April 2024 | Customs & International Trade Law Blog

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 provides guidance on reporting indicators of compromise related to cyberattacks
- The guidance encourages industry to report indicators of compromise to CBP so that the agency can limit the impact of a cyber-attack and more quickly reconnect CBP systems access for impacted parties.
CBP & Canon USA announce partnership against counterfeit products
- Under the partnership, Canon will donate 328 verification tools to CBP cargo and mail facilities to aid in authenticating a variety of Canon merchandise.
At the port of Rochester, N.Y., CBP officers found several shipments that contained multiple “designer” clothing, shoes, handbags and watches, as well as Airpods and NBA branded rookie cards.
- All the items were determined to be not authentic and were seized. Had these items been genuine, the total MSRP value would be approximately $408,805 dollars.
CBP officers seize counterfeit designer watches worth over $50,000.
CBP sets […]

By Jennifer Diaz|2024-04-26T15:45:39-04:00April 26, 2024|Snapshot|Comments Off

Trade News: New Petition Filed Against Solar Cells and Modules from Cambodia, Malaysia, Thailand, and Vietnam

A petition was filed on April 24, 2024 seeking the imposition of antidumping and countervailing (AD/CVD) duties on imports of crystalline silicon photovoltaic (CSPV) solar cells and modules from Cambodia, Malaysia, Thailand, and Vietnam.

The petition was filed by the American Alliance for Solar Manufacturing Trade Committee, a coalition comprised of four domestic producers.

Full list of producers here. Full list of U.S. importers here.

The scope covers crystalline silicon photovoltaic cells and modules, laminates, and panels, consisting of crystalline silicon photovoltaic cells, whether or not partially or fully assembled into other products, including, but not limited to: modules, laminates, panels, and building integrated materials. Full scope here.

The Commerce Department will determine whether to initiate the investigations within 20 days. The USITC will reach a preliminary determination of material injury or threat of material injury within 45 days.

As with any proceeding, participation is very important to protect your rights. We urge anyone that imports CSPV solar cells and modules to pay close attention to this case and to ensure that all appropriate steps are taken to mitigate any damage.

Diaz Trade Law will continue to monitor this case and share updates. For more information or questions get in touch with us at 305-456-3830 or info@diaztradelaw.com.

By Jennifer Diaz|2024-04-26T15:36:45-04:00April 26, 2024|AD/CVD, U.S. Department of Commerce (DOC)|Comments Off

Trade News: New Petition Filed on Alkyl Phosphate Esters from China

A petition was filed on April 23, 2024 that alleges alkyl phosphate esters from China are being sold at less than fair value and benefiting from countervailing subsidies. The petition was filed by ICL-IP America, Inc., a subsidiary of the ICL Group (“ICL”). Alleged dumping margins range from 45.1% to 68.4%.

Full list of producers here. Full list of U.S. importers here.

The scope of petition covers alkyl phosphate esters based exclusively on side chains with a length of two or three carbon atoms and a phosphorus content of at least 6.5 percent (per weight) and a viscosity between 1 and 2000 mPa.s (at 20-25 °C). Full scope here.

The Commerce Department will determine whether to initiate the investigations within 20 days. The USITC will reach a preliminary determination of material injury or threat of material injury within 45 days.

As with any proceeding, participation is very important to protect your rights. We urge anyone that imports alkyl phosphate esters to pay close attention to this case and to ensure that all appropriate steps are taken to mitigate any damage.

Diaz Trade Law will continue to monitor this case and share updates. For more information or questions get in touch with us at 305-456-3830 or info@diaztradelaw.com.

By Jennifer Diaz|2024-04-24T11:38:59-04:00April 24, 2024|AD/CVD, China, Countries, U.S. Department of Commerce (DOC)|Comments Off

From Chaos to Compliance: A Guide for Importers

Many mistake the ease of importing to mean there is no liability or obligation on the part of the importer. Whether your company is new to importing, or has been in the business for years, CBP expects importers to use “reasonable care” to ensure compliance with relevant rules and regulations. Importers are at risk of being subject to enforcement actions by CBP if they do not comply with the reasonable care standard when importing goods into the U.S. This article provides an overview of CBP’s expectations of an importer and practical advice on what you must have in your import compliance plan.

How Did We Get Here?

December 8th, 1993, the Dow Jones reached a record high of 3734.53, Janet Jackson’s “Again” remained number one on the charts, and President Bill Clinton signed the Customs Modernization Act (Mod Act). The Mod Act altered the import compliance landscape by making it the responsibility of the importer to classify items, determine their value, etc. The law also imposed a legal obligation to use “reasonable care” in doing so, or else Customs could (and would) impose penalties.

What Exactly is “Reasonable Care”?

Reasonable care requires importers to conduct themselves as a reasonable importer would under the circumstance with respect to importing goods into the United States.

Reasonable care requires importers to:

Meet the standard to enter, classify and determine the value of imported goods
Provide other information necessary to aid CBP in properly assessing duties and collecting accurate statistics
Determine whether other applicable legal standards and […]

By Jennifer Diaz|2024-04-19T16:11:26-04:00April 19, 2024|Import, Pre-compliance, Reasonable Care, U.S. Customs and Border Protection (CBP)|Comments Off

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 March 2024 monthly update. Highlights:
- Processed more than 2.8 million entry summaries
- Identified estimated duties of nearly $6.2 billion to be collected by the U.S. government
- Stopped 749 shipments for further examination based on the suspected use of forced labor
- Seized 1,633 shipments that contained counterfeit goods
CBP’s National Commodity Specialist Division (NCSD) has announced its webinar series lineup for May. View full list here.
CBP published an update This is an update to their April 1 publication on vague cargo descriptions. published on April 1, 2024.
- This nationwide cargo messaging will be sent in the SO20 record (position 8-57) with a Reference Identifier Qualifier “CMT” within the ACE Cargo Release Status Notification message.
EAPA Update: EAPA Case 7818: AMVC-Midwest LLC aka Midwest Livestock Systems, LLC (Notice of Determination as to Evasion).

Department of Commerce (DOC)

By Jennifer Diaz|2024-04-19T16:09:24-04:00April 19, 2024|Snapshot|Comments Off

The False Claims Act: Get Paid to Expose Fraud & Unfair Competition, Protect Yourself from an Investigation

____________________________________________________________________

!! UPCOMING False Claims Act Webinar !!

Learn how to expose fraud, blow the whistle on unfair competition, and avoid being the target of an FCA investigation

May 9, 2024 | 12:00 PM ET

Speakers: Jennifer Diaz, President &Dana Watts, Of Counsel, Diaz Trade Law and Jonathan Tycko, Partner, Tycko & Zavareei LLP

Register HERE.

____________________________________________________________________

The False Claims Act (FCA) is a powerful federal anti-fraud law that incentivizes average people to expose fraud. The law attempts to reward whistleblowers and disincentivize committing fraud and can be used to expose customs fraud.

What is the False Claims Act?

The FCA, 31 U.S.C. §§ 3729 – 3733, is a federal statute enacted in 1863 in response to defense contractor fraud during the Civil War.

The FCA provides that any person who knowingly submits, or causes to submit, false claims to the government is liable for three times the government’s damages plus a penalty. Conspiring to commit these acts also is a violation of the FCA.

The FCA allows the U.S. government to investigate perpetrators of fraud directly, but it also provides an avenue for private citizens to become whistleblowers and expose fraud.

The Department of Justice (DOJ) obtained more than $2.68 billion in settlements and judgments involving fraud and false claims in the fiscal year ending Sept. 30, 2023.

The FCA and International Trade

The FCA is commonly used to prosecute financial crime such as misuse of federal grants and healthcare related claims. However, in recent years the FCA has been increasingly used to allege customs duty […]

By Jennifer Diaz|2024-04-18T17:01:11-04:00April 18, 2024|Enforcement, U.S. Customs and Border Protection (CBP)|Comments Off

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 warns of an increase in impersonation scams. Bad actors are posing as CBP employees and demanding payment or sensitive information.
- The agency advises that if you receive one of these calls, hang up and report the call to the Federal Trade Commission.
CBP said that it was recently notified of a Linux security vulnerability that potentially affects the trade community.
- CBP recommends the immediate roll back to an earlier, unaffected version.
Updated fact sheets issued at the 2024 Trade Facilitation and Cargo Security Summit:
CBP announced in a federal register notice that the export certification requirement for imports of steel products […]

By Jennifer Diaz|2024-04-12T15:11:20-04:00April 12, 2024|Snapshot|Comments Off

The Arena of EAPA: Transshipping, Pencils, and Evading Duties

Customs and Border Protection (CBP) investigates allegations of dumping or unfair foreign subsidies, but they also have the authority to investigate potential violations of any imposed Anti-Dumping or Countervailing Duties (AD/CVD) under the Enforce and Protect Act (EAPA) of 2015.

Customs describes EAPA as a “multi-party, transparent, administrative proceeding where parties can both participate in and learn the outcome of the investigation. It also maintains due process for parties to the investigation by providing an option for them to request administrative and judicial reviews of CBP’s determination as to evasion.” Self-assertions of transparency and due process aside, many have found EAPA cases to be highly secretive and not always fair.

Frequently, an EAPA case involves an allegation that Chinese goods are allegedly transshipped through another country (or only subject to minor processing) to avoid paying AD/CVD duties. Since AD/CVD duties are applicable based upon the commodities country of origin, nefarious companies can ship goods from China to for example, Vietnam, India, Mexico, Taiwan, Malaysia, or some other country, and claim that these goods do not originate from China after all. Importers, in good faith, will declare that their imports are not subject to AD/CVD duties because they are not aware of the true origin of the goods. Such importers might not be liable for penalties if their belief was in good faith and based on facts, but such importers would still be subject to massive duties. Thus, contrary to popular option, good/honest importers may also find themselves the recipient of […]

By Jennifer Diaz|2024-04-12T15:01:41-04:00April 12, 2024|AD/CVD, Import, U.S. Department of Commerce (DOC)|Comments Off

Customs and Trade News Weekly Snapshot

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

Customs and Border Protection (CBP)

Operational update for Port of Baltimore: CBP said ocean carriers originally planning to unload at the Port of Baltimore must proceed to another U.S. port in the aftermath of the Francis Scott Key Bridge collapse on March 26.
CBP published a federal register notice that makes changes to the Global Entry and SENTRI programs. Highlights:
- The Global Entry fee will be increased from $100 to $120
- The total SENTRI fee will be decreased from $122.25 to $120.
- Fee exemption for certain minors
At the Trade Facilitation and Cargo Security Summit, CBP provided attendees with a handout which asks importers and customs brokers: “Do You know Your Supply Chain?”
CBP published an updated version of the ACE Entry Summary Business Rules and Process Document, Version 12.0. The publication includes updates on:
- Entry summary
- Blanket declarations

By Jennifer Diaz|2024-04-05T11:25:38-04:00April 5, 2024|Snapshot|Comments Off

FDA Unveils Searchable Tobacco Products Database to Bolster Compliance and Transparency

Last week, FDA’s Center for Tobacco Products (CTP) announced the release of its Searchable Tobacco Products Database. This tool provides easy access to a list of legally marketable tobacco products within the United States, integrating a user-friendly design with sophisticated search functionalities, making navigation and information retrieval very easy. The FDA has committed to monthly updates, ensuring the availability of current and accurate product information.

FDA categorizes listed tobacco products into three groups:

New Tobacco Products: products that have successfully navigated through one of the FDA’s pathways for new tobacco product market authorization.
Pre-existing Tobacco Products: Identified through a voluntary determination program, these products were commercially available as of February 15, 2007.
Provisional Tobacco Products: that have been withdrawn from the FDA review process.

The database fosters enhanced transparency that aligns with the needs particularly of retailers, to empower stakeholders to better meet regulatory requirements. It encompasses nearly 17,000 tobacco products, including more than 12,000 Pre-existing Tobacco Products category. The database provides detailed information for each listed product, including the product name, manufacturer, categorization, the statutory or regulatory basis for its marketability in the U.S., and the specific date of the FDA’s decision. It also provides access to an array of regulatory and scientific documents associated with the tobacco product application, including Order Letters, Decision Summaries, Environmental Assessments (EAs), and their related documentation.

FDA has also introduced a supplementary resource, the Searchable Tobacco Products Database – Additional Information, designed to demystify the terminology and contextual background of the database […]

By Jennifer Diaz|2024-04-05T11:28:15-04:00April 2, 2024|Tobacco, U.S. Food and Drug Administration (FDA)|Comments Off