19 07, 2024

Customs and Trade News Weekly Snapshot

By |2024-07-19T13:35:11-04:00July 19, 2024|Snapshot|0 Comments

Here is a recap of the latest customs and international trade news:     

Customs and Border Protection (CBP) 

  • CBP released the June monthly update. Highlights:
    • Identified $6.7M to be collected in duties
    • Stopped 291 shipments for further examination based on suspected use of forced labor
    • Seized 1501 shipments that contained counterfeit goods
  • On July 15, CBP implemented cargo messaging to communicate with the entry filer on shipments that have invalid consignee names.
  • CBP plans to deploy in late-August ACE programming to permit filing of 19 U.S.C. § 1313(c)(1)(C)(ii) direct identification retail return drawback claims with exports to Canada or Mexico utilizing ACE provision codes 56 and 70.
  • CBP intercepted 90 giant African land snails at the Detroit Metropolitan Airport. 
  • Officers at the Rochester port of entry seized a variety of counterfeit designer items as well as beauty products and dietary supplements that were in violation of the Federal Food, Drug, and Cosmetic Act. 

Department of Justice (DoJ)

  • Russian international money launderer sentenced to three years in prison for illicitly procuring large quantities of U.S.-manufactured dual-use, military grade microelectronics for Russian entities. 

Office […]

12 07, 2024

Customs and Trade News Weekly Snapshot

By |2024-07-12T13:25:09-04:00July 12, 2024|Snapshot|0 Comments

Here is a recap of the latest customs and international trade news:       

Customs and Border Protection (CBP)  

  • In relation to the Section 301 China Product Exclusions Extension, CBP provided guidance on the 14-day transition period extending 429 product-specific exclusions (352 previously reinstated exclusions and 77 COVID-related) through June 14, 2024, and extending certain exclusions through May 31, 2025. 
  • Norfolk CBP seized 305 window air conditioners for bearing counterfeit Energy Star certification marks. 
  • Louisville CBP seized three shipments containing 2,387 pieces of counterfeit jewelry. If genuine, the jewelry would have had a combined Manufacturer’s Suggested Retail Price (MSRP) of over $10.08 million. 
  • CBP posted an updated version of the Drawback/TFTEA Drawback Entry Summary Create/Resubmission CATAIR. This version has a new class code for Superfund. 
  • On July 25, 2024, CBP will deploy an update to the Automated Commercial Environment (ACE) that requires the submission of the Reference Identifier Qualifier Estimated Date of Arrival (EDA) in the SE20 record for all de-minimis shipments filed as an entry type 86 submission.  
  • CBP’s Baltimore Field Office announces […]
11 07, 2024

Trade News: New Petition Filed Against Tungsten Shot from China

By |2024-07-11T15:34:51-04:00July 11, 2024|AD/CVD, China, U.S. Department of Commerce (DOC)|0 Comments

Tungsten Parts Wyoming, Inc. filed the petition for the imposition of antidumping and countervailing (AD/CVD) duties on the imports of tungsten shot from China.

Unlike most AD/CVD petitions, the domestic industry has not yet been established, as the petitioner only began production last year. Thus, instead of arguing that Chinese imports are injuring the industry, the petitioner is claiming that the domestic industry has been “materially retarded” by reason of the allegedly unfair Chinese imports.

Full list of exporters. Full list of importers.

Background on AD/CVD Investigations

Antidumping duty (“AD”) and countervailing duty (“CVD”) investigations are brought jointly by the U.S. International Trade Commission (“USITC”) and the U.S. Department of Commerce (“Commerce”). AD investigations are triggered when a domestic industry alleges that it has been injured by competing imports of particular goods from specific countries being sold at less than a fair value. Meanwhile, CVD investigations are triggered when a domestic industry alleges that it has been injured by competing imports that are being unfairly subsidized by their governments. 

Scope of the Investigation

This investigation pertains to certain tungsten shot. The physical characteristics of the covered product are tungsten shot that are 92.6 percent or greater tungsten by weight. Merchandise is covered regardless of the combination of compounds that comprise the non-tungsten material and whether or not the tungsten shot is additionally coated with another material, including but not limited […]

11 07, 2024

DHS Announces New High Priority Sectors for UFLPA Enforcement

By |2024-07-11T10:49:47-04:00July 11, 2024|China, Forced Labor, Import, U.S. Customs and Border Protection (CBP), U.S. Department of Homeland Security (DHS)|0 Comments

The Department of Homeland Security’s (DHS) Forced Labor Enforcement Task Force (FLETF) released an update to the Strategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the People’s Republic of China.

Strategy Background

DHS released the first publication of the UFLPA Strategy in June 2022. The strategy outlines a multi-pronged approach to combating forced labor in global supply chains.The strategy includes a comprehensive assessment of the risk of importing goods with forced labor in the PRC, high priority sectors for enforcement, guidance to importers, recommendations to accurately identify affected goods, and more. DHS released the first update to the publication in August of 2023.

The Latest Update  

The update builds on two years of the Administration’s enforcement of the UFLPA. The latest strategy identified new high priority sectors for enforcement – aluminum, polyvinyl chloride (PVC), and seafood. These industries were identified due to higher risk of forced labor or state labor transfer of Uyghurs and other ethnic minorities from the Xinjiang Uyghur Autonomous Region (XUAR).

Entities in these sectors will now be prioritized for review for enforcement actions such as inclusion on the UFLPA Entity List, sanctions, export limitations, and visa restrictions.

Other products previously identified as high priority such as apparel, cotton and cotton products, silica-based products including polysilicon, and tomatoes remain high priority sectors.

The latest updates also outline how the FLETF has significantly advanced their objectives through several initiatives, such as strong enforcement by U.S. Customs and Border Protection (CBP); expansion of the UFLPA Entity List; […]

5 07, 2024

Customs and Trade News Weekly Snapshot

By |2024-07-05T15:02:33-04:00July 5, 2024|Snapshot|Comments Off on Customs and Trade News Weekly Snapshot

Here is a recap of the latest customs and international trade news:      

 Customs and Border Protection (CBP)  

  • ICYMI: CBP announces new broker continuing education accreditors, five entities who will help CBP develop and implement accreditation standards for the agency’s new Customs Broker Continuing Education (CE) program. 
  • CBP published a Federal Register notice to advise the import industry about the quarterly IRS interest rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties. 
  • CBP said it is planning to advance work this fall on a new system that will ultimately replace the Automated Commercial Environment. The agency anticipates beginning software development work on ACE 2.0 capabilities in the fiscal year 2026 timeframe providing funding is available.  
  • CBP announces implementation of recent USDA rule change allowing individuals to travel with certain fruits and vegetables (peppers and tomatoes for personal use). 

United States Trade Representative (USTR) 

  • USTR released the second Report on the Operation of the United States-Mexico-Canada Agreement (USMCA) with Respect to Trade in Automotive Goods 
    • The report found […]
2 07, 2024

ICYMI: Supreme Court Overturns Landmark Chevron Case

By |2024-07-02T09:05:50-04:00July 2, 2024|news|Comments Off on ICYMI: Supreme Court Overturns Landmark Chevron Case

In a major ruling, the Supreme Court overturned their decision in Chevron v. Natural Resources Defense Council that gave federal agencies great leeway in interpretation of laws. Instead of deferring to agencies, judges may now substitute their own interpretation of the law, making it easier to overturn agency regulations across the federal government.

What is Chevron Deference

In 1984, the Supreme Court decided Chevron v. Natural Resources Defense Council – the case involved the Environmental Protection Agency’s (EPA) interpretation of the Clean Air Act. The Court ruled that since the law was ambiguous, the EPA (and other federal agencies) should have leeway to interpret the statute. Further, Chevron said that and that courts should uphold the agency’s interpretation, even if the agency’s reading differs from what the court believes is the best statutory interpretation, as long as it is reasonable.

This principle became known as “Chevron deference” and came to be one of the most consequential decisions in Administrative Law. In the 40 years since Chevron, federal courts have cited the decision more than 18,000 times.

The Supreme Court’s Decision Overturning Chevron

In a 6-3 ruling, the Supreme Court threw out the “Chevron deference” principle, calling it inconsistent with the Administrative Procedure Act – the federal law that governs the procedures federal agencies must follow and how courts are to review actions by the agencies. The decision stated that it is the responsibility of the courts to decide what the laws mean, not the agencies, and that Congress expects courts to handle […]

2 07, 2024

ICYMI: BIS Updates Boycott Requester List

By |2024-07-02T08:57:03-04:00July 2, 2024|EAR, Export, U.S. Bureau of Industry and Security (BIS)|Comments Off on ICYMI: BIS Updates Boycott Requester List

The Department of Commerce’s Bureau of Industry and Security (BIS) published its first quarterly update of the Boycott Requester List. The list notifies companies, freight forwarders, financial entities, and individuals of potential sources of boycott-related requests that they may receive.

Background on Boycott Requests

BIS is charged with enforcing anti-boycott laws under the Export Administration Regulations (EAR). The laws prohibit U.S. companies from taking actions in furtherance of a boycott maintained by a foreign country against a country friendly to the United States. Common boycott requests include:

  • Requesting a certification that goods are not from a specific country
  • Requesting that goods are not shipped to a certain country
  • Requesting that a business does not engage with a particular country

U.S. persons must report boycott-related requests to BIS’s Office of Anti-boycott Compliance (OAC).

Boycott Requester List

OAC maintains a boycott-requester list to raise awareness and assist U.S. persons in identifying sources of boycott-related requests.

Entities on the list have been reported by a U.S. person to BIS via a request report form. The list is updated quarterly but is not an exhaustive list of entities that may make these requests.

The most recent update to the list includes 57 additions and the removal of 127 entities.

Requesting countries added in the most recent update include:

  • Afghanistan
  • Algeria
  • Bangladesh
  • Germany
  • India
  • Iraq
  • Japan
  • Kuwait
  • Malaysia
  • Norway
  • Oman
  • Pakistan
  • Saudi Arabia
  • Singapore
  • Switzerland
  • United Arab Emirates
  • Qatar
  • Vietnam

Exporters have a duty to remain vigilant in spotting boycott-related requests and reporting them to BIS. Diaz Trade Law can help […]

28 06, 2024

Customs and Trade News Weekly Snapshot

By |2024-06-28T12:20:01-04:00June 28, 2024|Snapshot|Comments Off on Customs and Trade News Weekly Snapshot

Here is a recap of the latest customs and international trade law news:    

Customs and Border Protection (CBP)  

  • CBP releases May operational update. Highlights: 
    • Processed more than 2.9 million entry summaries valued at more than $284.8 billion  
    • Identified estimated duties of nearly $6.7 billion to be collected by the U.S. government 
    • Stopped 450 shipments for further examination based on the suspected use of forced labor 
    • Seized 1,640 shipments that contained counterfeit goods valued at more than $331 million. 
  • CBP adopted proposed amendments to regulations pertaining to importations of merchandise that violate or are suspected of violating the copyright laws, including the Digital Millennium Copyright Act (DMCA). The amendments: 
    • Clarify the definition of “piratical articles”  
    • Simplify the detention process involving goods suspected of violating the copyright laws 
    • Prescribe new regulations enforcing the DMCA 
  • CBP officers in Chicago seized 53,700 electronic nicotine delivery system (ENDS) for violating FDA regulations.  
24 06, 2024

Trade News: New Petition Filed Against Low Speed Personal Transportation Vehicles from China

By |2024-06-24T14:25:19-04:00June 24, 2024|AD/CVD, U.S. Department of Commerce (DOC)|Comments Off on Trade News: New Petition Filed Against Low Speed Personal Transportation Vehicles from China

The American Personal Transportation Vehicle Manufacturers Coalition filed petitions for the imposition of antidumping and countervailing (AD/CVD) duties on the imports of certain low speed personal transportation vehicles (“CLSPTV”) from China.

Full list of exporters here. Full list of importers here.

Background on AD/CVD Investigations

Antidumping duty (“AD”) and countervailing duty (“CVD”) investigations are brought jointly by the U.S. International Trade Commission (“USITC”) and the U.S. Department of Commerce (“Commerce”). AD investigations are triggered when a domestic industry alleges that it has been injured by competing imports of particular goods from specific countries being sold at less than a fair value. Meanwhile, CVD investigations are triggered when a domestic industry alleges that it has been injured by competing imports that are being unfairly subsidized by their governments. 

Scope of the Investigation

This petition covers CLSPTVs and subassemblies thereof. CLSPTVs meeting this description are generally open air vehicles with a minimum of four wheels, a steering wheel, a traditional side-by-side or in- line row seating arrangement (i.e., non- straddle), foot operated accelerator and brake pedals, and a gross vehicle weight of no greater than 5,500 pounds. 

Specifically excluded from the scope of this order are all-terrain vehicles, multipurpose off highway utility vehicles, and recreational off-highway vehicles.  Full scope here.

Next Steps

The Commerce Department will determine whether to initiate the investigations within 20 days. The USITC […]

21 06, 2024

ICYMI: Congress Doubles the Statute of Limitations for Sanctions Violations

By |2024-06-21T15:18:25-04:00June 21, 2024|EAR, Export, U.S. Office of Foreign Assets Control (OFAC)|Comments Off on ICYMI: Congress Doubles the Statute of Limitations for Sanctions Violations

On April 24, 2024, President Biden signed into law H.R. 815, an emergency supplemental appropriations bill that included spending for Israel and Ukraine, along with other priorities such as data protection from foreign adversaries.

Within the fentanyl trafficking section, the bill included a provision that doubles the statute of limitations for all sanctions violations from five to 10 years. It also extended the limitation for certain export control violations such as biological weapon proliferation.

Impact

This policy change will change how exporters keep records, maintain compliance programs, and conduct due diligence. It also allows more time for the government to investigate violations.

Government

The Department of Justice and the Department of Treasury’s Office of Foreign Assets Control (OFAC) are the primary authorities that will benefit from this policy change. Agency officials and prosecutors will now have twice as much time to investigate and bring charges against exporters.

The majority of federal crimes currently have a five-year statute of limitations. Some serious crimes such as capital murder or treason have no statute of limitations, other serious crimes such as embezzlement from a federal financial institution or racketeering have a 10 year limit.

Congress deliberately extending the limitations period in line with serious federal crimes sends a clear signal that export violations are a priority and considered a serious offense by the U.S. government.

Private Sector Implications

Companies seeking to invest in or acquire another company subject to export control laws and U.S. sanctions will now have to request documentation for 10 years instead of five.

The law […]

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