Monday, July 31, 2023

Army Boot Contract Awarded

July 31, 2023, McRae Industries Inc.,* Mount Gilead, North Carolina, has been awarded a maximum $20,465,795 fixed-price, indefinite-delivery/indefinite-quantity contract for combat hot weather boots. This was a competitive acquisition with three responses received. This is a three-year contract with no option periods. The ordering period end date is July 28, 2026. Using military service is Army. Type of appropriation is fiscal 2023 through 2026 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-23-D-0060).

*Small business

Senate Vote Aims to Strip China of Developing Nation Status

On June 20, 2023, on voice vote, the Senate adopted an amendment to the National Defense Authorization Act, stating U.S. policy to work with allies and partners to strip China of its status as a "Developing" nation.

(b) FINDING; STATEMENT OF POLICY.—

(1) FINDING.—Congress finds that the People’s Republic of China is still classified as a developing nation under multiple treaties and international organization structures, even though China has grown to be the second largest economy in the world.

(2) STATEMENT OF POLICY.—It is the policy of the United States—

(A) to oppose the labeling or treatment of the People’s Republic of China as a developing nation in current and future treaty negotiations and in each international organization of which the United States and the People’s Republic of China are both current members;

(B) to pursue the labeling or treatment of the People’s Republic of China as a developed nation in each international organization of which the United States and the People’s Republic of China are both current members; and

(C) to work with allies and partners of the United States to implement the policies described in paragraphs (1) and (2).

Read the full text of the amendment HERE.

Read background information HERE.

Saturday, July 29, 2023

WALMART OPEN CALL

Walmart is looking for small businesses and U.S. manufacturers. The reailer is seeking new and innovative shelf-ready items made, grown or assembled in the U.S.

Register now through August 18, 2023.

This year’s event will be hybrid, offering virtual and in-person options

For more information CLICK HERE.

AAFA Makes Recommendations on 2023 NDAA Implementation

On July 20, 2023, the American Apparel and Footwear Association made recommendations to the U.S. Department of Defense on implementation of the 2023 National Defense Authorization Act (NDAA).

Read the AAFA comments HERE.

Friday, July 28, 2023

Submission of Post-Hearing Comments: Annual Review of Country Eligibility for Benefits Under the African Growth and Opportunity Act for Calendar Year 2024

On July 28, 2023, the Office of the U.S. Trade Representative published in the Federal Register (88 FR 4894) Submission of Post-Hearing Comments: Annual Review of Country Eligibility for Benefits Under the African Growth and Opportunity Act for Calendar Year 2024.

SUMMARY: On July 24, 2023, the Office of the United States Trade Representative (USTR) held a virtual public hearing to receive oral testimony related to the annual review of the eligibility of sub-Saharan African countries to receive the benefits of the African Growth and Opportunity Act (AGOA). USTR is accepting posthearing comments until August 8, 2023.

DATES: August 8, 2023 at 5:00 p.m. EDT: Deadline for the submission of post hearing submissions, briefs, supplementary materials, and statements related to the virtual public hearing.

Thursday, July 27, 2023

Dress Shoe Contract Awarded

July 25, 2023, Capps Shoe Co.,* Gretna, Virginia, has been awarded a maximum $15,111,900 modification (P00015) exercising the fourth one-year option period of a one-year base contract (SPE1C1-19-D-1202) with four one-year option periods for men’s and women’s leather oxford and poromeric upper dress shoes. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Michigan, with a July 26, 2024, ordering period end date. Using military services are Army, Air Force, Navy, Marine Corps, and Coast Guard. Type of appropriation is fiscal 2023 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania. *Small business

Wednesday, July 19, 2023

American Flock Association FLOCK ACADEMY

The American Flock Association presents the new, virtual Flock Academy from 11am to 3pm Eastern time on Thursday, September 21, 2023. The Flock Academy will cover all aspects of the flock process including flock cutting and finishing, raw materials, application techniques and the finished product. Experienced instructors come from all phases of the flock industry. This course is good for anyone associated with the flock industry or wanting to know more about the flock process. From company owners to machine operators, this is an outstanding opportunity to increase your “flock” knowledge. There is no charge to attend, but there is a limit to the number of attendees. Pre–enrollment required. Click here for a registration form and email it to: info@flocking.org

Custom 321 De Minimis

De Minimis Webinar Frequently Asked Questions (FAQs)

De Minimis Webinar Frequently Asked Questions (FAQs)

General Questions

What goods are not permitted to be entered under Section 321?

Section 321 does not allow:

  • Merchandise subject to antidumping and countervailing duties. 
  • Merchandise subject to quota.
  • Merchandise subject to a tax imposed under the Internal Revenue Code that is collected by other agencies on imported goods.
    • Alcoholic beverages and cigars (including cheroots and cigarillos) and cigarettes containing tobacco, cigarette tubes, cigarette papers, smoking tobacco (including water pipe tobacco, pipe tobacco, and roll-your-own tobacco), snuff, or chewing tobacco are not allowed

Pursuant to the Customs Modernization Act, it is the responsibility of the importer to use reasonable care to enter, classify and value the goods and provide any other information necessary to enable CBP to properly assess duties, collect accurate statistics, and determine whether all other applicable legal requirements are met. 

Yes.

Merchandise subject to a tax imposed under the Internal Revenue Code that is collected by other agencies on imported goods is not allowed to be entered under Section 321.

  • Alcoholic beverages and cigars (including cheroots and cigarillos) and cigarettes containing tobacco, cigarette tubes, cigarette papers, smoking tobacco (including water pipe tobacco, pipe tobacco, and roll-your-own tobacco), snuff, or chewing tobacco are not allowed.

In the case of certain personal or household articles accompanying persons arriving in the United States, those may be imported under Section 321.

There is no limit on the number of Entry Type 86 entries a broker can file.  However, the regulation does limit the use of Section 321 (including Entry Type 86) to shipments imported by “one person on one day” having an aggregate fair retail value in the country of shipment of $800 or less.

Shipments with an aggregate value up to $800 per day per person are allowed.

Examples:

  • One person can import 4 shipments each valued at $200 in one day
  • One person can import 1 shipment a day valued at $800 or less
     

Under Section 321, one person may import multiple shipments on one day so long as the aggregate fair market value of the shipments does not exceed $800. If any single shipment imported that day breaches the $800 ceiling, then none of the shipments imported that day may be entered under Section 321.

When a shipment exceeds the $800 threshold, none of the shipments imported on that day by a known ultimate consignee, often a purchaser, are eligible for entry under Section 321. The shipments must instead be entered as a Type 11 informal or Type 01 formal entry.

We note that, if a carrier is affecting entry for a de minimis shipment by clearing a shipment off the manifest, they are subject to the standard of reasonable care. 19 C.F.R. § 143.26(b).

Customs brokers must be duly designated to enter qualifying shipments through a valid power of attorney and must comply with all other applicable broker statutory and regulatory requirements. See 19 CFR 141.46; see e.g.,19 U.S.C. 1641; 19 U.S.C. 1484; 19 CFR part 111; 19 CFR part 141. The filing of Entry Type 86 is considered “customs business” under 19 U.S.C. 1641.

Yes.

19 C.F.R. Part 128, Subpart C sets forth requirements and procedures for the clearance of imported merchandise carried by express consignment operators and carriers, including couriers, under special procedures.

De minimis shipments pose the same risks as all other commercial cargo.

Yes, a corporation may be considered the importing “person” for unsold merchandise up to an aggregate fair retail value of $800 per day.  Please refer to CBP's Administrative Ruling Related to Domestic Warehouses and Fulfillment Centers One Pager.

A MID is not a required data element for de minimis shipments.  However, the expansion of the Section 321 Data Pilot has included it as an optional element.

Yes, if they are identified on the bill of lading/manifest.

No, the exemption will not be granted in any case in which merchandise covered by a single order or contract is forwarded in separate lots to secure the benefit.

CBP monitors/reviews shipments the same regardless of value.

No, the Section 321 monetary threshold applies to one person per day regardless of the port of arrival.

Yes, ISF requirements for ocean freight remain the same for de minimis shipments.

U.S. Customs and Border Protection has a ministerial role in AD/CVD and enforces the instructions of the U.S. Commerce Department(Commerce). Commerce’s instructions specifically direct CBP to assess AD/CVD on all entries for consumption of subject merchandise, without any exceptions. The AD/CVD statutes specifically apply to “all entries, or withdrawals from warehouse, for consumption of merchandise subject to a [AD/CVD] order on or after the date of publication of such order”, without any mention of the de minimis exemption. See 19 USC 1671h (CVD); 19 USC 1673g (AD).In addition, CBP has the authority to deny Section 321 entry and require a formal entry for any goods claiming de minimis exemptions, regardless of the value of the goods, under 19 C.F.R. § 143.22.

CBP enforces the provisions of the UFLPA regardless of the value of the goods. Goods entered pursuant to Section 321 are thus not exempt from CBP’s enforcement procedures.

Entry Type 86

The Entry Type 86 Test allows for submission of de minimis entries subject to partner government agency (PGA) data requirements.

Entry Type 86 does not require an importation and entry bond.

Yes.

“Country of origin” is a required data element for Entry Type 86.

Yes, for purposes of this test customs brokers must be authorized to conduct customs business on behalf of the owner, purchaser, or consignee of eligible shipments through a valid power of attorney.

All manifest requirements remain the same.

The party who filed the data is responsible for correcting the data for purposes of Entry Type 86.

Entry Type 86 Test is a voluntary pilot program.  More information can be found at 84 FR 40079.

Yes.  A foreign seller/vendor may be a nominal consignee arranging for shipment, or they may be the owner of the imported merchandise if it arrives to the U.S. unsold.

As an owner, they can self-file.  As a consignee, they need to get a broker to file on their behalf as the IOR.

ET86 shipments are transmitted in ACE the same as other entry types.

Over 450 filers are participating in the Entry Type 86 Test.

Any PGA data reporting requirements would be satisfied by the PGA Message Set and the filing of any supporting documentation via the Document Image System (DIS).

Under the Entry Type 86 Test, the owner, purchaser, or a licensed Customs broker is required to file the entry.

No, the exemption is not based on the filer code.

A shipment may not be admitted into an FTZ, in order to be broken down into smaller shipments, because the value of the shipment is assessed at the time of importation, not entry.  Moreover, 19 U.S.C. § 1321 specifically prohibits a shipment from being broken down in an effort to obtain duty free treatment.  Additionally, retail trade is prohibited from occurring within an FTZ.
 

Yes. 

Section 321 Data Pilot

No, the MID is the manufacturer identification code used to identify the manufacturer of the merchandise. The seller may or may not be the manufacturer.  The Marketplace Seller Account Number/Seller ID as requested by the Section 321 Data Pilot is a unique identifier a marketplace assigns to sellers.  
 

The shipment security scan under the Section 321 Data Pilot allows air carriers to submit verification that a foreign security scan for the shipment has been completed (such as an x-ray image or other security screening report).
 

The Section 321 Data Pilot does not replace ISF or ACAS filings.  All existing Trade Act of 2002 requirements and all manifest requirements continue to apply.

It is open to all modes of transportation.
 

Participating in the data pilot expansion will:

  • Allow additional companies the opportunity to develop processes for gathering the data from various sources in the supply chain to transmit a single and complete filing.
  • Assist CBP in identifying future trade facilitation benefits.
  • Continue to explore different and new technology that becomes available and can be incorporated into future regulation.
     

The party that hired the broker would provide the information.

The Section 321 Data Pilot was initially limited to nine trade entities:

  • Marketplaces:  Amazon, eBay, Zulily
  • Carriers:  FedEx, UPS, and DHL
  • Logistics providers:  BoxC Logistics, XB Fulfillment, PreClear (International Bridge)

CBP is soliciting additional participants for the data pilot.  Please see 88 FR 10140 for additional details.
 

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Source URL: https://www.cbp.gov/trade/basic-import-export/e-commerce/de-minimis-webinar-faqs

Request for Comments on Operation of the Caribbean Basin Initiative

On July 19, 2023, the Office of the U.S. Trade Representative published in the Federal Register> (88 FR 46360) Request for Comments on Operation of the Caribbean Basin Initiative.

Tuesday, July 18, 2023

Army Coat Contract Awarded

July 18, 2023, American Apparel Inc.,* Selma, Alabama, has been awarded a maximum $82,931,950 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for men’s uniform all-weather coats. This was a competitive acquisition with seven responses received. This is a five-year contract with no option periods. The ordering period end date is July 17, 2028. Using military service is Army. Type of appropriation is fiscal 2023 through 2028 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-23-D-0063).

*Small business

AATCC Summer Social In the City: Boston

Join AATCC New England Section Members for a Summer Social In the City at the Cask n’ Flagon, right by the historic Fenway Park. Whether you’re a local or in town for the Northeast Materials Show, close by at the Hynes Convention Center, feel free to drop in and network with AATCC Members.

The social will be on July 27 at 5:30PM at the Cask n’ Flagon: 62 Brookline Ave, Boston, MA 02215.

Questions? Feel free to contact Bethany Pollack (bpollack@draperknitting.com).

Army and Air Force Coat Contract Awarded

July 17, 2023, Aurora Industries LLC,*** Orocovis, Puerto Rico, has been awarded a maximum $16,610,963 modification (P00021) exercising the third one-year option period of a one-year base contract (SPE1C1-20-D-1283) with four one-year option periods for various types of coats. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. The ordering period end date is July 17, 2024. Using military services are Army and Air Force. Type of appropriation is fiscal 2023 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

***Small-disadvantaged business

Wednesday, July 12, 2023

Certain Polyester Staple Fiber From China; Scheduling of an Expedited Five-Year Review

On July 12, 2023, the U.S. International Trade Commission published in the Federal Register (88 FR 44399) [Investigation No. 731–TA–1104 (Third Review)] Certain Polyester Staple Fiber From China; Scheduling of an Expedited Five-Year Review.

Sewing and Embroidery Contract Awarded

July 11, 2023, Industries of the Blind Inc., Greensboro, North Carolina, has been awarded a maximum $31,217,717 firm-fixed-price with economic-price adjustment, indefinite-delivery/indefinite-quantity contract for warehousing, storage, logistics, sewing and embroidery services and distribution functions. This was a competitive acquisition with six responses received. This is a two-year base contract with five one-year option periods. The ordering period end date is July 10, 2025. Using customers are Army, Navy, Air Force, Marine Corps, National Guard and Reserves. Type of appropriation is fiscal 2023 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-23-D-0059).

Monday, July 10, 2023

Government Contractor Settles False Claims Act Allegations Based on Violations of the Trade Agreements Act

OMNI Business Systems, Inc., located in Alexandria, has agreed to pay $80,944.00 to settle a civil fraud case alleging that OMNI violated the Trade Agreements Act and the False Claims Act by fraudulently misrepresenting the country of origin for certain products on federal supply schedules.

Read more HERE.

Thursday, July 6, 2023

Poly/Wool Fabric Contract Awarded

July 5, 2023, Burlington Industries LLC, Greensboro, North Carolina, has been awarded a maximum $43,085,610 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for poly/wool cloth. This was a competitive acquisition with one response received. This is a three-year contract with no option periods. The ordering period end date is July 4, 2026. Using military service is Air Force. Type of appropriation is fiscal 2023 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-23-D-0061).

Sunday, July 2, 2023

Footwear and Accessories Company Charged with False "Made in USA" Claims

Massachusetts- and New Hampshire-based Chaucer Accessories, Bates Accessories, and Bates Retail Group sell belts, bags, wallets, and shoes to consumers directly, on major product platforms, and through third-party trade customers that resell products under their own private-label brands. The companies’ websites featured banners on every page that said “Made in USA” or “Hand Crafted in the USA.” But according to the FTC, in numerous instances, their shoes, belts, and other items were wholly imported or contained significant imported content. The complaint also alleges the companies made similar misleading Made in USA statements to its third-party trade customers and provided them with labels and promotional materials featuring deceptive U.S.-origin claims.

The FTC’s three-count complaint charges the respondents with making false or misleading “Made in USA” claims, making false or misleading “Made in USA from Global Materials” claims, and providing its trade customers with the means and instrumentalities to commit deceptive acts or practices. The proposed settlement includes a monetary judgment of $191,481 and requires the respondents to contact certain customers directly about the FTC action.

Read more HERE.

Celebrating the Grand and Glorious Forth

Agathon Associates will close Tuesday, July 4th, for commemoration of American Independence Day.

The Long Struggle for Independence 
by David Trumbull


The American Revolutionary War began April 19, 1775, a date celebrated as a public holiday—Patriots’ Day—in the Commonwealth of Massachusetts and the State of Maine. The war became a fight for independence with the July 1776 adoption, by the Americans’ Continental Congress, of the Declaration of Independence.

As you celebrate American freedom this Independence Day weekend—culminating in the free concert and fireworks spectacular at the Charles River Esplanade—remember that independence did not come easily. The war took seven years, with major battles as late as 1781. When, on July 18, 1776, two weeks after the signing, the Declaration of Independence finally completed the long trek on the roads of the day from Philadelphia for the first public reading in Boston, in was not at all inevitable that we Americans should win independence from Great Britain. No one had heard of such a thing as a colony throwing off its mother country. And the idea that untrained volunteer farmer/soldiers would defeat the best professional army and navy in the world was nearly inconceivable.

Coming to aid of the American cause were the Kingdom of France, the Dutch Republic, and the Kingdom of Spain. Provisional Articles of Peace were signed at Paris on November 30, 1782. The final Treaty was signed September 3, 1783. It was ratified by Congress on January 14, 1784, and by the King of Great Britain on April 9, 1784. Ratification documents were exchanged in Paris on May 12, 1784.

The American negotiators, John Adams, Benjamin Franklin, and John Jay, secured, from one of the largest and most sophisticated world powers, a treaty which contained not only an unconditional acknowledgment of American independence, but also important provisions establishing the territory of the United States as stretching from Canada to Florida and from the Atlantic to the Mississippi. American commercial interests were protected by a provision for Americans to continue to fish the waters of the Atlantic off Canada.

The Revolution began with noble sentiment—We hold these Truths to be self-evident, that all Men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the Pursuit of Happiness. It ended with a legal agreement over boundaries and fishing rights. Such is the unchanging course of human events. Noble sentiments are good, even necessary, but they have to be backed up by practical texts. So, having ended the war with the Treaty of Paris in 1783, the next big step for the young nation, in 1787, was to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty—by drafting and adopting our Constitution.

The Bollman Hat Company Acquires Dyeing and Drying Equipment from G.J. Littlewood & Sons

The Bollman Hat Company, America’s oldest hat maker, acquired dyeing and drying equipment from G.J. Littlewood & Sons after Littlewood discontinued its operations, following a flood in September of 2021, and has begun to fiber dye for their hat making operations and others in the textile world.

Read more HERE.

Low Melt Polyester Staple Fiber From the Republic of Korea: Preliminary Results of Antidumping Duty Administrative Review; 2021–2022

On June 30, 2023, the International Trade Administration published in the Federal Register (88 FR 42300) Low Melt Polyester Staple Fiber From the Republic of Korea: Preliminary Results of Antidumping Duty Administrative Review; 2021–2022