A North Carolina corporation settled with OFAC after agreeing to pay $107,691.30 for potential civil liability due to alleged violations of the Iranian Transactions and Sanctions Regulations (ITSR). The company allegedly exported medical sealant and samples to a UAE distributer with knowledge or reason to know that the exports were to be reexported to Iran. [...]
Although no suspensions or reductions are currently in effect, temporary duty suspensions and reductions are listed in chapter 99, subchapter II of the Harmonized Tariff Schedule of the United States (HTSUS). Addressing temporary duty suspensions, Congress passed the American Manufacturing Competitiveness Act of 2016 (the Act) establishing a petition process that will replace these individual [...]
United States v. Toth, No. 15-00206 (C.I.T. June 20, 2016), involved whether the Government could allege a penalty claim in a complaint that CBP did not allege in the earlier penalty notices. In Toth, the Government alleged that Leslie M. Toth and LBS Marketing, Inc. (Toth) fraudulently entered crawfish meat as langostino. U.S. Customs and Border [...]
CBP is revoking two rulings related to country of origin markings under NAFTA for solar panels from Japan/Mexico (see HQ H266527 issued on May 16). In NY R00721 and NY 047417, CBP ruled that the correct country of origin for marking purposes of the solar panels was “components from Japan, assembled in Mexico” or “components [...]
Throughout the spring and summer of 2012 OtterBox entered into the commerce of the United States shipments of the Commuter and Defender Series phone cases. Customs classified the cases under subheading 4202.99.9000 HTSUS (covering all manner of containers) which carries a 20% duty rate. OtterBox challenged this classification in the Court of International Trade and argued that [...]
A Michigan company has been ordered by the Bureau of Industry and Security (BIS) to pay $575,000 in penalties for improperly classifying items subject to Export Classification Control Number (ECCN) 9B106.a. The items are allegedly controlled for missile technology (MT) reasons and were exported on 20 occasions over three years to the People’s Republic of [...]
On June 7, 2016, two non-prosecution agreements were reached in FCPA cases. One agreement was reached between the Securities and Exchange Commission and a Massachusetts-based internet services provider, in the amount of $652,452 plus interest. The SEC’s investigation led them to a foreign subsidiary that used bribes to induce Chinese officials to purchase more services [...]
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRIs), and the Additional U.S. Rules of Interpretation explain that “(c) a provision for parts of an article covers products solely or principally used as a part of such articles but a provision for “parts” or [...]
On April 27, 2016, the Department of Justice announced that Z Gallerie LLC, an upscale furniture seller, has agreed to pay $15 million to resolve a False Claims Act suit alleging Customs fraud. The United States alleged that Z Gallerie engaged in a seven-year scheme to evade antidumping duties of imported wooden bedroom furniture from [...]
Customs and Border Protection (CBP) has been in the process of expanding the role that the Centers of Excellence and Expertise (Centers) play in the import process. The Centers are hubs of knowledge established by CBP that are in place to aid CBP address issues related to ten different industry-specific categories. For example, the Center [...]