On August 20, 2021, U.S. Customs and Border Protection (“CBP”) issued Cargo Systems Messaging Service (“CSMS”) message # 49132200 addressing documentation requirements for import shipments valued over $2,500 to qualify for the duty-free “U.S. and Foreign Origin Goods Returned” preferential tariff provision under HTSUS Subheading 9801.00.10.  As a reminder, the Trade Facilitation and Trade Enforcement Act of 2015 (“TFTEA”), signed into law on February 24, 2016, modified Subheading 9801.00.10 to include U.S. goods returned at any time as well as foreign origin goods returned within three (3) years of original export.

The new CSMS guidance aligns with the current documentation requirements in 19 C.F.R. § 10.1 (last revised in 2015).  Essentially, the CSMS message reiterates that imports under HTSUS 9801.00.10 should be supported by a foreign shipper’s declaration (Section 10.1(a)(1)) and a declaration by the owner, importer, consignee, or agent having knowledge of the facts regarding the claim for free entry (Section 10.1(a)(2)). It also confirms that if the person making the declaration is a corporation then the declaration should be signed by the president, vice-president, secretary, treasurer or any employee or agent covered under a proper power of attorney, and that the declaration should be supported by a corporate certification.  The CSMS confirms that if the value of the returned goods exceeds $2,500 and the goods are not marked with the name and address of a U.S. manufacturer then Customs may require additional documentation including a U.S. manufacturer’s statement verifying U.S. origin for the goods.

Significantly, the new CSMS message provides advice to customs brokers emphasizing the need to exercise responsible supervision and control when entering goods under HTSUS Subheading 9801.00.10.  In that regard, it states that “An example of the broker exercising responsible supervision and control for Subheading 9801.00.10 claims is providing proof of the broker’s communication with the importer on what is required for such claims.”  In the event that a customs broker fails to exercise responsible supervision and control when filing HTSUS Subheading 9801.00.10 claims, then the guidance warns that CBP may “address that deficiency through the broker informed compliance process” in the Broker Management Interim Guidance II document.

Husch Blackwell will continue to monitor CBP guidance with respect to regulatory changes involving HTSUS 9801.00.10.  Should you or your company have any questions, please contact Robert Stang, Cortney Morgan, or another member of Husch Blackwell’s International Trade and Supply Chain team.

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Photo of Robert Stang Robert Stang

Bob focuses his practice on customs and international trade law. He brings 30 years of experience to a wide range of issues that affect inbound and outbound goods, including tariff classification, valuation, country of origin marking matters, free trade agreements, and special trade…

Bob focuses his practice on customs and international trade law. He brings 30 years of experience to a wide range of issues that affect inbound and outbound goods, including tariff classification, valuation, country of origin marking matters, free trade agreements, and special trade programs. He also has extensive customs compliance experience and regularly assists importers facing U.S. Customs and Border Protection (CBP) audits, penalties, seizures, redelivery notices and other agency enforcement activities. Bob works with importers and exporters proactively to achieve cost savings and structure programs that meet CBP “reasonable care” requirements. He also handles supply chain security issues, including Customs-Trade Partnership Against Terrorism (C-TPAT) enrollment, verification and annual reviews.

Photo of Cortney Morgan Cortney Morgan

An experienced attorney in the area of international trade and supply chain issues, Cortney advises foreign and domestic clients on all aspects of international trade regulation, planning and compliance, including import (customs), export controls, economic sanctions, embargoes, international trade agreements and preference programs.

Photo of Tony Busch Tony Busch

Tony advises clients on export control matters pertaining to the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR). Tony also provides the export control profile required for “critical technologies” analysis in Committee on Foreign Investment in the United States…

Tony advises clients on export control matters pertaining to the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR). Tony also provides the export control profile required for “critical technologies” analysis in Committee on Foreign Investment in the United States (CFIUS) matters. Additionally, Tony counsels clients seeking to comply with Census Bureau Foreign Trade Regulations (FTR), Bureau of Industry & Security (BIS) Anti-boycott Regulations, and Office of Foreign Assets Control (OFAC) sanctions.