CSMS Message: 01-000211

TO : ALL ABI BROKERS.

FROM : JOANNE ZZ-COLONNELLO

SUBJECT : MIS RIBBONS AND TRIMMINGS INTETERVENTION

DATE : 02/20/2001

TO: ALL ABI BROKERS.
FROM: JOANNE COLONNELLO
SUBJECT: MIS-MARKING FOR WEARING APPAREL

RIBBONS AND TRIMMINGS INTERVENTION

THE NEW YORK STRATEGIC TRADE CENTER (NYSTC) BEGAN AN
INTERVENTION FOCUSING ON CLASSIFICATION FOR THE TEXTILE PRIMARY
FOCUS INDUSTRY (PFI) ON JANUARY 17, 2001 SPECIFICALLY TARGETING
THE NON-COMPLIANCE OF THE RIBBONS AND TRIMMINGS INDUSTRY. THE
PURPOSE IS TO CALL ATTENTION TO A PATTERN OF DISCREPANCIES AND
NON-COMPLIANCE INVOLVING CLASSIFICATION AND INSUFFICIENT INVOICE
DESCRIPTIONS WITHIN THE RIBBONS AND TRIMMINGS INDUSTRY. THE
LETTERS DISCUSS THE PATTERNS OF NON-COMPLIANCE FOUND NATIONWIDE,
AND URGE IMPORTERS TO ENSURE THEIR INDIVIDUAL TRANSACTIONS ARE
FREE FROM THESE ERRORS. THE LETTER ALSO REQUESTS EACH IMPORTER
SEND A COPY OF THE LETTER TO THEIR BROKERS
FILERS, AS WELL AS TO
THE FOREIGN SUPPLIERS MERCHANDISE, TO FURTHER INFORM ALL
PARTIES.

FIRST, INFORMED COMPLIANCE PACKAGES HAVE BEEN DISTRIBUTED TO THE
FIRMS TARGETED BY THE NYSTC. THESE PACKAGES CONTAINED THE
INFORMED COMPLIANCE PUBLICATION, RIBBONS AND TRIMMINGS (1
98)
(HTTP:

WWW.CUSTOMS.GOV
IMPOEXPO
IMPOEXPO.HTM) DEVELOPED BY THE
NATIONAL COMMODITY SPECIALIST DIVISION AND A LETTER (SEE BELOW)
NOTIFYING THE IMPORTER OF CUSTOMS' AWARENESS OF THE
NON-COMPLIANCE WITHIN THE RIBBONS AND TRIMMINGS INDUSTRY.

ONE HUNDRED AND TWENTY DAYS AFTER ISSUANCE OF THE INFORMED
COMPLIANCE LETTERS, THE NYSTC WILL BEGIN A MONITORING PHASE.
THIS PHASE WILL INVOLVE A QUARTERLY REVIEW OF ALL DISCREPANT
FINDINGS (COMPLIANCE MEASUREMENT, TARGETED CARGO AND ENTRY
SUMMARY) WITHIN THE RIBBONS AND TRIMMINGS INDUSTRY. ANY
IMPORTER FOUND TO HAVE REPEATED DISCREPANCIES, WHICH HAVE BEEN
OUTLINED IN THE INITIAL LETTER, MAY BE REFERRED FOR THE
APPROPRIATE FOLLOW-UP ACTION.

FOR FURTHER INFORMATION CONCERNING THIS MATTER, PLEASE CONTACT
INTERNATIONAL TRADE SPECIALIST JOANNE COLONNELLO AT THE NEW YORK
STRATEGIC TRADE CENTER AT (212) 637-7740.

DEAR SIR OR MADAM:

THE PURPOSE OF THIS LETTER IS TO CALL YOUR ATTENTION TO A
PATTERN OF DISCREPANCIES AND NON-COMPLIANCE INVOLVING RIBBONS
AND TRIMMINGS WITHIN THE TEXTILE PRIMARY FOCUS INDUSTRY (PFI).
THIS MERCHANDISE IS CLASSIFIED IN HARMONIZED TARIFF SCHEDULE OF
THE UNITED STATES (HTSUS) UNDER HEADINGS 5404, 5405, 5604, 5605,
15606, 5607, 5609, 5806, 5808, 5907, 6001, 6002, AND 6307.
ANALYSIS OF THE TEXTILE PFI HAS DETERMINED THAT 42
1 OF ALL
DISCREPANCIES UNDER THESE HEADINGS ARE CLASSIFICATION ERRORS.
THE HIGH RATE OF DISCREPANCIES HAS A SIGNIFICANT IMPACT ON THE
OVERALL COMPLIANCE RATE IN THE APPAREL INDUSTRY. TO REMEDY THIS
SITUATION, WE ARE ADVISING ALL SIGNIFICANT IMPORTERS FILING
ENTRY UNDER HEADINGS 5404, 5405, 5604, 5605, 5606, 5607, 5609,
5806, 5808, 5907, 6001, 6002, AND 6307 OF THIS PROBLEM. IN
ORDER TO ALLEVIATE ANY MISUNDERSTANDINGS THAT MAY EXIST IN THE
TRADE REGARDING THE CLASSIFICATION REQUIREMENTS, AN ADVANCED
LEVEL INFORMED COMPLIANCE PUBLICATION (ICP), ENTITLED "RIBBONS
AND TRIMMINGS", IS ATTACHED.

U.S. CUSTOMS' RECORDS FROM OCTOBER 1998 TO SEPTEMBER 1999
IDENTIFY YOUR FIRM AS AN IMPORTER OF RECORD FOR TEXTILES UNDER
THE HEADINGS MENTIONED ABOVE. UNDER 19 USC 1484, THE IMPORTER OF
RECORD SHALL, USING REASONABLE CARE, PRESENT THEIR CUSTOMS
ENTRIES WITH THE PROPER DECLARED VALUE, CLASSIFICATION AND RATE
OF DUTY. THE IMPORTER OF RECORD WILL FILE WITH THE CUSTOMS
SERVICE SUCH INFORMATION AS IS NECESSARY TO ENABLE THE CUSTOMS
SERVICE TO PROPERLY ASSESS DUTIES, COLLECT ACCURATE STATISTICS
AND DETERMINE WHETHER ANY OTHER APPLICABLE REQUIREMENT OF THE
LAW IS MET. IMPORTERS SHOULD NOT RELY EXCLUSIVELY ON THEIR
CUSTOMHOUSE BROKER TO PROCESS THEIR IMPORTS. ACCORDING TO THE
"REASONABLE CARE CHECKLIST" PUBLISHED IN THE FEDERAL REGISTER
(VOL. 62 PAGE 48340, DATED SEPTEMBER 15, 1997), IF THE ENTRY
DOCUMENTATION IS PREPARED OUTSIDE OF YOUR ORGANIZATION, YOUR
COMPANY SHOULD HAVE A RELIABLE SYSTEM IN PLACE WHICH ENSURES
THAT:

COPIES OF INFORMATION SUBMITTED TO U.S. CUSTOMS ARE RECEIVED
BY YOUR OFFICE;
INFORMATION SUBMITTED TO U.S. CUSTOMS IS REVIEWED FOR ACCURACY;
AND
ANY NECESSARY CORRECTIONS ARE DIVULGED TO U.S. CUSTOMS IN A
TIMELY MANNER.

NON-COMPLIANCE OFTEN RESULTS WHEN AN IMPORTER FAILS TO HAVE A
RESPONSIBLE AND KNOWLEDGEABLE INDIVIDUAL WITHIN THE IMPORTER'S
ORGANIZATION REVIEW THE CUSTOMS DOCUMENTATION PREPARED ON BEHALF
OF THE IMPORTER BY ITS CUSTOMHOUSE BROKER.

THIS LETTER IS BEING SENT TO ALL HIGH VOLUME IMPORTERS, AND
IMPORTERS WITH PAST CLASSIFICATION ERRORS, OF RIBBONS AND
TRIMMINGS. THE PURPOSE OF THIS LETTER IS TO INFORM YOU OF OUR
CONCERNS RELATING TO THE CURRENT TREND OF DISCREPANCIES. IN
ADDITION, WE ALSO WANT TO REMIND YOU THAT YOUR FIRM HAS THE
RESPONSIBILITY UNDER THE CUSTOMS LAWS OF THE UNITED STATES TO
PRESENT YOUR ENTRIES CORRECTLY, AND IN THE PROPER FORM. IF YOU
ARE FILING YOUR ENTRIES CORRECTLY, AND HAVE PROPERLY CLASSIFIED
THE MERCHANDISE AT THE TIME OF IMPORTATION, THEN NO FURTHER
ACTION IS REQUIRED. HOWEVER, IF YOUR COMPANY'S INDIVIDUAL
IMPORT TRANSACTIONS ARE NOT FREE FROM THESE ERRORS, AND YOU DO
NOT TAKE IMMEDIATE CORRECTIVE ACTIONS DESIGNED TO FOSTER
COMPLIANCE, YOUR COMPANY COULD FIND ITSELF SUBJECT TO INCREASED
1ENTRY REVIEWS AND
OR CARGO EXAMINATIONS, PENALTIES, OR OTHER
REMEDIAL ACTIONS.

WE ARE ALSO REQUESTING THAT YOU ADVISE EACH OF THE CUSTOMS
BROKERS OR FILERS ACTING ON YOUR BEHALF, AS WELL AS THE FOREIGN
SUPPLIERS FROM WHOM YOUR COMPANY SOURCES THESE ITEMS, OF THE
SUGGESTED INVOICE DESCRIPTIONS OUTLINED IN THE INFORMED
COMPLIANCE PUBLICATION. AS NOTED IN THE PUBLICATION, "A
PRINCIPAL CAUSE OF MISCLASSIFICATION IS THE FAILURE TO PROVIDE
CUSTOMS BROKERS WHO PREPARE CUSTOMS ENTRY DOCUMENTS WITH
SUFFICIENT INFORMATION TO CLASSIFY THE GOODS." YOUR FIRM MAY
FIND IT ADVANTAGEOUS TO MEET WITH YOUR BROKER OR FILER AND
DISCUSS THE NON-COMPLIANCE ISSUES IDENTIFIED IN THIS
PUBLICATION, TO ENSURE THAT YOUR INDIVIDUAL IMPORT INVOICES
CONTAIN SUFFICIENT INFORMATION TO PROPERLY CLASSIFY YOUR GOODS,
ESPECIALLY THOSE INVOICES FOR SHIPMENTS ENTERED THROUGH EXPRESS
CONSIGNMENT FACILITIES.

THE NATIONAL COMMODITY SPECIALIST DIVISION OF THE OFFICE OF
REGULATIONS AND RULINGS HAS PREPARED THIS PUBLICATION ON RIBBONS
AND TRIMMINGS AS PART OF A SERIES OF INFORMED COMPLIANCE
PUBLICATIONS REGARDING THE CLASSIFICATION OF IMPORTED
MERCHANDISE. IT IS HOPED THAT THIS MATERIAL TOGETHER WITH
INCREASED ACCESS TO CUSTOMS RULINGS WILL HELP THE TRADE
COMMUNITY IN IMPROVING VOLUNTARY COMPLIANCE WITH THE CUSTOMS
LAWS. ADDITIONAL INFORMED COMPLIANCE INFORMATION IS AVAILABLE
VIA THE CUSTOMS INTERNET WEBSITE WWW.CUTOMS.USTREAS.GOV.

FOR FURTHER INFORMATION CONCERNING THIS MATTER, PLEASE CONTACT
THE U.S. CUSTOMS IMPORT SPECIALISTS AT YOUR PORT OF ENTRY, YOUR
NATIONAL ACCOUNT MANAGER
PORT ACCOUNT TEAM (IF APPLICABLE), OR
INTERNATIONAL TRADE SPECIALIST JOANNE D. COLONNELLO AT THE NEW
YORK STRATEGIC TRADE CENTER AT (212) 637-7740.

SINCERELY,

MARJORIE DELOACH
ACTING DIRECTOR
NEW YORK STRATEGIC TRADE CENTER
ATTACHMENT INFORMED COMPLIANCE PUBLICATION "RIBBONS AND
TRIMMINGS"