Background

U.S. Customs and Border Protection has recently stepped up its verification of origin and tariff classification claims with respect to cryptocurrency miners being imported into the U.S. Such items were primarily produced in China until recently, but due to a confluence of domestic pressures much of that production has now shifted out of China. 

Importers are required by law to exercise reasonable care and due diligence to ensure the full and complete accuracy of all entry declarations. Failure to declare the correct classification, value, and origin of products shipped to the U.S. can result in seizure of the goods, significant civil monetary penalties, and, in some circumstances, referral for criminal prosecution.

It is therefore crucial to ascertain the correct tariff classification and origin of cryptocurrency miners, which may currently be subject to dispute.

For CBP, the origin issue is two-fold: (1) determining the origin of the finished miner where production is split between China and elsewhere, and (2) distinguishing legitimate claims that the miners are not of Chinese origin from those that are not. These determinations are of critical importance to importers as most Chinese-origin miners are currently subject to additional 25 percent duties under Section 301 while non-Chinese origin miners are not. 

ST&R draws on the expertise of its professionals in the U.S., China, and Hong Kong to represent importers facing verification and classification requests from CBP. For more information, please contact attorney Chuck Crowley at (212) 549-0134 or via email or attorney Christina Leonard at (212) 549-0143 or via email.

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