J&J
International Trade Notice 2002-5March 27, 2002
U.S. Customs Disallows Bond Premium Cost Deduction
&
As Yet Unpublished - Commerce Findings Regarding
Critical Circumstance Retroactivity and U.S. Origin Material
SEB Premium Costs NOT Deductible
Although originally instructed and backed in writing by U.S. Customs to the contrary, effective immediately we/you are no longer allowed to deduct from your invoice’s "Delivered Price" all the costs associated with executing CVD/AD Single Entry Bonds.
Our $10.00 fee for writing and monitoring each bond will remain deductible. However NOT the $2.50 per $1,000.00 ($5.00 minimum) CVD/AD assessment SEB premium paid the surety that has been deducted from each of your entries up to this point. Agreed by all, originally, to be deductible costs associated with the U.S. entry of your materials, Customs now seems to disagree. They now feel that these bond-premium-costs more closely resemble duties and - following their ruling that if duties are NOT paid, they are NOT deductible. We, however, feel that if THAT is Customs’ reasoning; in that these bond-premium-fees, in lieu of duties ARE paid, THEY should be deductible. It doesn’t make sense otherwise. Again, we are fighting the "City Hall" of all city halls.
No Collection of CVD Accruals During Retroactive "Critical Circumstances" Phase
As yet unpublished in an official legal format, Commerce has confirmed they will NOT collect Countervailing Duties accrued during the ninety-day "Critical Circumstances" phase - May 19, 2001 through August 17, 2001. It remains Jones & Jones’ position, in that we have proven to Customs that they did NOT lawfully publish and qualify their Single Entry Bond mandate allowing such collection until September 10, 2001, any such liabilities secured by SEB’s demanded prior to that date - must also be exempted.
U.S. Sourced/Origin Material Processed in Canada and Exported to U.S.
Although not addressed adequately at this date, Commerce will allow exemptions for entries of U.S. sourced/origin lumber merely kiln dried, planed, or sanded in any of the CVD and/or AD effected provinces. Jones & Jones Customs Brokers will not rest until Commerce relents to the exemption, regardless of the processing undertaken in Canada, of U.S. sourced/origin material. Material NOT harvested or sawn into lumber by an alleged subsidized Canadian province CANNOT have benefited by said subsidy!
Michael D. Jones, President