Customs

HTS Classification
Analyzing the classification of goods within the Harmonized Tariff System (HTS), including issuing legal opinions on classification, as well as preparing and submitting ruling requests to U.S. Customs and Border Protection (CBP) to confirm classification determinations.

Rules of Origin
Advising both U.S. and non-U.S. companies on rules of origin for marking, free trade agreement eligibility, “Buy American” requirements, U.S. Government procurement, Section 301 tariffs, and other issues.
Mr. Luks has developed a particular expertise on advising companies on the requirements for certifying that an Israeli product meets the Israeli-content requirements for duty free treatment under the U.S.-Israel Free Trade Area Agreement, including comprehensive analysis of production costs and the rules for identifying foreign-origin inputs as Israeli-origin content via the “double substantial transformation” rule.

Compliance
Preparing and implementing customs compliance policies and procedures that are narrowly tailored to our clients’ business needs, as well as providing training on such procedures.
Petitioning CBP for remission of seizure when goods being imported into or exported from the United States are seized or detained for various issues, including lack of required import/export authorization or incorrect classification.
Conducting internal investigations and, when appropriate, preparing and submitting prior disclosures to CBP to mitigate the potential liability of the U.S. importer for past violations of U.S. customs laws and regulations.

Free Trade Zone Issues
Analyzing the costs and benefits of various options to minimize U.S. customs duties on parts, components, and materials procured from non-U.S. suppliers for use in U.S. manufacturing operations. Providing guidance on (a) Free Trade Zone (FTZ) options; (b) Bonded Warehouses; (c) Temporary Import Bonds; and (d) duty drawback.

● We conducted a comprehensive internal review of the HTS classifications used by a large non-U.S. manufacturer exporting to the United States, identifying numerous instances where items had been classified incorrectly (and inconsistently) and instances when the company had incorrectly certified that its products qualified for the U.S.-Israel Free Trade Agreement. We assisted the company in responding to numerous CF-28 and CF-29 notices from CBP regarding classification issues and origin issues. We researched and identified applicable CBP rulings and provided detailed memoranda to the company providing guidance on classification requirements applicable to its product lines. In addition, we conducted training on classification and on the requirements for claiming eligibility for duty-free treatment under the U.S. Israel Free Trade Area Agreement.

● We assisted a U.S. client with obtaining the remission of a seizure of a weapons system that the U.S. client was importing for marketing and demonstration purposes. CBP and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATFE) claimed that the U.S. importer misclassified the weapons system and that the import of the system required an ATFE permit. We successfully defended the U.S. importer’s classification and obtained the remission of the seizure with no penalty.

● We successfully obtained a formal determination from CBP that certain electronic displays manufactured in the United States using components sourced from various Asian suppliers were U.S.-origin for purposes of U.S. government procurement under Title III of the Trade Agreements Act of 1979, as amended, Pub. L. 96-39, for the purpose of granting waivers of certain “Buy American” restrictions in U.S. law, because the manufacturing processes in the United States constituted a “substantial transformation.”

● We assisted a U.S. subsidiary of a Chinese company with submitting comments to the U.S. Trade Representative requesting removal of several Chinese-origin products from the proposed Section 301 action list and, when unsuccessful, pursued an exclusion request for the specific products. In conjunction, we advised the client on restructuring its non-U.S. manufacturing operations and transitioning certain manufacturing activities to Singapore to qualify the products for Singaporean origin and, thus, avoid 25 percent Section 301 tariffs imposed on Chinese origin products.

● We assisted a U.S. importer and manufacturer with the process of designating its facility as a subzone of an existing FTZ, working with the FTZ Grantee to obtain approval of subzone status. Once subzone status was approved, we assisted with the submission of the manufacturing notification describing intended operations and then with the request to CBP to “activate” the subzone.