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 firstname.lastname@example.org. 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.
India and Turkey to Lose GSP Eligibility
The Office of the United States Trade Representative (USTR) has announced that India and Turkey will be removed from the list of beneficiary developing countries eligible for duty-free entry under the Generalized System of Preferences (GSP). By law, the President must notify Congress at least 60 days prior to the termination of GSP eligibility and must also notify the involved countries. After the 60 day notification period, the termination of GSP eligibility is enacted by a Presidential Proclamation that will include an effective date.
India is by far the largest GSP beneficiary country, accounting for over 25% of the value of GSP imports into the U.S. in 2017 ($5.6 billion). Major sectors include articles of iron and steel, organic chemicals, plastics, and machinery. For years, several domestic industries (particularly the U.S. dairy and medical devices industries) have complained that India denies reasonable market access for U.S. exports. Equitable and reasonable market access is a criterion for GSP eligibility. The 2018 USTR country review of India determined that India failed this condition.
In 2017, Turkey exported $1.66 billion in GSP-eligible goods to United States, principally, automobile parts, jewelry, and metals. The USTR press release stated that Turkey's economic development warranted its graduation from the GSP program.
Both India and Turkey have been beneficiary developing countries since GSP's inception in 1976.
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.
Tariffs Up to 100 Percent Possible on $11 Billion in Imports from
The Trump administration is threatening to impose tariffs of up to 100 percent on goods imported from the European Union as early as this summer in a long-running dispute over aircraft subsidies. A preliminary list of goods that could be affected covers every major product group and there is a May 28 deadline for comments on this list. Importers of affected goods should accelerate efforts to mitigate the impact of any potential tariff increase, such as working to have their products omitted from the final list or considering alternative sourcing locations.
A World Trade Organization arbitrator is expected to issue this summer a final decision on the amount of countermeasures the U.S. may impose against the EU for its failure to fully withdraw subsidized financing to Airbus previously found to be inconsistent with WTO rules and harmful to U.S. interests.
To enable the U.S. to "respond immediately" when that decision is announced, the Office of the U.S. Trade Representative is beginning the process of identifying EU products to which additional tariffs of up to 100 percent may be applied. The preliminary list includes 317 tariff lines when imported from any of the 28 EU member states as well as nine tariff lines covering helicopters, aircraft, and aircraft parts when imported from France, Germany, Spain, or the United Kingdom.
The estimated import value of the goods on the preliminary list was approximately $21 billion in 2018. However, the final list will reflect only the amount of trade found to be adversely affected in the arbitrator's decision, which may be higher or lower than the $11.2 billion the U.S. has requested. USTR states that retaliatory tariffs imposed on goods included in the final list will only be lifted "when the EU ends these harmful subsidies."
USTR is inviting public input on any aspect of the proposed retaliation, including (1) products that should be retained, removed, or added- (2) how high tariffs should be raised- (3) the aggregate level of trade to be covered by additional tariffs- and (4) whether higher tariffs might harm U.S. stakeholders, including small businesses and consumers.
Comments on these issues are due by May 28. USTR is also holding a hearing May 15 in Washington, D.C., and requests to appear at this hearing are due by May 6.
Increase in Section 301 Duties Scheduled for May 10
Increase in Section 301 Duties Scheduled for May 10
On May 9, the Office of the U.S. Trade Representative (USTR) is scheduled to publish a modification to the Section 301 Tariffs increasing the duty rate on the products covered in the September 2018 Federal Register Notice from the current rate of 10% to 25%. According to the notice, these changes are scheduled to take effect on May 10. U.S. Customs and Border Protection (CBP) has updated the ABI to include these changes for any entries scheduled for May 10 onwards.
This modification is a result of what the USTR calls a "lack of progress in the additional rounds of negotiations [with China] since March 2019" and after a May 5 tweet from President Trump where he states that "the Trade Deal with China continues, but too slowly, as they attempt to renegotiate."
The NCBFAA will continue to monitor the situation and keep you informed when new information arises.
New List of Goods Proposed for China 301 Tariffs Includes Nearly All Remaining Trade, Including Apparel and Footwear
The Office of the U.S. Trade Representative announced May 13 a list of approximately $300 billion in goods imported from China on which USTR is proposing to impose Section 301 additional tariffs of up to 25 percent.
USTR states that this extensive list of 3,805 full and partial HTSUS subheadings, which can be seen here, covers essentially all products not already subject to Section 301 additional tariffs. It includes all apparel, footwear, and manufactured textile products, among others, but excludes pharmaceuticals, certain pharmaceutical inputs, select medical goods, rare earth materials, and critical minerals.
USTR will hold a public hearing on this proposal June 17 and requests to appear at this hearing are due June 10. Written comments, including input on the specific tariff levels that should be imposed and requests to exclude specific subheadings from the proposed tariff increase, are due June 17. The tariff hike could be implemented any time after June 24 in any amount up to 25 percent, on top of the regular rate of duty.
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.