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Cyber Power Decision Keeps the Lights On Origin

The Court of International Trade has issued the much anticipated (at least by me) decision on the merits in Cyber Power Systems (USA) Inc. v. United States . It's a bit of a roller coaster ride. The plaintiff clearly hits some bumps along the way, but there is a thrilling conclusion. So, buckle up. The case is about the country of origin of five models of uninterruptible power suppliers ("UPS") and one surge protector. The UPS is essentially a glorified backup battery for computers and other devices. In the event of a power failure, the UPS kicks in to power the device and may assist in a "graceful shutdown." Modern UPS include printed circuit board assemblies that monitor the battery to ensure it is fully charged, monitor the available supply of electricity, switch to the battery when needed, provide status reports and other functions. All of that takes some firmware stored in chips on the boards. The surge protector is a simpler, but still electronic device, t...
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Scope: Aluminum Extrusions and Finished Goods Kits

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Understanding the scope of antidumping and countervailing duty orders is critically important for customs compliance professionals. It does a company no good whatsoever to find a low-cost producer of some product somewhere outside the U.S. only to later discover after importation that the merchandise is subject to an antidumping or countervailing duty. Given that antidumping and countervailing duties are often in excess of 30% and have been as high as 300%, this is a potentially serious concern. If Customs and Border Protection discovers the error and the error resulted from negligence, it can collect the unpaid duties plus penalties covering a five-year period. In some cases, that can be enough to bankrupt a small importer. Before we get into this case, let me dispel a common misunderstanding. CBP "flags" HTSUS classifications that are potentially subject to an ADD or CVD order. As a result, many brokers and importers manage AD and CVD compliance through tariff classificat...
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Mitigating 232 Penalties - I'm Back

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I realize I have been gone for a while. The first Trump Administration generated enough compliance work, litigation, and general chaos to keep me too busy and too stressed to do many things. One such thing was writing this blog. I did it mainly because I enjoy the process, and it forced me to stay on top of cases from the Court of International Trade and Court of Appeals for the Federal Circuit. Explaining those decisions in what I intend to be an approachable style helped me understand them. Over the past year, I have at times considered restarting the blog and never found the time or inspiration. Apparently, that has changed.  You may have noticed that the second Trump administration is off to a fast start in the trade space. We have new 10% tariffs on goods from China and 25% tariffs on an expanded list of steel and aluminum products. The 232 exclusion process has been shuttered. Reciprocal tariffs are being floated, as are potential tariffs on cars, pharmaceuticals, and chips....
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