In an August 14, 2019 Notice of Proposed Rule Making, U.S. Customs and Border Protection (“CBP”) announced its intent to increase requirements on licensed customs brokers to verify the identity of the importers with whom they transact. CBP reports that each year, approximately 350,000 importers actively engage with CBP through almost 2,100 licensed customs
U.S. Customs and Border Protection (CBP)
Federal Circuit Squeezes Customs’ Wrench Classification
In a recent opinion, the United States Court of Appeals for the Federal Circuit affirmed the US Court of International Trade’s (CIT) determination of the classification of certain hand tools imported by Irwin Industrial Tool Company (“Irwin”) as “pliers” over US Customs and Border Protection’s (“Customs”) classification of the tools as “wrenches.”
The tools…
Importer Sues CBP for Delay in Releasing Products
A complaint filed in the United States Court of International Trade (“CIT”) late last week highlights the practical challenges and frustration that come from delayed resolutions and parallel proceedings between federal courts and agencies, such as US Customs and Border Protection (“CBP”). In the Complaint, One World Technologies, Inc. (“One World”), a manufacturer of garage…
Ziploc Tariff Dispute Not Sealed Up Yet
In a recent Opinion, the United States Court of International Trade denied cross motions for summary judgment filed by Ziploc bag producer S.C. Johnson & Son (“S.C. Johnson”) and the U.S. government which sought competing classifications for the well-known plastic bags.
S.C. Johnson argued that the 6 1/2 inch by 5 7/8 inch version…
CBP Holds That Roasting Changes Coffee’s Country of Origin
In a recently issued Final Determination, U.S. Customs and Border Protection (CBP) confirmed that the roasting of coffee beans substantially transforms the beans into a product of the country in which the beans were roasted.
Coffee producer Keurig Green Mountain (“Keurig”) requested the determination as to the country of origin assignment to green coffee…
Santa Claus Costume Classified as “Fancy Dress” for Import Duty
Just in time for the holiday season, the U.S. Court of International Trade (“CIT”) recently held that certain components of a Santa Claus suit were of such quality that they should be subject to apparel duties, not the free duty assessed on costumes and other “festive articles.”
The articles at issue were imported by Rubies…
CIT Upholds CBP Classification of “Optical” Data Modules
In a recent decision, the United States Court of International Trade (CIT), upheld the classification of United States Customs and Border Protection (CBP) with regard to fiber optic telecommunications modules, finding that the “optical” quality of fiber optics trumped their use for data transmission.
ADC argued that, although fiber optic technologies use light (transmitted…
CIT Finds Shoe Importer Was “Grossly Negligent” In Classifying Products
In recent decision, the Court of International Trade entered a $1.6 million award against shoe importer, Sterling Footwear, Inc. (“Sterling”), for what it found to be grossly negligent product misclassification. Granting the U.S. Government’s motion for summary judgment in part, the Court left open the possibility of additional penalties of up to $20.8 million…
CIT Finds that Home Depot Doorknobs Are Locks
In a recent opinion, the Court of International Trade upheld the determination by U.S. Customs and Border Protection (CBP) that certain doorknobs imported by home-improvement retailer Home Depot are properly classified as locks and subject to a higher duty than other doorknobs.
In essence, the dispute came down to a question of whether a doorknob…
Gray Market Distributor Challenges CBP’s Grant of Protection to Duracell
In a recent post, we discussed the lawsuit brought by battery behemoth Duracell against a company that it was importing “gray market” versions of its copper-topped products. In that action, Duracell has argued that the warranty that comes with its U.S. batteries is ten times longer than the warranty that comes with the batteries…