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Importer Security Filing

On January 26, 2010 You MUST File a 10+2 or Face Penalties!

U.S. Customs and Border Protection is serious. On January 26, 2010 they will start issuing penalties for failure to comply with the Importer Security Filing (ISF), also known as the 10+2. We can file for you or your shipper overseas can do it, but someone must. Failure to file will result in a $5,000 per violation penalty. You can also be fined for filing incomplete or wrong information. Therefore, the total penalty per shipment could be as much as $10,000.00.

Customs' regulations require that this information be filed 24 hours prior to the loading of the vessel. In order for us to accomplish this, we need to receive the documents 4 days before departure of the vessel. This will give us ample time to file and save you from facing a penalty. If there are any corrections we will need that information immediately so we can update the information with Customs. I cannot state enough that this is YOUR responsibility and YOUR penalty.

U.S. Customs is also requiring an additional bond for the ISF. This can be done with a single ISF bond, which will carry an additional charge. The shipment and ISF can also be bonded with a continuous transaction bond.

Arizona Customs Brokers is here to assist you with this filing and the bond. On our website, arizonacustomsbrokers.com, you can download "The Importer Security Filing Data Sheet", found under forms. We have setup a special email address for you or your overseas partner to send the form and documents. This address is isf@arizonacustomsbrokers.com. If you have any questions regarding the ISF or bonding requirements please give Robert Hornyan a call at 602-273-0912. We are here to assist you and keep you penalty free.

Imported Composite Wood Products Must be TSCA Compliant as of March 2019

Thursday, December 13, 2018

Sandler, Travis and Rosenberg Trade Report

A December 2016 final rule from the Environmental Protection Agency established national formaldehyde emission standards and a third-party certification system for regulated composite wood products (i.e., panels), including hardwood plywood, particleboard, and medium-density fiberboard, to ensure those panels are compliant before being sold to end users or fabricated into component parts or finished goods (furniture, cabinets, picture frames, toys, etc.). Between June 1, 2018, and March 22, 2019, such goods that are imported into or manufactured in the U.S. must be (a) certified as compliant with either Title VI of the Toxic Substances Control Act or the California Air Resources Board's Airborne Toxic Control Measures Phase II emission standards by a third-party certifier approved by CARB and recognized by EPA and (b) labeled as compliant with the relevant standard.

U.S. Customs and Border Protection is now advising interested parties that after March 22, 2019, such goods may only be certified and labeled as compliant with TSCA Title VI- labeling them as compliant with the CARB ATCM Phase II standards will not be sufficient.

Also beginning on that date importers will be responsible for providing a TSCA Section 13 import certification for articles containing regulated composite wood products, component parts, or finished goods imported into the U.S. customs territory. This import certification will be in the form of a positive certification for applicable shipments through the Automated Commercial Environment. CBP adds that upon request from the EPA importers must make available within 30 calendar days certain records that document compliance.

Additionally, the EPA recently published a proposed rule that would, among other things, clarify that regulated composite wood products and finished goods containing such must be labeled at the point of manufacture or fabrication. If the product is imported, the label would have to be affixed to the product by the date of importation.


2019 Federal Holidays

For your information, below is a listing of Federal Holidays for Calendar Year 2019. These dates can also be found at:


Date - Holiday

Tuesday, January - 1 New Year's Day

Monday, January 21 - Birthday of Martin Luther King, Jr.

Monday, February 18 - Washington's Birthday

Monday, May 27 - Memorial Day

Thursday, July 4 - Independence Day

Monday, September 2 - Labor Day

Monday, October 14 - Columbus Day

Monday, November 11 - Veterans Day

Thursday, November 28 - Thanksgiving Day

Wednesday, December 25 - Christmas Day


Imported Plywood Products Could be Hit With Significant AD/CV Duties

Thursday, January 24, 2019

Sandler, Travis and Rosenberg Trade Report

Goods made with hardwood plywood and imported from China may be hit with antidumping and countervailing duties as a result of increased scrutiny by U.S. Customs and Border Protection.

The AD and CV duty orders on hardwood plywood products from China went into effect Jan. 4, 2018. The goods subject to these orders are hardwood and decorative plywood and certain veneered panels. All hardwood plywood is included within the scope of these orders regardless of (1) whether or not the face and/or back veneers are surface coated or covered, (2) whether or not such surface coatings or covers obscure the grain, textures, or markings of the wood, (3) whether the plywood is trimmed, cut-to-size, notched, punched, or drilled or has undergone other forms of minor processing, (4) dimension, and (5) further processing in a third country.

According to Kristen Smith, who heads Sandler, Travis and Rosenberg's Trade Remedies Practices, the International Trade Administration is now holding that some cabinet and furniture products made of hardwood plywood that were previously considered excluded from the scope of these orders are in fact covered if they are not imported in a single box. As a result, importers of such goods face significant duty liability, with current AD duty rates at 171.55 percent to 183.36 percent and CV duty rates at 22.98 percent to 194.90 percent.

Affected companies have until Feb. 28 to request administrative reviews of these orders in an effort to lower these duty rates. It is unlikely this deadline will be extended despite the ongoing federal government shutdown, Smith says.


New AD/CV Duties Possible on Wooden Cabinets and Vanities from China

A petition filed March 6 alleges that wooden cabinets and vanities from China are being sold at less than fair value in the U.S. market and benefitting from countervailable subsidies. The alleged average dumping margins are 175.50 percent to 259.99 percent.

Click here to register for Sandler, Travis and Rosenberg's March 14 webinar examining this case and how affected companies can respond.

The goods covered by this petition are cabinets and vanities made substantially of wood products, including solid wood and engineered wood products (including those made from wood particles, fibers, or other wooden materials such as plywood, strand board, block board, particle board, or fiberboard), or bamboo. They include wooden cabinets and vanities with or without wood veneers- wood, paper, or other overlays- or laminates- with or without non-wood components or trim such as metal, marble, glass, plastic, or other resins- whether or not surface finished or unfinished- and whether or not assembled or completed.

These items serve the purpose and function of permanently affixed cabinetry typically found throughout the home, including kitchen and bath cabinetry, modular vanities, and pedestal vanities (which may or may not include a top composed of stone, plastic, or other material). However, the petition also covers wooden cabinets and vanities used in places other than in a home kitchen or bathroom, including laundry room cabinets, closets, permanently affixed home office cabinets, and kitchen and bathroom cabinetry found in commercial buildings, apartments, hotels, assisted living or healthcare facilities, or other environments.

The petition also covers component parts of cabinets and vanities, including frames- boxes (which typically include a top, bottom, sides, back, base blockers, ends/end panels, stretcher rails, toe kicks, and/or shelves)- doors- drawers and drawer components (which typically include sides, backs, bottoms, and faces)- back panels and end panels- and desks, shelves, and tables attached to or incorporated in the subject goods.

Also included are wooden cabinets and vanities and in-scope components that have been further processed in a third country, including one or more of the following: trimming, cutting, notching, punching, drilling, painting, staining, finishing, assembly, or any other processing that would not otherwise remove the goods from the scope of the investigation if performed in the country of manufacture of the in-scope product.

Imports of subject goods are classified under HTSUS 9403.40.9060 and 9403.60.8081, and the subject component parts may be entered under HTSUS 9403.90.7080.

The following good are excluded if entered separate from a wooden cabinet or vanity.

- aftermarket accessory items that may be added to or installed into an interior of a cabinet and that are not considered a structural or core component (e.g., inserts (including those that rotate internally) and dividers)

- carved wooden accessories, including corbels and rosettes, that serve the primary purpose of decoration and personalization

- non-wooden cabinet hardware components including metal hinges, brackets, catches, locks, drawer slides, fasteners (nails, screws, tacks, staples), handles, and knobs

Also excluded are all products covered by the scope of the AD duty orders on wooden bedroom furniture from China and hardwood plywood products from China.

The Department of Commerce and the International Trade Commission will next determine whether to launch AD and/or CV duty and injury investigations, respectively, on these products. There are strict statutory deadlines associated with these proceedings, so affected companies that wish to protect their interests should contact Sandler, Travis and Rosenberg as soon as possible.


TSCA Title VI Import Certification Begins March 22

On March 22, the TSCA Title VI import certification requirement that applies to composite wood products (panels of hardwood plywood, particleboard, medium density fiberboard, thin-medium density fiberboard, etc.,) component parts containing such composite wood products, and finished goods containing such composite wood products that are imported into the U.S. goes into effect.

The EPA has updated its "Tips for Trade when filing an EPA TSCA Certification in ACE" as guidance for the Trade when filing certifications. In addition to certification, under the TSCA Title VI regulation, importers must also:

•Keep Records. Take reasonable precautions by retaining, for three years, bills of lading, invoices, or comparable documents that include a written statement from the supplier that the composite wood products (or component parts/finished goods) are TSCA Title VI compliant.
•Provide Records on Request. When EPA requests, make available within 30 days records identifying 1) the panel producer and the date the composite wood products were produced- and 2) records identifying the supplier, if different, and the date the composite wood products (or component parts/finished goods) were purchased.


Shipments from Third Countries Seeing More Scrutiny Amid Efforts to Avoid China Tariffs

Tuesday, July 02, 2019

Sandler, Travis and Rosenberg Trade Report

Shifting manufacturing operations to change a product's country of origin is a longstanding and legitimate way to mitigate tariffs on goods imported into the U.S. While many U.S. companies are properly using this method to reduce their exposure to the 25 percent additional tariff the U.S. has imposed on hundreds of billions of dollars' worth of goods from China, others are taking shortcuts by simply transshipping goods from China and labeling them as products of a third country. Importers should pay closer attention to their supply chains to avoid such illegal activity.

According to press reports, Vietnam has been a particular target of scrutiny by U.S. officials on the hunt for Chinese goods seeking to avoid the Section 301 tariffs. Trade data show that U.S. imports from Vietnam have surged as those from China have declined in the wake of the tariffs. Some of that increase is legitimate, an article in The Loadstar notes, as "there is a significant number of Chinese businesses setting up factories in Vietnam to legally produce and assemble goods" and foreign direct investment from China into Vietnam has hit "record levels." This trend was already underway due to increasing labor and other costs in China but appears to have accelerated in light of the U.S. tariffs.

However, observers say at least some of the increase is also due to transshipment, or goods made in China being re-routed through Vietnam where they are labeled as products of that country and then sent on to the U.S. to avoid the tariffs on China. A Bloomberg article said Vietnamese officials recently found "dozens of fake product-origin certificates and illegal transfers by companies trying to sidestep U.S. tariffs on everything from agriculture to textiles and steel" from China. In response, officials have reportedly pledged to strengthen factory inspections, tighten the supply of certificates of origin, and increase penalties on trade-related fraud.

Other countries in Southeast Asia could get caught up in this scheme as well. A Reuters article states that the U.S. has fined several companies for transshipping goods through a Chinese-owned special economic zone in Cambodia, and other sources say U.S. Customs and Border Protection has vowed to impose civil or criminal penalties or take other enforcement actions if the problem turns up elsewhere. The Wall Street Journal cited a CBP spokeswoman as stating that transshipment has been "flagged in Malaysia and the Philippines in recent months."

President Trump, who has demonstrated a proclivity for imposing tariffs to address any number of issues, could be considering such measures in response to the transshipment issue. According to press sources, Trump said in a recent TV interview that "a lot of companies are moving to Vietnam," which "takes advantage of us even worse than China" and is "almost the single worst abuser of everybody," an apparent reference to trade practices. Trump added that the two countries are "in discussions" but gave no further details.

These developments highlight that while shifting production remains a legitimate means of reducing tariff liability, those utilizing it should take steps to ensure that their supply chain partners are following applicable rules and that those efforts are sufficiently documented. It is also important to have a plan in place in case transshipment or other violations are discovered.


Attention Ocean Importers

Beginning January 26, 2009 all shipments destined for the United States must comply with the submission of "Importer Security Filing 10+2(ISF)". The importer is ultimately responsible for the data to be entered in the Import Security Filing even if entered by an agent of theirs. This data must be received by U.S. Customs 24 hours prior to the loading of a vessel. That data has to be reviewed, classified, processed and accepted in order for your shipment to be loaded on a vessel that is destined for the USA. This data has to be sent to U.S. Customs and Border Protection via an approved electronic data interchange systems.

Arizona Customs Brokers can do this for you.

Simply stated, the ISF requires the importer or their agents to provide ten data elements 24 hours before the departure of the vessel and the two remaining elements 24 hours before the vessel's arrival.

The original ten elements required are:

1. Manufacturer(Supplier)- Name and Address
2. Seller(Shipper)- Name and Address
3. Buyer(Purchaser)- Name and Address
4. Ship to Consignee or Ultimate Consignee - Name and Address
5. Container stuffing location - Name and Address
6. Consolidator(Stuffer)(Forwarder) - Name and Address
7. Importer of Record - ID Number
8. Consignee - ID Number
9. Country of Origin
10. Harmonized Tariff Schedule Number

Plus the last two elements:

1. Master Bill of Lading - House Bill of Lading(NVOCC)
2. Ocean Bill of Lading (if straight B/L).

Arizona Customs Brokers will be prepared to submit this information to U.S. Customs on your behalf. In order for us to comply with this regulation we will require that this information be sent to us 4 days prior to the delivery of the container to the port. We would also like the commercial invoice and packing list at this time. This will require additional work on our behalf and we will have to charge for this service. At this time we are not sure what the charge will be as things are still being worked out and subject to change.

Between January 26, 2009 and January 26, 2010 U.S. Customs will be evaluating any compliance difficulties. Customs reserves the right to take enforcement action when an importer is not achieving "satisfactory progress" or making a "good faith effort to comply" during this time. Customs penalties for non-compliance are $5,000.00 per violation.

Please call us with any questions you may have at 602-273-0912. As we get more information we will pass that along to you or you can check our website at www.arizonacustomsbrokers.com.

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