JAS USA COMPLIANCE

News & Insights from JAS Worldwide Compliance

JAS Forwarding (USA), Inc.

6165 Barfield Road
Atlanta GA, 30328
United States
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JAS USA Compliance Insights

Helpful Tips

JAS USA Compliance Insights on the Impact of COVID-19

CBP- The Truth Behind Counterfeits

CBP produces some informative and exciting videos related to international trade.  These videos can be found on the CBP.GOV website by going to the “Newsroom” link and selecting Video Gallery.  Check out this short informative video called “The Truth Behind Counterfeits.”

Watch the Video
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Episode 1 The CBP Office of Trade Control, together with Santa’s Workshop

Episode 1 The CBP Office of Trade Control has joined together with Santa’s Workshop for an exiting new Series, CBP Trade Special Operation North pole. Check out the investigation and learn more about how all goods, even those from Santa’s Workshop, need to adhere to U.S. trade laws.

Watch Episode 1
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Helpful Tips May 2022

Ahead of the upcoming guidance on the Uyghur Forced Labor Prevention Act (UFLPA), it is strongly recommended that all importers review their supply chain to ensure that their goods are not being made with forced labor. CBP has a FAQ section for the Xinjiang Uyghur Autonomous Region that covers Withhold Release Orders, proof of admissibility, and best practices. The Due Diligence/Best Practices section has extensive resources that you can apply when reviewing your supply chain. The UFLPA will be going into effect on June 21st, so be sure to do your due diligence as soon as possible.

Read More
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AD/CVD (Anti-dumping and countervailing duty) is a hot topic in the trade world these days.  Determining whether AD/CVD applies to products is imperative to understand the costs of imported goods.  Applicability of AD/CVD is typically based on the description of the item as it relates to the scope of the AD/CVD order.  HTS codes are part of AD/CVD scopes but are not the deciding factor.  

Using case numbers, The US Customs & Border Protection system for AD/CVD search AD/CVD search can provide information on specific cases including scope and other background related to individual cases.  Simply enter a case number in the search field and the results will appear.  Users can sort by date, status, type and much more.  

Find out more
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US importers are responsible for keeping all records related to imporations into the United States for the legal retention period.  In general records must be kept for 5 years from the date of entry, or 5 years from the date of the activity which required the creation of the record.  Failure to produce entry records upon lawful demand can result in significant consequences.  Check out CBP’s informed compliance publication on “Recordkeeping” in the link below to learn more.

Learn More
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Flagging for reconciliation allows importers to file their entry summaries using the best available information they have on file and electronically “flag” estimated elements, with the mutual understanding that CBP will receive the actual information at a later date.  Importers can then provide the corrected information on a new type of entry called a Reconciliation.  To read more about reconciliation, check out the link below.

Learn More
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CBP Liquidation Search
December 2, 2021

CBP’s website (linked below) for “Official Notice of Extension, Suspension and Liquidation” can be used to determine the status of entries.  Entries must have a status of extension, suspension, or liquidated to produce any results.  Some of the information returned includes Posted date, Liquidation date, Action (meaning change increase or no change, etc.), Port of Entry, Entry date, Entry Type, and the CEE Team designation.

Users can search by entry number along with combinations of filer code and importer of record numbers.  This can be a useful quick check tool to see the status of entries!

CBP Website
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Schedule B Search Engine
November 1, 2021

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.

Check out the Schedule B Search engine
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Free Trade Agreements are a great way to reduce costs through the reduction or elimination of duties on qualified items.  Free Trade Agreement items are often qualified for the agreement through numerous rules centered around the rules of origin.  Did you know that many finished goods may qualify for a free trade agreement even though it has material from countries that are not part of the agreement?  The rules of origin can be daunting but rewarding if applied effectively.  Check out the listing of free trade agreements in the US in the link below.  Need help?  Contact JAS Forwarding USA Inc. Compliance today!

Official listing of free trade agreements in the US
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CBP has published numerous “Informed Compliance Publications.”  These articles offer extensive commentary onvarious topics from how to classify apparel and sets to rules of origin andmuch more.  The full list of informed compliancepublications can be found at the link below:

Read More
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Effective July 1, 2021, the United States-Mexico-Canada Free Trade Agreement (USMCA) will implement the sewing thread requirement.

Sewing thread of headings 5204, 5401, 5508, or yarn of heading 5402 (used as sewing thread) and used in apparel products of Chapters 61 and 62 of the Harmonized Tariff Schedule of the United States, will only be considered originating if the thread is both formed and finished in the territory of one or more USMCA parties.

Sewing thread is considered formed and finished in one or more USMCA countries, if all production processes and finishing operations, starting with the extrusion of filaments, strips, film or sheets, and including slitting of a film or sheet into strips, or the spinning of all fibers into yarn, or both, and ending with the finished single or plied thread ready for use for sewing without further processing. (Non- originating fiber maybe used in the production of sewing thread of headings 5204, 5401 or 5508, or yarn of heading 5402 used as sewing thread.)

See General note 11(o), Chapter 61, Rule 3 and Chapter 62, Rule 4 of the HTSUS on the USITC’s website at the following link
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Is your product being investigated for possible antidumping or countervailing duties?  Do you know how to find if it is before a formalized case has published?  The International Trade Commission (USITC) publishes public notices regarding investigations, solicitations, public comments, and questionnaires.  Click HERE to go to the USITC webpage for public notices.

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The new version of the publication “Don’t Let This Happen to You” is now available!  This publication is an introduction to the consequences of violating U.S. Export Control laws.  It includes actual investigations, export control and antiboycott violations published by the Bureau of Industry Security.  

To read the access the latest version, CLICK HERE.

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HMF Exemptions
May 6, 2021

Did you know that Harbor Maintenance Fees (HMF) are exempt on an Entry Summary line (when MOT 10 vessel non-containerized, 11 vessel containerized, or 12 barge) when the article is classified under some HTS chapter 98 provisions?  Chapter 9808 has been added to that list. The HTS chapter 98 provisions that exempt the HMF are now 9804, 9805, 9806, 9807, 9808, and 9809.

Read the CSMS message on HMF Exemptions
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First Rule of Sale
April 1, 2021

On March 1, 2021, the U.S. Court of International Trade (CIT) issued a decision with important ramifications for any company that uses “first sale” to reduce customs duty liability for goods imported into the United States.  All companies relying on first sale should review their first sale programs to evaluate the impact of this ruling and take adequate precautions.

Download the First Sale Rule (PDF)
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Are you unsure if your shipment is subject to antidumping or countervailing duties?  Do you need a better understanding of which government agencies are involved and enforce the regulations?  Do you need a better understanding of preliminary case determinations or what happens when there is a final determination?  Click HERE to review the most frequently asked questions published by US Customs to answer a lot of questions as it relates to antidumping and countervailing duties.

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The Office of the United States Trade Representative (USTR) today released the findings of its 2020 Review of Notorious Markets for Counterfeiting and Piracy (the Notorious Markets List), which highlights online and physical markets that reportedly engage in or facilitate substantial trademark counterfeiting and copyright piracy.

See the Full List
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The export statistics are initially collected and compiled in terms of approximately 8,000 commodity classifications in Schedule B: Statistical Classification of Domestic and Foreign Commodities Exported from the United States.  The 2021 Schedule B has been released and is available online!

The new the 2021 Edition of the Schedule B
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Rules of Origin
December 2, 2020

The country of origin for imported goods has always been important; however, it has become increasingly more important. It has long been important for country of origin marking and free trade agreement eligibility. Now with Antidumping and Countervailing duties and Section 232 and 301 duties it has taken on new significance. Be sure to review the Rules of Origin in CFR19 Part 102by CLICKING HERE to ensure the correct Rule of Origin is being reported!

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Customs and Border Protection require a minimum of 16 data elements on a commercial invoice for entry processing.  Please review the commercial invoice requirements for a full detailed description.

Please review the commercial invoice requirements for a full detailed description.‍
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Are you practicing reasonable care to ensure importedgoods are not produced wholly or in part with convict labor, forced laborand/or indentured labor?  CBP haspublished a reasonable care checklist that includes questions to help importersavoid forced labor of imported goods.  

Access the Checklist
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Are there questions about what is subject to China tariffs for products from Hong Kong since the new rule has been published?  CBP has provided a list of frequently asked questions available on their website.  To see the list of questions and answers, click HERE!

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Customs Entry Type 86
August 5, 2020

Entry Type 86 is a fairly new entry type intended to help Customs and Border Protection (CBP) manage the flow of goods by creating greater visibility for low-value shipments entering the U.S. while improving border protection, import security, and safety. As of September 2019, imports to the U.S. with a de minimus value of less than $800 can be classified under type 86.  Do you have questions about how or when this entry type can be used?  Please see the list of FAQ’s on Customs website regarding entry type 86.

See the list of FAQ’s on Customs website
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CBP has published a list of frequently asked questions regarding the U.S. Australia Free Trade Agreement.  The FAQ’s answers questions related to claims of preferential tariff treatment, certification of origin, documentation, verification and more!  Click HERE to read more!

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Registrar Corp’s Regulatory Advisors are available 24-hours a day seven days a week to assist with U.S. Food and Drug Administration (FDA) regulations. They have a live chat that is managed by global staff to help assist with questions regarding labeling requirements, FDA registration, detained shipments and more.  

Please visit their website for further information!

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Decorative

September was a busy month for JAS Forwarding (USA) Inc. Compliance team members.

Laurie Arnold and Leah Ellis attended the NCBFAA (National Customs Brokers and Forwarders Association of America) GAC (Government Affairs Conference). During the conference, Laurie and Leah "walked the hill" and met with numerous congress members to discuss industry issues.

Scott Cassell spent time with clients in Newark, NJ along with J. Nathan May, Regional Sales Director to facilitate training on the HTS GRI (Harmonized Tariff Schedule General Rules of Interpretation) and Incoterms 2020.

Decorative

Our October spotlight of the month is Rishma Patel from our Atlanta branch, where Rishma has been with JAS since 1997. Rishma has been in the industry for 32 years. She is the CHB Manager and Licensed Customs Broker responsible for the JAS Atlanta/College Park location.

Rishma's favorite sports are cricket, volleyball, tennis and badminton. In her spare time, she enjoys painting, drawing and food carving.

Rishma's dedication is yet another example that People Make the Difference!

Decorative

The USTR (US Trade Representative) announced that they are proposing to increase Section 301 tariff rates on five subheadings of the HTSUS covering certain products of tungsten, wafers, and polysilicon.

The public docket was opened to allow for comments. All comments should be submitted by October 22, 2024.

To read more, check out the link below:

Decorative

Consumer Product Safety Commission (CPSC) is working to modernize the options for filing certificate data. "CPSC is actively developing the eFiling program and finalizing rulemaking." This creates a new opportunity to streamline the filing of General Certificates of Conformity (GCC).

Read more by checking out the link below:

Decorative

A new Federal Register notice has been issued on September 26, 2024, proposing a ban on Chinese and/or Russian "Vehicle Connectivity Systems (VCS)." According to the notice, BIS/Commerce "...is soliciting comment on this proposed rule, which builds on the advance notice proposed rulemaking (ANPRM) issued by BIS on March 1, 2024." Comments to the proposed rule must be received on or before October 28, 2024.

To read more details check out the Federal Register Notice

Joe-September 2024

Our September spotlight of the month is Mr. Joseph Schmidt from our New York branch, where he has been with JAS since 1998. Joe has been in the business for 46 years and has been a Licensed Customs Broker since 1983. He is the Broker Manager and Licensed Customs Broker responsible for the JAS New York location.

Joe loves sports, and is a huge fan of the NY Mets, Giants and Knicks. He also loves Elvis Presley. His ringtone on his phone is the song "Follow That Dream" from the 1962 Elvis movie of the same name.

His long tenure shows not only his dedication to JAS, but also shows JAS' commitment to retain dedicated professionals because People Make the Difference!

JAS Compliance

The JAS Forwarding (USA) Inc. Corporate Compliance Team met in August at our Corporate Headquarters.

The JAS Corporate Compliance Team gets together regularly to discuss current trade compliance topics such as AD/CVD (recent aluminum case), and section 301 matters.  Additionally, the Compliance Team is always strategizing on how to better serve our client's compliance needs.

The team was able to have an evening of team building throwing axes!

MOCRA

The Modernization of Cosmetics Regulation Act (MoCRA) has recently gone into effect. The MoCRA is the most significant expansion of FDA's authority to regulate cosmetics since the Federal Food, Drug and Cosmetic (FD&C) Act was passed in 1938.

Manufacturers and processors must register their facilities with FDA and renew every two years. Examples of items subject to MoCRA include but are not limited to baby products, bath preparations, various makeups, hair products, and even oral products such as mouthwash.

There are free tools available to determine whether FDA's new MoCRA regulations apply. Check out the link below to utilize this free tool!

Importer Penalized

An importer of uniforms and footwear has been penalized $1.3 Million for a fraudulent scheme involving fake invoices that deliberately and materially understated the value of their imports. These goods were being imported from China, Pakistan and Bangladesh. The defendants, including the CEO were also accused of providing invoices misrepresenting the fabric content which resulted in reduced duty amounts.

To read more details, check out the full US District court order.

Indira in the Spotlight

Indira Coomar from our JAS Forwarding (USA) Inc. Norfolk branch has been with JAS for 14 years in September.  She likes to run each morning.  During her runs, she takes some very beautiful photos of the sunrise over the beach and shares them with an inspirational quote to start many days. One of her recent quotes was “the secret to getting ahead is getting started!”  We appreciate Indira’s motivation, and this attitude perfectly reflects that People Make the Difference.

JAS on the Move

July 2024, JAS Forwarding (USA) Inc.’s Laurie Arnold (VP Compliance) and Scott Cassell (Corporate Compliance Project Manager) facilitated a client seminar covering Foreign Trade Zone, Forced Labor and Duty Drawback.  The event was hosted by our JAS Forwarding (USA)Inc. Charlotte Branch!

CBP Snap Shot

CBP publishes monthly trade statistics that provide a snapshot of the volume of shipments being processed.  In May2024, CBP processed more than 2.9 million entry summaries.  This includes numerous modes of transport from all over the world.  

CBP’s monthly trade stats show duties paid, seizures, WRO data and much more.

To read the full article, check out the link below.

MPF Increase

CBP has announced an increase of the Merchandise Processing Fee (MPF) within the Consolidated Omnibus Budget Reconciliation Act (COBRA). The fee increase will be effective on October 1, 2024.

The new minimum will increase from $31.67 to $32.71. The new maximum will increase from $614.35 to 634.62. The ad valorem rate of 0.3464% remains unchanged.

For more details check out the link below.

Additional 301 Tariffs Delayed

The USTR (US Trade Representative) has indicated that the increase originally expected on the 301 tariffs on August 1, 2024 will not go into effect as expected.  

The USTR has received 1100 comments from the public and continues to review those comments.  Modifications for 2024will likely take effect approximately two weeks after the final determination is made public.

Check out our client advisory and the links to the USTR and Federal Register Notice dated May 28, 2024.

 

To read more, check out the full register notice linked below.

Forced Labor Focus

The recent June 12, 2024, Federal Register notice added three entities to the UFLPA Entity List showing increasing focus on three additional commodities. The entities which were added are suspected of working with the Xinjiang Uyghur Autonomous Region to recruit, transport, transfer, harbor or receive forced labor or Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the Xinjiang Uyghur Autonomous Region.

The areas of increased focus include shoe and shoe materials, frozen seafood, vegetables, quick frozen convenience food and other aquatic food, and electrolytic aluminum, graphite carbon, and prebaked anodes.

To read more, check out the full register notice linked below.

Fines with disclosure

On June 24, 2024, the Assistant Secretary of Commerce, Matthew S. Axelrod signed a settlement agreement with an exporter for violations of EAR. The violations occurred because of forty-two different shipments over the course of 4 years which were classified under ECCNs 1C353. These instances were subject to export licenses, but no licenses were obtained prior to exportation.

The exporter has a compliance team and upon recognition of the issue, submitted a voluntary self-disclosure. To read more details, check out the link below.

BIS imposed a civil penalty of $44,750 for violations of the antiboycott provisions of the Export Administration Regulations (EAR)

On June 3, 2024, the BIS imposed a civil penalty of $44,750 for violations of the antiboycott provisions of the Export Administration Regulations (EAR).  In the press release, Assistant Secretary for Export Enforcement, Matthew S. Axelrod said “Our antiboycott rules against furnishing prohibited information and failing to report boycott-related requests apply with the same force even when another U.S. company is the one making the information requests.”  He goes on to say “U.S. companies are reminded to be vigilant in examining all transaction documents, regardless of the source, to ensure terms and conditions comply with our antiboycott rules.”

JAS Forwarding (USA) Inc. Compliance team members (pictured right to left) Laurie Arnold (NCBFAA Secretary) and Leah Ellis (NCBFAA Legislative Committee Chair)

JAS Forwarding (USA) Inc. Compliance team members Laurie Arnold (NCBFAA Secretary) and Leah Ellis (NCBFAA Legislative Committee Chair) attended the quarterly NCBFAA board meetings in DC discussing Ecommerce, PGA’s, transportation, and customs issues.

4th of July Fireworks

One of the most exciting things to do for the 4th of July holiday is to see fireworks with family and friends! Did you know that 88% of fireworks in the United States are imported? It is considered a very specialized product with lots of regulations. CBP seizes tons of firework shipments annually that never make it past the US port of entry. So before getting into the business of importing fireworks consulting with a customs broker like JAS is important! Happy Independence Day!!

The last 30 days have brought many updates to Section 301 duties, exclusions and more

The last 30 days have brought many updates to Section 301 duties, exclusions and more.  The action all started on May 14, 2024, when the USTR announced that further action would be taken against China’s unfair technology transfer policies and practices.  It was announced that key products would be subject to new rates over the next two years.  

May 22, 2024, there was a follow up to the May 14 announcement which further defined that 382 HTSUS subheadings and 5 statistical reporting numbers of the HTSUS are the specific products that will have the increases in 2024, 2025 and 2026.  This notice also noted that an exclusion process is being established for machinery used in domestic manufacturing and under certain subheadings under chapters 84 and 85 of the HTSUS.  Finally, this notice proposes 19 temporary exclusions for solar manufacturing equipment.

Finally, on May 24, 2024, the USTR published details about the disposition of the existing Section 301 exclusions 9903.88.67 and 9903.88.68 which have been scheduled to expire on May 31, 2024.  In summary, all exclusions under 9903.88.67 and 9903.88.68 have been extended to July 14, 2024.  On July 15, 2024, a new exclusion will be effective.  The new exclusion, under 9903.88.69 will cover 87 of the original 352 exclusions under 9903.88.67.  

For more details, check out our 3 Client advisories released during May linked below.

CBP publishes numerous Informed Compliance Publications

CBP publishes numerous Informed Compliance Publications. These documents can be extremely useful in answering detailed questions about the application of CBP rules/laws on a wide range of topics. Some of the topics covered include Valuation, classification of sets, classification of specific product types, drawback, reasonable care, recordkeeping, rules of origin and the list goes on. These documents are publicly available and can be viewed online or downloaded. To check them out, follow the link below!

U.S. Commerce Department’s Bureau of Industry and Security (BIS)

The U.S. Commerce Department’s Bureau of Industry and Security (BIS) has updated the process for excluding certain steel and aluminum imports from tariffs, effective July 1, 2024. This revision removes twelve General Approved Exclusions (GAEs), aiming to strengthen domestic steel and aluminum production and reduce reliance on foreign manufacturing.  The changes follow public feedback and are intended to ensure fairness and transparency in the exclusions process while upholding national security interests.  BIS has been overseeing this process since tariffs were imposed in 2018, and these adjustments reflect ongoing efforts to refine controls and support U.S. industrial base.

FDA issued guidance for Industry regarding the registration and listing of Cosmetic Product Facilities and Products

In December, 2023, FDA issued guidance for Industry regarding the registration and listing of Cosmetic Product Facilities and Products.  The publication lists product categories and provides a Q&A section with answers to specific cosmetic product questions.  The deadline is July 1, 2024.  For more info and links, check out our most recent client advisory linked below:

Insect Repellent is regulated by EPA and FDA

Insect Repellent is regulated by EPA and FDA for importations and classified in chapter 3808 of the HTS book.  It can be imported as a cream, spray and other methods such as bracelets.  Some repellents can be applied directly to the skin and other methods can be applied directly to the clothing.  

Here are a few ways to reduce your exposure to mosquitoes this summer:

  • Eliminate standing water in containers that could breed mosquitoes.
  • Wear long sleeve clothes and socks to avoid exposing the skin.
  • Replace outdoor lights with yellow bug lights which tend to attract fewer mosquitoes.
  • Follow necessary instructions and labels closely on insect repellents.

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