Customs and International Trade

Customs and International Trade are highly specialized areas of expertise involving the importation and exportation of merchandise to and from the United States and other countries. "Customs Law" encompasses the many and varied governmental restrictions and requirements applicable to imported and exported merchandise. Some of these are exclusively within the jurisdiction of Customs while others are the principal responsibility of other government agencies but are enforced by Customs. Thus, attorneys specializing in Customs Law must be familiar with a wide range of administrative regimens. Litigation of Customs issues in the United States is usually conducted in the Court of International Trade which has unique procedures to handle these matters.

One unique aspect of Customs Law is that many fundamental principles are established by international agreements or conventions to which almost all nations are signatories. Many aspects of Customs are transnational in application. Attorneys specializing in Customs Law can advise clients on certain aspects of foreign laws making the resolution of Customs issues highly efficient.

International Trade Law generally applies to antidumping and countervailing duty laws. Although these laws were first enacted in the United States, international conventions regarding dumping and governmental subsidies (countervailing duties) have been adopted by other countries and today manufacturers and importers may find themselves subject to antidumping or countervailing duty orders when their goods are shipped to other countries.

Below is a discussion of the major areas of practice within Customs and International Trade Law.

Classification: Importers are required to exercise reasonable care in conducting their Customs transactions. This includes making certain that their imported merchandise is correctly classifiable under the Harmonized Tariff Schedules of the United States (HTSUS). We assist clients in reviewing product classifications to assure this important aspect of Customs business is performed correctly thus preventing unanticipated duty increases and corresponding penalties.

Valuation: Valuation of imported merchandise is a complex process involving many aspects that may impact dutiable value. Among the factors, which must be taken into account, are terms of sale, commissions, assists, royalties and middlemen. We work closely with our clients to ensure that their imported goods are correctly appraised to avoid the imposition of additional duties subsequent to entry and penalties.

Country of Origin: Customs regulations require that all articles imported into the U.S. be appropriately marked with the country of origin. Such requirements are complicated when goods are assembled from components sourced in two or more countries. We assist importers in ensuring that their imported merchandise is correctly marked in accordance with the applicable regulations.

Marking: Customs regulations are specific with regard to how and where imported goods must be marked with the country of origin, content and if appropriate the marking requirements of other government agencies such as the Federal Trade Commission. We offer assistance to importers in navigating these complex regulations and ensuring that their goods are appropriately marked.

Compliance Assessments: The "reasonable care" requirements imposed upon importers and exporters provides that such entities must monitor their customs transactions to ensure that they are operating in compliance with the applicable regulations. These regulations are extremely complex and often difficult to interpret and navigate. Importers and exporters not operating in accordance with the regulations face significant potential penalties should they be found to be not in compliance by Customs. We offer our clients complete compliance assessments for both import and export operations. The assessments facilitate a company's customs operations allowing it to operate in the most expeditious and cost-effective manner.

Customs Audits: Our staff can perform a complete audit of a company's customs operations. Such an audit will identify any potential compliance issues, which can be expeditiously remedied. We offer assistance to companies in the event of selection for a compliance audit by Customs and Border Protection which includes counseling on customs matters, representation before Customs and legal advice throughout the process.

Recordkeeping: Customs requires that importers maintain complete records of all customs transactions. We assist importers in the establishment, implementation and maintenance of recordkeeping programs that meets or exceeds Customs requirements.

Custom Broker Licensing: We assist customs brokers in obtaining port and national permits as well as render legal advice and assistance with regard to any regulatory issues that may arise.

Custom Broker Regulations: Customs brokers are required to exercise reasonable care while conducting customs business on behalf of importers and exporters. We assist brokers in the performance of their duties as required by the applicable statutes and regulations.

Fines, Penalties and Forfeitures: Merchandise imported in violation of Customs and trade laws can subject an importer to penalties as high as the domestic value of the merchandise. In many instances penalties are imposed where no violation has occurred or mitigating factors exist justifying that the penalty be cancelled or substantially mitigated. We have, on behalf or our clients, successfully petitioned Customs to cancel or mitigate penalties on numerous occasions based upon the facts or circumstances of alleged violations.

Customs Rulings: Obtaining a binding ruling from the Bureau of Customs and Border Protection ensures certainty to an importer with regard to the classification, valuation, country of origin, marking and applicability of special programs such as NAFTA to an importers merchandise. This serves to eliminate any discrepancies in the treatment of goods by the various Customs ports. We have drafted numerous successful ruling requests covering all types of merchandise and a broad range of issues on behalf of our clients. These rulings have benefited our clients by resulting in the expeditious release of their merchandise on a cost-effective basis.

Drawback: Many companies are unaware that they are entitled to up to a 99 percent refund on duties tendered for merchandise that is subsequently exported from the U.S. in either "manufactured" or "unused" condition. We assist clients in the establishment and maintenance of drawback programs including recordkeeping systems.

Export Controls: Controls and restrictions on the export of various products, particularly products with military applications including dual-use products, are enforced by various government agencies including the Department of State, Bureau of Export Administrations and Office of Foreign Assets Control. We assist exporters in obtaining licenses and clearance to export goods as well as with the establishment of programs and internal controls for export operations to avoid the imposition of costly penalties and sanctions.

Foreign Trade Zones: The firm assists clients in the establishment of foreign trade zones including the preparation and filing of applications and activations.

Bonded Warehouses: We assist clients in the preparation and filing of license applications and the establishment of recordkeeping procedures in accordance with the customs regulations.

Litigation: We routinely represent clients on customs and trade issues before the Court of International Trade, the United States Court of Appeals for the Federal Circuit and in international commercial transactions before appropriate state and local courts. Where necessary, we engage foreign counsel in the representing of clients in overseas jurisdictions.

Legislation: The firm assists clients in the preparation and submission of legislation for the purpose of reducing or suspending duties on imported merchandise as well as federal and state regulatory issues such as marking and labeling.

North American Free Trade Agreement (NAFTA): We assist clients with regard to qualifying goods for tariff preference, marking and dispute resolution including representation before NAFTA Bi-national panels.

Product Admissibility: Imported merchandise is subject to a myriad of regulatory requirements concerning marking, labeling, content and safety. These requirements are imposed by many government agencies through enforcement by the Bureau of Customs and Border Protection. These agencies include the Food and Drug Administration, Consumer Product Safety Commission, Fish and Wildlife Service, Animal and Plant Health Inspection Service, Federal Trade Commission and Bureau of Alcohol Tobacco and Firearms. Goods found not to be in compliance with the requirements of these agencies may be detained, excluded or seized. In addition, importers of such merchandise may be subject to civil and/or criminal penalties. We assist importers in assuring that their merchandise is in compliance with the admissibility requirements of the governmental agencies regulating such products.

Import Restrictions: Although quotas on textiles and wearing apparel have been eliminated as of January 1, 2005, Tariff Rate Quotas will remain in effect for items such as sugar, agricultural and dairy products. In addition, special safeguard limitations on imports of textile and apparel products from China have been and will continue to be invoked to prevent a surge of imports after the quotas have been removed. We assist clients to ensure that their products are imported in accordance with the applicable quotas and restrictions thus avoiding and minimizing delays and maximizing profits.

Special Duty Programs: Our attorneys counsel clients with regard to special programs available, which can result in substantial duty savings for importers. Among these programs are the North American Free Trade Agreement (NAFTA), Generalized System of Preferences (GSP), Caribbean Basin Initiative, U.S.-Israel Free Trade Agreement, U.S.-Jordan Free Trade Agreement and American Goods Returned.