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C-AIR TIMES ISSUE #635 - Friday, June 19, 2020 08:13

POLA and POLB Terminal Gates Closed 1st Shift on Friday, June 19 -  PierPass 

ILWU Local 13 Officers have notified the Pacific Maritime Association that they will hold a Stop-Work Meeting on Friday, June 19, 2020, FIRST shift only, between the hours of 7:00 a.m. and 5:00 p.m.

See PierPass for further details

Federal Register Notices:

AGENCY: U.S. Customs and Border Protection, Department of Homeland Security. ACTION: Notice of revocation of one ruling letter, modification of one ruling letter, and of revocation of treatment relating to the tariff classification of certain footwear.

SUMMARY: Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. § 1625(c)), as amended by section 623 of title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103–182, 107 Stat. 2057), this notice advises interested parties that U.S. Customs and Border Protection (CBP) is revoking one ruling letter and modifying one ruling letter concerning tariff classification of certain footwear under the Harmonized Tariff Schedule of the United States (HTSUS). Similarly, CBP is revoking any treatment previously accorded by CBP to substantially identical transactions. Notice of the proposed action was published in the Customs Bulletin, Vol. 54, No. 8, on March 4, 2020. No comments were received in response to that notice.

EFFECTIVE DATE:: This action is effective for merchandise entered or withdrawn from warehouse for consumption on or after August 9, 2020.

SUPPLEMENTARY INFORMATION: 

BACKGROUND Current customs law includes two key concepts: informed compliance and shared responsibility. Accordingly, the law imposes an obligation on CBP to provide the public with information concerning the trade community’s responsibilities and rights under the customs and related laws. In addition, both the public and CBP share responsibility in carrying out import requirements. For example, under section 484 of the Tariff Act of 1930, as amended (19 U.S.C. § 1484), the importer of record is responsible for using reasonable care to enter, classify and value imported merchandise, and to provide any other information necessary to enable CBP to properly assess duties, collect accurate statistics, and determine whether any other applicable legal requirement is met.

Pursuant to 19 U.S.C. § 1625(c)(1), a notice was published in the Customs Bulletin, Vol. 54, No. 8, on March 4, 2020, proposing to revoke one ruling letter and modify one ruling letter pertaining to the classification of certain footwear. Any party who has received an interpretive ruling or decision (i.e., a ruling letter, internal advice memorandum or decision, or protest review decision) on the merchandise subject to this notice should have advised CBP during the comment period.

Similarly, pursuant to 19 U.S.C. § 1625(c)(2), CBP is revoking any treatment previously accorded by CBP to substantially identical transactions. Any person involved in substantially identical transactions should have advised CBP during the comment period. An importer’s failure to advise CBP of substantially identical transactions or of a specific ruling not identified in this notice may raise issues of reasonable care on the part of the importer or its agents for importations of merchandise subsequent to the effective date of this notice.

In NY N266867, dated August 10, 2015, CBP classified footwear Style 203105 in heading 6401, HTSUS, specifically in subheading 6401.99.80, HTSUS, which provides for “Waterproof footwear with outer soles and uppers of rubber or plastics, the uppers of which are neither fixed to the sole nor assembled by stitching, riveting, nailing, screwing, plugging or similar processes: Other footwear: Other: Other: Other: Having uppers of which over 90 percent of the external surface area (including any accessories or reinforcements such as those mentioned in note 4(a) to this chapter) is rubber or plastics (except footwear having foxing or a foxing-like band applied or molded at the sole and overlapping the upper).”

In NY N267221, dated August 20, 2015, CBP classified footwear Style 7749010 in heading 6402, HTSUS, specifically in subheading 6402.99.31, HTSUS, which provides for “Other footwear with outer soles and uppers of rubber or plastics: Other footwear: Other: Other: Having uppers of which over 90 percent of the external surface area (including any accessories or reinforcements such as those mentioned in note 4(a) to this chapter) is rubber or plastics (except footwear having a foxing or a foxing-like band applied or molded at the sole and overlapping the upper and except footwear designed to be worn over, or in lieu of, other footwear as a protection against water, oil, grease or chemicals or cold or inclement weather): Other: Other.”

CBP has reviewed NY N266867 and NY N267221, and has determined the ruling letters to be in error. It is now CBP’s position that footwear Style 203105, at issue in NY N266867, and footwear Style 7749010, at issue in NY N267221, are properly classified in heading 6402, HTSUS, specifically in subheading 6402.99.27, HTSUS, which provides for “Footwear with outer soles and uppers of rubber or plastics: Other footwear: Other: Other: Having uppers of which over 90 percent of the external surface area (including any accessories or reinforcements such as those mentioned in note 4(a) to this chapter) is rubber or plastics (except footwear having a foxing or a foxing-like band applied or molded at the sole and overlapping the upper and except footwear designed to be worn over, or in lieu of, other footwear as a protection against water, oil, grease or chemicals or cold or inclement weather): Other: Sandals and similar footwear of plastics, produced in one piece by molding.” CBP’s classification of two other styles of footwear at issue in NY N266867 (Style 202845 and Style 202196), remains unchanged.

Pursuant to 19 U.S.C. § 1625(c)(1), CBP is revoking NY N267221 and modifying NY N266867, and revoking or modifying any other ruling not specifically identified to reflect the analysis contained in HQ H298312, set forth as an attachment to this notice. Additionally, pursuant to 19 U.S.C. § 1625(c)(2), CBP is revoking any treatment previously accorded by CBP to substantially identical transactions.

In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.

2K counterfeit designer face masks seized in New Orleans, Shreveport - U.S. Customs & Border Protection

NEW ORLEANS — U.S. Customs and Border Protection (CBP) officers assigned to the Ports of New Orleans and Shreveport seized more than 2,000 unapproved face masks bearing counterfeit designer logos. The shipments were found in express consignment facilities, and had been shipped from Vietnam and China.

On June 9, 2020, a shipment was discovered in New Orleans which contained 1,208 face masks with Burberry, Supreme and Gucci logos. A second shipment was found on June 10 in Shreveport and contained 990 face masks bearing Chanel logos. Both shipments were seized for bearing counterfeit trademarks.
 
“This is another example of the hard work and diligence shown by our CBP officers,” said Terri Edwards, CBP Port of New Orleans Director. “The significance of these seizures is two-fold. On one hand, our officers have kept potentially harmful counterfeit items from being introduced into the U.S. commerce. We must do our part to keep the American public protected, especially in the wake of COVID-19. Also, by seizing these shipments, our officers protected the intellectual property rights of legitimate businesses, keeping their trademarks from being used maliciously.” 
 
In Fiscal Year 2019, CBP seized more than 27,599 shipments containing goods with IPR violations with a total estimated manufacturer’s suggested retail price (MSRP) of more than $1.5 billion, if the goods had been genuine. 
 
CBP established an educational initiative to raise consumer awareness and conscientiousness about the associated consequences and dangers with purchasing counterfeit and pirated goods. Information about the Truth Behind Counterfeits public awareness campaign can be found at www.cbp.gov/fakegoodsrealdangers.  

USITC Launches Investigation of the Economic Impact on the United States of All Trade Agreements - U.S. International Trade Commission

The U.S. International Trade Commission (USITC) has initiated an investigation of the economic impact on the United States of all trade agreements with respect to which Congress has enacted an implementing bill under trade authorities procedures since January 1, 1984.

The investigation, Economic Impact of Trade Agreements Implemented Under Trade Authorities Procedures, 2021 Report, is required by section 105(f)(2) of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015.

As required by the statute, the USITC, an independent, nonpartisan, factfinding federal agency, will submit its report to the U.S. House of Representatives Committee on Ways and Means and the U.S. Senate Committee on Finance by June 29, 2021.

The report is the second of two required by the statute.  In addition to updating information provided in the first report, the second report will cover the new United States-Mexico-Canada Agreement (USMCA) and update and add new modeling and other information.  The Commission submitted its first report on June 29, 2016.

The Commission’s report will cover the Uruguay Round Agreements; the North American Free Trade Agreement and its successor, the USMCA; and U.S. free trade agreements (FTAs) with Australia, Bahrain, Canada, Chile, Colombia, the Dominican Republic and five Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua), Israel, Jordan, Korea, Morocco, Oman, Panama, Peru, and Singapore.

The USITC is seeking input for the investigation from all interested parties.  The USITC will hold a public hearing in connection with the investigation on October 6, 2020.  See below for important information regarding the format and location of this USITC hearing.

Requests to appear at the hearing should be filed no later than 5:15 p.m. on September 21, 2020, with the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.  See below for important information regarding filing a request to appear at a USITC hearing.

The USITC also welcomes written submissions for the record.  Written submissions should be addressed to the Secretary of the Commission at the above address and should be submitted no later than 5:15 p.m. on November 6, 2020. All written submissions, except for confidential business information, will be available for public inspection.  See below for important information regarding the filing of written submissions for USITC investigations.

IMPORTANT:  

All filings, including requests to appear at the hearing and written submissions, must be made through the Commission’s Electronic Document Information System (EDIS, https://edis.usitc.gov). No in-person paper-based filings or paper copies of any electronic filings will be accepted until further notice. Persons with questions regarding electronic filing should contact the Office of the Secretary, Docket Services Division (EDIS3Help@usitc.gov), or consult the Commission’s Handbook on Filing Procedures.

Information concerning the format of the hearing and certain other hearing details will be announced on the USITC website at https://usitc.gov/research_and_analysis/what_we_are_working_on.htm.  Once on that webpage, scroll down to the entry for this investigation and click on the link to “hearing instructions.” Interested parties should check the USITC website periodically for updates.

Further information on the scope of the investigation and appropriate submissions is available in the USITC’s notice of investigation, dated June 11, 2020, which can be downloaded from the USITC Internet site (www.usitc.gov) or may be obtained by contacting the Office of the Secretary at the above address or commissionhearings@usitc.gov.

Harrisburg CBP Seizes More Counterfeit Pokemon Action Figures from Hong Kong - U.S. Customs & Border Protection

Officers seized more than 206,000 Pokemon figurines in one month 

HARRISBURG, Pa. – Just one month after seizing more than 86,000 counterfeit Pokemon action figures, U.S. Customs and Border Protection (CBP) officers in Harrisburg, Pa., seized more than 120,000 more counterfeit Pokemon action figures. If authentic, this latest seizure would have had a manufacturer’s suggested retail price of more than $840,000.

This seizure consisted of 20 boxes in three shipments that arrived from Hong Kong May 18-26. Officers inspected the shipment and observed 120,480 small Pokemon action figures. Officers then confirmed with the trademark holder that the figurines were counterfeit. Officers seized the cache Wednesday. The shipments were destined to an address in Snyder County, Pa.

The figurines are small and pose a potential choking hazard to children. Additionally, counterfeit toys tend to be coated in excessive levels of lead paint. No lead testing was conducted on these toys.

“The Pokemon slogan is ‘Gotta catch ‘em all’’ and Customs and Border Protection officers are trying to do just that to these counterfeit and potentially dangerous toys,” said Casey Durst, CBP’s Director of Field Operations in Baltimore. “CBP officers remain steadfast in our commitment to intercepting counterfeit products, especially those products that could seriously harm American consumers.”

On May 13, CBP officers seized the previous shipment of 86,400 Pokemon action figures. If authentic, those figurines would have had a manufacturer’s suggested retail price of more than $600,000.

CBP protects businesses and consumers every day through an aggressive Intellectual Property Rights (IPR) enforcement program. Importation of counterfeit merchandise can cause significant revenue loss, damage the U.S. economy, and threaten the health and safety of the American people.

On a typical day in 2019, CBP officers seized $4.3 million worth of products with Intellectual Property Rights violations. Learn more about what CBP did during "A Typical Day" in 2019.

CBP officers and Homeland Security Investigation (HSI) agents seized 27,599 shipments containing counterfeit goods in Fiscal Year (FY) 2019. The total estimated manufacturer’s suggested retail price (MSRP) of the seized goods, had they been genuine, would be $1.5 billion.

E- Commerce sales have contributed to large volumes of low-value packages imported into the United States. In FY 2019, there were 144 million express shipments and 463 million international mail shipments. Over 90 percent of all intellectual property seizures occur in the international mail and express environments
The People’s Republic of China (mainland China and Hong Kong) remained the primary source economy for seized counterfeit and pirated goods, accounting for 83 percent of all IPR seizures and 92 percent of the estimated MSRP value of all IPR seizures.

Read CBP’s Intellectual Property Seizure Report for Fiscal Year 2019 for more IPR stats and analysis.

FDA Warns Four Manufacturers of Unapproved Injectable Drugs Labeled as Homeopathic - Food & Drug Administration

The U.S. Food and Drug Administration has issued warning letters to four companies for selling unapproved injectable drug products labeled as homeopathic that can pose serious risks to patient health and violate federal law, as part of the agency’s efforts to protect Americans from potentially harmful products that are labeled as homeopathic.

The FDA is particularly concerned about unapproved injectable drug products labeled as homeopathic because they are injected directly into the body, often directly into the bloodstream and bypass some of the body's key natural defenses against toxins, toxic ingredients and dangerous organisms that can cause serious and life-threatening harm. Additionally, unapproved drugs that claim to cure, treat or prevent serious conditions may cause consumers to delay or stop medical treatments that have been found safe and effective through the FDA review process.

“The FDA’s drug approval requirements are designed to protect patients by ensuring, among other things, that drugs are safe and effective for their intended uses. These unapproved injectable drugs are particularly concerning because they inherently present greater risks to patients because of how they are administered,” said Donald D. Ashley, director of the Office of Compliance in the FDA's Center for Drug Evaluation and Research. “These products are further concerning given that they are labeled to contain potentially toxic ingredients intended for injection directly into the body. These warning letters reflect our continued commitment to patient safety.”

No currently marketed drug products labeled as homeopathic have been approved by the FDA for any use and the agency cannot assure these drugs meet modern standards for safety, effectiveness and quality. Products labeled as homeopathic can be made from a wide range of substances, including ingredients derived from plants, healthy or diseased animal or human sources, minerals and chemicals, and they can include known poisons or toxins. These drugs are often marketed as natural, safe and effective alternatives to approved prescription and nonprescription products and are widely available in the marketplace. Additionally, the lack of premarket quality review is particularly concerning for injectable drugs, which generally pose a greater risk of harm to users because the route of administration for these products bypasses some of the body’s natural defenses.

The FDA issued the warning letters to Hervert Pharmaceuticals, LLC; MediNatura, Inc.; 8046255 Canada, Inc., doing business as Viatrexx; and World Health Advanced Technologies, Ltd. The products included in the warning letters are new drugs because they are not generally recognized as safe and effective for their labeled uses, and FDA has not approved these products. Some drugs, such as “Enercel,” marketed by World Health Advanced Technologies, Ltd., are intended for serious diseases such as tuberculosis and hepatitis B and C.

Many of the drugs were labeled to contain potentially toxic ingredients such as nux vomica, belladonna (deadly nightshade), mercurius solubilis (mercury), and plumbum aceticum (lead). For example, nux vomica contains strychnine, which is a highly toxic, well-studied poison that is used to kill rodents. The agency is concerned that these potentially toxic ingredients present additional risks of serious harm when delivered directly into the body, including directly into the bloodstream.

Drugs labeled as homeopathic may also cause significant and even irreparable harm if they are poorly manufactured. Viatrexx was also cited for substandard manufacturing practices for sterile drugs.

The foreign manufacturers of the injectable drugs sold by Hervert Pharmaceuticals, LLC; MediNatura New Mexico, Inc.; and Viatrexx were also placed on import alert 66-41 to stop these drugs from entering the U.S.

The FDA has taken steps to clarify for both consumers and industry how the potential safety risks of these products are assessed. On Oct. 24, 2019, the FDA withdrew Compliance Policy Guide (CPG) 400.400 “Conditions Under Which Homeopathic Drugs May be Marketed,” because it was inconsistent with the agency’s risk-based approach to regulatory and enforcement actions. The FDA also issued a revision of its draft guidance, titled Drug Products Labeled as Homeopathic: Guidance for FDA Staff and Industry, for public comment. When finalized, this guidance will explain the categories of homeopathic drug products that we intend to prioritize under our risk-based enforcement approach. In the interim, before the draft guidance is finalized, the FDA intends to apply its general approach to prioritizing risk-based regulatory and enforcement action.
 
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