CBP issued the following releases on commercial trade and related matters:
The Treasury Department published its fall 2020 regulatory agenda for CBP. The agenda now mentions a proposal to end the de minimis exemption for goods subject to Section 301 tariffs. The proposal was previously disclosed by the Office of Management and Budget (see 2009040026), where it remains under review. Brenda Smith, CBP executive assistant international trade commissioner, recently cited some operational concerns with the idea (see 2011100034).
A California clothing importer and its owners were indicted over schemes to undervalue apparel and evade customs duties, the U.S. Attorney’s Office for the Central District of California said in a Dec. 10 news release. The importer, C'est Toi Jeans (CTJ), and owner Si Oh Rhew, of La Canada Flintridge, and his son, Lance Rhew, of Los Angeles, a CTJ corporate officer who owns another company that did business with CTJ, were the subjects of a 35-count indictment from a federal grand jury, the Department of Justice said. The charges include “conspiracy; entry of goods falsely classified; entry of goods by means of false statements; passing false and fraudulent papers through customhouse.”
The Department of Homeland Security (DHS) published its fall 2020 regulatory agenda for CBP. The agenda includes no new trade actions.
The U.S. and Ecuador signed a phase one trade agreement that goes beyond the World Trade Organization's Trade Facilitation Agreement with requirements for online publication of customs information and customs brokers requirements; duties and fees; electronic submission of customs declaration and phytosanitary certificates; a single window for import and export; and advanced rulings that cover classification, valuation, origin, and application of quotas. Ecuador also agreed to no penalties on minor errors, unless they're part of a consistent pattern, and a procedure to correct errors without penalties.
A former jewelry importer will pay more than $400,000 to settle a False Claims Act whistleblower lawsuit that alleges it intentionally misclassified imported earrings to avoid paying higher customs duties, the Justice Department said in a Dec. 8 news release. A TSI Accessories Group subsidiary allegedly classified the earrings based on the value of pairs or larger groups, when they should have been classified based on the value of each single earring, said the whistleblower complaint, subsequently joined by the Justice Department.
The U.S. and Ecuador signed a phase one trade agreement that goes beyond the World Trade Organization's Trade Facilitation Agreement with requirements for online publication of customs information and customs brokers requirements; duties and fees; electronic submission of customs declaration and phytosanitary certificates; a single window for import and export; and advanced rulings that cover classification, valuation, origin, and application of quotas. Ecuador also agreed to no penalties on minor errors, unless they're part of a consistent pattern, and a procedure to correct errors without penalties.
International Trade Today is providing readers with the top stories from Nov. 30-Dec. 4 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
The Census Bureau received a mixed bag of feedback as it considers whether to eliminate certain filing requirements for exports to Puerto Rico and the U.S. Virgin Islands (see 2009160033). Many of the U.S. industry groups that submitted comments, released by Census Dec. 2, said the Automated Export System filings are a burden for their members and their elimination is long overdue. But government officials from both the U.S. and Puerto Rico cautioned Census about removing the requirements, saying it could lead to an absence of a vital source of data collection and damage the islands’ economies.
The National Customs Brokers & Forwarders Association of America is urging members to lobby their representatives for a provision that would allow companies to receive refunds for Section 301 duties paid when they learned too late that the product qualified for a tariff exclusion. If an entry had been liquidated before the exclusion was announced, CBP cannot refund the duties paid, even though the exclusions are designed to be retroactive. The group is hoping this provision can be included in the omnibus spending bill that may pass this month, it said.