customs and Border Protection (CBP) announced today that three new proposals from the city of Donna, Texas; the city of Pharr, Texas; and Red Hook Terminals have been selected to engage in further planning and development activities as part of the Donations Acceptance Program. The Donations Acceptance Program enables CBP and the U.S. General Services Administration (GSA) to explore, foster and facilitate partnerships for port of entry infrastructure and technology improvements.
“We are excited to welcome three new mutually beneficial partnerships under the Donations Acceptance Program; partnerships that CBP believes will lend themselves to a more secure, efficient, reliable border transportation network,” said CBP Commissioner R. Gil Kerlikowske. “Since launching last year, the Donations Acceptance Program has quickly become a viable mechanism and tool for investing in and expediting U.S. port of entry improvements.”
“At GSA, we understand that all of our buildings are an important part of the communities where they are located,” said Public Buildings Service Commissioner Norman Dong. “That is why we are so excited to be working together with these three municipalities through the Donations Acceptance Program. This innovative collaboration will allow us to support the kind of trade and travel that is vital to not just these locations, but our country as a whole.”
The City of Donna proposed constructing new inspection facilities and implementing more technologies to facilitate inbound empty commercial vehicle inspections at the Donna-Rio Bravo Port of Entry (POE). The City of Pharr proposed multiple improvements including constructing a new cold inspection facility, a new agricultural inspection training and development facility, and expanding secondary inspection dock space at the Pharr POE. Red Hook Terminals proposed donating a perforating machine in support of operations at the Port of Freeport, Texas.
Looking ahead, CBP and GSA will work with its new partners to establish a memorandum of understanding outlining forthcoming planning and development activities, obligations, and roles and responsibilities.
Pursuant to Section 559 of the Consolidated Appropriations Act, 2014, CBP and GSA are authorized to accept donations of real property, personal property (including monetary donations) and non-personal services from private sector and government entities. Accepted donations may be used for port of entry construction, alterations, operations, and maintenance activities.
The Donations Acceptance Program is also pleased to announce that it is now accepting and evaluating proposals valued at $3 million or less on a year-round basis. The Small-Scale Donation Proposal Process is a new offering and avenue for stakeholders interested in investing in and expediting small-scale, high impact border infrastructure, technology and other related improvements. Criteria and guidance for submitting a small-scale donation proposal can be found on cbp.gov/dap.
Public-private partnerships are a key component of CBP’s Resource Optimization Strategy and allow CBP to provide new or expanded services and infrastructure at domestic ports of entry. The CBP Donations Acceptance Program looks forward to continued implementation including exploring new and innovative solutions to serving our travel and trade stakeholders. For more information, visit cbp.gov/dap.
Dulles CBP Intercepts First-In-Port Snail
U.S. Customs & Border Protection
STERLING, Va. – A U.S. Department of Agriculture identifier confirmed Friday that Customs and Border Protection agriculture specialists at Dulles International Airport discovered a new pest in the Washington area when they intercepted Calidivitrina sp. (Vitrinidae), a type of snail, while inspecting an air cargo shipment of fresh flowers from the Netherlands on June 1.
Snails may pose a significant threat to agriculture because they cause damage by feeding on agricultural and horticultural crops as well as native plants, thereby lowering crop yields and quality.
“CBP agriculture specialists take their job of detecting foreign invasive plants and plant pests very seriously,” said Patrick Orender, CBP Assistant Port Director for the Port of Washington Dulles. “This is another example of our agriculture specialists performing a thorough inspection and finding a new potential threat to the U.S. agriculture industry.”
The snail was discovered in a 300-stem shipment of flowers from the Netherlands destined for Fairfax, Va. CBP forwarded the snail to the USDA Animal and Plant Health Inspection Service (APHIS) - Plant Protection and Quarantine (PPQ) identifier office for classification.
CBP issued an Emergency Action Notification to the importer requiring the shipment to be re-exported or destroyed.The importer elected to have the shipment destroyed by steam sterilization under CBP agriculture specialist supervision.
CBP agriculture specialists work closely with USDA’s, APHIS, PPQ to protect our nation’s agriculture resources against the introduction of foreign plant pests and animal diseases.
For more on the USDA, APHIS, PPQ program, please visit:
http://www.aphis.usda.gov/plant_health/index.shtml.
CBP Agriculture Specialists have extensive training and experience in the biological sciences and agricultural inspection. On a typical day nationally, they inspect over 1 million people as well as air and sea cargo imported to the U.S. and intercept 4,687 prohibited meat, plant materials or animal products, including 464 agriculture pests and diseases.
To learn more about CBP agriculture protection mission please visit http://www.cbp.gov/border-security/protecting-agriculture.
Cold-Rolled Steel Flat Products from China and Japan Injure U.S. Industry, Says USITC
U.S. International Trade Commission
The United States International Trade Commission (USITC) today determined that a U.S. industry is materially injured by reason of imports of cold-rolled steel flat products from China and Japan that the U.S. Department of Commerce has determined are sold in the United States at less than fair value and subsidized by the government of China.
All six Commissioners voted in the affirmative.
As a result of the USITC’s affirmative determinations, Commerce will issue a countervailing duty order on imports of these products from China and antidumping duty orders on imports of these products from China and Japan.
The Commission also made negative findings with respect to critical circumstances with regard to imports of these products from China and Japan. As a result, goods that entered the United States from China prior to December 22, 2015, will not be subject to retroactive countervailing duties, and goods that entered the United States from China and Japan prior to March 7, 2016, will not be subject to retroactive antidumping duties (dates are the dates of the Department of Commerce’s affirmative preliminary determinations).
The Commission’s public report Cold-Rolled Steel Flat Products from China and Japan (Investigation Nos. 701-TA-541 and 731-TA-1284 and 1286 (Final), USITC Publication 4619, July 2016) will contain the views of the Commission and information developed during the investigations.
The report will be available by July 26, 2016; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.
OTEXA: Announcements
ITA: Office of Textiles and Apparel
06/21/2016: Full video stream of Smart Fabrics Summit now available, including industry demonstrations, policy panels, and keynote from Secretary Prtizker.
TSA July 4 Holiday Reminder: Fireworks, Sparklers not Allowed in Carry-On or Checked Bags
Transportation Security Administration
BALTIMORE – As the July 4 Independence Day holiday approaches, the Transportation Security Administration wants to remind travelers that fireworks and sparklers are not permitted on airplanes.
Fireworks and sparklers are flammable and are manufactured from explosive materials. They are considered hazardous and forbidden on aircraft in checked baggage or carry-on bags. This applies to all varieties including, but not limited to: aerial repeater fireworks, aerial shell fireworks, bottle rockets, chasers, firecrackers, flying spinners, fountains, ground spinners, missiles, parachute fireworks, poppers, Roman candles, skyrockets, smoke fireworks, snakes, snaps, sparklers, strobes and wheels.
Travelers are responsible for the items that they pack in their checked bags and the items they have with them in their carry-on bags. Individuals should be sure to clear their bags of any prohibited items before coming to an airport. If travelers are unsure as to whether an item is allowed to be brought on an airplane, TSA has a feature on its website called “When I fly, can I bring my ______?” It allows travelers to type in an item to find out immediately whether the item can be packed in a carry-on bag, checked bag, either or neither.
When fireworks or sparklers are detected at a checkpoint, it results in a “bag check,” which requires a TSA officer to remove the bag from the screening belt, calling the passenger over to the side and then opening the bag to remove the prohibited items. After checking the bag for any other traces of explosives, the bag then needs to be rerun through the x-ray machine. This can result in a delay of several minutes for the traveler.
So don’t forget, fireworks don’t fly.
Senior Auction Official at Beverly Hills Auction House Sentenced to Prison for Wildlife Trafficking
U.S. Department of Justice
Joseph Chait, 38, of Beverly Hills, California, the senior auction administrator of I.M. Chait Gallery, located in Beverly Hills, was sentenced today to one year and one day in prison and a $10,000 fine for conspiring to smuggle wildlife products made from rhinoceros horn, elephant ivory and coral with a market value of at least $1 million, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, U.S. Attorney Preet Bharara for the Southern District of New York and Director Dan Ashe for the U.S. Fish and Wildlife Service (FWS). On March 9, Chait pleaded guilty to a two-count Information before U.S. District Judge J. Paul Oetken for the Southern District of New York, who imposed today’s sentence.
“Conspiring in the trafficking endangered wildlife is a serious crime, and those involved in the auction industry should take note that facilitating this trade can result in prison,” said Assistant Attorney General Cruden. “The African Elephant, the rhinoceros, and coral are all deeply threatened species that have undergone dramatic losses in recent decades as the trade in them has become highly lucrative. We must stop this trade, and we will vigorously investigate and prosecute those engaged in it.”
“By illegally trafficking in wildlife, including rhinoceros horns, Joseph Chait and his co-conspirators have fueled the illegal trade in endangered wildlife,” said U.S. Attorney Bharara. “Chait’s conduct, a federal crime for which he will now spend time in prison, threatened the already precarious existence of certain endangered species of animals.”
“As this investigation by U.S. Fish and Wildlife Service Special Agents demonstrates, United States citizens and businesses continue to be involved in international wildlife trafficking – facilitating and magnifying consumer demand for rhino horn, elephant ivory and other illegal products that is driving the slaughter of imperiled species in the wild,” said Director Ashe. “The stiff sentence and fines imposed today on Joseph Chait for his crimes serves notice to those engaged in similar criminal activity that their day of reckoning in court is coming.”
According to allegations contained in the Information and statements made in court filings and proceedings:
Chait and his co-conspirators engaged in illegal trafficking of wildlife with a market value of at least $1 million. Chait personally falsified customs forms by stating that rhinoceros horn and elephant ivory items were made of bone, wood or plastic. For example, during Asia Week in New York City, New York, in or about March 2011, Chait was approached by an undercover special agent with FWS about the potential sale of a carving of Guanyin, an East Asian spiritual figure made from rhinoceros horn (the Rhino Carving). Despite knowing that it was not a genuine antique, Chait and his co-conspirators accepted the Rhino Carving for consignment, advertised the sale to foreign clients in China and put the Rhino Carving on the cover of I.M. Chait Gallery’s catalogue in connection with an auction of Asian art and antiques. After the Rhino Carving sold at auction for $230,000 to another undercover agent, Chait offered to make a false document for the buyer to help the buyer smuggle the item out of the country. The fake invoice falsely stated that the item cost $108.75 and was made of plastic.
Chait also sold rhinoceros ivory carvings to another customer and provided those carvings to that customer’s courier, even after learning that the customer had been arrested in China for smuggling ivory purchased from Chait’s auction house.
In addition to falsifying customs forms by stating that rhinoceros horn and elephant ivory items were made of bone, wood or plastic, Chait and his co-conspirators conducted their wildlife smuggling using a variety of methods:
- Wildlife items were shipped to or picked up by third party shippers, who then re-shipped the items out of the country without the required declaration or permits.
- Members of the conspiracy provided packing materials to foreign wildlife buyers to assist them in hand carrying the wildlife out of the country.
- Foreign wildlife buyers were sold protected wildlife items without being assessed a state sales tax if they showed a foreign passport and itinerary for an international flight as proof the item would be leaving the country.
- Protected wildlife was smuggled into the United States without declaration or permits and then sold at auction by members of the conspiracy.
As a result of a recent Presidential Executive Order, trade in protected wildlife such as rhinoceros horn and elephant ivory has been significantly restricted in the last two years, except for those instances where sellers can prove that the item is a genuine antique that is more than 100 years old.
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under U.S. and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
In addition to the term of prison, Chait was sentenced to three years of supervised release and was ordered to pay a $10,000 fine.
Assistant Attorney General Cruden and U.S. Attorney Bharara praised the efforts of FWS for its outstanding work in this investigation.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit and the Environmental Crimes Section of the Department of Justice. Assistant U.S. Attorneys Jennifer Gachiri and Elizabeth Hanft and Senior Litigation Counsel Richard A. Udell with the Environmental Crimes Section of the Department of Justice are in charge of the prosecution.