Diaz Trade Consulting partners with leading experts to bring you compliance seminars catered to your international business.
COMPLIANCE SEMINARS FOR INDIVIDUALS & SMALL BUSINESSES
The U.S. Consumer Product Safety Commission (CPSC) and U.S. Customs and Border Protection (CBP) Address Ongoing Litigation & Seizure of one of the hottest toys, the Hoverboard.
Hoverboards, as they are commonly known, are self-balancing two-wheeled electric scooters. They are powered by controversial rechargeable batteries that have recently garnered attention for malfunctioning, causing devices to catch fire and destroy homes. The lithium-ion batteries have been known to overheat, catch fire, and explode without warning.
Several airlines have begun to prohibit transportation of the boards aboard aircraft, due to safety concerns. Amazon.com is placing safety first and offering consumers that have purchased a hoverboard from Amazon a full refund. Hoverboards are also facing additional litigation from Mark Cuban, who potentially has a patent infringement claim against Walmart for selling the devices.
According to the United States Consumer Product Safety Commission, “The federal government continues to work in close coordination on this serious issue. Officials from CPSC, U.S. Customs and Border Protection, the U.S. Department of Transportation and the Federal Aviation Administration are regularly sharing information and insights with a common goal of taking whatever steps are necessary to prevent injuries and property damage from fires and falls.” They recommend having a fire extinguisher handy and keeping the device far away from combustible materials while charging. There are not currently any safety standards in place for hoverboards, which would require proof of sound design, manufacturing, and quality control processes. This lack of regulation adds to the danger […]
CBP issued a message to trade, and guidance document titled “Post Importation Claims for Preferential Tariff Treatment.”
The purpose of this message is to provide guidance to the trade community concerning acceptable methods for submission of post-importation preference claims, in light of certain judicial decisions. This message is consistent with a memorandum from the Office of International Trade to field offices sent on August 11, 2014.
BACKGROUND
Historically, importers have used various post-importation mechanisms to claim duty preferences under various free trade agreements, trade preference legislation, and certain tariff provisions in Chapter 98, Harmonized Tariff Schedule of the United States. These mechanisms include Post-Entry Amendments (PEAs), Post Summary Corrections (PSCs), protests in 19 USC 1514 and post-importation claims in 19 USC 1520(d).
Several court decisions1 have held that the protest mechanism set forth in 19 USC 1514 may not be used to make a preference claim, inasmuch as the liquidation of an entry “as entered” (without a claim) is not a “protestable decision”. Headquarters Ruling Letter H193959, dated July 30, 2012, also discussed the court cases’ holding limiting use of protests for preference claims.
However, the implementing legislation for several preference programs specifically provides for post-importation claims, set forth in 19 USC 1520(d), and such claims are the only appropriate mechanism to seek preference when not claimed at the time of entry. This legislation allows post-importation claims for a one-year period after the date of importation.
Customs and Border Protection has completed a review concerning which methods are available to make claims after entry for […]