"Antiques" from Iraq: Trade Stats Raise Questions

Iraq has been identified as a source of conflict antiquities, which is why the International Council of Museums refreshed its Red List of endangered Iraqi cultural property in June 2014 and why the United Nations Security Council last February unanimously adopted a resolution targeting heritage trafficking in the region as a source of terror funding.

With this in mind, it is surprising that “antiques" ranked as the #4 declared import to the United States from Iraq by value in 2014, the latest date for which complete data is available from the U.S. International Trade Commission (USITC). In fact, there were more antiques imported from Iraq than goods like lambskin leather, dates and figs, fruit juices, and even spices.

Totaling $3,378,296 in general customs value, these antique imports “of an age exceeding 100 years” were outpaced in value only by America’s largest and most predictable import from Iraq, namely crude oil (#1) and non-crude oil (#2), as well as reimports of various articles originally exported from the U.S. (#3).

Importers of record are legally responsible for declaring goods on customs entry forms by supplying information such as proper value, correct country of origin, accurate Harmonized Tariff Schedule (HTS) classification, and complete product description. Of course there are many examples of traffickers who try to skirt their obligations in an effort to smuggle cultural heritage objects into the U.S. illegally, which is why antiques imports from Iraq should be scrutinized.

It is not known how many legal or illegal antiquities importers brought into the U.S. from Iraq last year. What is known is that declared imports of  "antiques" classified under HTS 9706 originated from a war zone where cultural heritage is in jeopardy. What commodities were exactly shipped to American ports of entry and why, in fact, did the bulk of declared HTS 9706 commodities originating from Iraq--$3,330,619 worth--get shipped to New York City remains a mystery, at least for now.

Were these imports deliberately misclassified to plausibly conceal illegally dug-up ancient tablets, foundation cones, sculptures, and more? Possibly. Or did a legal trade in vintage trays and antique coffee pots actually spike for some reason because of the conflict? Customs officials should find out for certain, particularly given the identified threat posed to archaeological site looting and museum and storehouse theft as a result of the unrest in Iraq.

There is another interesting observation. Among the 37 kinds of commodities imported into the U.S. from Iraq in 2014, antiques, together with with three other types of goods categorized under the broad import category of HTS 97 Works of Art, Collectors’ Pieces and Antiques, exceeded all other imports by value of primary Iraqi origin, except oil. The declared value of the HTS 97 commodities together totaled $3,554,595. So customs officials should also find out what goods importers actually classified as collections and collectors’ pieces of historical, archaeological, or numismatic interest under HTS 9705; as original sculptures and statuary under HTS 9703; and as paintings under HTS 9701.

One armed group operating in both Iraq and Syria is the terror organization ISIS, which reportedly has exploited cultural property as an important revenue stream. Suspiciously, the #1 U.S. category of imports by value from Syria in 2014 was “Antiques.” And now USITC trade data show that American imports from Iraq unveil further red flags.

Until the fighting subsides, and until customs officials learn more about the unanswered questions swirling around American imports of Iraqi cultural heritage goods, collectors would be well-advised not to buy heritage material from the region, or at least exercise rigorous due diligence when buying, in order to steer clear of acquiring potential ISIS loot.

Photo credit: Sam LeVan

Copyright notice: Although the data presented here is sourced from publicly available information, it is an original work of authorship that has been carefully selected, coordinated, arranged, and analyzed so that it is an original work of authorship subject to copyright protection as a compilation and/or a derivative work by CHL. The publication, retransmission, or broadcast of this compiled data is strictly prohibited without CHL's express consent.

Text copyrighted 2016 by Cultural Heritage Lawyer, a blog commenting on matters of cultural property law, art law, cultural heritage policy, antiquities trafficking, and museum risk management. Blog url: culturalheritagelawyer.blogspot.com. Any unauthorized reproduction or retransmission of any blog post without the express written consent of CHL is prohibited. CHL is a service of Red Arch Cultural Heritage Law & Policy Research, Inc.

"Antiques" from Syria: U.S. Cultural Property Import Stats Raise Suspicion

Imports of Syrian goods into the United States have fallen dramatically since war broke out in the Mideast nation in 2011 and since the White House expanded the Syria Sanctions Program. Yet, despite the decline in U.S. imports from Syria, there are now disquieting trade statistics from 2014--the most recent complete data available--that should stir the attention of customs officials, police, and policymakers concerned about looted archaeology, stolen mosaics, and illicitly excavated coins trafficked illegally into the U.S.

Overall, America imported about $429.3 million worth of declared goods from Syria in 2010. Last year, that total collapsed to roughly $12.4 million, a stark decline over the five year period.

Moving in the opposite direction for a period of time were U.S. imports of antiques over 100 years old from Syria, which spiked to $11 million in 2013, a spectacular 133% increase in declared customs value over the previous year. While this figure noticeably fell last year to roughly $4.9 million, the value is similar to the $4.7 million worth of imported antiques recorded in 2012.

The 2014 statistic on antiques is striking because the five year trend line for imports of Syrian antiques failed to fade to black like other U.S. imports of Syrian goods. Instead, as the graphic above demonstrates, antiques constituted a decidedly large slice of the American import pie last year. They accounted for a whopping 40% of the value of all imports of every kind from Syria. In fact, goods classified by importers as Antiques of an Age Exceeding 100 Years under Harmonized Tariff Schedule (HTS) 9706 were the #1 import into the U.S. from Syria. There simply was no other import category that ranked higher in value than antiques, including the #2 import of Syrian anise and cumin seeds and juniper berries classified under HTS 0909.

Notably, every Syrian import classified as an HTS 9706 antique was shipped to the customs district of New York City, the location of one of the largest and most important art and antiquities markets in the world.

What we do not know is what kind of objects these "antiques" were. They may have been at-risk archaeological objects like cuneiform tablets or ancient pottery, deliberately mislabeled by smugglers as being "of an age exceeding 100 years." Customs officials need to find out.

Enforcement officials also need to investigate the #3 American import from Syria in 2014, commodities classified by a code smugglers might use to disguise imports of ancient mosaics. Mosaics, of course, are architectural features made of stone, glass, and/or ceramic. They are spotlighted in the International Council of Museum's Emergency Red List of Syrian cultural property, which is why the import of $1.4 million worth of HTS 6802 goods--11% of the total value of all Syrian imports to the U.S.--is concerning. HTS 6802 is intended to cover worked monumental or building stone; mosaic cubes of natural stone; and artificially colored granules, chippings and powder of natural stone. Yet the code may have been used by traffickers to unlawfully classify 5th century mosaics.

Together,  the declared imports of HTS 9706 and HTS 6802 goods accounted for 51% of the total imports of all Syrian commodities by value in 2014, a striking statistic that simply cannot be overlooked by cultural property watchers focused on spotting trafficked heritage objects that may have illegally piggybacked on legitimate international trade.

Classified by HTS 9705 and amounting to approximately $303,000, collections of historical and archaeological material of Syrian origin was the #5 import by value in 2014. This number was almost a triple increase from the $118,000 imported the year before.

Looking deeper into this trade category, we find that the bulk of HTS 9705 imports from Syria to the United States consisted of Numismatic (Collectors') Coins, Except Gold, classified by HTS 9705.00.0060, having a declared import value of approximately $265,000, which was a quarter of a million dollar jump from the exiguous value of $12,064 declared in 2013. Just like imports of Syrian antiques, every Syrian collectors' coin declared under this HTS category went through the New York City customs district. Were these coins ancient Roman, Byzantine, or Islamic like the ones identified on the Red List? Customs enforcement officials need to find out.

Given the reasonable articulable suspicion that Syrian cultural contraband may be moving to the U.S. through ordinary channels of international trade, police and customs investigators are justified in scrutinizing import paperwork and asking detailed questions of importers and customs brokers that will confirm or dispel this suspicion. To protect cultural heritage in jeopardy, to defend against money laundering, and to protect against terror financing in Syria, it is vital to know exactly what cultural property has been shipped to the U.S. from Syria under the HTS 9705, 9706, and 6802 classifications and why heritage goods makes up such a large portion of imported Syrian commodities.
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Data source: CHL compiled, arranged, and assessed the import figures presented here using raw data collected by the U.S. International Trade Commission and the U.S. Bureau of the Census.

Copyright notice: Although the data presented here is sourced from publicly available information, it is an original work of authorship that has been carefully selected, coordinated, arranged, and analyzed so that it is an original work of authorship subject to copyright protection as a compilation and/or a derivative work by CHL. The publication, retransmission, or broadcast of this compiled data is strictly prohibited without CHL's express consent.


Note: Import data is reported to U.S. Customs and Border Protection by the owner, purchaser, or licensed broker of the consignee. They file the entry documents, not the customs officials who are unable to inspect and document every cargo shipment. So whether cultural commodities are properly classified as HTS 9705 archaeological material or HTS 9706 antiques is the responsibility of the importer. In fact whether imports are falsely classified so that they can be smuggled across the border or whether they are mistakenly classified because of an error in judgment is a function of the importing party. The import classification process is a self-reporting system, part of a shared compliance program overseen by U.S. Customs that obliges the trade community to regulate itself and follow federal law. Shared compliance allows the U.S. to competitively engage the world in global commerce. Smugglers, nevertheless, will try to exploit gaps and loopholes.

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Text copyrighted 2015 by Cultural Heritage Lawyer, a blog commenting on matters of cultural property law, art law, cultural heritage policy, antiquities trafficking, and museum risk management. Blog url: culturalheritagelawyer.blogspot.com. Any unauthorized reproduction or retransmission of any blog post without the express written consent of CHL is prohibited. CHL is a service of Red Arch Cultural Heritage Law & Policy Research, Inc.

Culture Under Threat Conference in Cairo: Red Arch Raises Important Questions Posed by U.S. Imports of Art, Collectors' Pieces, and Antiques

Why did the declared value of U.S. general imports of antiques over 100 years old from Syria climb 133% between 2012 and 2013, from approximately $4.7 million to $11 million?

Why did the declared value of U.S. general imports of antiques over 100 years old from Iraq skyrocket 1302% between 2009 and 2013, from $322,564 to $4,523,126?

These were some of the questions posed by Red Arch Cultural Heritage Law & Policy Research at an historic international summit held in Cairo on May 13 and 14.

Antiquities Coalition co-founder and Red Arch board member Peter Herdrich
(far left) stands with delegates and organizers of the Cultural Property Under Threat conference.
Antiquities Coalition Chair Deborah Lehr (7th from right) spearheaded the historic gathering.

Titled Culture Under Threat and cooperatively organized by the Washington, D.C.-based Antiquities Coalition and the Middle East Institute, the conference featured government ministers from ten nations. Together, they signed the Cairo Declaration, a document proposed by Egyptian Minister of Antiquities Mamdouh Eldamaty, calling for:

• the establishment of a high-level task force to coordinate regional and international efforts against cultural heritage trafficking,
• the creation of a public awareness campaign against the black market trade, and
• the formation of an independent center to combat antiquities laundering.

Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Oman, Saudi Arabia, Sudan, and the United Arab Emirates proffered the Declaration in the wake of widespread plunder and destruction of archaeological, historical, and religious treasures located in the Middle East and North Africa (MENA).

“Criminal networks and terrorist groups have systematically looted historic sites and profited from the sales of these antiquities in international black markets,” the government ministers decried. They further denounced the sale of “blood antiquities,” which help fund ISIS and other terror groups.

In light of the extensive cultural heritage looting in the MENA region and because transnational commodities traffickers have been known to penetrate complex trade systems in order to turn contraband into cash, international trade data presented by Red Arch Research sparked important discussions among conference participants. The data highlighting U.S. imports of nondescript antiques from war-torn Syria and Iraq may prompt law enforcement and customs authorities to confirm or dispel any suspicions raised by the numbers.

Additional questions posed by the trade data include:

Why did the declared value of U.S. general imports of archaeological, historical, or ethnographic pieces from Egypt jump 105.5%, from approximately $5.2 million in 2012 to $10.7 million in 2013, which made Egypt the #2 source of such commodities by value behind the United Kingdom at $11.4 million?

Why did the declared value of U.S. general imports of archaeological, historical, or ethnographic goods from Lebanon spike 4,483%, from $6,546 in 2012 to $300,000 in 2013?

Why did the declared value of U.S. general imports of collectors’ coins (excluding gold coins) surge
- 82% from Turkey, from approximately $1.7 million in 2012 to $3 million in 2013?
- 417% from Lebanon, from $54,651 in 2012 to $282,434 in 2013?
- 2,604% from Libya, from $4,793 in 2012 to $129,620 in 2013?

UN Office of Drugs and Crime Regional Representative
Masood Karimipour listens as Red Arch Director Rick St. Hilaire
addresses the Cairo conference delegates.

Smugglers have been known to over-value or under-value invoices to disguise money transfers—a practice called trade based money laundering. Criminals also have been known to create shell import and export companies to hide the origins and transfers of illegally trafficked cultural goods. In past years, the CHL blog has chronicled cases where traffickers surreptitiously described Hindu sculptures as "handicrafts” on customs forms, affixed "Made in Thailand" stickers on ancient Ban Chiang pots to make them appear modern, manipulated the description of a Tyrannosaurus bataar skeleton from Mongolia as a fossil reptile from Great Britain on import paperwork, or falsely declared ancient Egyptian artifacts as “original sculptures and statuary” from Turkey, the UAE, and other nations. These cases illustrate the Basel Art Trade Guidelines (2012) warning that:

In comparison with other trade sectors, the art market faces a higher risk of exposure to dubious trade practices. This is due to the volume of illegal or legally questionable transactions, which is noticeably higher in this sector than in other globally active markets. Far more serious than shady dealings in a legal grey area, the sector’s shadow economy encompasses issues ranging from looted art, professional counterfeiting and fake certificates to the use of art sales for the purpose of money laundering.

Because the legal art and antiquities marketplace nurtures opacity, placing excessive emphasis on discretion over transparency, a black market temptation exists among smugglers, fences, and launderers to hide drops of illegally acquired goods deep within the sea of legitimate commerce. And the sea is vast. Declared American imports of art, collectors’ pieces, and antiques alone totaled over $9 billion in 2013, crowning the U.S. as the top global importer of commodities classified by this customs heading.

Answers are required to the critical questions lurking behind the import statistics: Who is importing the cultural heritage material? Who are the exporters? Exactly what “antiques,” “archaeological pieces,” and “collectors’ coins” are being shipped to the U.S.? From which archaeological sites and through what transshipment countries? And which imports are legal versus illegal? Indeed, uncovering black market trading pipelines, supply chains, and distribution networks navigating within the legitimate stream of commerce should be a key goal of the Cairo conference delegates as well as INTERPOL, the World Customs Organization, dealers and auction houses, and other stakeholders. 
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Invaluable research assistance supplied by Keegan Trace Brooks, JD Candidate, Georgia State University. Data assembled by Red Arch Research from statistics collected by the U.S. Department of Commerce and the U.S. International Trade Commission. Photos courtesy of the Antiquities Coalition.


Copyright note: Although the data presented here is sourced from publicly available information, it has been carefully selected, coordinated, arranged, and analyzed so that it is subject to copyright as a compilation by CHL. The publication, retransmission, or broadcast of this compiled data is strictly prohibited without CHL's express consent.

Text copyrighted 2015 by Cultural Heritage Lawyer. Blog url: culturalheritagelawyer.blogspot.com. Any unauthorized reproduction or retransmission of this post without the express written consent of CHL is prohibited. CHL is a service of Red Arch Cultural Heritage Law & Policy Research, Inc.

Conflict and the Heritage Trade: Rise in U.S. Imports of Middle East "Antiques" and "Collectors' Pieces" Raises Questions

American imports of art, collections and collectors' pieces, and antiques from Egypt, Iraq, Lebanon, Syria, and Turkey increased sharply between 2011 and 2013, prompting questions about whether trafficked heritage has piggybacked onto the mainstream marketplace.

War, mass looting, and other grave threats to heritage greatly expand the risk that smuggled cultural contraband will slide into the stream of international commerce undetected. Because art and antiquities transactions often lack transparency or fail to undergo rigorous due diligence, examining published trade data is one way to potentially spot trafficked cultural material hiding under the cover of everyday imports.

One region that has witnessed grave threats to cultural heritage is the Middle East. The intelligence community and the academic community both report that antiquities trafficking has generated revenue for the so-called Islamic State of Iraq and Syria (ISIS). More investigation needs to be conducted to measure the scope of the terror group's earnings activity, but the American Schools of Oriental Research and others have confirmed that archaeological site looting has been a wellspring for pillaged artifacts spilling out of Syria and Iraq, a result of both Syria's civil war and ISIS' sprawl. Spoils from the region reportedly have transited through the neighboring countries of Lebanon and Turkey. And in nearby Egypt, the country has suffered its own cultural heritage crisis amid unrest, prompting the nation to petition for an agreement with the United States that would help protect ancient archaeological and ethnological materials in jeopardy.

Given the cultural heritage emergency that has erupted in the Middle East, U.S. International Trade Commission figures documenting an upsurge in imports of Harmonized Tariff Schedule 97 goods from Egypt, Iraq, Lebanon, Syria, and Turkey flag concerns about whether conflict antiquities have entered America's stream of commerce. HTS 97 is the customs classification for works of art, collectors' pieces and antiques.

Total American imports of HTS 97 goods from the five countries rapidly escalated from $51.1 million in 2011 to $95.2 million in 2013--an astonishing 86% rise. The across-the-board spike can be gleaned from the table below, which displays hefty individual percentage increases of cultural imports from each of the five countries.

HTS - 97: WORKS OF ART, COLLECTORS' PIECES AND ANTIQUES
Customs Value

U.S. Imports for Consumption

Country	2011	2012	2013	Percent Change 2012 - 2013
	In Actual Dollars
Turkey	22,778,794	24,799,487	44,715,936	80.3%
Egypt	19,546,035	20,201,597	31,383,502	55.4%
Syria	4,553,364	4,759,212	11,148,782	134.3%
Iraq	2,871,141	780,688	4,625,057	492.4%
Lebanon	1,382,136	2,120,696	3,351,462	58.0%

Goods declared by importers to be antiques of an age exceeding 100 years (HTS 9706) or collections and collectors' pieces of zoological, botanical, mineralogical, historical, archaeological, numismatic and other interest (HTS 9705) made up large portions of the broader category of HTS 97 imports.*

For example, HTS 97 imports from Egypt totaling $34.1 million in 2013 largely derived from a combination of $19 million worth of objects labeled by importers as antiques over 100 years old and $11.5 million of goods labeled as collections and collectors' pieces.

HTS 97 imports from Syria totaling $11.1 million in 2013 almost entirely came from $11 million worth of goods classified as antiques.

Remarkable too is that 93% of the 2013 total of HTS 97 imports from Iraq, Lebanon, and Syria were declared to be antiques over 100 years old, begging the question of whether nearly $18 million worth of great grandmothers' rocking chairs and similar items were shipped to America or whether the imports may have been ancient archaeological artifacts misclassified as "antiques."

The table below illustrates, among other information, that commodities declared by importers to be antiques from Iraq and Syria rocketed skyward by 672% and 133%, respectively, from 2012 to 2013.

HTS - 9706: ANTIQUES OF AN AGE EXCEEDING ONE HUNDRED YEARS

Customs Value

U.S. Imports for Consumption

Country	2011	2012	2013	Percent Change 2012 - 2013
	In Actual Dollars
Turkey	15,979,030	17,553,638	19,257,308	9.7%
Egypt	16,793,409	13,817,236	19,043,410	37.8%
Syria	4,141,235	4,714,962	11,000,869	133.3%
Iraq	2,832,384	585,682	4,523,126	672.3%
Lebanon	708,461	1,392,005	2,218,073	59.3%

Declared imports of collections and collectors' pieces of zoological, botanical, mineralogical, historical, archaeological, numismatic and other interest goods, meanwhile, grew from $8.9 million in 2011, to $10.8 million in 2012, and then to $19 million in 2013--the final amount constituting a 113% jump from 2011 through 2013. The table below breaks down the individual numbers that chart this ascent. What kinds of objects actually made up these "collections and collectors' pieces?

HTS - 9705: COLLECTIONS AND COLLECTORS' PIECES OF ZOOLOGICAL, BOTANICAL, MINERALOGICAL, HISTORICAL, ARCHAEOLOGICAL, NUMISMATIC OR OTHER INTEREST
Customs Value
U.S. Imports for Consumption

Country	2011	2012	2013	Percent Change 2012 - 2013
	In Actual Dollars
Egypt	2,375,694	5,746,759	11,518,231	100.4%
Turkey	5,875,218	4,919,196	6,651,262	35.2%
Lebanon	241,345	82,365	597,982	626.0%
Syria	330,129	34,250	117,913	244.3%
Iraq	30,757	8,509	97,931	1,050.9%

Traffickers have imported cultural material into the U.S. in clever ways in the past, surreptitiously labeling Hindu idols as "handicrafts," affixing "Made in Thailand" stickers on ancient Ban Chiang pots to make them appear modern, or manipulating the description of a Tyrannosaurus bataar skeleton from Mongolia on customs documentation. That is why scrutinizing the art, collectors pieces, and antiques that underlie the customs data described above would go far toward confirming or dispelling the suspicion that smuggled ancient artifacts from the Mideast may have been embedded within America's conventional global trade.

Among the questions requiring answers are what kinds of objects were specifically imported, and why did imports of "antiques" and "collectors' pieces" skyrocket in many instances? Were the imports classified properly or improperly? Who were the importers of record, and where did they sell their merchandise? Who were the buyers? What can the customs forms reveal about the commodities' actual countries of origin and their transshipment locations?


Data source: U.S. International Trade Commission Interactive Trade DataWeb (USITC DataWeb), as compiled by the Commission from official data retrieved from the U.S. Bureau of the Census (accessed October 2014).


Copyright note: Although the data presented here is sourced from publicly available information, it has been carefully selected, coordinated, arranged, and analyzed so that it is subject to copyright as a compilation by CHL. The publication, retransmission, or broadcast of this compiled data is strictly prohibited without CHL's express consent.

Photo credit: Svilen Milev
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*Import data is reported to U.S. Customs and Border Protection by the owner, purchaser, or licensed broker of the consignee. They file the entry documents, not the customs officials who are unable to inspect and document every cargo shipment. So whether cultural commodities are properly classified as HTS 9705 archaeological material or HTS 9706 antiques is the responsibility of the importer. In fact whether imports are falsely classified so that they can be smuggled across the border or mistakenly classified because of a judgment error is a function of the importing party. The import classification process is a self-reporting system, part of a shared compliance program overseen by U.S. Customs that obliges the trade community to regulate itself and follow federal law. Shared compliance allows the U.S. to competitively engage the world in global commerce. But smugglers will try to exploit the gaps and loopholes.

By Rick St. Hilaire
Text copyrighted 2014 by Cultural Heritage Lawyer. Blog url: culturalheritagelawyer.blogspot.com. Any unauthorized reproduction or retransmission of this post without the express written consent of CHL is prohibited.

A Healthy Trade, A Black Market Temptation: Latest Figures Show U.S. Leadership in Art and Antiquities Exports and Imports

The latest trade figures show that the United States is the leading exporter and importer of fine art, antiquities, and other cultural goods. Dealers and consumers are thriving in this robust marketplace where billions of dollars are exchanged annually. Yet the market remains susceptible to criminal penetration.

American international trade in fine art and antiquities is very large. UN Comtrade and U.S. International Trade Commission (ITC) data reveal that America imported over $9 billion in art, collectors’ pieces, and antiques last year. It also exported the same types of goods in 2013—classified by Harmonized Tariff Schedule (HTS) 97—in an amount valued at $7.7 billion, crowning America as the global leader in both exports and imports of art and cultural heritage material by monetary value.

To put these cash amounts into perspective, $9 billion could purchase a fleet of 35 Boeing 747 aircraft or buy 530,000 Ford Focus automobiles.

The U.S. was also a top country in 2013 for imports and exports of HTS 9705 goods, an important subcategory of HTS 97 that includes collections and collectors' pieces of zoological, botanical, mineralogical, anatomical, historical, archeological, paleontological, ethnographic or numismatic interest. America was the second highest importer by value, bringing in roughly $263 million worth of HTS 9705 commodities from around the world. The U.S., in turn, exported nearly $192 million in HTS 9705 material, taking the third-place spot among nations.

This large and healthy trade in art and antiquities can be tempting to the black market because money laundering, smuggling, and fencing stolen objects are more easily disguised when smaller drops of dirty cash and contraband get lost in a vast ocean of legal commerce. In fact, the 2012 Basel Art Trade Guidelines cautioned that the market “faces a higher risk of exposure to dubious trade practices ... due to the volume of illegal or legally questionable transactions, which is noticeably higher in this sector than in other globally active markets.”

Organized crime can over-value or under-value invoices to disguise money transfers, a practice called trade based money laundering. Smugglers can create shell import and export companies to hide the origins and transfers of illegally trafficked cultural goods. And many other techniques can be used to hide criminal conduct that piggybacks on legitimate trade. Such methods may explain why $6.8 billion in art and antiquities shipped between the United Kingdom and the United States over the last five years remains missing.

To peel away the black market that camouflages crimes of trafficking, money laundering, and possibly terrorist financing requires rigorous initiatives that will shore up vulnerabilities existing within the broader white market. Industry transparency and due diligence are critical elements to any defense. Moreover, intensified law enforcement efforts directed at investigating and prosecuting cultural heritage trafficking and money laundering must be supported.

Photo credit: Jon Syverson

Copyright note: Although the data presented here is sourced from publicly available information, it has been carefully selected, coordinated, arranged, and analyzed so that it is subject to copyright as a compilation by CHL. The publication, retransmission, or broadcast of this compiled data is strictly prohibited without CHL's express consent.

By Rick St. Hilaire Text copyrighted 2014 by Cultural Heritage Lawyer. Blog url: culturalheritagelawyer.blogspot.com. Any unauthorized reproduction or retransmission of this post without the express written consent of CHL is prohibited.

The Top Import Suppliers of Works of Art, Collectors’ Pieces and Antiques to the United States

Works of art, collectors’ pieces and antiques imported into the United States are categorized by Harmonized Tariff Schedule (HTS) code 97. CHL recently identified 2013's top source countries of archaeological, historical, and ethnological material to the U.S. But which nations rank in 2013's top 10 list of suppliers for all HTS 97 imports by general customs value? They are, in order from highest to lowest declared customs values,

France

United Kingdom

Italy

Germany

Spain

Switzerland

China

Netherlands

Japan

Belgium

The table below shows the fuller picture of 2009 through 2013 American imports of works of art, collectors’ pieces and antiques, displaying the total general customs import values among last year's top 25 source nations.

The data have been compiled from publicly available tariff and trade information produced by the U.S. Department of Commerce and the U.S. International Trade Commission.

The commodities classified by HTS 97 consist of paintings, drawings, engravings, prints, lithographs, sculptures, statuary, and stamps. Also included are collectors' pieces and collections of zoological, botanical, mineralogical, anatomical, historical, archaeological, and paleontological materials. Numismatics fall under the classification too, as do antiques over 100 years old.

Copyright note: Although the data presented here is sourced from publicly available information, it has been carefully selected, coordinated, arranged, and analyzed so that it is subject to copyright as a compilation by CHL. The publication, retransmission, or broadcast of this compiled data is strictly prohibited without CHL's express consent.

By Rick St. Hilaire Text copyrighted 2010-2014 by Ricardo A. St. Hilaire, Attorney & Counselor at Law, PLLC. Blog url: culturalheritagelawyer.blogspot.com. Any unauthorized reproduction or retransmission of this post is prohibited. CONTACT INFORMATION: www.culturalheritagelawyer.com

UPDATED > Minding the Value Gap Between U.K. Exports and U.S. Imports of Works of Art, Collectors’ Pieces and Antiques

The reported export values of art and antiquities shipped from the United Kingdom to the United States over the last five years do not match the reported U.S. import values for the same classified commodities. In fact, the published values are substantially different, amounting to roughly $6.8 billion in missing value over the last five years.

The art and antiquities trade between the United States and the United Kingdom can be measured by examining public data produced by the U.S. International Trade Commission and by HM Revenue & Customs. CHL recently looked at the 2013 trade in works of art, collectors pieces, and antiques exported from the U.K and imported into the U.S., asking why the reported values differed by approximately $2 billion. The trade data reviewed here compares export and import values over a five year period, from 2009 through 2013.

The commodities examined are classified by Harmonized Tariff Schedule (HTS) code 97, covering works of art, collectors’ pieces and antiques. HTS 97 specifically comprises paintings, drawings, engravings, prints, lithographs, sculptures, statuary, and stamps. It also includes collectors' pieces and collections of zoological, botanical, mineralogical, anatomical, historical, archaeological, and paleontological materials. Numismatics fall under the definition as well. So too do antiques over 100 years old.

The chart below graphically displays the gap between export values published by the U.K. and the import values published by the U.S. for all goods each country classifies under HTS 97. The value differences are listed in billions of U.S. dollars. 

One can easily see the striking value differences over the last five years. In 2010, 2012 and 2013 the gaps in U.K.-U.S. customs values measure at least 50% or more for each of those years. Also noteworthy is the pattern whereby the reported values of U.K. HTS 97 exports are consistently higher than the reported values of U.S. HTS 97 imports.

The actual value gaps--the differences between the reported U.K. HTS 97 export values and the reported U.S. HTS 97 import values--from 2009 through 2013, and their percentage differences, are outlined in the table below.

                                                                   Value Gap            Percent Difference

                                                        2009   $535,430,047        33.6% 

                                                        2010   $1,203,868,869     50.6%

                                                        2011   $1,107,359,364     44.5%

                                                        2012   $2,023,212,767     53.0%

                                                        2013   $1,968,097,336     54.0%

Given that the reported customs values of American HTS 97 imports have been less than--and even more than half as much as--the reported values of British HTS 97 exports, and given that billions of dollars appear unaccounted for, the published trade data should prompt both American and British customs authorities to investigate the reasons behind the export-import rift.

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Copyright notice: Although the data presented here is sourced from publicly available information, it has been carefully selected, coordinated, arranged, and analyzed so that it is subject to copyright as a compilation by CHL. The publication, retransmission, or broadcast of this compiled data is strictly prohibited without CHL's express consent.

Notes about the data:

The U.S. and the U.K. each define what is covered under HTS 97 in documents found here and here, respectively. They both title HTS 97 as “Works of Art, Collectors’ Pieces and Antiques,” and both nations supply substantially the same definitions and exclusions.

The U.S. specifically notes that HTS 97 “covers not only original sculpture made by the sculptor, but also the first 12 castings, replicas or reproductions made from a sculptor's original work or model, by the sculptor himself or by another artist, with or without a change in scale and whether or not the sculptor is alive at the time the castings, replicas or reproductions are completed.”

The U.K. clarifies that collectors’ motor vehicles of historical or ethnographic interest, which are in their original condition, at least 30 years old, and no longer in production are goods classified by HTS 97.

The U.K. defines HTS 97 goods as:

Paintings, drawings and pastels, executed entirely by hand, other than drawings of heading 4906 and other than hand-painted or hand-decorated manufactured articles; collages and similar decorative plaques.

Original engravings, prints and lithographs.

Original sculptures and statuary, in any material.

Postage or revenue stamps, stamp-postmarks, first-day covers, postal stationery (stamped paper), and the like, used or unused, other than those of heading 4907.

Collections and collectors' pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, palaeontological, ethnographic or numismatic interest.

Antiques of an age exceeding 100 years.

The U.S. defines HTS 97 goods as:

Paintings, drawings and pastels,executed entirely by hand, other than drawingsof heading 4906 and other than hand-painted or hand-decorated manufactured articles; collages and similar decorative plaques; all the foregoing framedor not framed.

Original engravings, prints and lithographs, framed or not framed.

Original sculptures and statuary, in any material.

Postageor revenue stamps,stamp-postmarks, first- day covers, postalstationery (stamped paper) and the like, used, or if unused not of currentor new issue in the countryto which they are destined.
Collections and collectors' piecesof zoological, botanical,mineralogical, anatomical, historical, archeological, paleontological, ethnographic or numismatic interest.
Antiques of an age exceeding one hundred years.

Both nations carry this same exclusion:

1. This chapter does not cover:

(a) unused postage or revenue stamps, postal stationery (stamped paper) or the like, of heading 4907;

(b) theatrical scenery, studio back-cloths or the like, of painted canvas (heading 5907) except if they may be classified in heading 9706; or

(c) pearls, natural or cultured, or precious or semi-precious stones (headings 7101 to 7103).

2. For the purposes of heading 9702, the expression ‘original engravings, prints and lithographs’ means impressions produced directly, in black and white or in colour, of one or of several plates wholly executed by hand by the artist, irrespective of the process or of the material employed by him, but not including any mechanical or photomechanical process.

3. Heading 9703 does not apply to mass-produced reproductions or works of conventional craftsmanship of a commercial character, even if these articles are designed or created by artists.

4. (A) Subject to Notes 1 to 3 above, articles of this chapter are to be classified in this chapter and not in any other chapter of the nomenclature.

(B) Heading 9706 does not apply to articles of the preceding headings of this chapter.

5. Frames around paintings, drawings, pastels, collages or similar decorative plaques, engravings, prints or lithographs are to be classified with those articles, provided they are of a kind and of a value normal to those articles. Frames which are not of a kind or of a value normal to the articles referred to in this note are to be classified separately.

The HTS 97 exports from the U.K. to the U.S., as reported by HM Revenue & Customs, are in GBP. The exchange rate as of December 31 for each year have been used to supply the currency conversion into USD

2013    2202630107 GBP = 3643573444.36 USD

2012    2362859107 GBP = 3820066543.04 USD

2011    1608179003 GBP = 2491108358.65 USD

2010    1532463711 GBP = 2378946280.15 USD

2009    982324630 GBP = 1593443150.52 USD

Update 5/14/14: A screenshot showing the actual HM Revenue & Customs export data produced in the agency's original format. The data table clearly displays code 97, the “Export” tables, and identifies the values documenting exports to the "United States."

The export values listed by HM Revenue & Customs are defined in this way: “Value – the statistical value in pounds sterling (£) of the trade.” Source: https://www.uktradeinfo.com/Statistics/BuildYourOwnTables/Pages/Home.aspx

HM Revenue & Customs states on its web site:

“This web site is managed by HM Revenue & Customs (HMRC) Trade Statistics unit, and operates alongside the main HMRC website for the purpose of publishing and hosting UK trade statistics data.

These statistics record the movement—for trade purposes—of goods between the UK and both EU and non-EU countries.

They are collected from the EU-wide Intrastat survey and from Customs import and export entries, both administered by HMRC.”

Source: https://www.uktradeinfo.com/Pages/Home.aspx

HTS 97 US imports for consumption by customs value received by the U.S. from the U.K. as reported by USITC and compiled by CHL:

2013    $1,675,476,108

2012    $1,796,853,776

2011    $1,383,658,901

2010    $1,175,073,725

2009    $1,058,013,104

HTS 97 US imports by general imports value received by the U.S. from the U.K. as reported by USITC and compiled by CHL.

2013    $1,675,476,108  

2012    $1,796,853,776

2011    $1,383,748,995

2010    $1,175,077,411

2009    $1,058,013,104

Update 5/14/14: A screenshot showing the actual USITC import data produced in the agency's original format. The second row shows the import values from the U.K. for HTS 97 goods.

CHL has used the values for general imports in this blog post because the numbers tend to be more inclusive than imports for consumption. USITC defines imports for consumption and general imports as follows (source: http://www.trade.gov/mas/ian/referenceinfo/tg_ian_001872.asp):

General Imports - This number measures the total value of merchandise shipments that arrive in the U.S. from foreign countries, whether such merchandise enters consumption channels immediately or is entered into bonded warehouses or U.S. Foreign Trade Zones under Customs custody.

Imports for Consumption - This number measures the total value of merchandise that physically clears Customs, or goods withdrawn from Customs bonded warehouses or U.S. Foreign Trade Zones, which immediately enter consumption channels. Merchandise being held in bonded warehouses or U.S. Foreign Trade Zones is not included until it is specifically withdrawn for consumption.

By Rick St. Hilaire Text copyrighted 2010-2014 by Ricardo A. St. Hilaire, Attorney & Counselor at Law, PLLC. Blog url: culturalheritagelawyer.blogspot.com. Any unauthorized reproduction or retransmission of this post is prohibited. CONTACT INFORMATION: www.culturalheritagelawyer.com