CPSC Proposes Rule to Amend the Existing Regulation on Certificates of Compliance
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP / http://www.gdlsk.com/knowledge/277-cpsc-proposes-rule-to-amend-the-existing-regulation-on-certificates-of-compliance.html
In a Federal Register notice dated May 13, 2013, the Consumer Product Safety Commission (“CPSC”) has published a Notice of Proposed Rulemaking that seeks to amend and update the requirements for certificates of compliance.
Some of the notable proposed revisions are highlighted below. Companies are encouraged to submit comments to the CPSC before the rule is finalized as these proposed changes may have a significant impact. Written comments to the proposed rule are due by July 29, 2013.
Mandatory Electronic Filing of Certifications: For goods that are imported under a formal entry for consumption or warehousing, the importer will be required to electronically file finished product certifications with Customs & Border Protection (“CBP”). The CPSC notes that that proposed requirement may require software upgrades by CBP and CPSC that must be completed in stages.
- Informal Entries and U.S. Manufactured Goods: Electronic filing with CBP would not be required for goods where formal entries are not made (e.g., goods sent direct to consumers such as goods purchased through an internet website) or for U.S. manufactured goods. However, as formal entries are not made, the manufacturer (foreign or domestic) will be required to issue the certificate, unless the product bears a private label. If the product contains a private label, the private labeler must issue the certificate unless the manufacturer issues the certificate. For such goods, the certifications must be available for inspection on or before the date the finished product is distributed in commerce. “Available” means within 24 hours of request by the CPSC or CBP. The proposed rule will continue to allow a "unique identifier" to access electronic certificates for these goods (e.g., a web link). However, this identifier would now be required to prominently appear on the finished product, shipping carton, or invoice.
- Proposed Definition of Importer and Impact on Customs Brokers: For foreign-made goods that are imported under the formal entry process, the importer of record continues to be responsible for issuing finished product certifications. The proposed rule would adopt the definition of importer under the Tariff Act of 1930 (19 U.S.C. 1484(a)(2)(B)), i.e., “the owner or purchaser of the merchandise or, when appropriately designated by the owner, purchaser, or consignee of the merchandise, a person holding a valid customs broker's license, pursuant to 19 U.S.C. 1641.” Significantly, a licensed customs broker who serves as the importer of record would now be responsible for issuing the certificate.
- Finished Product Certificates v. Component Part Certificates: The proposed rule would require the certificate to state whether it covers a finished product or a component part in order to clarify filing requirements at the time of entry. For example, finished product certificates are required to accompany the imported product, whereas component part certifications (if applicable) must be maintained on file as support for the finished product certifications.
- Proposed New Information to be Required in Certifications: ◦Date of initial certification: The date the product was originally certified (or re-certified after a material change).
- Scope of the certificate: For example, a start and end date, lot number, starting serial number or serial number range, or other means to identify the set of finished products or component parts that are covered by the certificate.
- Attestation of compliance: The certifier would be required to attest that the finished products or component parts are compliant and that the information in the certificate is true and accurate to the best of the certifier's knowledge, information, and belief. In addition, the certifier must also acknowledge an understanding that it is a federal crime to knowingly and willfully make any materially false, fictitious, or fraudulent statements, representations, or omissions, on the certificate.
- Date and place of manufacture: The proposed rule would interpret “place” to include a street address in all circumstances, not just when a manufacturer operates more than one location in the same city. A post office box would be insufficient to meet this requirement.
- Proposal to identify the manufacturer: The CPSC is also requesting comment on the possibility of requiring the name of the manufacturer on the certificate which would cause the certifier to reveal business confidential information to its customers.
CIT Finds Shelf Bra Garments are Not Classifiable under Heading 6109, HTSUS
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP (Alan R. Klestadt or Frances P. Hadfield) / http://www.gdlsk.com/firm-news/278-cit-finds-shelf-bra-garments-are-not-classifiable-under-heading-6109-htsus-.html
On May 1, 2013, The U.S. Court of International Trade (“CIT”) held that Customs had incorrectly classified Victoria's Secret’s shelf bra tops as “tank tops” for tariff purposes.
The court found that the garments provided body support and were more properly classified under a so-called basket tariff provision for “other garments.” Our firm represents the importer in this litigation.
Customs had argued that the shelf bra feature, which is essentially a light-weight brassiere built into a camisole styled garment, was merely an improvement or amplification of a tank top silhouette. The court determined that the tariff heading for T-shirts and tank tops (Heading 6109) was not intended to cover items which included bust support and that by classifying the shelf bra top as a “tank top” Customs had impermissibly enlarged the heading’s scope.
Unfortunately, the court did not adopt Victoria’s Secret’s primary classification claim that the shelf bra tops were properly classifiable under Heading 6212: the subheading for brassieres, girdles, corsets, garters and other body-supporting undergarments. This heading has a 6.6% duty rate. Although the court determined that the garments were body supporting, the court determined that they were too much like shirts to be classified as similar to the other garments described in Heading 6212.
Because the garment did not readily fit into either the bra or T-shirt tariff headings, the court classified the shelf bra tops in the Heading 6114 basket provision for knitted garments that were not included more specifically in the preceding headings.
This decision is not yet final and should not be used as a basis for prospective classifications. While an appeal is likely, the case has significant implications for the classification of other garments which incorporate support features. Importers of shelf bra tops and other garments which incorporate support features are encouraged to review the current classification of these items and should consider filing claims to protect their rights to potential refunds.
NOTICES TO THE WILDLIFE IMPORT/EXPORT COMMUNITY:
U.S. Fish & Wildlife Service / www.fws.gov
Changes To CITES Species Listings - May 14, 2013
CBP Officers Find more than 1,600 Pounds of Marijuana Comingled with Cucumbers
U.S. Customs & Border Protection / http://www.cbp.gov/xp/cgov/newsroom/news_releases/local/05132013_2.xml
Otay Mesa, Calif. - U.S. Customs and Border Protection officers at the Otay Mesa cargo facility arrested a man after they discovered more than 1,600 pounds of marijuana comingled with a shipment of cucumbers.
Thursday evening, May 9, at about 7:30 p.m., a 40-year-old male Mexican citizen, driving a 2002 Freightliner tractor pulling a trailer entered the cargo port with a shipment manifested as cucumbers. A CBP officer referred the truck and driver aside for a more in-depth inspection.
During the inspection, CBP officers probed a box and struck something unexpected. Officers subsequently extracted 288 packages of marijuana in boxes comingled with cucumbers. The marijuana has an estimated street value of approximately $721,000.
The driver was arrested and booked into the Metropolitan Correctional Center pending federal arraignment for charges related to the attempted illegal importation of narcotics.
Manhattan and Staten Island, N.Y. Declared Free of the Asian Longhorned Beetle
U.S. Department of Agriculture / http://www.aphis.usda.gov/newsroom/2013/04/plants_for_planting.shtml
Washington, May 14, 2013 - The U.S. Department of Agriculture's (USDA) Animal and Plant Health Inspection Service (APHIS) today announced that the New York City boroughs of Manhattan and Staten Island are free from the invasive Asian longhorned beetle (ALB). USDA remains focused on carrying out its mission, despite a time of significant budget uncertainty.
“The mission to eradicate this destructive beetle, combined with various levels of cooperation, has resulted in success,” states Rebecca Bech, APHIS Plant Protection and Quarantine Deputy Administrator. “However, while the eradications of these areas are a victory for APHIS, our partners and the State of New York, we still need residents to stay vigilant and inspect their trees regularly for signs of infestation.”
The eradication of ALB in Manhattan and Staten Island reduces the regulated areas of New York from 135 to 109 square miles. ALB quarantines remain in effect for the New York City boroughs of Brooklyn and Queens, as well as an area in central Long Island.
APHIS and its cooperators undertake eradication by imposing quarantines, conducting regulatory inspections, surveying host trees by using both ground and aerial survey methods, removing infested and high-risk host trees, and chemically treating host trees – all are part of an area-wide integrated eradication strategy.
The beetle was first discovered in Manhattan in August 1999. Eradication efforts involved the removal of 130 trees. In Staten Island, the beetle was first discovered in March 2007. Eradication efforts involved the removal of 10,325. Both areas received chemical treatment applications of host trees.
The New York City boroughs of Manhattan and Staten Island are the second and third areas in the state to declare eradication from the insect. The beetle was successfully eradicated from Islip, N.Y on Long Island in 2011.
This past March, the eradication of the beetle from New Jersey was announced. New Jersey is the second state to win the fight against the pest. Illinois declared eradication in 2008. An area is declared free of ALB after all the infested trees are eliminated and surveys are negative for active signs of beetle activity or the presence of the beetle.
The Asian longhorned beetle (ALB) was first discovered in the U.S. in 1996, likely arriving unknowingly inside wood packing material from Asia. The insect has no known natural predators and it threatens recreational areas, forests, and suburban and urban shade trees.
The beetle bores through the tissues that carry water and nutrients throughout the tree, which causes the tree to starve, weaken and eventually die. Once a tree is infested, it must be removed. The invasive pest has caused the loss of over 80,000 trees in New York, Massachusetts, Ohio, New Jersey and Illinois.
Members of the public are encouraged to inspect their trees for signs of damage caused by the insect and report any suspicious findings. The sooner an infestation is reported, the sooner efforts can be made to quickly contain and isolate an area from future destruction. People are encouraged to be mindful of moving firewood, as moving ALB-infested firewood can unintentionally spread of the pest. For more information, please visit www.aphis.usda.gov or www.asianlonghornedbeetle.com.
The ALB cooperative eradication program in New York is comprised of USDA APHIS, the New York State Department of Agriculture and Markets, New York State Department of Environmental Conservation and the New York City Department of Parks and Recreation.
USDA has made a concerted effort to deliver results for the American people, even as USDA implements sequestration - the across-the-board budget reductions mandated under terms of the Budget Control Act. USDA has already undertaken historic efforts since 2009 to save more than $828 million in taxpayer funds through targeted, common-sense budget reductions. These reductions have put USDA in a better position to carry out its mission, while implementing sequester budget reductions in a fair manner that causes as little disruption as possible.
Cargo Volumes Rise Again in April
Port of Long Beach /
http://www.polb.com/news/displaynews.asp?NewsID=1168&TargetID=1
Overall cargo volumes rose by 12.5 percent in April 2013, continuing a trend of steadily increasing activity at Port of Long Beach docks.
A total of 519,464 TEUs (or twenty-foot equivalent container units) were moved in April. Imports increased 13.5 percent to 264,337 TEUs. Exports increased by 14.5 percent to 137,864 TEUs.
Empty containers were up 8.1 percent to 117,263 TEUs. With imports exceeding exports, empties are sent overseas to be refilled with goods.
For the first four months of 2013, cargo container volume is up 17.2 percent – including 18.5 percent more imports, 11.8 percent more exports and 21.5 percent more empties. These increases are in part due to the larger ships calling at the Port more frequently and the addition of service lines starting in later 2012.
Baltimore CBP Intercepts First in Port Seed Bug
U.S. Customs & Border Protection / http://www.cbp.gov/xp/cgov/newsroom/news_releases/local/05142013_10.xml
Baltimore – With its red body and black spots, it looked like an elongated, narrowed version of a lady bug, but to Baltimore U.S. Customs and Border Protection agriculture specialists, the Horvathiolus superbus seed bug they intercepted Friday looked like something else – a potential agriculture threat pest.
And to the U.S. Department of Agriculture (USDA) entomologist, it was the first such reported interception in the Baltimore area.
U.S. Customs and Border Protection agriculture specialists in Baltimore discovered a Horvathiolus superbus seed bug in a shipment of Italian ceramic tiles May 10, 2013. The U.S. Department of Agriculture entomologist confirmed that this interception was a first regional discovery of the Horvathiolus superbus seed bug.
The Horvathiolus superbus seed bug is known to occur in Europe. Not much is known about this specific species, but it is classified in the Lygaeidae family of seed bugs which damage a wide variety of plants and seeds by using their mouthparts to extract fluids. A few of the plant-feeding species are considered to be serious pests.
The Horvathiolus superbus seed bug arrived aboard a shipment of ceramic Italian tiles. CBP submitted the specimen Thursday to the local USDA - Animal and Plant Health Inspection Service (APHIS) - Plant Protection and Quarantine (PPQ) entomologist for identification.
“The threat of invasive hitchhiking insect pests is very real, and an extremely serious concern for United States’ agriculture industries,” said Ricardo Scheller port director for the Port of Baltimore. “One of Customs and Border Protection’s priority missions is to intercept and eradicate potential agriculture threats at our nation’s borders, and our agriculture specialists take their mission very seriously.”
Also in that shipment, CBP discovered an actionable snail, Xerotricha conspurcata; and an actionable stinkbug, Sciocoris sp. CBP issued an Emergency Action Notification to the importer and ordered that the shipment be either fumigated or re-exported.
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.