Trade and Industry Department Commercial Information Circular No.668/2009

Commercial Information Circulars

24-hour hotline : 23 922 922

Ref : EIC 111/3 , EIC 111/3/13

31 December 2009

Dear Sirs,

Commercial Information Circular No. 668/2009

US : CBP's Ruling Related to the Dutiability of Certain Buying Commission Payments

The US Customs and Border Protection (CBP) published in the Customs Bulletin and Decisions (Vol. 43, No. 50) of 10 December 2009 a notice about revocation of a ruling (HQ H006588) dated 17 December 2007 relating to the dutiability of certain buying commission payments. Since its decision to revoke is based on the specific facts of the particular matter, CBP is not revoking or modifying any other rulings. Its action is effective for merchandise entered or withdrawn from warehouse for consumption on or after 8 February 2010.

DETAILS

The ruling was made by the CBP in response to a request made by David's Bridal, Inc. (DBI). CBP originally held that DBI had not met its burden of establishing that the payments made to Fillberg Limited (Fillberg), a purported buying agent in Hong Kong, constituted bona fide buying commissions inasmuch as there was insufficient documentary evidence to establish the existence of a bona fide buying agency relationship. Consequently, the payments made to Fillberg were included in transaction value and were dutiable.

The new Headquarter ruling to revoke ruling HQ H006588 can be viewed at:
http://www.cbp.gov/linkhandler/cgov/trade/legal/bulletins_decisions/bulletins_2009/
vol43_12102009_no50/43genno50.ctt/43genno50.pdf (pages 165-174 are relevant).

ENQUIRIES

For enquiries concerning the content of this circular, please contact the undersigned at 2398 5682.

Yours faithfully,

(Miss Bonny CHAO)
for Director-General of Trade and Industry

Electronic services for Production Notification, Certificate of Origin, Textiles Notifications, and Cargo Manifests enable traders to lodge/make the relevant applications directly through their office computer faster and easier. Tradelink Electronic Commerce Limited currently runs services for the above documents,
and Global e-Trading Services Limited is providing electronic services for Cargo Manifests. Please call the service providers for enquiries on their services:

Global e-Trading Services Limited (Tel. : 8109 1820)
Tradelink Electronic Commerce Limited (Tel. : 2599 1700)

Note :

While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.