What Is a "Sale?" (US Customs' View of It, That Is...)

Here in NYC we are wrapping up the season of winter sales (which, as an aside, have been pretty fun to shop), but this has nothing to do with what a “sale” is when it comes to importation as this concept does not relate to discounted merchandise.

A “sale” in Federal Court language is the transfer (or “passage”) of title from one party to another for “consideration.”

In everyday language, it means where I obtain something belonging to someone else in exchange for something else.  For example, trading money (i.e., purchasing) for a cashmere sweater from Bloomingdale’s, which is likely to be discounted now given the winter sales season but alas, I digress…

Having a “sale” is relevant for valuation purposes of an imported product.  This is because duties are collected on the value of merchandise which is typically identified in a commercial invoice.  Where a part of the product is supplied by the importer and the value for this is not accounted for, it can lead to an incorrect declaration and hence, an inaccurate calculation on the collection of customs duties which must be paid to US Customs when goods are entered into the US.

A sale must therefore be identifiable.

While US Customs uses no single factor as evidence, acceptable proofs of such exchange include payment by check, bank transfer, or such other commercially acceptable means of payment.  The payment must also be made for the imported merchandise at issue.  Therefore, a general transfer of money from one corporate entity to another – which cannot be linked to a specific import transaction – would not likely demonstrate the passage of title.

Lastly, when deciding whether a sale happened or not, US Customs will look at whether the circumstances of the transaction indicate that the parties are functioning as buyer and seller.  While this is normally not difficult to identify when unrelated parties are doing business (even at the most basic level like what you would find on www.craigslist.org), when the parties are related such a clearly identifiable transaction isn’t always clear, which could lead to inaccurate value declarations as described above.

Questions/comments?  Post below or email me at clark.deanna@gmail.com

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ciao ciao!

Spring/Summer 2014 Fashion Color Trends

While I love to be “behind the scenes” of fashion, I also love being in the forefront, and being briefed on Spring/Summer 2014 color trends today put me front and center of what’s coming next!

Thanks to a trend specialist from Stylesight, I was presented with the four (4) mega trends entitled
1)      Rational
2)      Creed
3)      Eden, and
4)      Real

 *Please keep in mind that the trend descriptions below incorporate such descriptions as provided by Stylesight and are not my attempt to claim any authority as a color trend expert – I’m just sharing the information as I know some of you readers want to know about this!

The “Rational” trend (which is actually written differently, however so as to not confuse anyone, I’ve typed it “normally” here) is about colors reflecting mineral elements and feminine minimalism that is soft - not aggressive. 

It’s about symmetrical proportion, “curvilinear” forms and creating textures, whether by using folding and pleating techniques to create light structures, or beading and embroidery.

Triangular silhouettes, repetitive geometric motifs and liquid gold and mercury colored metallics woven into fabrics are also a part of the Rational trend.

Lastly, grids and graph paper are translating to apparel within this trend.

The “Real” trend is about a look and feel of the past, altering our notion of time using filters to create an earthy palette.  Taking cues from the 1970s, head-to-toe denim (i.e., tops and pants) and even Hawaiian shirts are making a come back because it’s a return to authenticity - yes, I'm serious!

Colors in yellow, brown and rust make up this trend, as does wood and the knots and grains therein which will inspire prints in fabric.  Tortoise shell printed on material will have a comeback, with eyelet fabrics and products from recycled materials also being a trend for 2014.

The “Creed” trend looks at space and sea and thus, colors that come from the ocean and sky are what this trend is about.  These include indigo, sky, water blue, teal highlighted by bright yellow and coral colors, as well as white, whether it’s got a powdery, chalky or cracking look.  The image of a blue sky with clouds also inspires tie-dye techniques.

The use of mystical symbols, ultra sheer gauze and fabrics with beads give apparel textures.  Multiple layers of thin fabrics (again texture) as well as jersey fabrics which allow for tight body hugging designs round out this trend.

Lastly, the trend “Eden” is about embracing expression and is inspired by Central and South America.  Red, orange and fuchsia blending with acid yellow and greens along with clashing embroidery colors mark this trend. 

Graffiti art, tribal motifs, jacquards made of “ethnic references” – not sure what that means - patches, pins and colored warp to create an “eye game” are also prevalent in this trend.

In addition, woven checkers and plaids which are multi-colored, ruffles used in a grand scale and animal prints worn “to the max” make up this trend.

I wish I had images for you but since they are proprietary to Stylesight, it’s best I simply refer you to their website where you can check out their “Runway Roadmap” from Spring/Summer 2014 at www.stylesight.com.

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New Year, New Diet, and New Customs Rule on $2500 “Informal Entry” Limit

It’s not uncommon to find people engage in *new* things, such as a new workout routine, new diet, or maybe even a new boyfriend/girlfriend (hey, why not?) at the start of a new year.

Like people, federal agencies also start things at the new year as US Customs is doing with it’s new dollar (USD) limit for which merchandise being imported into the US may reach in order to qualify for an “informal entry.” 

For more about entry, check out this article here.

The informal entry limit is going from $2,000 to $2,500 and when an importation qualifies as an ‘‘informal entry,” it eliminates the need for a surety bond, expedites the customs clearance process, and reduces another required charge, known as the Merchandise Processing Fee (MPF) to $2 (assuming the entry is filed electronically).

New Rule Effective 07-Jan-2013

Reasons for this increase are to mitigate the effects of inflation between the United States and Canada and to harmonize the value thresholds for expedited customs clearance to $2,500 from the current levels of $2,000 for the United States and $1,600 for Canada. 

For any merchandise valued over $2,500, formal entry is required and importers must provide a surety bond (more info. on this can be found here), complete Customs form 7501 (instructions here), and pay a minimum of $25 in MPF. 

 Unless exempt under a free trade agreement, and in addition to any duty or tax owed, merchandise requiring a formal entry is subject to a 0.3464 percent ad valorem MPF, which may be no greater than $485 and no less than $25.  Formal entry also requires detailed information regarding the import transaction as well as commercial documents pertaining to the transaction.

Of course, based on his/her discretion, a port director, may always require an importer to file a formal entry.

For more information, you can read the entire final rule on the informal entry limit in the Federal Register (73 FR 72715) here.

Questions/comments?  Post below or email me at clark.deanna@gmail.com

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HAPPY NEW YEAR!