Changes To Post-Textile Production
Verification Team Visit Detention

Policy/ Potential for Penalties for Importer Self-Assessment Participants Importing Textiles and Textile Products

Issue 050, December 14, 2007

To reinforce U.S. Customs and Border Protection’s (CBP) risk management program, increase the efficiency and effectiveness of resource use, and enhance the promotion of legitimate trade, importers that have been approved under the Importer Self-Assessment (ISA) program will not have goods subject to detention, under specific circumstances, resulting from Textile Production Verification Team (TPVT) visits.

Subsequent to CBP’s TPVT visits to foreign factory locations, certain conditions warranted that goods be detained during the request for and review of production records. Typically, the exclusion rate for those importers who are ISA participants has been minimal. Therefore, CBP has modified the detention practice for shipments from ISA participating importers.

Usual procedures for shipments that are detained as a result of TPVT findings require the presentation of production records to ascertain the country of origin and to determine admissibility. In certain cases, shipments from ISA participating companies will not be detained. In those circumstances, CBP will conditionally release the merchandise and immediately issue a Request for Information (CBP Form 28) to obtain production records to determine the country of origin. In addition, the Import Specialist will contact the National or Port Account Manager of the ISA company, as applicable, who will work with the account to ensure maximum compliance with minimum disruption to the company’s trade activities.

This exception to the detention policy does not apply to ISA participants using manufacturers the TPVT has identified that 1) have falsely declared a country of origin; 2) were closed at the time of the visit and were verified closed at the supposed time of production of the goods; or 3) never existed.

It must be noted to ISA participants that, under this revised policy, such shipments will be conditionally released pending submission of production records. If such records are deemed inadequate, a redelivery notice will be issued and liquidated damages will be claimed if the goods cannot be redelivered. (This applies in any case where a shipment that was conditionally released is later determined to be inadmissible because CBP believes the production records do not substantiate origin and the goods were otherwise subject to quota). However, for ISA participants, in addition to liquidated damages, a penalty case under 19 USC 1592 will be initiated. Even if the importer has maintained custody of the goods and is able to redeliver them, a penalty will be initiated. In addition, the importer can be removed from the ISA program in the event of a second violation.

For additional information on this topic, visit the CBP website at-
http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/tbts/tbt2007/tbt_07_021.ctt/tbt_07_021.doc