Abady Law Firm, P.C. – Customs and Import/Export Attorney Blog

Learn the Basics of Customs and International Trade Policy and Procedure

Archive for the "Important News" Category

Land Rover Defender Destroyed By U.S. Customs – How Can This Be Prevented?

I have represented many importers looking to import vehicles from around the world into the United States.  For those doing so, one must ensure that the vehicle is in compliance with the laws and regulations of the Department of Transportation. Otherwise, entry into the United States will be prevented by U.S. Customs and Border Protection. If a violation is found, the importer will face the possibility of a seizure and severe penalties for failing to comply.  If you find yourself in such a situation best to contact an attorney experienced in handling such matters to minimize such consequences and achieve the best possible solution under the circumstances.

You do not want to find your vehicle victim to the following:  http://autos.yahoo.com/video/u-customs-crush-land-rover-144127210.html

U.S. Export Sanctions to Iran Lifted on Electronic Devices

On May 30, 2013, the U.S. government issued a General License on the export of electronic devices such as, cellphones, laptops, computers, and wireless routers to Iran.  This effectively ended a ban that has been in place since 1992.  According to the Department of Treasury’s press release “this General License aims to empower the Iranian people as their government intensifies its efforts to stifle their access to information.”  Pursuant to 31 C.F.R. Part 560 the General License does not authorize the export of any listed equipment to the Iranian government or to any individual or entity on the Specially Designated Nationals (SDN) list.

If you have any questions about the specifics of this regulation or would like to begin exporting authorized electronic devices or any other types of goods to Iran contact us at 347-512-9007 for legal assistance.

Customs Attorney: Liquidated Damages – Amended Guidelines for Untimely Petitions and Mitigation of Claims

Recently, U.S. Customs and Border Protection (“CBP”) amended its guidelines for the cancellation and mitigation of claims for liquidated damages in situations where the Petitioner is late in filing claims for relief.  Petitions are considered “untimely” or “late” if they fall outside of the established regulatory time frames or after the expiration of any lawfully obtained extensions.  19 C.F.R. Part 172.

Under the new guidelines, untimely petitions will be accepted or considered only if the petitioner is able to demonstrate the existence of “extraordinary circumstances that prevented the petitioner from filing a timely petition or timely seeking a lawful extension of time in which to file a petition” (with limited exceptions).   The Fines, Penalties, and Forfeitures Officer will exercise his or her discretion in determining whether the Petitioner meets the “extraordinary circumstances” standard.

As far as mitigation is concerned:

In calculating the mitigated amount on a late petition, CBP (with limited exceptions) will:

1. Determine the base amount (i.e., the amount of mitigation that would have been afforded on a timely petition or the previously available option one amount).

2. Determine the “additional mitigation amount” by multiplying the full assessed amount of the claim by 0.1%  (.001) and then multiply by the number of days the petition is late.

3. The product will be the additional amount which will be added to the base amount to produce the mitigated amount applied to the untimely filed petition.

For example, a $100,000 liquidated damages claim for which a petition is filed 30 days late will be mitigated to the amount provided by the guidelines plus an additional amount calculated by the new formula (30 days late x .001 = .03 x 100,000 = $3,000 added charge.)

The above went into effect January 9, 2013.

As discussed above, untimeliness can result into substantial monetary loss.  Thus, it is best to consult with an attorney regarding the new guideline applications and exceptions.

You may call us at 347-512-9007 for more information on your international trade and customs issues.

Customs Attorney: Confidential Treatment of Shipping Manifests

How can I prevent information about my imports from being available to the public?

As some of you may or may not be aware pursuant to the privacy statute, 19 C.F.R. § 103.31 (d), the public is allowed to collect manifest data (e.g., bills of lading) at every port of entry. The information is limited to vessel manifests (air, rail, and truck manifests will not be available to the general public in any form).

Websites such as panjiva.com and importgenius.com collect and publish names of importers/suppliers/manufacturers from vessel manifest data. This can be troubling for some because entities such as your competitors are able to access information related to the sourcing and/or manufacturing of your products. However, an importer/shipper may make a request for confidentiality. The confidential protection is valid for 2 years, after which time a renewal is needed. Send in renewal requests 60 days prior to the expiration of the 2 year confidentiality period.

If you need assistance in requesting such confidentiality contact a customs attorney who can help.

You may call us at 347-512-9007 for more information on your international trade and customs issues.

Customs Attorney: New Rule and Duty Rate Governing Textile-Bottomed Footwear! DECEMBER 3, 2011

THE FOLLOWING WILL BE IN EFFECT DECEMBER 3, 2011.

Ever since an intelligent business man designed footwear with a textile outer sole (i.e. textile bottom) that footwear was subject to duty rates approximately 25% – 35% lower than equivalent footwear with a rubber or plastic outer sole – what a way to utilize Tariff Engineering!

President Obama signed Presidential Proclamation 8742 that was published in the Federal Register on November 3, 2011. What the Proclamation did was add a U.S. Note 5 to the footwear Chapter in the tariff schedule (“Chapter 64”).

The new note, Note 5 states “For the purposes of determining the constituent material of the outer sole pursuant to note 4(b) of this chapter, no account shall be taken of textile materials that do not possess the characteristics usually required for normal use of an outer sole, including durability and strength.” Consequently, based on this note duty rates for certain footwear with the textile bottom may be affected.

What does “normal” mean?
How does an importer determine “durability and strength”?

As always it is in the importers best interest to consult an expert and/or have your goods tested during the production phase to evaluate the best model for the lowest duty rates.

Happy Importing 🙂