NEW YORK -- The executive director of CBP's Office of Trade Relations told U.S. Fashion Industry Association conference attendees this week that CBP thought crossing the 1 billion de minimis packages threshold was big, but then volume increased about 40% in the 2024 fiscal year. Felicia Pullam said CBP cannot handle that kind of massive increase and is confident it's stopping dangerous contact lenses, vapes, toys with lead paint, counterfeit airbags, medicines and other illicit goods.
Republican members of the House Energy and Commerce's Health Subcommittee criticized the FDA's Center for Tobacco Products for giving its blessing to so few vaping delivery systems and liquids put in electronic cigarettes, saying that the vast black market of vaping products is benefiting China, and that having so few legitimate products available makes it more dangerous for smokers who are wanting to switch from cigarettes to vaping, which is less harmful to their health.
Funding for the next seven months for the trade-related divisions of the Commerce Department will be down slightly, though fees may more than make up the difference at the International Trade Administration, if projections are accurate. These are considerations as Congress eyes finalizing an appropriations bill by the end of the workweek.
Sen. Marco Rubio, R-Fla., is asking the head of the FDA why so many disposable e-cigarettes without FDA approval are entering the U.S.
The International Trade Commission is beginning a Section 337 investigation to consider a potential general exclusion order on imported disposable vaporizers, the commission said in a notice released Dec. 19. R.J. Reynolds filed the underlying complaint in October (see 2310180014), accusing 20 manufacturers and six distributors of importing and selling vaporizers using false and misleading advertising, in addition to violating regulations on the sale of tobacco products and violating federal customs laws and regulations. The ITC named 25 companies as respondents, then said it would also consider cease and desist orders against those companies.
The chairman and ranking member of the House Select Committee on China, joined by a bipartisan group of 10 colleagues, wrote to the FDA commissioner and Brian Boynton at DOJ's consumer protection branch about their concerns about "the extreme proliferation of illicit vaping products from the People’s Republic of China (PRC). Once imported illegally from the PRC, these unregulated products can be easily bought online and in brick-and-mortar stores across the United States. We ask you to work with the Customs and Border Protection (CBP) agency to address this urgent problem with all due speed."
Importer R.J. Reynolds Tobacco Co. voluntarily dismissed its customs classification suit at the Court of International Trade Dec. 7. The company contested CBP's denial of its protest claiming its mixtures for use in personal electronic vaporizing devices of Harmonized Tariff Schedule subheading 3824.99.9280, dutiable at 5%, should be classified under subheading 8543.90.8850, free of duty. Counsel for R.J. Reynolds didn't respond to our request for comment (R.J. Reynolds Tobacco Co. v. U.S., CIT # 21-00621).
Comments are due to the International Trade Commission by Oct. 27 in a potential Section 337 investigation and general exclusion order on imported disposable vaporizers, the agency said in a Federal Register notice.
The following are short summaries of recent CBP NY rulings issued by the agency's National Commodity Specialist Division in New York:
The International Trade Commission began a second formal Section 337 investigation on imported electronic nicotine delivery systems, also known as vaporizer devices (ITC Inv. No. 337-TA-1372), it said in a notice.