Customs and Weekly Trade Snapshot

Here is a recap of the latest customs and international trade law news:

 

 

 

 

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Customs Undervaluation – It’s a Crime

Customs Valuation is a procedure to determine the customs value of imported goods. The customs value is essential to calculate the total duty to be paid on an imported good. As part of its agreement with the World Trade Organization (“WTO”), the U.S. is part of an internationally standardized system of valuing imports. This standardized system allows for CBP to protect revenue, ensure reasonable care from importers, and accurately calculate Census trade statistics. Accordingly, it is critical to declare the value of importations accurately and compliantly. 

The U.S. Customs and Border Protection (CBP) valuation methodology (as well as a summary of relevant Customs rulings) are described in detail in the Valuation Encyclopedia (i.e., the best resource on valuation inquiries). CBP permits merchandise to be valued according to one of the six valuation methods listed below. The methods are applied sequentially from first to last until an applicable value is determined. If the first method does not apply, the importer must then evaluate the second, and so on, until an appropriate method applies. The only exception to this sequential evaluation requirement is when evaluating between deductive value and computed value – an importer may choose to use the computed value before the deductive value.

Methods of Valuation:

  1. The transaction value of imported merchandise (the majority of imports use transaction value – i.e., the price paid or payable plus assists (see below))
  2. The transaction value of identical merchandise
  3. The transaction value of similar merchandise
  4. Deductive value
  5. Computed […]

Customs and Trade Law Weekly Snapshot

Here is a recap of the latest customs and international trade law news:

[…]

UFLPA DHS Guidance – What Importers Need to Know

On June 17,  2022, DHS published its long-awaited strategy guidance document which shed light on how UFLPA will be implemented, and what evidence may be provided to rebut the presumption that the goods were made with forced labor. This article provides an overview of the type of evidence importers should have readily available when importing goods into the United States. For general guidance on preventing the importation of goods produced with forced labor and how importers should audit their supply chain to ensure non-use of forced labor, please refer to our Bloomberg Law article, “U.S. Customs Targets Use of Forced Labor”.

UFLPA

The Uyghur Forced Labor Prevention Act (UFLPA) establishes a rebuttable presumption that goods mined, produced, or manufactured wholly or in part in the Xinjiang Province of China or by an entity on the UFLPA Entity List are prohibited from importation into the United States under 19 U.S.C. § 1307. However, if an Importer of Record can demonstrate by clear and convincing evidence that the goods in question were not produced wholly or in part by forced labor, fully respond to all CBP requests for information about goods under CBP review and demonstrate that it has fully complied with the guidance outlined in this strategy, the Commissioner of CBP may grant an exception to the presumption.

Clear and convincing evidence is a higher standard of proof than a preponderance of the evidence, and generally means that a claim or contention […]

Customs and Trade Law Weekly Snapshot

Here is a recap of the latest customs and international trade law news:

[…]

Diaz Trade Law Invites the Trade Community to Two Free Webinars this Summer!

Celebrate the summer season with two light hearted webinars on International Trade. Diaz Trade Law invites the trade community to two FREE webinars; space is limited – register today! Laugh with us at the Humor in International Trade webinar and learn insightful facts about the impact of international trade on American history during The First Laws — History of Customs and Revenue Law. More information about each webinar is provided below:

Can We Find Humor in International Trade? – July 14, 2021 at 12:00 PM ET

This one-hour webinar describes humor in trade. International Trade is a serious subject, but within it, bits of humor can be found. Register today to hear from this experienced duo and discover many of the oddities and idiosyncrasies prevalent in our modern-day international trade system.

President and Founder of Diaz Trade Law, Jennifer (Jen) Diaz is a Chambers ranked, Board Certified International Attorney specializing in customs and international trade.

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REGISTER TODAY! NEI Accredited Webinar Importing 101 – Introduction to U.S. Customs

Webinar Importing 101 Introduction to US CustomsWhether you are new to importing or seasoned, this one-hour webinar is a must attend. Register today to hear directly from this specialized, expert trio on the “Top 10 Tips When Importing to Ensure Compliance” with real case studies:

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Using WROs to Fight Forced Labor

Forced Labor is the third most lucrative illicit trade, behind only drugs and weapons, and has an annual trade value of roughly $150 Billion. Right now, over 40 million people around the world are victims of some type of forced labor, including modern slavery, human trafficking, etc.

Thankfully, U.S. Customs and Border Protection has been working to curb this inhumane practice.

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NEW List 1- Section 301 Extensions

On June 3, 2020, the Office of the United States Trade Representative (USTR), requested the public to submit comments regarding potential product exclusion extensions for items subject to Section 301 Tariffs. This comment period specifically applied to products that were included on List 1, which went into effect on July 6, 2018, and had an annual trade value of $34 Billion.

List 1 imposed 25 percent additional duties on 818 eight-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS).

The June 3 announcement was made via federal register notice and stated that submissions were to be made no later than July 7, 2020. Less than three months later, on September 20, 2020, USTR announced its determination to extend certain exclusions through the end of the year.

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