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!!

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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.

In recent years, gardening has blossomed into a global phenomenon, not merely as a pastime but as a vital component of sustainable living and environmental stewardship. As more people recognize the benefits of cultivating their own green spaces, the gardening industry has witnessed significant growth, reflecting in both domestic practices and international trade.

The United States, with its diverse climate and rich agricultural heritage, plays a pivotal role in the global gardening market. Examining import and export data reveals intriguing insights into the dynamics of this flourishing industry.

Imports:

The importation of gardening-related products reflects the diverse interests and needs of American gardeners. From exotic plants to specialized tools, the U.S. imports a wide array of goods to cater to the demands of enthusiasts.

1. Plants and Seeds: The import of plants and seeds is a prominent aspect of gardening trade.
2. Garden Tools and Equipment: Innovations in gardening tools and equipment drive import trends.
3. Fertilizers and Soil Amendments: The import of fertilizers, compost, and soil amendments supplements domestic production, ensuring optimal conditions for plant growth.

Exports:

Conversely, the United States also contributes to the global gardening market through its exports, showcasing its expertise and innovation in horticulture.

1. Seeds and Bulbs: American seed companies are renowned for their high-quality seeds and bulbs.
2. Landscaping Services: Exporting landscaping services to enhance public and private spaces, U.S. firms contribute to the beautification and sustainable development of landscapes globally.
3. Gardening Knowledge and Technology: Beyond tangible goods, the export of gardening knowledge and technology is gaining traction.

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The Green Economy:

The gardening trade exemplifies the growing importance of the green economy. Beyond economic transactions, it fosters environmental awareness, promotes sustainable practices, and fosters community engagement.

As the world grapples with environmental challenges, gardening emerges as a grassroots solution, empowering individuals to connect with nature and cultivate greener, healthier lifestyles.

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• While it is often attributed to him, Ben Franklin actually did not come up with daylight saving time as we know it today, but he did pen the idea of adjusting schedules to the available sunlight in an unpublished satirical letter from 1784. In the letter he calculated the money that Parisians could save on candles if they woke with the sun instead of lazily waking at noon.
• The actual name is Daylight Saving, not Daylight Savings, as it is often called.
• Daylight Savings was not enacted officially in the US until March 1918. This was later repealed, then enacted again during WWII. After the war, states were allowed to choose whether they wanted to utilize DST or not. This resulted in massive travel issues for citizens crossing multiple state lines.
• Modern use of DST was established in 1966, when the government passed the Uniform Time Act, creating a standard for daylight savings across the country (minus a few holdout states).
• Hawaii, Arizona, and most US Territories do not observe DST.
• There is much debate over whether DST has positive or negative effects on regions that use it, and whether it is necessary at all. Polls indicate that over 60% of Americans generally support the idea of eliminating DST permanently.
• Studies show that the second Monday in March (the day we “lose an hour” every year) there are noticeable spikes in workplace accidents, traffic accidents, losses of productivity and slight increases in health issues such as heart attacks and strokes.

Did you know that the Super Bowl featured players from 33 different states and five countries?  Click HERE to review the Census data and demographics to see if anyone from your hometown was in the game!  Congratulations to the Kansas City Chiefs!

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Cheese trays can be nice holidays gifts!  Did you bring any back with you from your holiday travels?  If you did, did TSA inspect your bag?  They probably did!!!  Did you know that cheese can look just like a bomb when it is passed through the TSA Xray screens?  “A block of cheese could be indistinguishable from C4.  There is no difference on the screen.  Meats too.  All organic products look orange on the display and look like explosives.” Reported a TSA agent.  C4 is a common variety of a plastic explosive that could be harmful in an explosion

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Ready to relax at the pool?  Do you have a life jacket?  Don't leave the country with it!  

Life jackets are meant to save lives, but did you know that according to the EAR, life jackets are potentially dangerous objects that can't be taken outside of the U.S. without an export license!  

Do you have an item that may require an export license?  Export license applications and commodity classification requests can be submitted online through a system known as SNAP-R.  

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The Bureau of Industry & Security has also made new updates to the system May 2018!

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Did you know ……September is the only month with the same number of letters in its name as the number of the month: it is the NINTH month and has NINE letters!

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Additionally, the first day of fall is in September.  As the weather cools down, it is the perfect time to indulge in some of the most popular fall flavored coffee, tea, and spices!  Coffee, tea, and spices are classified in chapter NINE of the Schedule B and HTS Tariff book!!!!

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Did you know ……Watermelons are not a fruit but a vegetable?  They belong to the cucumber family of vegetables and is one of the summer’s best treats!

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The United States is the 3rd largest exporter of watermelon by dollar value.  For exporting purposes, the Harmonized Tariff Schedule for watermelon is found in chapter 08 of the HTS.

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Did you know ……The first women’s swimsuit was created in the 1800’s.  It came with a pair of bloomers.

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For customs purposes, if swimsuits are imported with an accompanying swimsuit cover that matches the swimsuit in design, the two items cannot be imported as a set and must be imported as two separate items for classification purposes.

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Do you know which foods are exempt from the FSVP (Final Rule on Foreign Supplier Verification Program)?

May 27, 2017 the Food & Drug Administration will begin implementation of the Foreign Supplier Verification Program also known as FSVP. There are several foods that are exempt which are as follows:

• Meat, poultry and egg products subject to USDA regulation;
• Suppliers covered by the seafood or juice HAACP regulations
• Raw materials or ingredients for use in a food produced under the seafood or juice HAACP regulations
• Alcoholic beverages
• Food imported for research or evaluation provided it is not for retail sale, is properly labeled and is accompanied by an electronic declaration at entry
• Food transshipped through the US for export
• Food imported for processing and future export

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Food Safety Modernization Act Wizard is a FREE compliance tool!

Did you know that there is a free, online tool designed by Registrar Corp to assist companies in assessing their U.S. FDA compliance issues, possible requirements and deadlines under five Food Safety Modernization Act (FSMA) Rules:

1. Preventive Controls for Human Foods
2. Preventive Controls for Animal Food
3. Foreign Supplier Verification Program
4. Intentional Adulteration (Food Defense)
5. Produce Safety

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Sign Up for the FSMA Wizard

Red Flag Indicators for an Export Transaction. There are certain actions that could be an indicator that further investigation may be required prior to proceeding with an export transaction.  If you notice any of these actions, it could be a red flag!

Please be sure to check out the detailed list of red flag indicators to an export transaction on our flyer!

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How well do you understand routed export transactions?

Routed export transactions are a much discussed topic. Therefore, the U.S. Census Bureau has revisited this topic and have provided helpful tips on remaining compliant if you’re involved in a routed export transaction.

To review the helpful tips on routed export transactions click the button below.

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Read More

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Are you a compliant traveler?

Things NOT to Do on an Airplane

As we approach the holiday season, the goal is to not only be safe but to also be as pleasant as possible.

However, sometimes we get in our own way!

JAS Compliance would like to give you a few helpful tips on what not to do if you are on an airplane and make your travel easier.

• Don’t tune out the safety briefing.
• Don’t joke about bombs.
• Don’t recline your seat during meal times.
• Don’t eat smelly foods.
• Don’t drink too much.
• Don’t abuse the flight attendant call button.
• Don’t put your carry-on in an overhead bin where you are not sitting.
• Don’t inflict your feet on other passengers.

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Happy Holidays and Safe Travels to you this Holiday Season!

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2.5% or free of duty?  It can represent a large sum if the value is high and or the volume of entries is strong.  But picking harmonized tariff codes based on duty rates is not only incorrect, it is against the laws that govern trade.  The HTSUS (harmonized tariff schedule of the United States) is not a guide, it is a legal document backed with “teeth.” Failing to effectively classify commodities can lead to CF28’s (requests for information), CF29’s (notices of action often increasing the duty liabilities to the importer), focused assessments and audits.  All of these are efficiency killers in today’s modern fast paced supply chain environment.

CF28’s take time and resources to provide appropriate answers to CBP.  CF29’s take time and resources to review, rebut and sometimes to apply subsequent payments to an entry that may already be completed and closed in the books.  Focused assessments and audits are a whole new level of resource taxing for an importer compared to CF28’s and 29’s.

So what can importers do?

First of all, importers should begin classifying according to the General Rules of Interpretation codified in the HTSUS.  These rules provide the framework to follow a process to obtain correct HTS codes.

Second, importers should assess they database of commodities and determine items which need to be re-assessed.

Finally, an assessment of CF28’s and CF29’s should be examined.  How many have been received in the past 12 months?  How many have been answered? What items were affected by the requests? Have those items been updated inside the internal databases of the importer?

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JAS Forwarding USA Inc. Compliance Team is experienced in all of these questions.  We have solved these problems and can help.  Contact us today and we will assist to analyze risk in this arena as well as others!

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Anti-dumping and countervailing duties are assessed in an honest attempt to help level the playing field for US manufacturers.  This is an important function and CBP is committed to aggressive action to protect the interests of US industry.  Anti-dumping and countervailing duties do have effectiveness and as a result CBP has seen an increase in evasion tactics in some areas of the trade community.  Evasion tactics have included fraudulent country of origin and shipping documentation etc.  This behavior by some in the trade community is rather costly to the country.  Keep in mind that ADD/CVD exists to encourage buyers to source items subject to these duties from US sources or sources that are using free market pricing strategies.  The August 2016 Government Accountability Report notes that in the past 15 years, $2.3 billion were not collected in ADD/CVD.  That is an average of $150+ million per year!  That is also a bunch of US manufacturers being harmed by these questionable evasive practices.

New regulations empower competing importers and federal agencies to call importers out for suspicion of evasive practices with regards to ADD/CVD.  Now is a good time for importers to engage in self-assessment and determine what risk(s) there may be.  Internal audits and continuous improvement of internal compliance processes is a mitigating factor when CBP considers penalties for importers.

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Do you have self-audits regularly scheduled?  Do you have extensive experience investigating applicability of ADD/CVD?  We at JAS USA Inc. Compliance team have tackled these issues over and over again.  We pride ourselves in being educators and showing our valuable clients the right way to handle the sometimes uncomfortable positions these types of issues can create.  We are experts at building customized compliance plans, manuals and auditing schedules.  Contact us today and we will be glad to help you mitigate risk!

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TSA (Transportation Security Administration) plays a critical role in protecting the US transportation systems with the goal of ensuring freedom of movement for people and commerce (TSA Mission Statement).  All of us as members of the trade community have a role in this effort.

JAS Forwarding USA Inc. Compliance team strives to foster exceptional cooperation and partnering with government agencies involved in our daily business activities.  TSA is one of those key agencies!

JAS Forwarding USA Inc.’s commitment is displayed by participating in specific operational training at TSA’s request.

​JAS is honored to support TSA in its newest See Something Say Something Campaign.  Homeland Security is in the process of rolling out a pilot program for K9s, and are using trade community facilities as a setting for this training.  K9s are one of the many integral layers of screening employed by TSA to ensure that our transportation networks are kept safe from threats.  Both our JAS Forwarding USA Inc. Charleston, SC and Atlanta, GA locations have been used for this endeavor.  These branch locations exemplify our policy of cooperation and informed compliance.  All of our staff in our branch locations strategically placed around the USA are well trained and corporately supported in TSA regulations.

Questions?  Contact us today and let’s see how we can manage risk together!

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What is the difference between Schedule B Codes (for exports) and Harmonized Tariff Schedule (for imports)?

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All of the imports and export codes used by the United States are based on the Harmonized Tariff System (HTS). The HTS assigns 6-digit codes for general categories. Countries which use the HTS are allowed to define commodities at a more detailed level than 6-digits, but all definitions must be within that 6-digit framework.  The U.S. defines products using 10-digit HTS codes. Exports codes (which the U.S. calls Schedule B) are administered by the U.S. Census Bureau. Import codes are administered by the U.S. International Trade Commission (USITC).

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Did you know that per 15 CFR 758.6, a destination control statement is required on the invoice, bill(s) of lading or other export control documents accompanying shipments from US origin?  This is required for all exports of items on the Commerce Control List that are NOT classified as EAR99, unless the export can be made under a license exception (BAG-baggage or GFT- Gifts as defined in part 740 of the EAR).

Currently, the statement must say at a minimum: “These commodities, technology or software were exported from the United States in accordance with the Export Administration Regulations.  Diversions contrary to U.S. law is prohibited” (15 CFR 758.6).

These regulations have been revised and the requirement will change.  The new changes to 15 CFR 758.6 will be effective on November 15, 2016.  According the Federal Register published on August 17, 2016, the final rule implements changes which were proposed on May 22, 2015.  The stated goal of these revisions is “Harmonization of the Destination Control Statements.”  Per the summary of the Federal Register entry, “This final rule revises the destination control statement in 758.6 of the Export Administration Regulations (EAR) to harmonize the statement required for the export of items subject to the EAR with the destination control statement in 22 CFR 123.9(b)(1) of the International Traffic in Arms Regulations" (ITAR).

The revised regulation clearly states “The exporter must incorporate the following information as an integral part of the commercial invoice whenever items on the Commerce Control List are shipped (i.e., exported in tangible form), unless the shipment (i.e., the tangible export) may be made under License Exception BAG or GFT (see part 740 of the EAR) or the item is designated as EAR99.”  Yes it is similar to what we have already discussed in the opening paragraph.  However, note the language is specifying that the “exporter” must action this requirement.

The new statement as defined in revised 15 CFR 758.6 effective November 15, 2016 is: “These items are controlled by the U.S. Government and authorized for export only to the country of ultimate destination for use by the ultimate consignee or end-user(s) herein identified.  They may not be resold, transferred, or otherwise disposed of, to any other country or to any person other than the authorized ultimate consignee or end-user(s), either in their original form or after being incorporated into other items, without first obtaining approval from the U.S. government or as otherwise authorized by U.S. law and regulations.”

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Are you ready to meet this requirement?  JAS Forwarding USA Inc. Compliance Team is working to ensure that our bill of lading’s language has been adjusted to comply with these revised regulations.  We can help you too.  Contact us today and let’s work on some risk management together!

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JAS Forwarding USA Inc. was excited to host all of our USA Customs Brokerage Managers at our Atlanta, GA Corporate Campus last week.  For two days, key licensed brokers from JAS Forwarding USA branch locations sat in a room together with our Corporate Compliance team and discussed current topics in the industry.  This was an exciting time of interactive learning.  Our group was eager to discuss and learn from each other on some very timely topics such as antidumping/countervailing duties, auditing strategies, training entry writers, reporting and many other topics our clients are facing.

The risks in the import sector continue to increase and Customs is ramping up information requests, actions, and enforcement.  Education is an important part of compliance with US Customs regulations protecting the interests of the United States and ultimately our clients.  JAS Forwarding USA Inc. Compliance Team is an advocate for continued education opportunities and is committed to assisting our internal team members in achieving excellence.

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Did you know that JAS Forwarding USA Inc. Compliance Team can do external training too?  We are prepared and equipped to educate our clients and assist in training to ensure excellence in compliance and risk management.  Want to know more?  Contact us and let’s learn together.

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To many people, BIS sounds like many other government acronyms.  BIS stands for Bureau of Industry and Security.  The mandate of BIS is extremely important and worth taking a closer look at.

The BIS mission statement is to “Advance U.S. national security, foreign policy, and economic objectives by ensuring an effective export control and treaty compliance system and promoting continued U.S. strategic technology leadership.” That is quite a mission!  Think of each of the key words in this mission statement and realize the impact this mandate has.

Exporting certain items from the U.S. to certain places in the world may present a national security risk.  Items used for weapon production can be turned around and used against the U.S. both domestically and abroad.  These concerns drive the creation and updating of the Entity Lists.  It is worth re-iterating that the entity list exists because the BIS and other U.S. Government agencies have found cause to believe that somehow, those on the list may be a risk or related to something that poses a threat to our national security.

It is also important to note that just because a person/group/organization is on the entity list, it doesn’t necessarily prohibit trade with them.  However, it does raise the flag and compel the trade professional to ensure that due diligence is exercised in vetting the person/group/organization and determining what regulatory steps should be taken and appropriate authorization obtained in order to legally proceed to trade with those on the entity list.

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While things are constantly changing these days it is imperative that we remain vigilant and attuned to all the changes going on around the world.  BIS is a key U.S. Government Agency charged with being an integral instrument of protecting the United States.  The JAS USA Inc. Compliance Team understands the BIS mandate and are always willing to assist.  Contact us and we will help!

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Is there a difference between the Incoterms DDU and DAP?

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DAP is the short form for “Delivered at Place” that was introduced in 2010.  It is a term of agreement between a buyer and a seller much like DDU.  DDU was removed from Incoterms 2010 and replaced with DAP; however, many traders continue to use DDU in their business documents.  As a result, if traders use the terms in their business documents it is mandatory to mention “as per Incoterms 2000.”  Otherwise, DAP terms are applicable.

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