License Enforcement on Certain Sugars From Mexico

Roanoke’s CBP bond underwriters have heightened concerns on certain sugar
importations from Mexico. Licensed customs brokers should beware of potential
liquidated damage exposures relating to failure to provide export licenses.

On September 4, 2014, the Department of Commerce (DOC) published a preliminary countervailing duty determination on case no. C-201-846 in the Federal Register (see admin message 4247301). The commodity is certain “raw and refined sugar from cane or beets” from Mexico. A subsequent notice listed the following HTSUS subheadings:

1701.12.1000, 1701.12.5000, 1701.13.1000, 1701.13.5000, 1701.14.1000, 1701.14.5000, 1701.91.1000, 1701.91.3000, 1701.99.1010, 1701.99.1025, 1701.99.1050, 1701.99.5010, 1701.99.5025, 1701.99.5050, and 1702.90.4000.

On December 19, 2014, the U.S. and Mexico signed an agreement whereby Mexico would manage sugar exports via export licenses. CBP has given Roanoke inconsistent guidance on license enforcement. Although CBP describes the export license as “a condition of entry,” they have also talked of possible redelivery demands/liquidated damages, suggesting some shipments might somehow be released without the requisite license.

Please contact your Roanoke Bond Service rep if you need to write an STB on Mexican sugar but do not have the export license (in paper or image form) in hand prior to release. Bear in mind a separate license is required for each transaction. Refer to CSMS 15-000561 for instructions on sending the export license to CBP’s Document Imaging System (DIS) via email.

Your cooperation will help reduce your own E&O exposure while protecting importers and the surety. While antidumping duty/countervailing duty are not currently being assessed on Mexican sugar, we would like to take this opportunity to remind everyone that all bonds used to clear commodities which are subject to ADD/CVD must be submitted to underwriters for review if outside of your granted authority.  Thank you for your assistance.

References: CSMS 15-000065, 15-000092, 15-000117, 15-000137, 15-000251, 15-000561; CVD Case No. C-201-846.

Insurance, surety and risk management solutions for supply chain and transportation intermediaries are Roanoke Trade’s focus. Contact us at 1-800-ROANOKE (800-762-6653) for more information to find out how we can serve your specific needs.