MEMO TO CLIENTS ISSUE 22-006 – May 27, 2022

CBP Announces Trade Symposium Registration

U.S. Customs and Border Protection (CBP) has announced that registration for this year’s Trade Symposium will open on June 1, at 12:00 PM EST. They will send out details on how to register that morning. We will send out a message to everyone who receives our memo as soon as we get more details. The CBP announcement on the symposium can be found by clicking here.

CBP Scheduled Webinars On UFLPA

The enforcement of the Uyghur Forced Labor Prevention Act (UFLPA) will go into effect on June 21, 2022. This rule applies to articles that contain Xinjian-Uyghur materials, content or is produced by a listed entity. Importers of goods from China should be confirming that articles they import do not contain content from Xinjiang. 

U.S. Customs and Border Protection (CBP) will host 3 webinars to provide an overview of UFLPA. The webinars will be on Wednesday June 1 at 10:00AM EST, Tuesday June 7 at 1:00PM EST, and Thursday June 16 at 2:00PM EST. 

The link to register for these webinars is on CBP’s website.

This site also has other valuable information on UFLPA. One of them is an example of a letter that CBP is sending out to importers that have had shipments that could be in violation of the Act if imported on or after June 21.  CBP has reviewed previous entry data to see who or what could be affected by UFLPA. They have begun to send letters to importers whose imports may have had Xinjiang content. These letters are intended to help importers be aware that they should check their imports before June 21, 2022.  If you have not received a letter from CBP, it does not mean that your goods are safe from UFPLA enforcement.

USTR Reviewing Expiration of China 301 duty

The China duties being assessed under Section 301 duties have an expiration date of 4 years from the enactment of the 301 duties. For list 1 of the China 301 duties, the expiration date is July 1, 2022.  Th Act calls for a 60-day review by the Office of the U.S. Trade Representative (USTR) before the expiration of the additional duties. If comments are received by the USTR asking for extension of the 301 duties, they must be reviewed and an extension of the 301 duties could occur.

The USTR has issued a Federal Register Notice (FRN) asking for comments on the expiration of the duties that gives instructions on how to file comments. Comments are due by July 5, 2021.  This notice is only for List 1. A 60-day review will be started on each list as the expiration dates come closer. The FRN can be found here.  

CBP Issues Ruling Allowing Price Adjustments for Related Transactions

U.S. Customs and Broder Protection (CBP) has just released a March 18 ruling that allows for some price adjustments reducing the transfer price due to disruption in the supply of goods. This ruling only applies to transfer pricing between related parties. The ruling includes 5 criteria that must be satisfied to make a claim. We just received information on this ruling and cannot go into details yet on how it can be applied, but for our customers using transfer pricing, you should review this with your internal team to see if this can apply to any of your imports.  You can find the link to this binding ruling by clicking here.