New Ruling for Parties Classifying Merchandise - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
Customs recently issued a ruling on the CROSS database, that may be problematic for many importers. In H290535, a seller of merchandise provided the ten digit Harmonized Tariff classifications to their customers. The classifications did come with a caveat that the importer should verify the classification with their expert. Despite the caveat, Customs held that providing tariff codes to third parties (even if the tariff codes were for the merchandise they were selling to their own customers) was performing “customs business” and therefore must be carried out by a licensed customs broker.
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Federal Register Notices:
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Stainless Steel Wire Rod From India; Scheduling of an Expedited Five-Year Review
• 1-Hydroxyethylidene-1, 1-Diphosphonic Acid (HEDP) From China; Scheduling of Expedited Five-Year Reviews
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Smart Thermostat Hubs, Systems Containing the Same, and Components of the Same; Institution of Investigation
• Stainless Steel Sheet and Strip From China
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Uncovered Innerspring Units From the People's Republic of China: Preliminary Results of Antidumping Duty Administrative Review; 2021-2022
• Light-Walled Welded Rectangular Carbon Steel Tubing From Taiwan: Final Results of the Expedited Sunset Review of the Antidumping Duty Order
• Certain Frozen Warmwater Shrimp From the People's Republic of China: Preliminary Results of Antidumping Duty Administrative Review and Preliminary Determination of No Shipments; 2021-2022
• Certain Freight Rail Couplers and Parts Thereof From the People's Republic of China: Initiation of Countervailing Duty Investigation
• Finished Carbon Steel Flanges From Spain: Final Results of Administrative Review; 2020-2021
• Sales at Less Than Fair Value; Determinations, Investigations, etc.: Certain Freight Rail Couplers and Parts Thereof From the People's Republic of China and Mexico: Initiation of Less-Than-Fair-Value Investigations
• Investigations; Determinations, Modifications, and Rulings, etc.: 1,1,1,2-Tetrafluoroethane (R-134a) From China
• Phosphor Copper from South Korea
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Polyethylene Terephthalate Film, Sheet, and Strip (PET Film) From Taiwan: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2020-2021
• Rescission of Antidumping and Countervailing Duty Administrative Reviews
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Universal Golf Club Shaft and Golf Club Head Connection Adaptors, Certain Components Thereof, and Products Containing the Same; Notice of a Commission Determination Not to Review an Initial Determination Finding Respondent Top Golf in Default; Request for Written Submissions on Remedy, the Public Interest, and Bonding
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Notice of Scope Ruling Applications Filed in Antidumping and Countervailing Duty Proceedings
• Certain Walk-Behind Lawn Mowers and Parts Thereof From the People's Republic of China: Initiation of a Circumvention Inquiry on the Antidumping and Countervailing Duty Orders
• Determination of Sales at Less Than Fair Value: Certain Superabsorbent Polymers From the Republic of Korea: Final Determination of Sales at Less Than Fair Value
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Notice of Scope Ruling Applications Filed in Antidumping and Countervailing Duty Proceedings
• Certain Walk-Behind Lawn Mowers and Parts Thereof From the People's Republic of China: Initiation of a Circumvention Inquiry on the Antidumping and Countervailing Duty Orders
• Determination of Sales at Less Than Fair Value: Certain Superabsorbent Polymers From the Republic of Korea: Final Determination of Sales at Less Than Fair Value
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USTR, USDA to Pursue Avenues to Assist Seasonal Produce Industry - U.S. Trade Representative
WASHINGTON – The Office of the United States Trade Representative today announced that it will pursue avenues to assist the Southeast seasonal produce industry in coordination with the United States Department of Agriculture after Members of Congress requested an examination of certain issues in a September 8, 2022, Section 301 petition.
The Biden Administration recognizes that Southeast producers have faced challenges, which have only intensified since Hurricane Ian made landfall earlier this month. USTR will establish a private-sector industry advisory panel to recommend measures to promote the competitiveness of producers of seasonal and perishable produce in the southeastern United States. USTR and USDA will work with the advisory panel and Members of Congress to develop possible administrative actions and legislation that would provide real benefits to this struggling industry.
The Section 301 petition, which was filed on September 8, 2022 by certain Members of Florida’s Congressional delegation, alleged that the Government of Mexico has adopted an “export targeting” scheme aimed at Florida produce. The 301 statute requires that USTR make a decision on whether to move forward with an investigation within 45 days. The statute also includes a private-sector advisory panel as a specific response to export targeting. Although USTR could not conclude in the 45-day statutory period that a formal 301 investigation would be effective and is not opening an investigation at this time, USTR is moving forward with an advisory panel, and USTR and USDA will work with the petitioners and producers to examine the issues raised in the petition and to consider any further actions that may be appropriate
USTR will publish a formal notice in the Federal Register summarizing USTR’s response to the petition.
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Norfolk, VA CBP Officers Seize $130k in Counterfeit Goods, Including Infant and Children’s Products - U.S. Customs & Border Protection
Shipments were destined to addresses near Baltimore and Wilmington, Del.
NORFOLK, Va. – U.S. Customs and Border Protection officers at the Area Port of Norfolk-Newport News, Va., seized more than $130,000 in counterfeit consumer goods recently, including infant loungers and children’s clothing and backpacks featuring Disney characters.
CBP officers inspected two shipments that arrived from Istanbul, Turkey, on September 21. One shipment consisted of 2,562 items destined to an address near Wilmington, Delaware, and the second consisted of 654 items destined to an address near Baltimore.
CBP officers suspected that the consumer goods were counterfeit and detained them to verify authenticity.
Officers submitted documentation and photographs to CBP’s trade experts at the Apparel, Footwear and Textiles Centers of Excellence and Expertise.
On September 22, CBP’s trade experts verified that the consumer goods were not authentic and that they bore infringing trademarks and copyrights that had been recorded with CBP through the e-Recordation program (https://iprr.cbp.gov/s/).
The shipments consisted of mattress covers and infant loungers bearing counterfeit OKEO-TEX product safety labels, mosaic lamps bearing counterfeit UL (Underwriters Laboratories) safety certification marks, and backpacks and clothing bearing Disney and Marvel characters in violation of copyrights recorded with CBP.
The counterfeit consumer goods were valued at $130,786 MSRP, had they been authentic.
CBP officers seized the counterfeit goods on October 11.
No one has been criminally charged. An investigation continues.
“Unscrupulous vendors threaten the health and safety of unsuspecting consumers by peddling counterfeit goods as authentic and safe products, and as a grandparent, these seizures are particularly worrisome considering that some of these consumer goods were infant and children’s products,” said Mark Laria, CBP’s Area Port Director for the Area Port of Norfolk-Newport News. “CBP strongly encourages consumers to protect their families by purchasing authentic goods from reputable vendors.”
CBP protects businesses and consumers every day through an aggressive Intellectual Property Rights (IPR) enforcement program. The international trade in counterfeit consumer goods is illegal. It steals revenues from trademark holders, steals tax revenues from the government, funds transnational criminal organizations, and the unregulated products potentially threaten the health and safety of American consumers. Counterfeit consumer goods may also be sourced or manufactured in facilities that employ forced labor.
During fiscal year 2021, CBP officers and Homeland Security Investigations (HSI) special agents seized over 27,000 shipments containing goods that violated intellectual property rights. The total estimated manufacturer’s suggested retail price (MSRP) of the seized goods, had they been genuine, was $3.3 billion, or an average of about $9 million every day.
Additionally, HSI special agents arrested 388 individuals in 2021, obtained 155 indictments, and received 100 convictions related to intellectual property crimes. To learn more at HSI’s role in combatting counterfeiting, visit the National IPR Coordination Center.
Media can mine additional enforcement details by viewing CBP’s IPR webpage or by viewing previous years’ annual counterfeit goods seizure reports.
CBP's border security mission is led at ports of entry by CBP officers and agriculture specialists from the Office of Field Operations. CBP screens international travelers and cargo, and searches for illicit narcotics, unreported currency, weapons, counterfeit consumer goods, prohibited agriculture, invasive weeds and pests, and other illicit products that could potentially harm the American public, U.S. businesses, and our nation’s safety and economic vitality.
Learn what CBP accomplished during "A Typical Day" in 2021. Learn more about CBP at www.CBP.gov.
Follow the Director of CBP’s Baltimore Field Office on Twitter at @DFOBaltimore for breaking news, current events, human interest stories and photos, and CBP’s Office of Field Operations on Instagram at @cbpfieldops.
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CBP Seizes Over 5K lbs in Cosmetics - U.S. Customs & Border Protection
New Orleans - U.S. Customs and Border Protection (CBP) officers at the Port of New Orleans seized nearly 130,000 eye shadow sticks that lacked the U.S. Food and Drug Administration (FDA) required ingredients list.
The 10-pallet, 5666 lb. shipment, was manifested as cosmetics and en route to Washington state from Colombia near the end of September.
Upon the shipment’s arrival, a CBP officer examined the shipment and began coordination with the FDA. An FDA Investigator-Import Specialist confirmed that the product was misbranded because it did not have an ingredients declaration. The FDA’s specialist went on to add that the article is subject to refusal of admission pursuant to Section 801 in that it appears to have a labeling deficiency; its labeling fails to display an ingredients declaration [Misbranding, Section 602(b)].
“American cosmetic users should always know what is in the products they are putting onto their bodies, especially on sensitive areas such as eyelids and lips,” said Terri Edwards, Area Port Director of New Orleans. “If a cosmetic product cannot state what it contains, it’s not entering our country.”
There was a total of 283 boxes in the 10 pallets, with an individual count of 129,805 eyeshadow sticks. Research showed the eyeshadow sticks sell for $26 each.
CBP seized eyeshadow sticks and a seizure notice will be sent to the interested parties.
According to the FDA’ website, cosmetic manufacturers have a legal responsibility for the safety and labeling of their products. FDA takes action against cosmetics on the market that do not comply with the law. CBP coordinates with FDA to verify cosmetics shipments follow U.S. guidelines and do not pose a danger to the consumer.
Since January, CBP has seized 29 shipments of FDA regulated products at the Port of New Orleans, with a total value of over $3.7 million.
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In the New:
• 6 Trends Shaping the Global Supply Chain in 2023 [Fast Company]
• Hurdles in Supply Chain Remain as US Raises its 'Buy American' Threshold for Government Purchase [South China Morning Post]
• China, 'Factory of the World,' is Losing More of its Manufacturing and Export Dominance, Latest Data Shows [CNBC]
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FTC Seeks to Improve the American Public’s Access to Funeral Service Prices Online - Federal Trade Commission
The Federal Trade Commission is exploring possible steps to strengthen and modernize the Funeral Rule, which requires funeral providers to give in-person visitors price information to make informed decisions. The FTC also released a staff report that found that fewer than 40 percent of the funeral provider websites the agency reviewed provide any prices online.
“For decades, the Funeral Rule has provided crucial rights to grieving families seeking out burial and cremation services,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “We look forward to hearing from the public about how we can modernize the rule to better protect consumers in today’s market.”
The Funeral Rule requires funeral providers to furnish consumers who visit funeral homes in-person with itemized price information. But, because the rule was first issued in the 1980s, it does not require them to provide price information online and via other electronic means like email or text messages.
The agency’s review of funeral providers’ websites – which took place during the height of the COVID-19 pandemic when many people could not or did not feel comfortable visiting a funeral home in person to make arrangements for their loved ones – found that more than 60 percent of the websites reviewed provided little to no information about their prices.
On February 14, 2020, the Commission initiated a routine review of the rule, which received 785 comments. Several commenters stated that many funeral providers do not provide price information online and asked the Commission to require that funeral providers make price information available on their websites and via other electronic means.
After carefully reviewing all the comments received, the staff report, and the FTC’s enforcement and outreach efforts in the area, the Commission has decided to retain the Funeral Rule and issue an Advance Notice of Proposed Rulemaking concerning potential amendments to the rule, including whether and how funeral providers should be required to display or distribute their price information online and through electronic means.
Information about how to submit comments on the FTC’s Advance Notice of Proposed Rulemaking is included in the Federal Register notice. The deadline for submitting comments will be 60 days after the notice is published in the Federal Register in the coming days. Submitted comments will be posted to Regulations.gov.
The Commission voted 4-0 to publish the notice in the Federal Register and issue the staff report. Chair Lina M. Khan issued a separate statement.
The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and report scams, fraud, and bad business practices online at ReportFraud.ftc.gov. Follow the FTC on social media, read our blogs and subscribe to press releases for the latest FTC news and resources.
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How to Recognize a Fake Geek Squad Renewal Scam - Federal Trade Commission
Scammers are at it again, impersonating well-known businesses and trying to rip people off. This time they’re pretending to be from Geek Squad, Best Buy’s tech support service. Here’s what we’re hearing about the scam and what to do if you see it.
You get a text message or email that says you were or will be charged hundreds of dollars to renew your Geek Squad membership. If you want to dispute the charge or cancel your membership, the message says you must call a phone number within 24 hours.
If you call the number — which you should not do — the scammer might ask for remote access to your computer. If you give it to them, they can install spyware programs on your computer, steal your online banking credentials, and drain money from your bank account.
Some scammers may ask for your bank account information to refund your money, then fake a transaction and make it look like they accidentally refunded you too much. To pay them back, they tell you to buy gift cards and give them the gift card numbers and PINs.
Scammers send alarming messages like this to rattle you. Don’t let them. If you think the message is legitimate, contact the company in question using a phone number you know is real. Do not use the number included in the message.
Also check your credit card or bank account for an unauthorized transaction. If you see one, report it to the institution and ask them to reverse it and give you back your money.
Find out what to do if you paid a scammer or gave them your personal information or access to your computer.
If you see a scam, report it to the FTC at ReportFraud.ftc.gov.