Monthly Archives

February 2021

ChinaChina Trade WarCubaExportFCPAFreight ForwardingInternational TradeIRANU.S. Bureau of Industry and Security (BIS)U.S. Office of Foreign Assets Control (OFAC)

Building a Strong Export Compliance Plan

posted by Jennifer Diaz February 23, 2021 0 comments

Co-Authored by Sharath Patil

Exporting is a Privilege, Not a Right

Over 95% of the world’s consumers are outside of the United States. Opportunities abound for U.S. companies that export. However, exporting is a privilege and not a right. U.S. exporters have an important responsibility to adhere to U.S. export control laws, including the Export Administration Regulations (“EAR”), the International Traffic in Arms Regulations (“ITAR”) the Office of Foreign Assets Control (“OFAC”) sanctions laws, and the Foreign Corrupt Practices Act (“FCPA”). Violations of export control laws carry hefty civil and criminal penalties. Exporters can pay hundreds of thousands of dollars in penalties, lose export privileges, and even be imprisoned for violations of U.S. export control laws.

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Best PracticesChina Trade WarCustoms ExpertEnforcementExportForced LaborImportImport AlertInternational BusinessInternational LawInternational TradePre-complianceU.S. Customs and Border Protection (CBP)

CBP Issues WRO on Cotton, Tomato, & Downstream Products Made in Xinjiang

posted by Jennifer Diaz February 18, 2021 0 comments

The United States has been increasing its efforts to combat forced labor around the world. During the Trump Administration’s final weeks, the United States not only banned the importation of Chinese Cotton, Tomatoes, among other products, but also explicitly recognized the situation in Xinjiang as a Genocide.

Importers not adequately auditing their supply chains for use of forced labor are at risk of administrative and criminal enforcement. Imported merchandise produced with forced labor is subject to the Department of Homeland Security (DHS) enforcement. Such enforcement includes U.S. Customs and Border Protection’s (CBP) right to detain, exclude, and/or seize imported goods and Homeland Security Investigation’s potential criminal investigation. China is not only the United States’ number one trading partner but also happens to be the world’s biggest forced labor violator.

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ChinaChina Trade WarCubaExportFCPAInternational TradeIRANSupply ChainU.S. Bureau of Industry and Security (BIS)U.S. Department of Commerce (DOC)U.S. Office of Foreign Assets Control (OFAC)venezuela

Commerce Department Issues Rule Securing Digital Supply Chains Against Foreign Adversaries

posted by Jennifer Diaz February 16, 2021 0 comments

NIST Releases Draft Guidance on Internet of Things Device Cybersecurity | NIST

Co-Authored by Sharath Patil

Background on Securing Information Technology & Communications Supply Chains

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COVID-19ExportImportInternational TradeTrade PolicyU.S. Customs and Border Protection (CBP)U.S. Department of State (DOS)U.S. Food and Drug Administration (FDA)

Biden Administration Commits to Modernizing Regulatory Review

posted by Jennifer Diaz February 9, 2021 0 comments

Co-Authored by Sharath Patil

Background on Regulatory Review

U.S. federal laws come from a wide array of sources. They are generally organized under the following order of authority:  1) the U.S. constitution, 2) statutes passed by Congress, 3) treaties ratified by Congress, 4) case law, 5) executive orders, 6) regulations, and 7) agency guidance. After Congress has provided a federal agency with a policy mandate, an agency is empowered to promulgate regulations to provide detailed and binding rules on those matters.

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Best PracticesCOVID-19Customs ExpertEnforcementExportImportImport AlertInternational BusinessInternational LawInternational TradeMexicoSeizuresSupply ChainU.S. Customs and Border Protection (CBP)U.S. Food and Drug Administration (FDA)

FDA Import Alert on Mexican Hand Sanitizer

posted by Jennifer Diaz February 4, 2021 0 comments

For the first time in history, the United States Food and Drug Administration (FDA) has issued a countrywide import alert for any category of drug product. Specifically, on January 26, 2021, the FDA announced that it will Take Action to Place All Alcohol-Based Hand Sanitizers from Mexico on Import Alert to Help Prevent Entry of Violative and Potentially Dangerous Products into U.S., Protect U.S. Consumers. FDA singled out importations of hand sanitizers from Mexico due to the frequent use of methanol.

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UK Joins Kimberley Diamond-Trading Process

posted by Jennifer Diaz February 2, 2021 0 comments

Co-Authored by Sharath Patil

What’s the Kimberley Process?

Established in 2003, the Kimberley Process (“KP”) is a multilateral trade regime created to prevent the flow of conflict diamonds. Conflict diamonds, also known as “blood” diamonds, are rough diamonds used by rebel movements or their allies to finance armed conflicts aimed at undermining legitimate governments. Under the Kimberley Process Certification Scheme, participant states implement safeguards on shipments of rough diamonds and certify them as “conflict-free.” The regime is credited with removing 99.8 percent of conflict diamonds from the global supply chain. The Process comprises 83 countries, and a number of civil society organizations and industry associations. The participants include all major rough diamond producing, exporting and importing countries.

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