Recent CBP Enforcement Effort Found Misuse of Special Program Indicators
The CBP Pharmaceutical, Health and Chemicals Center of Excellence and Expertise found some problems with entries using special indicator codes (SPIs), CBP said in its trade enforcement bulletin for the second quarter of fiscal year 2018. The Center finished a free trade agreement enforcement operation nicknamed "38 Special" that "targeted Chapter 38 entries where the use of a special [program] indicator was applied," CBP said. Chapter 38 covers "miscellaneous chemical products."
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General Note 13 (K) and General Note 14 (L) of the HTS "are very specific in determining which pharmaceutical products and chemical dye intermediates qualify for duty free status," the agency said. CBP's import specialists looked at 32 entry summaries from the first quarter of FY18 and found 31 entries "to be discrepant in their use of an indicator," CBP said. The operation resulted in recovery of $137,227.36 in revenue, CBP said.
CBP said it also took part in a semiconductor industry event. "CBP personnel from the Electronics Center of Excellence and Expertise (Center) visited three U.S. semiconductor companies for bidirectional education meetings and factory tours," it said. "The center works closely with the U.S. semiconductor industry to protect intellectual property rights (IPR)." The agency bulletin also highlighted recent seizures of counterfeit sinks in Baltimore and counterfeit perfume in Los Angeles.