Class started with history of federal government history of taxation and the rule of Customs and Border Protection in tax collection in addition to collection of duties. We discussed various types of Excise Taxes, how they are collected, and how CBP examiners tested on the topic. After taxes, the topic shifted to CBP’s administration of Toxic Substances Control Act (TSCA). We looked at the Act itself and how CBP regulations were promulgated and administered. The class discussed CBP exam questions on various TSCA regulations and how modern TSCA regulatory landscape can affect future administration of U.S. Customs Broker License Examination. This class is a part of LawCustoms exam preparation series that focuses on helping examinees in obtaining a passing score on a customs broker license examination and becoming an individual Licensed Customs Broker in the United States. Live classes are available online and in-person. For more information please visit LAWCUSTOMS.COM/CBE/LIVE
The European Commission maintains European Customs Inventory of Chemical Substances (ECICS) database, which, contains Harmonized Tariff information on various chemical substances. European Commission, as the United States, is obliged to apply “General Rules for the interpretation of the Harmonized System and all the Section, Chapter and Subheading Notes, and shall not modify the scope of the Sections, Chapters, headings or subheadings of the Harmonized System.” See International Convention on the Harmonized System, Article 3(1)(a)(ii). Therefore, ECICS database, is highly persuasive source of information for chemical substances up to six digit level.
Office of Diversion Control regulates the export of controlled substances and precursor chemicals. All controlled substances and precursor chemicals are divided into 5 categories, called schedules. Regardless of category, permit or declaration are required upon export or import. The only time when neither permit, nor declaration are required, is when the substance is either exempt from the list or is not a part of the list. Only those persons registered with and authorized by DEA to import or export controlled substances may utilize/submit declarations and applications for permits. Controlled Substances Import-Export Form Guide Controlled Substances Act Schedule DEA-161 DEA-357 DEA-236 Import Export Schedule I X X Schedule II X X Schedule III Narcotic X X Schedule III Nonnarcotic (except for delta-9-THC which requires a permit) X X Schedule IV Narcotic X X Schedule IV Nonnarcotic X X Schedule V Narcotic X X Schedule V Nonnarcotic X X
The Internal Revenue Service (IRS) has issued its publication on excise taxes (IRS Publication 510) which, among other things, summarizes the tax the IRS imposes on the sale or use of: chemicals that deplete the ozone-layer (ozone-depleting chemicals, ODCs); and imported products containing or manufactured with ODCs (e.g. dusting sprays, television receivers, certain microwave ovens, foam sofas and mattresses, etc). The IRS explains that Form 6627 is used to calculate the environmental tax on ODCs, imported products containing or manufactured with ODCs, etc. This figure is then entered and reported on Form 720, to which Form 6627 must be attached. (In addition to providing information on environmental taxes (i.e. ODC taxes), IRS Publication 510 also provides information on communications and air transportation taxes, fuel taxes, heavy truck taxes, etc.) Taxable ODCs IRS Form 6627 states that the following ODCs are taxable : Post-1989 ODCs: CFC-11, CFC-12, CFC 113, CFC-114, CFC-115, Halon-1211, Halon-1301, and Halon-2402. Post-1990 ODCs: Carbon tetrachloride, methyl chloroform, CFC-13, CFC-111, CFC- 112, and CFC-211 through CFC-217. Tax on ODCs Generally Imposed when ODC is First Used or Sold. IRS Publication 510 states that this tax is imposed on an ODC when it is first used or sold by…
Major question that distinguishes whether these substances belong to heading 3403 or 2710: Does the product contain 70% or more by weight of petroleum oils or oils obtained from bituminous minerals?
The EU tariff website has an HTS look up feature for chemicals and metals based on CAS#. Some CBP employees use this as a source for additional guidance (to six digit level). http://ec.europa.eu/taxation_customs/dds/cgi-bin/eciquer?Periodic=0&Lang=EN