Wisconsin companies Precision Cable Assemblies and Global Engineered Products, along with their chief executives Ryan Schmus and Richard Horky, paid more than $10 million to settle charges they avoided millions of dollars in customs duties on Chinese goods, the U.S. Attorney's Office for the Eastern District of Wisconsin announced.
Customs Duty
A Customs Duty is a tariff or tax which a country imposes on goods when they are transported across international borders. Customs Duties are used to protect countries' economies, residents, jobs, and environments, by limiting the flow of imported merchandise, especially restricted and prohibited goods, into the country. The Customs Duty Rate is a percentage determined by the value of the article purchased in the foreign country and not based on quality, size, or weight.
Chinese seller Jinxiang Lunong Agricultural Trading's sale of dehydrated garlic to U.S. importer Green Food Ingredients isn't “bona fide” first sale that can be used to appraise a transaction, CBP ruled on May 29. This is partly because of how the transaction was structured and invoiced, the agency said.
International Trade Today is providing readers with the top stories from last week in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
The following lawsuits were filed at the Court of International Trade during the week of July 29 - Aug. 4:
The Court of International Trade earlier this month heard oral argument on whether a CBP protest denial effectively revoked a prior CBP protest decision by applying a different tariff classification to identical merchandise, and should have been subject to a notice-and-comment period (Under the Weather v. U.S., CIT # 21-00211).
The U.S. Court of Appeals for the 9th Circuit last week affirmed the convictions of six companies for conspiracy to commit wire fraud, customs fraud and promotional money laundering. However, the court said the trial court failed to resolve the parties' dispute on the value of the companies' warehouses before finding that they "lacked the ability to pay" the over $1.8 billion judgment and "ordering a nominal payment schedule."
Trade associations are generally pleased with the trade facilitation discussion draft issued in the Senate last week (see 2407310037), though they all noted that moving to a true one-U.S.-government data submission and release regime requires money, which may not follow, even if the bill becomes law.
The Commerce Department will allow a grace period until Aug. 31 for some certifications that Malaysian and Vietnamese wooden cabinets aren’t subject to antidumping and countervailing duties on wooden cabinets and vanities from China (A-570-106/C-570-107), it said in a correction notice released Aug. 2.
Senate Finance Committee Chairman Ron Wyden, D-Ore., is sharing draft text with the trade of a bill that would remove goods subject to Section 301 tariffs from the de minimis entry lane, along with any categories deemed "import sensitive" in the Generalized System of Preferences benefits program legislation.
The U.S. District Court for the Southern District of New York last week ordered importer Delta Uniforms and its owner, George Iloulian, to pay over $1.3 million for avoiding customs duties on medical uniforms, footwear and other apparel. Judge Paul Gardephe said they violated the False Claims Act and must pay triple the amount of the evaded duties and a $557,880 civil penalty.