2013 - Page 7 of 10 - Customs & International Trade Law Firm

File Your Petitions Timely, Or Else…

As of January 9, 2013, Customs and Border Protection (CBP) is making procrastinators pay the price for filing untimely petitions that seek relief from liquidated damages. CBP amended it’s guidelines for the cancellation and mitigation of claims for liquidated damages in cases where petitioners are late in filing claims for relief. Additionally, CBP also changed the formula for calculating late petition mitigation.

Current Rule for Timely Petitions

Under the existing regulatory authority, in order to be considered timely, petitions for relief in response to claims for liquidated damages must be filed:

•A. By bond principals within 60 days from the date of mailing of the notice of liquidated damages (see 19 C.F.R. 172.3(b)) or any lawful extension thereof; or

•B. By sureties within 60 days of the demand for payment by CBP (see 19 C.F.R. 172.4) or any lawful extension thereof.

When circumstances so warrant, extensions of the time period to file a petition may be granted by the FP&F Officer (FPFO) if such an extension of time is requested during the 60-day period available for timely filing a petition (see 19 C.F.R. 172.3(c)). The amendment to the current rule does not allow a petition for relief to be considered if it is filed after (a) the commencement of sanctioning action against the bond principal or (b) the issuance of a notice to show cause against the surety.

A party responsible for a liquidated damages claim may submit […]

By Jennifer Diaz|2013-04-08T13:12:00-04:00April 8, 2013|Best Practices, Liquidated damages, U.S. Customs and Border Protection (CBP)|0 Comments

Seizure Averted – Why a Customs Lawyer is Essential at Detention

Sitting with your head down moping about U.S. Customs and Border Protection (CBP) holding your goods is never the right answer!

Two days ago, a potential client called and explained that a valuable shipment was detained by CBP. The potential client asked if I could help recoup the goods from CBP, during this detention phase, or if they should wait.

When I get this question, I always want to scream, NOW!! This is the most essential time an importer has. Here’s the real question – do you want an expert in Customs law to assist you before your goods are guaranteed to be stuck in CBP for months, or work on getting them back for you NOW?!

I always request pertinent information about the commodity and the supposed rationale for the detention (if you don’t have this information yet, I help you get it). In this case, the potential client adamantly stated that the goods were legitimate, gray market goods; however, CBP was skeptical.

I advised the potential client that obtaining my services at this point would be the BEST option so I could clearly determine and explain to CBP the legitimacy of the merchandise and demand the release. After being hired, I immediately began working on the case due to the exigency of the circumstances. My tasks were to understand the basics of the commodity, learn […]

By Jennifer Diaz|2013-04-01T20:53:00-04:00April 1, 2013|Detention, Intellectual Property Rights, Seizure, U.S. Customs and Border Protection (CBP)|2 Comments

Band-Aid or Stitches? What’s Your Compliance Approach?

When you get a deep cut, do you simply put on a band-aid or do you go to the hospital to get stitches that you really need? Stitches take time and are more costly – but, your bleeding will stop and your cut is less likely to re-open. With a band-aid – you’re likely to re-open your wound and/or get an infection. You get stitches if you know what’s good for you!

Compliance is similar in that there may be a quick fix for the current issue; however, if you don’t stop the bleeding and get stitches, you will be in trouble in the long-run, and the bleeding won’t stop.

On a daily basis, different companies call me to discuss issues they are having with U.S. Customs and Border Protection (CBP). For instance, today, a company called me discussing a CBP 28 – Request for Information, and thereafter a CBP 29 – Notice of Action received from CBP. The issue was an underlying classification issue. Bottom line, they had never done any Pre-Compliance on the Harmonized Tariff Schedule’s (HTS) they were using for their imported merchandise. They said the infamous line – that’s why I hired a broker. Important to note that this just does not cut it with CBP.

CBP publishes really great Informed Compliance Publications for Importers – too few importers have read them, and too small a percentage of importers know they exist. For new importers, CBP has […]

By Jennifer Diaz|2022-07-07T09:49:12-04:00March 26, 2013|CBP 28, CBP 29, Pre-compliance, Seizure, U.S. Customs and Border Protection (CBP)|0 Comments

Sequestration Causes Furloughs in CBP – What This Means for You

International passengers at Miami International Airport (MIA) have certainly felt the detrimental effects caused by the sequestration, as thousands have missed connecting flights – because of CBP processing delays.

The sequestration has created hard caps on the amount of government spending due to the government’s inability to compromise on a budget. Prior to the sequestration, CBP stated that they would ensure that their core mission would not be compromised, and under no circumstances would CBP diminish their commitment to completing their responsibilities. On March 11, 2013, CBP began sending furlough notices to all of its 60,000 employees as the agency aims to make $754 million in cuts required under the sequestration. The furloughs are set to begin on April 21, 2013 and continue through September 30, 2013.

These furloughs will…

put full time employees on unpaid leave for no more than 14 workdays.
pro-rate furlough time for part-time workers.
freeze hiring
reduce and eliminate overtime and compensatory time

CBP agrees the biggest hit to border security comes from cuts to overtime. CBP will see income cut by 40%. Partly as a result of having to take up to 14 unpaid days off work.

What should importer/exporters and those involved in international trade expect?

Cargo processing during arrivals/departures outside normal business hours may experience delays until the following business morning. This roll over of work may in turn provide for regular cargo processing delays which are expected to take from 30 minutes up to a few hours during regular working hours. The daily tasks completed by cargo processing are not expected to be reduced. However, additional work […]

By Jennifer Diaz|2022-07-07T09:47:58-04:00March 25, 2013|Import, TSA, U.S. Customs and Border Protection (CBP)|0 Comments

FDA Discusses TOP Reasons for Detention of Goods

At today’s Import Operations Training, sponsored by the U.S. Food and Drug Administration (FDA) and the Florida Customs Brokers and Forwarders Association (FCBF), top officials from FDA traveled to Miami to educate importers and brokers. Topics ranged from a general overview of FDA compliance, TOP rationales for FDA detentions, Food Safety and Modernization Act (FSMA) updates, an overview of the newly re-organized (now DIO) Division of Import Operations (formerly DIOP – policy has now been removed), an overview of CBP & FDA’s Joint Team 488 – which handles liquidated damages claims for underlying FDA violations and much more. Highlights of the TOP rationale for detentions follows, as I feel this is of most value to you to know and is arranged by commodity.

Food Products Top Rationales for Detention

•Manufacturer (processor, packer or person holding food product) is not registered with the FDA pursuant to the Bioterrorism Act. (You can Register with the FDA here: www.FDA-USA.com)

•Low Acid Canned Foods (LACF) are imported without establishment registration (FCE #) or scheduled process (SID #)

•The products are subject to an Import Alert

•Product labeling is not compliant (FDA does not pre-approve food labeling, it is up to importers to assure it is compliant before importing)

•Common labeling violations include:

1.Label is not in English

2.Incorrect or missing statement of identity

3.Failure to list allergens

4.Failure to declare ingredients

5.Failure to include a proper “Nutrition Facts” label (incorrect formats […]

By Jennifer Diaz|2013-03-21T00:56:00-04:00March 21, 2013|Best Practices, FDA Notice of Detention, FSMA, Import, Import Alert, U.S. Food and Drug Administration (FDA)|1 Comment

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