U.S. Customs Archives

Washington, DC – International customs officials at the World Customs Organization (WCO) have agreed on 234 changes to the global system that categorizes products that are imported and exported around the world.

In the US, those mandated changes will be implemented by the International Trade Commission – the federal government agency responsible for maintaining and updating the Harmonized Tariff Schedule (HTS) product category system utilized by US-based companies involved in global trade.

As a result of the move by the WCO, the agency has said it will make the appropriate recommendations to the White House on the necessary modifications to the HTS.

The US and other countries have until January 1, 2017, to incorporate the changes, “but much work lies ahead,” according to Jim Holbein, director of the ITC office that maintains the HTS.

“The first step for importers and exporters is to become aware of the changes being made at the international level,” he said. “If they believe they will be affected, they will want to stay on top of the process as it moves forward.”

‘Nomenclature analysts’ at the ITC “are analyzing the WCO document” with the ITC expecting to issue proposed recommendations on changes to the HTS by the end of this year, he added.

“At that time, the USITC will seek public comments on the proposed recommendations,” he said. “Detailed information on how to submit comments and related deadlines will be provided at that time.”

The USITC, said Holbein, will consider all public comments, as well as comments from other US government agencies in making its recommendations, which will be submitted to the White House via the Office of the US Trade Representative by July 2015.

Following expiration of a 60-day layover period before Congress, the president has the authority to forward the modifications to the HTS for action. .

The Brussels, Belgium-headquartered World Customs Organization (WCO) was established in 1952 as the Customs Co-operation Council (CCC).

An independent inter-governmental body, it represents 179 Customs administrations across the globe that collectively process approximately 98 percent of world trade.

09/12/2014

Los Angeles, CA – Despite significant government efforts, China remains the world’s primary source of counterfeit goods, constituting 84 percent of shipment seizures in the US in 2012.

Experts, in fact, predict that the online trade of counterfeit goods in China will surpass the physical trade of such goods in the next two to three years.

The problem seems too vast and overwhelming to surmount, however, says Bob Youill, senior managing director in the Global Risk and Investigations practice of New York-based FTI Consulting, “doing so will never be easy, but it can be done” if companies take the appropriate steps.

In an article published this week in the FTI Journal, Youill, an acknowledged authority on product piracy, makes several suggestions on what US-based exporters, importers, retailers and manufacturers can do to stop the production, distribution and sale of counterfeit goods.

First, he says, declare your intellectual property. An effective anti-counterfeiting strategy for China, he says, “begins with begins with registering the relevant intellectual property rights in China, as Beijing doesn’t automatically recognize IP rights registered overseas.”

That done, writes Youill, “quantify the risk to your brand with in-house counsel working directly with key stakeholders to review the company’s markets inside and outside China and organize those markets into those that must be protected and those that are less important to focus on.”

Next, it needs to be understood that the primary responsibility for managing counterfeiting will rest mostly with in-house counsel and will involve representatives from different corporate functions, including a PR lead, external consultants, and internal stakeholders. To achieve that goal, “build your anti-counterfeit team.”

When considering tackling organized counterfeiting operations, a “best course of action” should be strategized that carefully analyzes various tactics that could include ‘street sweeps,’ Customs watches, administrative action, and civil or criminal proceedings.

Lastly, says Youill, “There are a number of risks to manage when dealing with Chinese authorities, such as controlling sensitive corporate information, fulfilling government requests for documents, overseeing internal reporting and complying with reporting rules. So, learn how to work with them.”

08/15/2014

Changes Planned for Harmonized Tariff Codes

most viewed today