In the following link to CSMS message regarding U.S. goods returned, U.S. Customs and Border Protection (CBP) issued updated guidance on an importers and broker’s responsibilities for U.S. and foreign goods returning under HTS 9801.00.10.

Under HTS 9801.00.10, goods are allowed to be entered duty-free, if the importer has the required documentation to prove the goods were either:

• Originally manufactured in the United States
• Foreign manufactured articles previously imported, exported and are now being returned to the United States within three years of exportation, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad

In this guidance, CBP places the burden or proof on the importer to substantiate their claim for duty-free treatment under HTS 9801.00.10 with proper supporting documentation.  Customs brokers have the responsibility to advise the importer what documentation is required as part of the importer’s records.

The following are forms of proper documentation:

• Declaration by Foreign Shipper stating goods were not advance in value or improved in condition while outside the United States.
• Declaration by the Owner, Importer, or Consignee – when the owner or ultimate consignee is a corporation the declaration is to be signed by an officer of the company

These declarations are to be retained and provided, if requested, to CBP and ensure that the appropriate person is authorized to sign the declarations.

For U.S. manufactured goods valued over $2500 and entered three years after the date of exportation which are not clearly marked with the name and address of the original U.S. manufacturer, CBP may require, in additional to the above declarations a affidavit from the original manufacturer.  

CBP also request proof of export from the USA for U.S. manufactured goods or foreign origin goods, provided the information contained proves an export from the United States.  The following are acceptable forms of proof of export:

• Copy of the entry into the foreign country
• U.S. export invoice or bill of lading/airway bill or Electronic Export Information (EEI or the Automated Export System (AES) filing exemption.

On October 12, 2021, BIS reached a settlement with VTA Telecom Corporation, a California-based subsidiary of a state-owned telecom company in Vietnam. According to the settlement, VTA was found in violation of 6 regulations specified in the EAR going back to 2015. The violations include evading regulations, providing false statements to BIS, and knowingly exporting unlicensed items, some of which were intended for use in a defense program. BIS assessed a civil penalty of nearly 2 million dollars against VTA, along with additional sentencing to ensure all regulations are being followed moving forward.

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U.S. CBP’s ACH (Automated Clearinghouse) is an electronic payment option that allows participants to pay customs fees, duties, and taxes electronically.  This program offers numerous benefits from automation of payables on duties to better accuracy of payments.  Additionally, once importers are signed up for ACH, the PMS (Periodic Monthly Statement) becomes an option which provides additional cash flow benefits.  To learn more, check out our ACH and PMS flyers linked below.

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On October 12, the US Trade Representative site has opened a docket for comments on the Reinstatement of Exclusions for Section 301 Tariffs. This docket is open to the public and contains links that provide guidance on how to make a comment, as well as a list of the 549 previously extended exclusions. The public docket will remain open for comments until December 1, 2021.

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The US Census Bureau’s Schedule B search engine is another useful tool for getting started finding HTS codes and or Schedule B numbers.  Schedule B numbers follow a similar pattern to US HTS codes (although there’s less Schedule B numbers).  The numbering system is like the harmonized system.  

Using the Schedule B Search Engine simply requires answering a few key questions about the commodity being reviewed.  Then a potential Schedule B is displayed on the screen.  This can be useful for imports if the item being classified is not very familiar to the classifier.  

Check out the Schedule B Search engine at the link below.

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Last year, NASA and ESA began an ambitious project with the intent to gather rock samples from Mars, and have those samples brought back to Earth. This multi-billion dollar project began with NASA’s launch of Perseverance, a rover designed to drill for rock samples and store them for a return trip. In order to retrieve the samples, the aerospace manufacturer Airbus has been hired to build a specialized spacecraft called the ERO, or Earth Return Orbiter – a massive structure that will cross millions of miles to Mars’ orbit. From there, it will pick up the samples stored by the Perseverance and make a return trip to Earth, resulting in what could be considered the first interplanetary cargo delivery! The ERO is expected to launch sometime in 2026. Now the real question is, what duties do NASA and ESA have to pay for several tons of Mars rock?

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Apparel Classification Series: Everything but Knit Tops- Sandler Travis & Rosenburg

November 2, 2021

2:00 PM ET – 3:30 PM ET

1.5 CCS Credits

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