Information on Country of Origin Marking
Rumors About Country of Origin Markings Addressed
A rumor reported to SGCDpro suggested new federal rules would require permanent country of origin (COO) marking on mugs. This is true for products intended for use by children age 12 and under. To improve tracking and identification of recalled products, the new Consumer Product Safety Improvement Act (CPSIA) requires permanent labels on children's products to track source, production date and batch information. This applies to products offered for sale beginning on August 14, 2009. See Fact Sheet enclosed with this newsletter for details on CPSIA.
For other products, there are no changes in labeling requirements, according to Heather Pinnock of the Customs Bureau. Confusion may have arisen out of proposed "Uniform Rules of Origin for Imported Merchandise" published in the Federal Register on July 25, 2008. The CPSIA was published in August. The Customs proposal is intended to simplify and standardize how the Customs Bureau determines COO for items that are "substantially transformed" after being imported.
Pinnock said that the proposal would not affect labeling requirements for items such as mugs or similar blank ware decorated in the U.S. and that those involved in the decorating industry should follow the same labeling procedures they currently use. She cited a ruling from March 2007 involving blank mugs manufactured in China, having a coating applied in Thailand and imported to the U.S. where sublimation decals were to be applied. These were not considered to have been substantially transformed. "It is still a mug," she said.
The proposed rule would have determinations of substantial transformation made based on whether changes in tariff classification would occur as a result of the transformative process. Rather than imposing stricter marking requirements, it exempts such items from having each item marked with COO so long as the outermost container that reaches the ultimate purchaser indicates the COO.
New Customs Rule Issued
The Bureau of Customs and Border Protection (CBP) in the Department of Homeland Security issued an interim final rule implementing The Safe Port Act, on November 25, 2008. It is known to the trade as both the "Importer Security Filing" (ISF) and the "10 + 2 rule" which is shorthand for the number of advance data elements CBP requires importers and carriers to submit.
The purpose of ISF is to improve CBP's ability to identify high-risk shipments that may be potential security threats to the United States. The effective date for the interim Final Rule is January 26, 2009, with a flexible enforcement policy that will last for twelve months after the effective date.
According to Maryland China's President Ed Weiner, "Compliance with the new 10 + 2 rules will allow customs to better spend it's time inspecting higher risk cargoes. Most of the information needed was already required. The big difference now is that the information is needed sooner in the shipping cycle and non-compliance can cause your shipments to miss their vessel or have its release delayed. The best approach for an importer is to work with your customs broker and suppliers to make sure you comply with these new regulations."
The rule adds two types of information to ten items previously required to be submitted to CBP by the carrier at least 48 hours after departure from the last foreign port (or prior to arrival for voyages less than 48 hours in duration). These include a vessel stow plan with standard information relating to the vessel and each container laden on the vessel as well as container status messages (CSMs). The CSMs must be submitted daily for certain events relating to all containers laden with cargo destined to arrive in the United States by vessel. CSMs are used to report terminal container movements (e.g., loading and discharging the vessel) and to report the change in status of containers (e.g., empty or full).
The interim Final Rule also changes fines for violations from the value of the merchandise to $5,000 for each violation and makes provisions for the creation of an Importer Security Filing bond.
The interim Final Rule also includes CBP's commitment to support the trade community in its efforts to implement ISF successfully through a proposed schedule of ISF outreach events. For a listing of that schedule, contact sandyspence325@gmail.com.
Comments requested on certain aspects of the rule must be received by June 1, 2009. The interim final rule, with instructions on submitting comments, is found online at: https://edocket.access.gpo.gov/2008/E8-27048.htm.
A .pdf version is found at: https://edocket.access.gpo.gov/2008/pdf/E8-27048.pdf.
For more information on legislative and regulatory issues, contact Legislative Liaison Sandy Spence at sandyspence325@gmail.com.