Revocation of Two Ruling Letters and Revocation of Treatment Relating to the Tariff Classification of Certain Footwear - U.S. Customs & Border Protection
AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.
ACTION: Notice of revocation of two ruling letters, 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 two ruling letters 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. 53, No. 37, on October 16, 2019. Five 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EFFECTIVE DATE: This action is effective for merchandise entered or withdrawn from warehouse for consumption on or after March 27, 2022.
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. 53, No. 37, on October 16, 2019, proposing to revoke two ruling letters pertaining to the tariff 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 New York Ruling Letter (“NY”) N285583, dated June 6, 2017, and NY N299433, dated August 23, 2018, CBP classified certain footwear in heading 6404, HTSUS, specifically in subheading 6404.19.90, HTSUS, which provides for “Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: Footwear with outer soles of rubber or plastics: Other: Other: Valued over $12/pair.” CBP has reviewed NY N285583 and NY N299433, and has determined these ruling letters to be in error. It is now CBP’s position that the footwear at issue in these rulings is properly classified in subheading 6404.11.90, HTSUS, which provides for “Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: Footwear with outer soles of rubber or plastics: Sports footwear; tennis shoes, basketball shoes, gym shoes, training shoes and the like: Other: Valued over $12/pair.”
Pursuant to 19 U.S.C. § 1625(c)(1), CBP is revoking NY N285583 and NY N299433, and revoking or modifying any other ruling not specifically identified to reflect the analysis contained in Headquarters Ruling Letter (“HQ”) H302976, 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
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USDA Announces Partnership to Ease Port Congestion and Restore Disrupted Shipping Services to U.S. Grown Agricultural Commodities - U.S. Department of Agriculture
Increased capacity at Port of Oakland continues the Biden-Harris Administration’s Supply Chain Task Force efforts with states and local governments
WASHINGTON, Jan. 31, 2022 – Agriculture Secretary Tom Vilsack announced plans to increase capacity at the Port of Oakland in Oakland, California and improve service for shippers of U.S. grown agricultural commodities. The U.S. Department of Agriculture (USDA) is partnering with the Port of Oakland to set up a new 25-acre “pop-up” site to make it easier for agricultural companies to fill empty shipping containers with commodities. Fewer containers have been made available for U.S. agricultural commodities, as ocean carriers have circumvented traditional marketing channels and rushed containers back to be exported empty and as a result, many of these carriers have suspended service to the Port of Oakland. USDA is now taking action to reduce these shipping disruptions that have prevented U.S. agricultural products from reaching their markets.
“COVID-19 revealed vulnerabilities across our supply system, both at our ports and in the agricultural sector,” U.S. Agriculture Secretary Vilsack said. “As the economy has made an historic recovery, it has put additional strain on the supply chain. The Biden-Harris Administration is using creative approaches to improve port operations while elevating American-grown food and fiber. This partnership with the Port of Oakland builds on our aggressive approach to addressing challenges within the supply chain and sends a strong signal that we are committed to working across the Administration and with state, local and private partners to mitigate complex port capacity and congestion issues and to keep American agriculture on the move.”
“This creative partnership with USDA and the Port of Oakland will help American farmers and agricultural producers move their product to market while also making better use of empty containers that are causing congestion at the ports,” said U.S. Transportation Secretary Pete Buttigieg. “After we helped set up inland pop-up ports at the Port of Savannah, we witnessed significant improvements in the flow of goods, and we expect to see similarly positive results once this Oakland facility is open. We look forward to engaging with other ports on similar solutions to congestion.”
"This is an important step that shows the value of players in the supply chain coming together to identify challenges as well as potential solutions,” said California Department of Food and Agriculture Secretary Karen Ross. “I wish to thank the USDA for making this investment. It will help improve access to overseas markets for California agriculture producers at a critical time of year for exports of high-value specialty crops.”
The site will provide space to prepare empty containers beginning in early March. Agricultural companies and cooperatives will have easier access to these containers, which they will fill with commodities, restoring shipping services to agricultural products while relieving congestion. The new site will also have a dedicated gate with the ability to pre-cool refrigerated shipping containers to receive perishable commodities, all while avoiding bottlenecks that would have resulted from entering the main area of the Port.
Pressuring Ocean Carriers
In December, Secretary Buttigieg and Secretary Vilsack urged the world’s leading ocean carriers to help mitigate disruptions to agricultural shippers by restoring reciprocal treatment of imports and exports and improving service. Ocean carriers have made fewer containers available for U.S. agricultural commodities, repeatedly changed return dates, and charged unjust fees as the ocean carriers short-circuited the usual pathways and rushed containers back to be exported empty. The poor service and refusal to serve customers is exemplified by many ocean carriers suspending service to the Port of Oakland. DOT and USDA called on the carriers to more fully utilize available terminal capacity on the West Coast. At least one carrier has since announced plans to resume previously suspended service to Oakland.
USDA has been actively developing options to alleviate market disruptions for agricultural producers and companies using the Commodity Credit Corporation (CCC) resources set-aside last fall, with a special focus on transportation challenges such as ports and trucking.
About the Partnership
Using Commodity Credit Corporation funds set aside to address market disruptions in September 2021, USDA will cover 60% of the start-up costs, which reflects the historical share of agricultural products that are marketed through the Port of Oakland. USDA will also help cover additional movement logistics costs at $125 per container.
This project will enhance marketing of U.S. agricultural products through:
• Quicker pickup of empty containers as the main terminal is bypassed;
• Access to available equipment; and
• Fewer unpredictable congestion surcharges for trucks.
This partnership is the culmination of regular and sustained efforts by the Biden-Harris Administration through the Supply Chain Task Force, which includes Secretary Vilsack, Secretary Buttigieg and Port Envoy John Porcari. The task force has been regularly meeting with states like California and local entities like the Port of Oakland to find creative solutions to alleviate the congestion and put pressure on the ocean carriers to return and restore service for U.S. agricultural shippers.
The benefits of relieving congestion and addressing capacity issues at ports through partnerships like this one at the Port of Oakland go well beyond the local region as commodities and agricultural products grown and processed from thousands of miles away feed into and flow through the port. Farmers, ranchers, workers, rural communities and agricultural companies throughout the supply chain will benefit from efforts to restore and improve proper service by the ocean carriers to use the export capacity of our ports.
USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America.
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Federal Register Notices:
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Chlorinated Isocyanurates From Spain and the People's Republic of China: Final Results of the Third Expedited Sunset Reviews of the Antidumping Duty Orders
• Diffusion-Annealed, Nickel-Plated Flat-Rolled Steel Products From Japan: Final Results of Antidumping Duty Administrative Review; 2019-2020
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Adalimumab, Processes for Manufacturing or Relating to Same, and Products Containing Same; Notice of Institution of Investigation
• Certain High-Performance Gravity-Fed Water Filters and Products Containing the Same; Notice of Institution of Investigation
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Welded Stainless Pressure Pipe From India: Final Results of the Expedited First Sunset Review of the Countervailing Duty Order
• Polyethylene Terephthalate Film, Sheet, and Strip from India: Final Results of Antidumping Duty Administrative Review; 2019-2020
• Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From the Republic of Turkey: Final Results of Countervailing Duty Administrative Review; 2019
• Polyethylene Terephthalate Film, Sheet, and Strip from India: Final Results of Countervailing Duty Administrative Review and Rescission, in Part; 2019
• Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Advance Notification of Sunset Review
• Welded Stainless Pressure Pipe From India: Final Results of Expedited Sunset Review of the Antidumping Duty Order
• Stainless Steel Wire Rod From the Republic of Korea: Initiation of Circumvention Inquiry of Antidumping Duty Order
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Artists' Canvas From China; Institution of a Five-Year Review
• Investigations; Determinations, Modifications, and Rulings, etc.: Ammonium Sulfate From China; Institution of Five-Year Reviews
• New Pneumatic Off-the-Road Tires From India; Institution of Five-Year Reviews
• Biaxial Integral Geogrid Products From China; Institution of Five-Year Reviews
• Amorphous Silica Fabric From China; Institution of Five-Year Reviews
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Large Diameter Welded Pipe From the Republic of Korea: Final Results of Countervailing Duty Administrative Review; 2018-2019
• Carbon and Alloy Steel Wire Rod From the Republic of Korea: Final Results of Antidumping Duty Administrative Review; 2019-2020
• Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules, From the People's Republic of China: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2018-2019; Correction
• Certain Steel Nails From Malaysia: Final Results of Antidumping Duty Administrative Review; 2019-2020
• Sales at Less Than Fair Value; Determinations, Investigations, etc.: Urea Ammonium Nitrate Solutions From the Republic of Trinidad and Tobago: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures
• Urea Ammonium Nitrate Solutions From the Russian Federation: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures
• Acrylonitrile-Butadiene Rubber From France: Preliminary Affirmative Determination of Sales at Less Than Fair Value and Partial Affirmative Determination of Critical Circumstances, Postponement of Final Determination, and Extension of Provisional Measures
• Acrylonitrile-Butadiene Rubber From Mexico: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures
• Acrylonitrile-Butadiene Rubber From the Republic of Korea: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Preliminary Affirmative Determination of Critical Circumstances, in Part, Postponement of Final Determination, and Extension of Provisional Measures
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Composite Baseball and Softball Bats and Components Thereof; Commission Determination Not To Review Two Initial Determinations Granting Complainant's Motion To Amend the Complaint and Notice of Investigation To Add a Respondent and Extending the Target Date for Completion of This Investigation
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Hardwood Plywood Products From the People's Republic of China: Preliminary Results of Antidumping Duty Administrative Review and Preliminary Determination of No Shipments; 2020
• Certain Steel Nails From the Republic of Korea: Final Results of Antidumping Duty Administrative Review; 2019-2020; Correction
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Video Processing Devices, Components Thereof, and Digital Smart Televisions Containing the Same II; Institution of Investigation
• Uncoated Paper From Australia, Brazil, China, Indonesia, and Portugal
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OTEXA: Announcements - Office of Textile & Apparel
[01/25/2022] – The U.S. Department of Homeland Security, on behalf of the Forced Labor Enforcement Task Force (FLETF), is seeking comments from the public, as required by the Uyghur Forced Labor Prevention Act, on how best to ensure that goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part with forced labor in the People's Republic of China are not imported into the United States. Comments must be received on or before March 10, 2022. See Federal Register notice 87 FR 3567 for details.________________________________________________________________________________
CBP International Trade Analyst Combats Forced Labor - U.S. Customs Border & Protection
From social distancing to antigen to PPE, the pandemic has changed our everyday vocabulary. Add to the list another new household term: global supply chain.
Whether it’s gloves stitched in Malaysia or tomatoes grown in Mexico, each year trillions of dollars of consumer products rely on the global supply chain - the worldwide system through which businesses produce and distribute goods and services — and which comprises hundreds of millions of workers who continue to be affected by the pandemic. But this global supply chain, along with the multitude of problems that may beset it and the human beings who make it up, existed long before COVID-19 emerged. And for some Americans, it represents not only a household term, but also the subject of a life’s work.
International Trade Analyst George Castro works in the CBP Office of Trade, where he investigates allegations of the use of forced labor in the production of commodities imported into the U.S. If a product has been touched by forced labor anywhere in the course of its life — anywhere along the global supply chain — Castro’s job is to find out and prohibit it from entering the U.S. market. He works to level the playing field for domestic industries injured by such unfairly traded imports and, ultimately, to help end the forced labor of potentially trafficked individuals worldwide. “The goal is to combat forced labor, to ensure that [trafficked] people’s human rights are not violated to produce commodities exported to the United States,” said Castro.
Castro’s humanitarianism took root at age 11 as a Boy Scout in his hometown of Praia Grande, a small coastal city in the state of São Paulo, Brazil. Through scouting, he met an American scoutmaster and his family from California. “In the next years, while traveling internationally in connection with charitable projects, including visiting indigenous communities in the Amazon, this family helped plant in me the desire to study abroad and serve others whenever possible,” Castro said.
In 1990, Castro moved to California to attend college, graduating with a degree in international business. During his undergraduate years, he participated in several humanitarian efforts, including building houses in communities, and assisting in the delivery of food and clothing supplies to orphanages in both California and Mexico. After graduation, he returned to Brazil to work in the international division of an American corporation. “This enabled me to continue learning about the world through the eyes of a business analyst,” he said.
Castro went on to earn a law degree while in Brazil and, in 2004, came back to the U.S. to join an immigration law firm as a clerk. “U.S. immigration reform was a recurrent topic, with positive and negative views on immigration dictating the political approaches toward foreign nationals,” Castro said.
Castro’s firm actively offered pro bono services under the Violence Against Women Act to aid foreign women and children who were victims of domestic violence and, in some cases, also victims of human trafficking. He listened to his clients’ stories, interpreted them for U.S. Citizen and Immigration Services (USCIS) officers, and accompanied clients to immigration court.
During this time Castro learned to appreciate the work of USCIS professionals and joined them in 2016, eventually becoming an immigration services officer responsible for interviewing applicants for residence in the U.S. or for citizenship. His final role for USCIS before joining CBP in 2020 was as an immigration officer with the Fraud Detection and National Security Directorate, investigating fraud and violations within the U.S. immigration system.
In his current role in the CBP Office of Trade, Castro hopes that the scope of his work will help broadcast its humanitarian spirit. When the U.S. investigates all allegations of forced labor within the global supply chain and acts on those found to be true — by sending back or seizing goods or remediating the issue in other ways — it sends the message that the problem of human trafficking goes far beyond our borders and that eliminating it must be a global effort. At the heart of the complex global supply chain is the challenging task of determining whether products are being created with the forced labor of potentially trafficked individuals, said Castro.
“By ensuring that we do not consume products from forced labor, many other countries will look at us as an example and, hopefully, in the near future, they’re going to be adopting similar legislation,” said Castro. “CBP is making a difference. We’re a model to many countries who agree that forced labor should not be allowed.”
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Federal Authorities Arrest Philadelphia Man who Allegedly Imported Counterfeit Airbags - U.S. Customs & Border Protection
NICB, NHTSA offer consumers advice to protect themselves from airbag fraud
PHILADELPHIA – Federal authorities arrested a suspect today following a years-long investigation of counterfeit vehicle airbag inflators that included seizures by U.S. Customs and Border Protection (CBP) officers in 2019.
The U.S. Attorney’s Office for the Eastern District of Pennsylvania is charging Emiliano Rodriguez, 44, a citizen of the Dominican Republic residing in Philadelphia, PA, with trafficking in counterfeit goods, and causing the delivery of hazardous materials by air carrier. The indictment caps an investigation and arrest by special agents from Homeland Security Investigations (HSI).
Criminal charges are merely allegations. Defendants are presumed innocent unless proven guilty in a court of law.
CBP officers discovered 12 airbag gas inflators in an international air parcel that arrived from Hong Kong to Philadelphia on September 12, 2019. Due to the poor packaging and quality of the shipment, CBP officers detained the airbag inflators as possible counterfeits and turned them over to HSI agents. HSI agents initiated an investigation.
“A vehicle’s airbag is an essential car safety feature and counterfeit airbags pose an invisible threat to a vehicle’s occupants,” said Joseph Martella, Area Port Director for CBP’s Area Port of Philadelphia. “Protecting the health and safety of the American consumer is a top priority for Customs and Border Protection, and CBP officers will continue to work closely with our law enforcement and consumer safety partners to intercept counterfeit and potentially dangerous consumer products.”
Airbag inflators use an immense gas explosion to immediately deploy vehicle airbags when sensors detect a collision. According to the National Highway Transportation Safety Administration (NHTSA), counterfeit air bags have been shown to consistently malfunction in ways that range from non-deployment to unexpected deployment to the expulsion of metal shrapnel during deployment.
Airbag fraud remains a concern for vehicle and consumer safety organizations. Individuals and collision repair shops commit airbag fraud when they replace deployed airbags with counterfeit airbags that are deeply discounted and purchased through non-certified online vendors. Consumers have options to protect themselves when purchasing used vehicles.
The National Insurance Crime Bureau (NICB) offers a free VINcheck to determine if a vehicle may have a record of an insurance theft claim, or has ever been reported as a salvage vehicle.
Additionally, NHTSA offers advice on airbags use, lists airbag recall information, and describes the threat posed by counterfeit airbags. According to NHTSA, the following consumers may be at risk of owning a vehicle with a counterfeit air bag:
• Consumers who have had air bags replaced at a repair shop that is not a new car dealer franchised to perform the repair;
• Consumers who have purchased a used car that may have sustained an air bag deployment before their purchase;
• Consumers who own a car with a salvage title; and
• Consumers who have purchased replacement airbags from eBay or other non-certified sources—especially if they were purchased at unusually low prices (i.e. less than $400)
Concerned consumers can learn more about airbags at https://www.nhtsa.gov/equipment/air-bags, or by contacting a local certified automotive dealer to have their vehicle inspected.
Intercepting counterfeit consumer goods at our nation’s ports of entry remains a CBP trade enforcement priority. During Fiscal Year 2020, CBP reported 26,503 counterfeit goods seizures worth an estimated manufacturer’s suggested retail price (MSRP) of over $1.3 billion, in the goods were authentic. That comes out to about $3.6 million in counterfeit goods seizures every day. Read CBP’s Intellectual Property Seizure Report for more Fiscal Year 2020 IPR stats and analysis.
CBP's border security mission is led at ports of entry by CBP officers from the Office of Field Operations. CBP officers screen international travelers and cargo and search for illicit narcotics, unreported currency, weapons, counterfeit consumer goods, prohibited agriculture, and other illicit products that could potentially harm the American public, U.S. businesses, and our nation’s safety and economic vitality. See what CBP accomplished during a typical day in 2021.