{"id":914,"date":"2018-10-22T20:35:16","date_gmt":"2018-10-22T20:35:16","guid":{"rendered":"http:\/\/www.bocintl.com\/en\/?p=914"},"modified":"2018-10-22T20:35:16","modified_gmt":"2018-10-22T20:35:16","slug":"boc-port-tour-and-logistics-updates-10-22-18","status":"publish","type":"post","link":"https:\/\/www.bocintl.com\/web\/boc-port-tour-and-logistics-updates-10-22-18\/","title":{"rendered":"BOC Port Tour and Logistics Updates 10-22-18"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-915\" src=\"http:\/\/www.bocintl.com\/en\/wp-content\/uploads\/2018\/10\/Imagen2-2.png\" alt=\"\" width=\"1115\" height=\"302\" \/><br \/>\n<strong>Highlights from BOC\u2019s Port Tour and Logistics Seminar on Friday, October 19, focusing on Industry Updates and 301 Tariffs<\/strong><br \/>\n(see previous BOC Blasts for additional details \u2013 visit www.bocintl.com to access previous BOC Blasts)<br \/>\n&nbsp;<br \/>\nTariff List 3 \u2013 currently at 10%; scheduled to rise to 25% on 1\/1\/19 (see previous BOC Blasts for additional details) \u2013 there is no intermediate tariffs at this point, until\/unless something changes, ie, all products on List 3 are an additional 10% now, 25% January 1.<br \/>\n&nbsp;<br \/>\nTariff List 2 \u2013 the final date for filing a request for exclusion from List 2 is December 21, 2018. It is strongly recommended, if you make an exclusion request, to NOT just complete the request form, but to really make a case for why an exclusion should apply \u2013 make sure your reason fits into one of the reasons provided.<br \/>\n&nbsp;<br \/>\nFrom the Federal Register:\u00a0<a href=\"https:\/\/www.gpo.gov\/fdsys\/pkg\/FR-2018-09-18\/pdf\/2018-20246.pdf\">https:\/\/www.gpo.gov\/fdsys\/pkg\/FR-2018-09-18\/pdf\/2018-20246.pdf<\/a><br \/>\n\u201ceach request specifically must identify a particular product, and provide supporting data and the rationale for the requested exclusion. USTR will evaluate each request on a case-by-case basis, taking into account whether the exclusion would undermine the objective of the Section 301 investigation. Any exclusion will be effective starting from the August 23, 2018 effective date of the additional duties, and extending for one year after the publication of the exclusion determination in the Federal Register. In other words, an exclusion, if granted, will apply retroactively to the August 23 date of the imposition of the additional duties.\u201d<br \/>\n&nbsp;<br \/>\nReasons include (in summary):<br \/>\n&nbsp;<\/p>\n<ul>\n<li>Whether the particular product is available ONLY from China<\/li>\n<li>Whether the imposition of additional duties on the particular product would cause severe economic harm to the requestor<\/li>\n<li>Whether the particular product is strategically important or related to \u201cmade in China 2025\u201d or other Chinese industrial programs<\/li>\n<\/ul>\n<p>&nbsp;<br \/>\nTariff List 1 \u2013 the exclusionary period has closed, no more requests are being taken.<br \/>\n&nbsp;<br \/>\nChanging country of origin to avoid additional tariffs \u2013 It is permissible to move production to another country, not China. However, if you are looking to make a country of origin change, you cannot simply move the product through another country. That is not sufficient to change the country of origin. CBP looks at where a \u201csubstantial transformation\u201d takes place, ie, did the product change sufficiently in the other country to now make it country of origin Taiwan, instead of China.<br \/>\n&nbsp;<br \/>\nApply for a binding ruling if you are not sure. CBP is NOT going to look at these types of issues in the favor of the Importer making a change and avoiding the tariffs, without it being clear that another country really is the country of origin (not China).<br \/>\n&nbsp;<br \/>\nFrom US CBP Information Center:<br \/>\n&nbsp;<br \/>\nThe term &#8220;substantially transformed&#8221; means, with respect to a good(s) or a material(s), changed as the result of a manufacturing or processing operation so that:<br \/>\n&nbsp;<\/p>\n<ul>\n<li>The good(s) or material(s) is converted from a good that has multiple uses into a good or material that has a limited uses<\/li>\n<li>The physical properties of the good or material are changed to a significant extent<\/li>\n<li>The operation underdone by the good(s) or material(s) is complex by reason of the number of processes and material involved and the time and level skill required to perform those processes<\/li>\n<li>The good(s) or material(s) loses its separate identity in the manufacturing or processing operation<\/li>\n<\/ul>\n<p>&nbsp;<br \/>\nFor further information on what constitutes a substantial transformation or to ensure your goods are eligible for the provision, contact an Import Specialist at the port through which the goods will be imported.<br \/>\n&nbsp;<br \/>\nTime of Entry \u2013 19 CFR \u00a7 141.68 \u2013 this is the area where there still seems to be a lot of confusion, even within CBP and among different ports; we are seeing the law being interpreted differently, with regards to the increased tariffs. Importers want their goods to have been entered prior to the September date for the new tariffs. However, some ports have used date of entry filing, but others have used actual arrival date into the first US port. BOC has seen, first-hand, entries being handled both ways. BOC will do everything we can to help clarify the situation for you, but we are not attorneys. If you have legal questions, you may want to consult your attorney.<br \/>\n&nbsp;<br \/>\n19 CFR\u00a0<strong>\u00a7 141.68 defines \u201cTime of\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=13534f690fce25e4a5c5193a79bed0b3&amp;term_occur=1&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">entry<\/a>\u201d as the following:<\/strong><\/p>\n<ol>\n<li><strong><em>When entry documentation is filed without entry summary.<\/em><\/strong>When the\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=13534f690fce25e4a5c5193a79bed0b3&amp;term_occur=2&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">entry<\/a>\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=ec0e51932f0a2a2e635803f754a36f20&amp;term_occur=1&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">documentation<\/a>\u00a0is filed in proper form without an\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=6a9f5ae9dcc8d1030f1679cd2ee688e2&amp;term_occur=1&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">entry summary<\/a>, the \u201ctime of entry\u201d will be:<\/li>\n<\/ol>\n<ul>\n<li>The time the appropriate CBP officer authorizes the release of the merchandise or any part of the merchandise covered by the entry documentation, or<\/li>\n<li>The time the entry documentation is filed, if requested by the importer on the entry documentation at the time of filing, and the merchandise already has arrived within the port limits; or<\/li>\n<li>The time the merchandise arrives within the port limits, if the entry documentation is submitted before arrival, and if requested by the importer on the entry documentation at the time of submission.<\/li>\n<\/ul>\n<ol start=\"142\">\n<li><strong><em>When entry summary serves as entry and entry summary.<\/em><\/strong>When an\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=6a9f5ae9dcc8d1030f1679cd2ee688e2&amp;term_occur=2&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">entry summary<\/a>\u00a0serves as both the\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=13534f690fce25e4a5c5193a79bed0b3&amp;term_occur=8&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">entry<\/a>\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=ec0e51932f0a2a2e635803f754a36f20&amp;term_occur=7&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">documentation<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=6a9f5ae9dcc8d1030f1679cd2ee688e2&amp;term_occur=3&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">entry summary<\/a>, in accordance with\u00a0<a href=\"https:\/\/www.law.cornell.edu\/cfr\/text\/19\/142.3#b\"> 142.3(b)<\/a>\u00a0of this chapter, the time of\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=13534f690fce25e4a5c5193a79bed0b3&amp;term_occur=9&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">entry<\/a>\u00a0will be the time the\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=6a9f5ae9dcc8d1030f1679cd2ee688e2&amp;term_occur=4&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">entry summary<\/a>\u00a0is filed in proper form with estimated\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=c15f0974727c7c81c232b7e9e99353ae&amp;term_occur=1&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">duties<\/a>\u00a0attached except as provided in \u00a7 142.13(b).<\/li>\n<li><strong><em>When merchandise is released under the immediate delivery procedure.<\/em><\/strong>The time of\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=13534f690fce25e4a5c5193a79bed0b3&amp;term_occur=10&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">entry<\/a>\u00a0of merchandise released under the immediate delivery procedure will be the time the\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=6a9f5ae9dcc8d1030f1679cd2ee688e2&amp;term_occur=5&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">entry summary<\/a>\u00a0is filed in proper form, with estimated\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=c15f0974727c7c81c232b7e9e99353ae&amp;term_occur=2&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">duties<\/a><\/li>\n<li><strong><em>Quota-class merchandise.<\/em><\/strong>The time of\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=13534f690fce25e4a5c5193a79bed0b3&amp;term_occur=11&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">entry<\/a>\u00a0for quota-class merchandise will be the time of\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=832fcc256e450c73648ac0507e711e98&amp;term_occur=1&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">presentation<\/a>\u00a0of the\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=6a9f5ae9dcc8d1030f1679cd2ee688e2&amp;term_occur=6&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">entry summary<\/a>\u00a0or withdrawal for consumption in proper form, with estimated\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=c15f0974727c7c81c232b7e9e99353ae&amp;term_occur=3&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">duties<\/a>\u00a0attached, or if the entry\/entry summary information and a valid scheduled statement date (pursuant to\u00a0<a href=\"https:\/\/www.law.cornell.edu\/cfr\/text\/19\/24.25\"> 24.25<\/a>\u00a0of this chapter) have been successfully received by CBP via the Automated Broker Interface, without the estimated\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=c15f0974727c7c81c232b7e9e99353ae&amp;term_occur=4&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">duties<\/a>\u00a0attached, as provided in \u00a7 132.11a of this chapter.<\/li>\n<li><strong><em>When merchandise has not arrived.<\/em><\/strong>Merchandise will not be authorized for release, nor will an\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=13534f690fce25e4a5c5193a79bed0b3&amp;term_occur=12&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">entry<\/a>\u00a0or an\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=6a9f5ae9dcc8d1030f1679cd2ee688e2&amp;term_occur=7&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">entry summary<\/a>\u00a0which serves as both the\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=13534f690fce25e4a5c5193a79bed0b3&amp;term_occur=13&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">entry<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=6a9f5ae9dcc8d1030f1679cd2ee688e2&amp;term_occur=8&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">entry summary<\/a>\u00a0be considered filed or presented, until the merchandise has arrived within the\u00a0<a href=\"https:\/\/www.law.cornell.edu\/definitions\/index.php?width=840&amp;height=800&amp;iframe=true&amp;def_id=54f051ee36b3ec9308e57a784ee37b7e&amp;term_occur=3&amp;term_src=Title:19:Chapter:I:Part:141:Subpart:E:141.68\">port<\/a>\u00a0limits with the intent to unlade.<\/li>\n<\/ol>\n<p><strong>BOC\u00a0NOTE:<\/strong>\u00a0\u201cwithin the port limits\u201d is where the argument\/disagreement seems to be happening, and Ports are not applying this standard consistently.<br \/>\n<img decoding=\"async\" class=\"alignnone size-full wp-image-641 lazyload\" data-src=\"http:\/\/www.bocintl.com\/en\/wp-content\/uploads\/2018\/01\/The-BOC-Blast-221-1-24-18-1.jpg\" alt=\"\" width=\"1125\" height=\"103\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1125px; --smush-placeholder-aspect-ratio: 1125\/103;\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Highlights from BOC\u2019s Port Tour and Logistics Seminar on Friday, October 19, focusing on Industry Updates and 301 Tariffs (see previous BOC Blasts for additional details \u2013 visit www.bocintl.com to access previous BOC Blasts) &nbsp; Tariff List 3 \u2013 currently at 10%; scheduled to rise to 25% on 1\/1\/19 (see previous BOC Blasts for additional<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[507],"tags":[],"class_list":["post-914","post","type-post","status-publish","format-standard","hentry","category-the-boc-blast"],"_links":{"self":[{"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/posts\/914","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/comments?post=914"}],"version-history":[{"count":0,"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/posts\/914\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/media?parent=914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/categories?post=914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bocintl.com\/web\/wp-json\/wp\/v2\/tags?post=914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}