CBP Outlines Conditions/Procedures for Donating Embargoed China Safeguard Merchandise To Hurricane Katrina Victims

On September 15, 2005, the Committee for the Implementation of Textile Agreements (CITA) issued a press release announcing that it had authorized CBP to allow U.S. apparel importers to release any goods embargoed under China textile safeguard actions for the purpose of providing aid to the victims of Hurricane Katrina. (See ITT's Online Archives or 09/19/05 news, 05091920, for BP summary of CBP's press release.)

Conditions for donating to Katrina relief organizations.According to CBP, such textile and apparel goods may be donated to appropriate Katrina relief organizations under the following conditions:

a. the goods cannot be sold or released into the commerce of the U.S. or outside of the U.S., but must be distributed to Katrina victims;

b. a relief organization, such as the American Red Cross, cannot turn the goods into cash by any means;

c. CBP has the right to deny the release of goods presented for donations;

d. the importer/donor will be responsible for all storage and transportation costs that are incurred;

e. in order for goods to be presented for donation, the goods must be going to a bona fide donation site and a need has been identified for the particular goods being donated by the importer/donor;

f. the importer/donor must provide written acknowledgement from the charity that the charity is willing to accept the goods and the charity's Internal Revenue Service (IRS) number(s);

g. to determine if a charitable organization is in fact an established and eligible charity, CBP personnel may verify this information on the IRS list web site (www.irs.gov/charities);

h. CBP will reassess this effort every two weeks to determine the need for additional donations and the continuation of these procedures; and

i. both 19 U.S.C. 1318(b)(2) and 19 U.S.C. 1322(b) allow for the importation of merchandise for humanitarian purposes without entry and without payment of duty, taxes, or fees.

Procedures for donating goods in bonded warehouses or FTZs within the U.S. CBP states that the following procedures have been established for importers that wish to donate goods that are in bonded warehouses or foreign trade zones (FTZs) within the U.S. Importers may donate all or part of a shipment of embargoed goods.

The importer must fax the following information to Ms. Janet Labuda, Director, Textile Enforcement and Operations Division (TEOD) at (202) 344-2371:

• a declaration providing the exact location of the goods; description of the goods, including category number; quantity to be donated; the declared value and the importer's contact information; the name of the bone fide charitable organization with a contact name and telephone number; and the transportation company with a contact name and telephone number,
• the commercial invoice,
• the written acknowledgement from the charitable organization, and
• a statement that the importer will pay all storage costs and transportation costs incurred in order to deliver the goods to the charitable organization.

The Director, TEOD, will confirm that the declaration has been accepted by returning the declaration to the importer with CBP's approval.

The importer must update or close out the warehouse entry or the CF214 for FTZs with the port by providing a copy of the signed declaration.

The Director, TEOD, will coordinate with the Director, Seizures and Penalties Division (SPD) for the pick up and distribution of the donated items.

SPD will contact the contract carrier for pick up and transportation, under CBP seal, for distribution to bona fide charitable or government relief organizations.

SPD will contact the local Fines, Penalties and Forfeitures (FP&F) Office to have a Seized Property Specialist (SPS) witness the loading of the tractor-trailer. The SPS will seal each trailer prior to the trucks departing the bonded warehouse or FTZ. A manifest should be created for each truck involved and the SPS should provide SPD the information requested in the attachment. Only licensed bonded carriers are to be used for transport of the donated items.

Upon arrival at the donation location the contract carrier will notify the SPD and SPD in turn will notify the FP&F port office to have a SPS verify the seal is intact and break the seal prior to release from the carrier custody to the charitable organization.

Ports will not vary from the above procedures. If it is felt that special circumstances exist that it would be necessary to vary from these procedures, the ports should contact one of the names listed in the notice before proceeding further.

CBP notice (TBT-05-024/QBT-05-055, dated 09/29/05, available at

http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/qbts/qbt2005/05_055.ctt/05_055.doc.