According to attorneys Brian J.Murphy and Mr. Xinyu Lee in SSSPO(Stein Shostak Shostak Pollack&O’Hara LLP) that are specialized in U.S. Customs laws, the U.S. Customs started strict review of declared value of imported clothing and customs clearance agents in LDP transactions.
This year, after the elimination of quotas, many categories of China textile clothing export to U.S. has been a large increase. At the same time, the focus of U.S. Customs is also from reducing illegal transshipment to investigation of imported clothing price. In addition, U.S. Customs began to suspect LDP transactions on behalf of another import company. The regulation is customs clearance of imported goods for companies and individuals must have “ownership interest”, or without authority to apply. LDP transactions importers are companies special for customs clearance for others, rather than the middlemen. They only earn commission, but not have “ownership interest”. The U.S. Customs has right to ask customs agents provide evidence that they have right to customs clearance for goods. If they unable to provide proof the Customs will refuse the goods import in U.S. Even worse, customs clearance of goods can not be returned at the time and original importers still unable to prove that they have quality to submit customs clearance documents for returned goods. This situation led to a long-term storage of goods at customs Go warehouse. The high rent will bring economic burden for owners.
Attorneys Brian J.Murphy and Mr.Xinyu Lee pointed out if there is evidence that the LDP transaction for the import customs agents’declared value is too low, it is tariff evasion behavior, and U.S. Customs is empowered to seize imported clothing and liable to fine. Manufacturers export clothing use LDP way should be careful to avoid the situation of lost products and payment.
