Nike shoes that include Bluetooth connectivity are classifiable as shoes, not Bluetooth wearables, said Customs and Border Protection in a Friday ruling. Nike had argued the shoes should be classified based on their Bluetooth transceivers, similar to smartwatches that rely on Bluetooth connectivity and are imported under the Harmonized Tariff Schedule's 8517.62 subheading. "Wearable 'smart' technology is a growing segment of the marketplace," CBP said. "Without a doubt, these types of goods will require individual, or case-by-case, analyses in order to determine their essential character." Jeffrey Whalen, a lawyer for Nike, requested the tariff classification ruling. Nike says the shoe's Bluetooth transceiving system "imparts its essential character" and makes "the article 'what it is' in the eyes of the consumer." The agency disagreed, saying the shoe's wireless capability “is a support function and not the essential character when viewing the electronic module on its own."
Nike shoes that include Bluetooth connectivity are classifiable as shoes, not Bluetooth wearables, said Customs and Border Protection in a Friday ruling. Nike had argued the shoes should be classified based on their Bluetooth transceivers, similar to smartwatches that rely on Bluetooth connectivity and are imported under the Harmonized Tariff Schedule's 8517.62 subheading. "Wearable 'smart' technology is a growing segment of the marketplace," CBP said. "Without a doubt, these types of goods will require individual, or case-by-case, analyses in order to determine their essential character." Jeffrey Whalen, a lawyer for Nike, requested the tariff classification ruling. Nike says the shoe's Bluetooth transceiving system "imparts its essential character" and makes "the article 'what it is' in the eyes of the consumer." The agency disagreed, saying the shoe's wireless capability “is a support function and not the essential character when viewing the electronic module on its own."
CBP will be moving drawback operations from within dedicated drawback centers and into the Centers of Excellence and Expertise, said Sharolyn McCann, director, Commercial Operations, Revenue and Entry, Office of Trade. McCann, who recently replaced Randy Mitchell in that role, spoke May 4 during the National Customs Brokers & Forwarders Association of America conference. "We are hoping to have this transition completed by the end of the fiscal year, the end of September," she said.
The Office of Information and Regulatory Affairs began a review of a proposed rule prohibiting goods made using forced labor. OIRA received the proposal from the Treasury Department's customs operations May 4. CBP has been working on regulatory changes for forced labor (see 1703130011) since the law was changed as part of the Trade Facilitation and Trade Enforcement Act (see 1603010043).
Nike shoes that include Bluetooth connectivity, data processing, flash memory and auto-fit technology are classifiable as shoes, CBP said in an April 30 ruling. The company had argued the shoes should be classified based upon the Bluetooth transceiver, similar to smartwatches that rely on Bluetooth to transmit data, under subheading 8517.62. "Wearable 'smart' technology is a growing segment of the marketplace," CBP said. "Without a doubt, these types of goods will require individual, or case-by-case, analyses in order to determine their essential character." Jeffrey Whalen, a lawyer for Nike, requested the tariff classification ruling from CBP.
CBP has set a "very aggressive schedule" for moving ahead with a proposal to require 36 hours of continuing education for customs brokers every three-year period, said John Leonard, acting executive assistant commissioner for trade, while speaking remotely to the National Customs Brokers & Forwarders Association of America conference May 3. Some factors involved in the timing are out of CBP's control, but "we've got some very highly placed advocates within the Department of Homeland Security that are hopefully going to work their magic with the Office of Management and Budget," he said.
CBP's Automotive and Aerospace Center of Excellence and Expertise “continues to issue an inordinate number of informed compliance letters compared to the other Centers and in a manner inconsistent with CBP laws, regulations and policy,” the National Customs Brokers & Forwarders Association of America said in an April 27 letter to the agency. The NCBFAA previously mentioned the issue to the director of the Center, “but feel[s] it is necessary to seek additional improvement at the Headquarters level,” it said.
A company must be able to prove that prices weren't distorted for transactions involving non-market economies (NMEs) when claiming first sale treatment, the Department of Justice said in an April 29 Court of International Trade filing (Imperia Trading, Inc. v. U.S., CIT # 15-00142). DOJ's argument relies on a recent CIT decision involving imported Meyer cookware that said the involvement of Chinese companies made it difficult to determine whether a transaction is affected by non-market influence (see 2104200075). DOJ made the filing as part of a dispute over whether Imperia Trading, an importer of apparel made in China, can use the sale from a Hong Kong middleman company for appraisement.
Five aluminum extrusion importers evaded antidumping and countervailing duties on goods from China by commingling shipments in the Dominican Republic, CBP said in a Jan. 28 determination notice posted by the agency April 27. The finding is a result of an investigation that began following a 2019 allegation from the Aluminum Extrusions Fair Trade Committee (AEFTC) that the companies were evading AD/CV orders A-570-967 and C-570-968. The importers are Florida Aluminum Extrusion, Classic Metals Supplies, Global Aluminum Inc., H&E Home, Industrias Feliciano Aluminum Inc. JL Trading Corp. and Puertas y Ventanas J.M., Inc.
CBP will take a look at how it can bring foreign-trade zones into the Customs-Trade Partnership Against Terrorism, Thomas Overacker, CBP executive director-cargo and conveyance security, said April 28 during the virtual National Association of Foreign-Trade Zones spring seminar. “We've committed to explore how we can incorporate FTZs into the CTPAT program,” he said. “We've long considered the documentation and internal controls of your industry as best practices for security and supply chain integrity. It only makes sense that you receive the recognition that you deserve.”