Ask the Wizard: Where Can I Find Antidumping Information?

Each Friday, the Wizard joins us to share an answer to one of the questions asked during the week. This week, we had an interesting question about identifying goods subject to antidumping and/or countervailing duties.

Question:
How can I find out if my product is subject to antidumping and/or countervailing duties since the HTSUS does not provide this information?

Wow, this is a great question with a variety of solutions. If you are familiar with the classification process, you know that the Harmonized Tariff Schedule published by the United States International Trade Commission does not provide a list of HTS numbers that are subject to ADD or CVD cases. So, where is this information hiding? Is it some big secret? No, it is just a matter of doing a little detective work to find what you need. Brokers have the ability to obtain information by using ABI to query antidumping/countervailing duty cases by case number, International Organization for Standardization (ISO) country code or tariff number. Thus, our first option is to ask our broker to query ABI and provide a list.

The International Trade Administration and International Trade Commission have made the job easier by publishing a couple of useful lists on their websites. The lists can be accessed using either the ITA or the USITC websites. The first list, which is actually found on the USITC website, consists of an Excel spreadsheet that contains the case numbers, order dates, products and countries. The nice thing about this list is that it is short and can be sorted to find cases by country or product. If you need more detail about a case, then the second option, published by the ITA, allows you to search by country. Click on the country and then the product to obtain more detail.

These are a few of the quick ways to find out which products require antidumping and countervailing duties. Although most of our processes are moving to the electronic environment, the spreadsheet is an excellent quick reference tool to get you started. There is another option; however, we would NOT recommend that you try this one. You can stick your head in the sand, pretend your product isn't subject to antidumping and wait for CBP to send you a bill. With all of the better options we provided, there is no longer any need to hide from antidumping or countervailing issues.

Do you have a question for the Wizard? Submit your question by clicking on the link in the space for “Ask the Wizard.” The Wizard will be enjoying a long Thanksgiving weekend next Friday, so look for the next question and answer session on Friday December 4th.

Promoting U.S. Exports

In April, U.S. Trade Representative, Ron Kirk, stated that “an aggressive effort to keep trade flowing and open more markets to American goods and services absolutely must be a big part of our economic recovery here at home. To get our economy back on track, we need to increase exports.” This article shares some of the efforts to encourage exports and stimulate the economy.

Ex-Im Bank
The Export-Import Bank of the United States raised the upper limit of its small business multi-buyer export credit insurance policy from $ 5,000,000 to $7.5 million. This change is designed to allow more small businesses to export their goods and services more easily. Effective December 1, U.S. exporters designated as small businesses under Small Business Administration standards, and with annual export credit sales of $7.5 million or less, will be eligible for enhanced coverage under Ex-Im Bank’s short-term small business multi-buyer insurance policy. Click HERE to learn more about the Ex-Im Bank and other programs launched during the past year to increase support for small business exporters trying to survive the during the current economic crisis.


U.S. Commercial Service
The U.S. Commercial Service (USCS), a division of the International Trade Administration within the U.S. Department of Commerce, provides a variety of opportunities to assist U.S. exporters sell overseas and help overseas buyers learn about U.S. exports.

· The USCS helps U.S. small and medium sized businesses grow international sales by providing:
· Online and customized market research.
· Support for U.S. exhibitors in selected overseas and domestic trade shows to attract qualified business partners.
· Fee-based programs to introduce exporters of U.S. products to qualified buyers and distributors.
· Individualized counseling and advocacy.
· Training programs on subjects such as export documentation, export controls and the basics of exporting.

Click HERE to learn more about the U.S. Commercial Service.


Export.gov
Export.gov brings together resources from 19 U.S. Government Agencies to assist American businesses in planning their international sales strategies and succeeding in today’s global marketplace. Using these government resources, providing market research and trade leads Export.gov helps American exporters navigate the international sales process and avoid pitfalls such as non-payment and intellectual property misappropriation. Launched by Export.gov, Exports Live is an 8-city seminar tour designed for small and medium-sized businesses wanting to start or grow their international sales with government solutions. Speakers from the SBA, Department of Commerce, Ex-Im Bank and various exporters provide strategies used by local small and medium-sized businesses that have already discovered how to increase profitability through exporting.

Click HERE for other export news and training opportunities sponsored by Export.gov.

Trade Terms Tuesday

Welcome to Trade Terms Tuesday! Each Tuesday, we will share three trade-related terms. In order to reach out to our diverse readership, we will try to provide one for exports, one for imports, and one for logistics/transportation. This week, we continue with the E’s.

Edge Protector
The edge protector is an angle piece fitted over the edge of boxes, crates, bundles and other packages to prevent the pres­sure from metal bands or other types from cutting into the package.

Explanatory Notes
The Explanatory Notes provide an explanation, chapter-by-chapter; heading-by- heading, of what CBP intends to be covered by the various sections, chapters, and headings in the HTSUS. Explanatory Notes are not part of the legal system; however, they do represent the views of classification experts.

End-user

The end-user is the person abroad that receives and ultimately uses the exported or reexported items. The end-user cannot be a forwarding agent or intermediary, but may be the purchaser or ultimate consignee.

Section XIV of the HTSUS

Thank you for joining us for our series on classification. Two weeks ago, we explored the articles contained in Section XIII of the HTSUS. Today, we will study the various commodities covered in Section XIV of the HTSUS. Having a good general knowledge of the products covered in each section and chapter will expedite the classification process and improve accuracy of your classifications.

Section XIII Answer
Correct Answer: 6913.10.5000
See: NY G81399

Section XIV covers just one chapter. Chapter 71 contains precious and semi precious stones, precious metals, pearls, diamonds, stones, silver and gold jewelry. Products of this chapter may require special marking Importers of goods in this chapter should spend time reading the Chapter Notes and Explanatory Notes. Chapter Note 4 defines the precious metals as silver, gold and platinum. Chapter Note 9 defines jewelry as any small object of personal adornment or article normally carried on the person such as rings, bracelets, necklaces, earrings, tiepins, compacts and pill boxes. The Explanatory Notes to Chapter 71 makes clear that "cladding" and "plating" are two distinct processes of applying a metal to another surface.

Question
What is the correct classification for a platinum plated, sterling silver set of silverware, which contains a dozen each of forks, knives and spoons?

Join us next week for the answer to this week’s classification question and a discussion of Section XV of the HTSUS. If there are any specific commodities or sections of the HTSUS that you would like to see discussed in this series, please feel free to post a comment or send your suggestions to wizard@boskage.com

Ask the Wizard: Required Compliance Tools

Each Friday, the Wizard joins us to share an answer to one of the questions asked during the week. This week we had an excellent question about the publications that CBP requires brokers and importers to maintain.

Question:
Are U.S. importers required by Customs law to have a desktop copy of the U.S. Customs explanatory notes? If not, in a case of a customs audit will customs look to see if you have a copy for the purpose of reasonable care?

When dealing with import compliance, the answers are almost never quite as simple as “yes” and “no.” The CBP Regulations (19 CFR) do not require importers to maintain copies of the Explanatory Notes or other government publications; however, it is important for importers to have access to tools that will help them fulfill their responsibilities and demonstrate reasonable care. Additionally, a CBP audit requires importers to answer questions that indicate what resources are used and how they are used. Ask yourself this question. If CBP asked you to demonstrate how classification of a specific product was determined, how would you explain the process and what documentation would you provide? The Wizard might discuss this in another article if anyone is interested.

The types of tools importers maintain depend on the complexity and volume of transactions. For example, a low volume importer that only imports two products may not need to purchase the Explanatory Notes. However, an importer with hundreds of products and classifications or products identified as difficult to classify is more likely to need the Explanatory Notes, along with the HTSUS, access to binding rulings and other CBP publications. Remember, the importer has the ultimate responsibility for the accuracy for classifications, even if they use a broker. Another issue to consider is how the tools are used. It would be worse for an importer to purchase a copy of the Explanatory Notes, put them up on a shelf, and never use them, than to not have them at all. Consider the volume of imports, complexity of classifications, available resources, procedures and other factors. Don’t forget the other tools that are available.

• Code of Federal Regulations Title 19 (19 CFR)
• Harmonized Tariff Schedule of the U.S (HTSUS)
• Dictionaries and Reference Books
• Internet Access
• Procedures
• Customs Rulings

While it is not mandatory that importers have all of these tools, use of them helps demonstrate reasonable care and compliance. They also make employee's jobs easier, and increase productivity and accuracy.

Do you have a question for the Wizard? Submit your question by clicking on the link in the space for “Ask the Wizard.” See you next Friday!

Coming Soon: FDA “PREDICT”

The U.S. Food and Drug Administration “FDA” will soon launch the Predictive Risk-based Evaluation for Dynamic Import Compliance Testing “PREDICT." PREDICT, the new risk-based screening system for imports, replaces the admissibility screening function of the current system, OASIS. PREDICT will improve screening and targeting of higher-risk shipments for examination. It will also expedite the clearance of lower-risk cargo, but only if accurate and complete data are provided by importers and entry filers. This means that importers and brokers need to work together to ensure the most accurate data is provided. Submissions containing poor quality or missing data will increase the likelihood of an FDA exam.

In addition to PREDICT, entry filers will be able to use the Import Trade Auxiliary Communications System “ITACS” to check the status of individual entries, submit documents and link them to specific entries.

Click HERE to see a schedule of PREDICT Import Trade Community Outreach Events.

CBP News

1. CBP 2009 Trade Symposium

The 2009 Trade Symposium is scheduled for December 8 – 10, 2009. Click HERE to view the symposium topics and schedule. Registration for the conference is currently full, but CBP is offering the option to attend by webcast. For only $35, participants will be able to view and interact online.


2. Updated ABI Software Vendors List

CBP updated its ABI Software Vendors List on 11/9/2009. This list contains the company name, address, phone number and email contact information along with the types of services provided. U.S. Customs and Border Protection (CBP) only collects the information and does not provide any endorsements as to the nature, extent or quality of the services that may be provided.


3. American Recovery & Reinvestment Act Funds

Check out updates on how CBP is using the funds received from American Recovery and Reinvestment Act (ARRA). CBP appropriated $420 million for constructing 24 new land ports of entry, primarily along the northern border and making repairs to existing land ports.


4. CBP Announces New Intellectual Property Bonds

U.S. Customs and Border Protection has established new bond options for intellectual property rights (IPR) owners. The owners will use this bong to obtain samples of imported merchandise suspected of violating a copyright, trade name or trademark registered by the IPR owner. IPR owners may use either a continuous or single transaction IPR sample bond. A continuous IPR sample bond has the advantage of covering multiple IPR sample transactions, across all ports of entry with a single bond and reduces the administrative burden for CBP to track single transaction IPR bonds.


5. C-TPAT Enforcement & Appeal Process

This new document provides an overview of the reasons for suspending or removing C-TPAT members from the program. Members may be immediately removed for aggravated circumstances such as providing false information or intentionally disregarding the program’s requirements. For lesser violations, members may be suspended and provided with an opportunity to comply with the requirements in order to resume active membership.

Once a security related incident or other program violation occurs, C-TPAT officials determine the appropriate next steps on a case-by-case basis. To be reinstated into the program after an incident or violation, the company must agree to a corrective action plan that identifies specific objectives and periods within which those objectives should be reached. In addition, the company must consent to un-announced visits by C-TPAT staff to monitor progress. In the case of a failed validation, the company must demonstrate that it has successfully addressed all vulnerabilities and complied with all other requirements before being fully reinstated.

Companies that are suspended or removed may appeal this decision to CBP HQ. CBP will decide the appeal in a timely fashion.


6. CBP Updates ISF FAQ

U.S. Customs and Border Protection (CBP) recently updated its "Frequently Asked Questions" document on Importer Security Filing (ISF). The document contains new information about liquidated damages, duplicate filings, Instruments of International Trade (IIT), empty containers and garments on hangers. Information about bill of lading numbers, bonds, progress reports and U.S. Goods Returned has been updated.