Aug 25, 2021
CBP UPDATES IMPORTERS AND BROKERS REQUIREMENTS FOR HTS 9801.00.10 U.S. AND FOREIGN GOODS RETURNED
The United States Customs and Border Protection (CBP) announced updated guidance on duty free claims under Harmonized Tariff Schedule of the United States (HTSUS) Subheading 9801.00.10.
As a bit of background, on April 25, 2016 the TFTEA (Trade Facilitation and Trade Enforcement Act) of 2015 enhanced the eligibility of 9801.00.10 to include “Products of the United States when returned after having been exported, or any other products when returned within 3 years after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad. The expansion of subheading 9801.00.10 includes all products exported from and returned to the United States, regardless of country of origin. For U.S. origin products, there is no time limit on filing a claim. For foreign origin products, there is a 3 year time limit. The provision affecting “Returned Property” applies to U.S. or foreign articles returned to the United States and entered, or withdrawn from warehouse, for consumption on or after April 25, 2016.” This information was sent via CSMS 17-000046 on January 30, 2017. Click here to read the message: CSMS# 17-000046 - Requirements for Subheading 9801.00.10 – U.S. and Foreign Goods Returned (govdelivery.com)
On Friday, August 20, 2021 via CSMS #49132200, CBP provided guidance concerning importer and broker responsibilities, stating in part, “Customs Brokers act as agents for the importer and, as such, have a duty of care in the filing of entry documents; however, the burden of proof is not on the broker (unless the broker is acting as importer of record) when requests are made to prove a claim for duty-free treatment under Subheading 9801.00.10. An example of the broker exercising responsible supervision and control for Subheading 9801.00.10 claims is providing proof of the broker’s communication with the importer on what is required for such claims.”
A second provision specifies that CBP may request documents to support claims of duty-free exemption under Subheading 9801.00.10. The guidance allows that U.S. manufactured goods or foreign origin goods with a declaration by the “…owner, importer, consignee or agent having knowledge of the facts” regarding the duty-free claim may be made, and that “if the owner or ultimate consignee is a corporation, such declaration may be signed by the president, vice president, secretary, or treasurer of the corporation, or may be signed by an employee or agent of the corporation who holds a power of attorney and a certification by the corporation that such employee or other agent has or will have knowledge of the pertinent facts.”
A proposed regulatory change will align 19 CFR 10.1 with TFTEA as mentioned above. This latest CSMS supersedes the guidance previously issued in 2017. Click here to read the full message: CSMS #49163963 - CORRECTION: Updated Requirements for Importers and Brokers Regarding HTS Subheading 9801.00.10- U.S and Foreign Goods Returned (govdelivery.com)
If you have any questions about this or any other trade matter, please be sure to contact us.
As a bit of background, on April 25, 2016 the TFTEA (Trade Facilitation and Trade Enforcement Act) of 2015 enhanced the eligibility of 9801.00.10 to include “Products of the United States when returned after having been exported, or any other products when returned within 3 years after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad. The expansion of subheading 9801.00.10 includes all products exported from and returned to the United States, regardless of country of origin. For U.S. origin products, there is no time limit on filing a claim. For foreign origin products, there is a 3 year time limit. The provision affecting “Returned Property” applies to U.S. or foreign articles returned to the United States and entered, or withdrawn from warehouse, for consumption on or after April 25, 2016.” This information was sent via CSMS 17-000046 on January 30, 2017. Click here to read the message: CSMS# 17-000046 - Requirements for Subheading 9801.00.10 – U.S. and Foreign Goods Returned (govdelivery.com)
On Friday, August 20, 2021 via CSMS #49132200, CBP provided guidance concerning importer and broker responsibilities, stating in part, “Customs Brokers act as agents for the importer and, as such, have a duty of care in the filing of entry documents; however, the burden of proof is not on the broker (unless the broker is acting as importer of record) when requests are made to prove a claim for duty-free treatment under Subheading 9801.00.10. An example of the broker exercising responsible supervision and control for Subheading 9801.00.10 claims is providing proof of the broker’s communication with the importer on what is required for such claims.”
A second provision specifies that CBP may request documents to support claims of duty-free exemption under Subheading 9801.00.10. The guidance allows that U.S. manufactured goods or foreign origin goods with a declaration by the “…owner, importer, consignee or agent having knowledge of the facts” regarding the duty-free claim may be made, and that “if the owner or ultimate consignee is a corporation, such declaration may be signed by the president, vice president, secretary, or treasurer of the corporation, or may be signed by an employee or agent of the corporation who holds a power of attorney and a certification by the corporation that such employee or other agent has or will have knowledge of the pertinent facts.”
A proposed regulatory change will align 19 CFR 10.1 with TFTEA as mentioned above. This latest CSMS supersedes the guidance previously issued in 2017. Click here to read the full message: CSMS #49163963 - CORRECTION: Updated Requirements for Importers and Brokers Regarding HTS Subheading 9801.00.10- U.S and Foreign Goods Returned (govdelivery.com)
If you have any questions about this or any other trade matter, please be sure to contact us.
