AFI efforts in 2005 and 2006 led to passage of legislation that temporarily eliminated the import duty on capers, as of January 4, 2007. A Customs employee recently discovered a typo that must have happened very late in the process that’s creating some confusion and the need for a legislative correction.
There are two provisions classifications for capers – each with a corresponding tariff suspension: those in containers holding 3.4 kgs or less and those in larger containers. The problem exists with capers in the smaller containers (HTS 2001.90.2000; tariff suspension 9902.10.26). The problem lies with the language used in Chapter 99. HTS 2001.90.2000 describes the items as: “Capers, prepared or preserved by vinegar or acetic acid, other than in immediate containers holding more than 3.4 kg.” The duty suspension language is: “Capers, prepared or preserved by vinegar, other than such goods in immediate containers each holding 3.4 kilograms or less”.
AFI already had legislation introduced to extend the duty elimination for another three years past the original Dec. 31, 2009 timeframe. That legislation has been amended to include a provision that will retroactively correct the earlier error.
It’s expected the bill, part of a huge bill containing hundreds of similar bills, will be passed within the next few months. The retroactive aspect of the revised bill isn’t expected to create any problems because it’s simply bringing things in line with the measure’s original intention. In the meantime, importers may receive statements from CBP saying they owe duties on capers imports. Once the corrected legislation is passed, importers will be able to apply for refunds for any duties paid.
