ltslts customs broker exam review session 4. ltslts intellectual property rights 19 cfr part 133,...

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Customs Broker Exam Review

Session 4

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© Logistics Training Systems All Rights Reserved

INTELLECTUAL PROPERTY RIGHTS

19 CFR Part 133, Chapter 12

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Trade Name / Trademark ™ ® SM

• Register trademark at US Patent & Trademark office• Then register with CBP• Ends same time as USPTO registration

§133 Subpart A - Trademarks

§133 Subpart B - Trade Names

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Copyright ©

• Register at Copyright Office, Library of Congress• Then register with CBP• Ends same time as copyright registration

§133 Subpart D

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CBP Applications

TrademarksRequired information listed in §133.2

Copyrights Required information listed in §133.32

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Gray Market

• Article is considered “gray market” if:– Genuine trademark of foreign article– Recorded by US Citizen or business– Imported without authorization of U.S. owner

• Example– Mercedes Benz made in Canada– Imported into the U.S. for sale– Without authorization of Mercedes Benz

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Lever-Rule or Parallel Imports

• Goods not otherwise afforded “gray-market” protection may be refused entry

• Must be applied for by trademark owner and goods must be shown to be “physically and materially” different

• Goods only permitted entry when labeled to indicate that they are “physically and materially” different

• Will not be detained or seized if labeled correctly.

physically and materially

different

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Trademarks

Counterfeit §133.21• Seized• Importer notified• TM owner notified

– 30 days to provide written consent

• No consent– Goods forfeited and

disposed

Simulating §133.22• Detained• Importer notified

– Remove mark– Owner or agent– Written consent of TM

owner– One time personal

exemption

• TM owner notified• No release 30 days -

Seized

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Copyright

Clearly piratical• Seizure and forfeiture• Owner notified• Referral to U.S. Attorney

Possibly piratical• Detained • Notice to importer• Notice to Copyright owner

– File demand for exclusion with bond, or

– Do nothing and release to importer

• Exchange of briefs• CBP HQ makes decision

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Deposition of seized goods

• Trademark– After removal or obliteration of name

• Delivery to any government agency• Gift to a charitable institution• Sale at public auction

–After 90 days and not needed by• Copyright

– Destroyed – no other choice! §133.52

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ADDITIONAL CBP REFERENCES

CATAIR, Directives and Others

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CATAIR Documents

• Introduction• Requirements• Appendix B – Valid Codes• Appendix D – Metric Conversion• Appendix E – Valid Entry Numbers• Appendix G – Common Errors• Appendix H – Census Warning Messages• Appendix L – Drawback errors• Glossary

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CATAIR Documents

• Familiar with all of them and what they contain

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Disclaimer

• The directives provided in your Workbook have been reformatted to provide an easier document to read, understand and use.

• The wording and phrasing has NOT been changed, only the format.

• You may use either the directives as downloaded from the Customs web site (cbp.gov) or those provided by Logistics Training Systems (or both!)

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§143

Subpart E

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MID Construction

CARDUCCIO AND JONES, 88 Canburra Avenue, Sydney, Australia

International Standard Country Code – HTSUS Annex B

AU CAR JON 88 SYD

AUCARJON88SYD

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Ultimate Consignee

• U.S. Company A places an order with an overseas shipper and then sells the goods to U.S. Company B in a domestic transaction prior to the importation. The invoice issued by the overseas shipper states “sold to: U.S. Company A” and “ship to: U.S. Company B.” The consignee on the bill of lading is U.S. Company B. Who is the ultimate consignee for this formal entry?

A. The overseas shipper

B.The broker

C.The carrier

D.U.S. Company A

E.U.S. Company B CD 3550-079A, Ultimate Consignee at time of Entry or Release

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Other References

• Instructions for Preparation of CBP Form 7501 (July 24, 2012)

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Entry Type Example

• What is the correct entry type code for a warehouse withdrawal with Quota/Visa and Antidumping Duty/Countervailing Duty combination?A. 02

B. 31

C. 22

D. 38

E. 23

Warehouse WithdrawalFor Consumption 31Quota/Visa 32AD/CVD 34Quota/Visa and AD/CVD combinations 38

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RESTRICTED AND PROHIBITED MERCHANDISE

19 CFR Part 12, Chapter 13

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Restricted Merchandise

OGAPGA

http://www.clipart.com/en/close-up?o=3817149&a=c&q=crates&k_mode=all&s=1&e=21&show=&c=&cid=&findincat=&g=&cc=91:0:69:1:2:91:16&page=&k_exc=&pubid=&color=&b=k&date=

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Restricted to Entered

OGAPGA

Entere

d

Prohibited

Export or Destroy

Bond Whse or FTZ

http://www.clipart.com/en/close-up?o=3817149&a=c&q=crates&k_mode=all&s=1&e=21&show=&c=&cid=&findincat=&g=&cc=91:0:69:1:2:91:16&page=&k_exc=&pubid=&color=&b=k&date=

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Prohibited Material

NeedsCBP 3291

§145, Subpart E

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Alcohol

Proof Liter

Chapter 22, Additional US Note 5

86 Proof

95 Proof

100 Proof

X X

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Proof Liter

• Headings 2204, 2206, 2207, 2208 in “proof liter”– Duty rates shown for 100 proof

• If rum in 2208.40.2000 . . .– Pay 23.7¢ per liter at 100 proof OR

– Pay 11.85¢ per liter at 50 proof

• 1000 liters of 50 proof rum = 500 proof liters @ 23.7¢ per proof liter

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Vehicles

• Know where to find this info in regulations (§12.73; 12.74; 12.80)

• Exemptions– Over 21 years old– Diplomat or foreign military

• 120 days to bring into conformance

http://www.epa.gov/otaq/imports/factmtop.htm

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Previous Test Question

In addition to CBP, the Food and Drug Administration, and the US Department of Agriculture-Animal and Plant Health Inspection Service, which of the following regulates meat and meat-food products offered for entry into the U.S.?

A. U.S. Consumer Product Safety CommissionB. Nature and Animal Conservation ServicesC. Bureau of Export AdministrationD. Food Safety and Inspection ServicesE. Concerned Citizens for Animal Rights

§12.8(a)

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• The importation of all of the following is prohibited, EXCEPT:A.White phosphorous matches

B.Merchandise manufactured using convict labor

C.A 2000-year-old coin stolen from the Iraqi National Museum collection in September 2004

D.Articles subject to the Toxic Substances Control Act

E.Gasoline-fueled and diesel fueled heavy-duty engines manufactured before January 1, 1970


§12.118; 12.120

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• What CBP form are importers of foreign-made films required to complete stating their film contains no urging of treason or insurrection against the United States?A.3291

B.3311

C.3461

D.7501

E.7506 §12.41(a)

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RULES OF ORIGIN19 CFR Part 102, Chapter 14

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Rules of Origin

NAFTA

Bahrain

19 CFR 102

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Rules of Origin

• §102.23 – 102.25 = MID rules• Appendix to Part 102 – MID construction • Must be manufacturing operations that confer origin

§102.21 Textiles and

Apparel §102.22

Textiles and Apparel(Israel)

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Direct vs. Indirect Material

Direct Material• Purified water added to

mix• Thread and buttons• Any good directly

incorporated into the product.

Indirect Material• Fuel and energy• Tools, dies and molds• Gloves, glasses and

footwear• Testing supplies• Lubricants

§102.1

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De Minimis

§102.13

7% of the value

Chapter 22

Beverages, spirits, etc.

10% of the value

7% of the weight

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Determining origin

• Wholly Obtained• Substantial transformation

ManufacturingProcess

ValueAdded

0805In

2007Out

TariffShift

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Determining Country of Origin

Wholly manufactured or produced

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Substantial Transformation

• New and different article of commerce resulting from manufacturing or processing operation with . . .– New commercial name or identity– Different fundamental character, or– Different commercial use

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Determining Country of Origin

Steel from France… Barge made in

Germany with French steel

Germanywhere…

Substantial Transformation

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Simple Assembly or Combining

• Minor manufacturing or combining process– No change in identify or use– No substantial transformation

Add handles, change color, still a VASE!

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Country of Origin??

Warehoused in Russia

Packed for retail sale in Belgium


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Textile and Apparel # 1 & 2

1. The country of origin of a textile or apparel product is the single country in which the good was wholly obtained or produced.

2. If the origin of a textile or apparel product cannot be determined under paragraph (1), then

• the country of origin of the good is the single country in which each foreign material incorporated in that good undergo an applicable change in tariff classification, and/or met any other requirement specified in 102.21(e).

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Textile and Apparel Rule 1

wholly obtained or produced

§102.21(c)(1)

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Textile and Apparel Rule 2

§102.21(c)(2)

Taiwan – polyester fabric

Macau – plastic sheeting

Hong Kong – cutting and assembly

Germany – tent poles

China – carrying bags; tents and poles

packed into bags

Tents….6306.21 - 29

… the country of origin of a good classifiable under heading 6301 through 6306 is the country, territory, or insular possession in which the fabric comprising the good was formed by a fabric-making process.

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The Silk Route

Silk yarn made in Korea

Woven into fabric in China

Printed, cut to shape, hemmed in Malta

Imported, inspected and packed

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Textile and Apparel #3

3. Where the country of origin of a textile or apparel product cannot be determined under paragraph (1) or (2) of this section, then

(i) If the good was knit to shape, the country of origin of the good is the single country, territory, or insular possession in which the good was knit

(ii) if the good was not knit to shape and the good was wholly assembled in a single country, the country of origin of the good is the country in which the good was wholly assembled (certain HTS items are excluded)

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Textile and Apparel #3 (i)

Malaysia

Hong KongSingapore

Country of Origin is Malaysia

China Nepal

§102.21(c)(3)(i)

USA

http://www.clipart.com/en/close-up?o=3910369&a=c&q=knit&k_mode=all&s=1&e=21&show=&c=&cid=&findincat=&g=&cc=253:3:288:14:4:217:380&page=1&k_exc=&pubid=&color=&b=k&date=

http://www.clipart.com/en/close-up?o=3963433&a=c&q=sweater&k_mode=all&s=22&e=42&show=&c=&cid=&findincat=&g=&cc=461:167:2677:5:0:95:745&page=2&k_exc=&pubid=&color=&b=k&date=

http://www.clipart.com/en/close-up?o=3794825&a=c&q=sheep&k_mode=all&s=1&e=21&show=&c=&cid=&findincat=&g=&cc=1405:14:397:94:10:1728:59&page=&k_exc=&pubid=&color=&b=k&date=

http://www.clipart.com/en/close-up?o=4016188&a=c&q=dye&k_mode=all&s=1&e=21&show=&c=&cid=&findincat=&g=&cc=30:0:43:7:1:18:0&page=1&k_exc=&pubid=&color=&b=k&date=

http://www.clipart.com/en/close-up?o=2970434&a=c&q=sweater&k_mode=all&s=190&e=210&show=&c=&cid=&findincat=&g=&cc=461:167:2677:5:0:95:745&page=10&k_exc=&pubid=&color=&b=k&date=

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Textile and Apparel #3 (ii)

France

BelgiumSpain

USA

Italy

C/O is Spain – Wholly Assembled §102.21(c)(3)(ii)

http://www.clipart.com/en/close-up?o=3984947&a=c&q=spinning%20wheel&k_mode=all&s=22&e=42&show=&c=&cid=&findincat=&g=&cc=99:0:76:14:4:179:18&page=2&k_exc=&pubid=&color=&b=k&date=

http://www.clipart.com/en/close-up?o=3715743&a=c&q=weaving&k_mode=all&s=148&e=168&show=&c=&cid=&findincat=&g=&cc=308:4:63:20:0:285:50&page=8&k_exc=&pubid=&color=&b=k&date=

http://www.clipart.com/en/close-up?o=3903603&a=c&q=dye&k_mode=all&s=1&e=21&show=&c=&cid=&findincat=&g=&cc=30:0:43:7:1:18:0&page=&k_exc=&pubid=&color=&b=k&date=

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Textile and Apparel # 4

4. Where the country of origin of a textile or apparel product cannot be determined under paragraph (1), (2) or (3), then the country of origin of the good is the single

country in which the most important assembly or manufacturing process occurred

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Country B

$10.00

Country C

$3.00

$20.00

Country A

$7.00

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5. Where the country of origin of a textile or apparel product cannot be determined under paragraph (1), (2), (3) or (4), then the country of origin of the good is the last

country in which an important assembly or manufacturing process occurred

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$20.00

Country A

$4.00

Country B

$7.00

Country C

$7.00

Country D

$2.00

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From Previous Exam

• What is the country of origin of insecticide classified in subheading 3808.10? The active ingredient (insecticide) is blended with surfactants and packaged for retail sale in Canada. The active ingredient classified in Chapter 29 is manufactured in England. The surfactants classified in Chapter 34 are manufactured in the USA. The packaging classified in Chapter 39 is manufactured in Korea.

A.Canada

B.England

C.European Union

D.USA

E.Korea

102.11(a)(3); 102.11(b)(1); 102.20(f); 134.1(b)

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From Previous Exam

• A textile or apparel product is defined as:A.any good classifiable in Chapters 50 through 63 of the

HTSUS

B.any good classifiable in Chapters 61 or 62 of the HTSUS

C.any good made in whole or in part of textile components of Section XI

D.any good classifiable in Chapters 50 through 63 of the HTSUS, and any good listed in 19 CFR 102.21(b)(5)

E.all goods classifiable in chapters 50 through 66 of the HTSUS §102.21(b)(5)

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From Previous Exam

• What is the country of origin for the following? Cotton grown in the U.S. is sent to Korea where it is spun into yarn. The yarn is sent to China where it is woven into fabric and made into shirts. The shirts were sold to a U.S. buyer, shipped to Hong Kong for pressing and packing for export to the US. A.United StatesB.KoreaC.ChinaD.United States and KoreaE.Hong Kong

§102.21(c)

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From Previous Exam

• Under the North American Free Trade Agreement, which of the following would NOT be considered an “indirect material” in the manufacture of a ceramic dish?

A.Purified water added to the ceramic mix

B.Production molds

C.Electricity used to fire the dishes

D.Testing supplies

E.Lubricants used on the mixing machine§102.1(k); GN 12(i)

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