April 2019 — Question 11

Mr. Smith contacts your brokerage from the Customs area at the local international airport. He has just flown in from the UK and is attempting to bring in new Scottish 100% wool sweaters to sell at his new store. CBP has advised him that although an appropriate country of origin label is found affixed to the sweaters, the fiber content label is not acceptable. Which of the following actions should the local CBP brokerage take?

• AThe sweaters should be released to Mr. Smith if he agrees to remove the content label because no labeling is needed due to the exemption of wool wearing apparel.
• BThe sweaters should be released to Mr. Smith because they fall under the Wool Products Labeling Act of 1939.
• CThe sweaters must be returned to the UK.
• DThe sweaters should be released to Mr. Smith, but he will have to label the sweaters at his own expense under Customs supervision.✓ CBP's answer
• EThe sweaters should be released to Mr. Smith, but a marking duty equal to 10% of the price in the domestic retail market duty should be assessed against Mr. Smith. Category III – Intellectual Property Rights