By Bruce Leeds, Senior Counsel, Braumiller Law Group Acme Corporation receives a shipment by ocean freight from Japan. The terms of shipment on the purchase order are CIF Long Beach, California, meaning the price includes the cost of the goods plus prepaid ocean freight and insurance from Japan to Long Beach. The commercial invoice accompanying
By Bruce Leeds, BLG Senior Counsel Export Control Reform has been underway since 2009. The process has been to revise the U.S. Munitions List (USML) categories one by one with the goal of better defining what is controlled under the International Traffic in Arms Regulations (ITAR) and transferring jurisdiction of articles – particularly at the
By Bruce Leeds, Senior Counsel, Braumiller Law Group On March 22, the President announced that the United States will be imposing special duties on certain Chinese products in retaliation for claimed theft of U.S. intellectual property rights and the use of pressure and intimidation to obtain trade secrets. The proposed actions against China also included
By Bruce Leeds, Senior Of Counsel, Braumiller Law Group Let’s assume for example, that The Giant Corporation, an organization incorporated under the laws of the State of Delaware, is acquiring Acme Corporation, and you just happen to work on the Customs Compliance staff of The Giant Corporation. The following compliance staff meeting’s focus is on
By Bruce Leeds, Senior Counsel, Braumiller Law Group Congratulations, – you have now been given the responsibility for classifying products on the Commerce Control List (CCL), in addition to your current job of Customs compliance. You are not receiving a promotion or pay raise, and your boss tells you it is a “great opportunity.” You
By Bruce Leeds, Senior Counsel , Braumiller Law Group Let’s assume you are the export control person for Acme Electronics (Acme), a producer of high tech and aerospace products. Acme has just landed a major contract with a foreign customer. Under the contract Acme will be exporting products and technical data and providing training and
By: Bruce Leeds, Senior Counsel Heading 9813 in Subchapter XIII of the Harmonized Tariff Schedule contains the provisions for temporary imports under bond commonly referred to as TIB entries. TIBs are for articles ordinarily subject to duty and/or a Merchandise Processing Fee (MPF) and are temporarily imported for certain purposes, and are subsequently exported or
OK, here is the scenario: A U.S. baker wants to make birthday cakes outside the U.S. The baker provides cake mix, sugar, eggs, frosting and birthday candles free of charge to the foreign bakery. The U.S. baker pays the foreign bakery $2.00 per cake to combine, bake, and finish these ingredients into finished birthday cakes,
If you are responsible for customs compliance at an importing company, or if you are a customs broker consulting with your clients, among of the most important things to be aware of and properly declare are “assists”. The official definition of “assists” is found in Part 152.101 of the Customs Regulations. I have my own
By: Bruce H. Leeds, Senior Counsel In April of this year, the President signed the Trade Facilitation & Trade Enforcement Act of 2015. One of the provisions in this legislation reworded HTS 9801.00.10 to add the language “or any other products when returned within 3 years after having been exported.” This addition meant that goods
By: Bruce H. Leeds, Senior Counsel It is common these days for individuals and companies to store data in the “cloud”, which means that a server, or sets of servers located here, there, and everywhere are connected via the Internet. Is there a problem if that data is export controlled? Example 1 – A company
Most attention and articles about Certificates of Origin concentrate on completion and accuracy of free trade agreement (FTA) certificates of origin for imports into the U.S. for NAFTA, Korea Free Trade, etc.
By: Bruce H. Leeds, Senior Counsel I have sometimes joked about “Newton’s Law of Export-Import” that “whatever goes out comes back.” Often a company becomes an importer simply because they exported something and either the product (or part of the product), is returned to the U.S. In fact, imports of returned goods to the U.S.
By: Bruce Leeds, Senior Counsel January 16, 2016 was Implementation Day for reduced international sanctions with Iran. Now you can freely carry on trade with Iran – right? Well….you can import pistachios and carpets, but beyond that most of the sanctions are still in place. What happened on Jan. 16 is that many of the
By: Bruce H. Leeds, Senior Counsel Let us start by observing that the Trans-Pacific Partnership (TPP) has not been ratified by the United States and other participating countries, and acknowledge that the treaty is controversial. Accordingly, we will base our observations on the current version of the TPP published by the U.S. Trade Representative, and
By: Bruce H. Leeds, Senior Counsel Those who deal with both the International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR) have undoubtedly noticed that the two sets of regulations use different terms for similar concepts. For example, the ITAR uses the term “technical data”, and the EAR “technology” for a similar purpose.
By: Bruce H. Leeds, Senior Counsel “Customs business” is defined in Part 111.1 of the Customs Regulations as “those activities involving transactions with CBP concerning the entry and admissibility of merchandise, its classification and valuation, the payment of duties, taxes, or other charges assessed or collected by CBP on merchandise by reason of its importation,
By: Bruce H. Leeds, Senior Counsel A number of years ago I attended a 2-day workshop conducted by U.S. Customs. The agency was discontinuing the Compliance Assessment Team approach to conducting audits, and was going to a new method based on what they termed the COSO model. The workshop described the model they were adopting
The Korea-United States Free Trade Agreement (KORUS) allows articles to be imported into the U.S. free of duty and Merchandise Processing Fees.
Export Control Reform has been with us for more than a year. As a result, export compliance personnel affected by the change must make some significant changes to how they handle exports and process licenses.