 Thinking of Taking the Customs Broker Exam? Start Studying Now!
It is indeed a glorious day at GRVR Attorneys when our students receive their letters from US Customs and Border Protection telling them whether they passed the Customs Broker Exam. We are happy, as our students, but we are not surprised. There are few surprises in our Customs Broker Exam Preparation Course. Eighty-nine percent (yes, that’s right, 89%) of our students who complete our course pass the exam. Compare our passing rate to the national average (which includes people enrolled in other courses), a number that often is as low as 5%, and you will see why our course is popular. We take the guesswork out of preparing for the Customs Broker Exam. Our course supplements online lessons, available 24/7, with homework that we tailor to shore up your weaknesses. We hold a week-long boot camp that you can attend if you feel the need. We are also the only review course that guarantees that you will pass.
You must study, of course. The earlier you start studying for the Customs Broker Exam, the easier it will be on you and the more likely you will pass. The next Customs Broker exam is in April 2007. Start studying now. Avoid cramming.
To purchase the course, click here. If you would like a demo, click here.
 Immigration Update: H-1B Visas for Professional Workers
The H-1B visa cap for fiscal year 2007 was reached on May 26, 2006. There are no more H-1B visas available for the next year until October 1, 2007. The earliest an employer/sponsor can file an H-1B visa petition is April 1, 2007. The unavailability of H-1B visas could cause a significant gap in employment authorization for recently graduated students working on the Optional Practical Training Program. Companies seeking access to the best and brightest global talent have also been confronted with an unprecedented sixteen-month restriction on access to new H-1B temporary professional employees.
We are also experiencing a similar crisis with the permanent residency processing for professional hires (i.e. green cards). Permanent residency visas are distributed equally among all countries with a quota for each country. We now have backlogs for professionals coming from the high-demand countries. These backlogs cause the professionals to wait five to seven years to complete the permanent residency process. This basically puts their lives on hold preventing them from accepting promotions, transfers to other business units or moving to another work site.
There may be an opportunity for the “lame-duck” Congress to consider legislation to remedy this problem with the H-1B and Employment-Based petitions should Congress decide to reconvene the week of November 13, 2006. You can take action now by contacting your Congressional Representative to show your support for increasing the H-1B and Employment-Based numbers. The American Immigration Lawyers Association is coordinating a “Sign-On” Letter to be sent to Congress. Should you be interested in joining the letter campaign, please send an email to rhassan@aila.org.
Have questions about immigration law? Talk to Diana Morales, Board Certified in Immigration & Nationality Law, named a "Texas Super Lawyer" by Texas Monthly Magazine, and served as in-house immigration counsel for Texas Instruments Incorporated. For a consultation, call 972-747-5016 or email info@exportmportlaw.com.
 Court Roundup
GRVR Attorneys review of recent court opinions regarding international trade, customs, export, and immigration:
Rockwell Automation Loses Round In Court of International Trade
When CBP issues a pre-entry classification ruling to an importer, the importer must use that classification, and no other, on its entry documents. That is the lesson from a case involving Rockwell Automation. CBP sued Rockwell Automation in the Court of International Trade. Rockwell Automation, a manufacturer, importer and exporter of electrical equipment and supplies, reported on its entry documents tariff classifications that were different from those in CBP’s pre-entry classification ruling. The classifications were, in fact, at a lower tariff rate. The Court of International Trade agreed with CBP that Rockwell was required to “set forth such classification[s] in the documents or information filed in connection with any subsequent entry of that merchandise”.
Adding Insult To Injury (actually Injury To Injury)
The Rockwell Automation case (above) forces importers to use the classifications that CBP provides in rulings. But is CBP also bound by its own rulings? Maybe yes, but the only legal way to force the issue is through the protest process, not by initially suing the government. In International Customs Products, Inc. v. USA, the U.S. Court of Appeals, D.C. Circuit scolded the Court of International Trade for having entertained the lawsuit of an importer who had received a Notice of Action from CBP. The Notice of Action informed the importer that 86 of its unliquidated entries would be reclassified under a classfication that would have substantially increased the tariff. The problem was that the importer had years earlier requested and received an advanced letter ruling from CBP certifying the classification at the lower rate. At some point, CBP changed its mind as to the appropriate classification, but did not provide notice and comment. The Court of Appeals, unmoved by the importer’s threats of bankruptcy, ordered that the lawsuit be dismissed, and awarded the costs of litigation (attorneys fees) to the Government. Lesson: importers must follow the protest procedure to fight CBP.
Broker Gets Smacked Down For Standing Up For His Clients
In Venable vs. Rimmer, Don Venable, a customs broker, sued the port directors of Dallas/Fort Worth and Houston for economic harm and emotional distress. Mr. Venable was pro se, that is, he represented himself without an attorney. Mr. Venable claimed that he has had to spend an inordinate amount of time challenging penalties on behalf of his clients and mending his relationships with them. In essence, Mr. Venable claimed that CBP’s methods are arbitrary and sloppy (our words), and that the “'method of assessing liquidated damage penalties against his clients have unconstitutionally deprived him of “liberty and property” without due process of law and constitute an unconstitutional “taking” of property without just compensation.” The federal district court dismissed the lawsuit because the penalties were against his clients, not against Mr. Venable. The court explained, “Venable is not exposed to personal liability for any liquidated damages penalties that would be assessed against his clients and, therefore, does not have a sufficient personal stake in the outcome of this controversy to have standing to bring this suit.”
So, CBP, You Want Importers and Not Their Brokers To Sue Youć, ....
From the cases above, CBP appears immune to lawsuit even when it has been too zealous or careless, right? Maybe not. Importers and exporters may feel vindicated after winning a big case against the US Government, but sometimes they feel so aggrieved that they turn the tables and sue the US Government for having gone after them. Tri-State Hosp. Supply Corp. v. U.S is such a case. Tri-State Supply Corporation (Tri-State) sells hospital supplies in the United States. The Customs Service (now called CBP) penalized and alleged that Tri-State declared the incorrect price on imported goods. The US Department of Justice sued Tri-State to collect the penalties, but Tri-State won. Normally, the matter ends there. But Tri-State sued the US Government alleging abuse of process and malicious prosecution. In its latest opinion, United States District Court for the District of Columbia resolved several issues relating to discovery. One recurring theme is the importance of the attorney-client privilege in litigation. Strangely, in this case it is the government seeking to prevent disclosure of its communications to Tri-Star. One lesson is that the attorney-client privilege is vital to importers, exporters, brokers, the US Government, and everyone else.
Before You Phone the BIS With Your Export Questions
Taken from Export Compliance Made Simple, one of GRVR’s online courses:
Often the most direct and quickest way to have the Bureau of Industry and Security (BIS) respond to your questions is through the telephone. There are drawbacks, however. The BIS does not list on their website the contact information of all the various counselors and officials. If you are calling to the BIS's general counselor desk, it can be a complete crap shoot. The counselor may have only superficial knowledge about your issue. Indeed, the information and advice given might be contradicted by the information and advice that another BIS officer may have offered. When you hang up, you may be more confused than ever and with no proof of what the BIS said.
The information that you are given over the phone may be completely incorrect. It is understandable why this can happen. The EAR is complex and only a few people inside or outside the BIS have a good command. The person at the BIS may be mistaken, or poorly trained, or may have misunderstood your question, or you may have worded your question poorly. The problem is that if you take away incorrect information, because there is no electronic record of the conversation (which is why taking good notes is important), you cannot later claim you relied on that information if it is later discovered that you violated the EAR.
In addition, some BIS officials insist on knowing your identity and all names of all the parties involved.
You may wish to have outside legal counsel call on your behalf. Competent legal counsel will shield your identity, talk only to key people, and produce (if only on his or her side) a record of what was said and by whom.
Export Compliance Made Simple and many other trade compliance lessons (including customs broker management, the Foreign Corrupt Practices Act, and the Deemed Export Rule) are offered through our website and are available 24/7. To see all the courses or to request a demo, click here.
 Going Internet Shopping? Beware US Customs Laws
Just in tme for the holiday seaasons, the following sage advice comes directly from US CBP:
The Internet has made it easy to find and purchase items from almost anywhere in the world. However, many people are discovering that getting a foreign-bought item successfully delivered to the United States is much more complicated. When goods move from any foreign country to the United States, they are being IMPORTED. There are specific rules and regulations that govern the act of importing - and they can be extremely complex and confusing - and costly.
That artisan cheese from Italy may be a snap to find and buy on the Internet, but U.S. Customs and Border Protection could seize your purchase because certain regulations prohibit the importation of dairy products from particular countries without a permit. Your great auction purchase of gorgeous linen products? Depending upon the country of origin, quota restrictions could hold them up in CBP for a long time. And storage charges in such cases can be expensive.
In other words, "Buyer, Beware." When you buy goods from foreign sources, you become the importer. And it is the importer - in this case, YOU - who is responsible for assuring that the goods comply with a variety of both state and federal government import regulations. Importing goods that are unsafe, that fail to meet health code requirements, or that violate quota restrictions could end up costing you quite a bit of money in fines and penalties. At the very least, such goods would be detained, and possibly destroyed, by CBP.
Knowing what is admissible is just part of the story. The other part is knowing how to import. Depending upon what you are importing and its value, the procedures can be very complicated.
It does not matter whether you bought the item from an established business or from an individual selling items in an on-line auction. If merchandise, used or new, is imported into the United States, it must clear CBP and may be subject to the payment of duty as well as to whatever rules and regulations govern the importation of that particular product into the United States.
 Compliance Calendar
Power Lunch - Free
Thursday, November 9, 2006, 12 noon - 1 pm
Irving, Texas
The U.S. Court of International Trade recently upheld $90,000 in CBP penalties against UPS Customshouse Brokerage, Inc. for failing to exercise responsible supervision and control over the classification of one item.
Registration - There is no charge for the seminar. A complimentary box lunch will be provided. Seating is limited. Only individuals receiving our confirmation email will be allowed to participate. To register, please provide your name, title, company, email, and address to us at info@exportimportlaw.com or you may call 972-747-5016.
November 14, 2006, Tuesday
10:30 am - 11:30 am Central
Registration: $99 per access line. Click here to register.
Laredo Licensed US Customs Brokers Association, Inc.and GRVR, Attorneys
November 28, 2006, Tuesday
8:30 am - 2:30 pm
Laredo Community College
De la Garza Building, Room 101
West End Washington Street
Laredo, Texas 78040 - 4395
Topics:
US Customs/Import Laws
US Export Laws
US Immigration Laws
Mexican Customs, Export, and Tax Laws
This one-day seminar is free to members of the Laredo Licensed US Customs Brokers Association, Inc. (LLUSCBA). Only LLUSCBA members and persons receiving a confirmation email may attend. To become a member of LLUSCBA , complete the application form and pay the membership fee at www.lluscba.org/lluscba. If you have questions about LLUSCBA, please contact Ruth at 956.722.9895.
Questions and requests to attend: 972-747-5016 or info@exportimportlaw.com.
Interested in sponsoring this event? Contact Ruth Rodriguez at 214.720.3890 or ruthr@exportimportlaw.com.
December 1, 2006 (Friday)
10:30 am - 11:30 am Central
Incoterms are designed to reduce the uncertainties and clarify the risks between buyer and seller when negotiating an international sales contract. But Incoterms can be confusing and buyers and sellers commonly misinterpret what Incoterms can and cannot do. This one-hour webinar will provide a comprehensive review of Incoterms, explain the roles between buyer and seller, and provide real life examples of how Incoterms are successfully used.
Registration: $99 per access line. Click here to register.
Gonzalez Rolon Valdespino & Rodriguez, LLC Attorneys
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 Main Physical Address:
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Mailing Address:
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- Dallas, TX 75313
Phone: 972-747-5016
Email: info@exportimportlaw.com
Web: www.exportimportlaw.com
Copyright Notice
We wrote this and it belongs to us. We do not mind if you pass it along to others, as long as we get full credit and attribution. But, please, ask our permission first, and do not steal or mangle our words or ideas. ©GRVR Attorneys (2006).
Disclaimer
You will not find any legal advice anywhere in this newsletter, on our website, or in any course or public lesson we offer. You should not rely on this newsletter to decide on a legal course of action. If you would like legal advice, you need to ask your attorney. GRVR Attorneys provide legal advice only to existing clients in a confidential and private setting, not in public (i.e., not in a newsletter). Subscribing to our newsletter does not make you into one of our clients. If you are looking to hire an international trade attorney, we would love to hear from you. The GRVR Attorney responsible for the contents of this newsletter is Oscar Gonzalez. He can be reached at 214.720.7720 or info@exportimportlaw.com.
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