November 2024 | Customs & International Trade Law Blog

Customs and Trade News Weekly Snapshot

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

Customs and Border Protection (CBP)

CBP seized more than $18 million in fake Gibson guitars in largest counterfeit musical instrument seizure on record.
CBP was the only federal agency selected as one of Military.com’s Top 25 Employers for Veterans 2025.
CBP made several updates to Appendix J response codes for Electronic Export Manifest.
Reminder: the annual Customs Broker permit user fee due date for the 2025 calendar year is due Jan. 31, 2025. The permit user fee for the 2025 calendar year is $180.57.
CBP, in collaboration with Canada Border Services Agency (CBSA), will adjust hours of operation for 38 ports of entry along the U.S. northern border, beginning at midnight, Jan. 6. Full list of changed port operational times here.
CBP’s Commercial Customs Operations Advisory Committee (COAC) announced it will hold its next quarterly meeting on Dec. 11.

Industry News

In a series of posts on Truth Social, President-Elect Donald Trump p

By Jennifer Diaz|2024-11-30T10:38:50-05:00November 30, 2024|Snapshot|Comments Off

CPSC’s Upcoming eFiling Requirement: What You Need to Know

The Consumer Product Safety Commission (CPSC) is tasked with protecting the public from unreasonable risks of injury or death associated with consumer products. The agency issues and enforces standards, issues product recalls, researches hazardous products, and more. The agency also has the authority to order the detention and seizure of goods that it believes to be non-compliant with CPSC safety regulations.

Beginning in 2025, products regulated by the CPSC may be denied entry into the U.S. unless the importer electronically files a detailed product certification with Customs and Border Protection (CBP).

See a full list of CPSC regulated products here.

CPSC’s eFiling Proposal

Since 2008, importers have been required to maintain Certificates of Compliance stating that the product they are importing meets all applicable safety standards. However, these certificates did not need to be filed at the time of import.

In June 2022, CPSC announced a Beta Pilot test with CBP for eFiling of certificate data for regulated consumer products. In 2023, the CPSC and CBP began the text with 38 importer participants. In December 2023, the agencies published a notice expanding the Beta Pilot test to include up to 2,000 additional importer participants and to extend the test for up to three years. In announcing expansion of the test, the CPSC also proposed a new rule that would require that importers of regulated consumer products eFile Certificates of Compliance at import.

On November 22, 2024, the CPSC’s General Counsel circulated a staff briefing memorandum recommending approval and publication of a final rule […]

By Jennifer Diaz|2024-11-30T10:31:02-05:00November 30, 2024|U.S. Consumer Product Safety Commission (CPSC)|Comments Off

ITC Terminates AD/CVD Investigation of Aluminum Extrusions from China, Colombia, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, South Korea, Taiwan, Thailand, Turkey, United Arab Emirates, and Vietnam

On November 22, 2024, the International Trade Commission (ITC) published in the Federal Register its negative final determination in the antidumping and countervailing duty (AD/CVD) investigation of aluminum extrusions from China, Colombia, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, South Korea, Taiwan, Thailand, Turkey, United Arab Emirates, and Vietnam.

The Commission found that an industry in the United States is not materially injured or threatened with material injury by reason of these imports.

Investigation Background

The Commission instituted these investigations effective October 4, 2023, following receipt of petitions filed by the U.S. Aluminum Extruders Coalition.

The Department of Commerce made preliminary determinations that imports of aluminum extrusions from China, Indonesia, Mexico, and Turkey were subsidized and that imports of aluminum extrusions from China, Colombia, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, South Korea, Taiwan, Thailand, Turkey, United Arab Emirates, and Vietnam were sold at less than fair value.

Following this preliminary determination, the final phase of the investigations was scheduled by the Commission. The Commission conducted its hearing on October 1, 2024 where all persons who requested the opportunity were permitted to participate.

Immediate Impact

CBP has been instructed to discontinue the suspension of liquidation of entries of merchandise which were entered, or withdrawn from warehouse, for consumption on or after March 11, 2024. These entries should be liquidated without regard to countervailing duties. Further, all estimated countervailing duties deposited on entries of the subject merchandise will be refunded.

If you have questions about how this determination impacts your business, get in touch with us at 305-456-3830 or […]

By Jennifer Diaz|2024-11-30T10:02:31-05:00November 30, 2024|AD/CVD, U.S. Department of Commerce (DOC), U.S. International Trade Commission (USITC)|Comments Off

What Happened This Month in International Trade – November

Notable trade developments – November 2024.

Customs and Border Protection (CBP)

CBP released the October 2024 monthly update. Highlights:
- Stopped 557 shipments for further examination based on the suspected use of forced labor
- Seized 1677 shipments that contained counterfeit goods
- Identified $3.6M in duties and fees owed to the U.S. government
CBP was the only federal agency selected as one of Military.com’s Top 25 Employers for Veterans 2025.
Reminder: The Customs Broker Permit User Fee amount changed from $174.80 to $180.57. All broker permits issued on or after October 1, 2024, are subject to the new user fee.
CBP seized more than $18 million in fake Gibson guitars in largest counterfeit musical instrument seizure on record.

Bureau of Industry and Security (BIS)

BIS published an updated version of Don’t Let This Happen to You!, a list of case examples highlighting BIS enforcement efforts including criminal cases.
BIS published a final rule imposing new controls on exports, reexports, and transfers (in-country) to Pakistan to address diversion concerns.

Department of Homeland Security (DHS)

DHS added 30 additional companies, including metal and food producers, to the Uyghur Forced Labor Prevention Act Entity List.

Office of Foreign Asset Control (OFAC)

OFAC announced the issuance of a $1,104,408 penalty against an individual for 75 violations of OFAC sanctions on Iran. The violations related to remittance of funds between the United States and Iran in order to purchase, renovate, and operate a hotel in Iran.

Consumer Product Safety Commission (CPSC) […]

By Jennifer Diaz|2024-11-30T09:57:07-05:00November 30, 2024|Snapshot|Comments Off

Trade News: AD/CVD Petition Filed Against Sol Gel Alumina-Based Ceramic Abrasive Grains from China

Saint-Gobain Ceramics & Plastics, Inc., filed a petition for the imposition of antidumping and countervailing (AD/CVD) duties on the imports of certain sol gel alumina-based ceramic abrasive grains from China.

The petitioner alleges that imports of ceramic abrasive grains are being sold in the U.S. at less than fair value. The petitioner also alleges that the government of China has used an array of tools to support local ceramic abrasive grains producers and manufacturers.

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

Ceramic abrasive grains are a type of advanced abrasive, essential for the use of abrasive tools. After production, sol gel alumina-based ceramic abrasive grains are typically bonded or coated to grinding media or “backings” (i.e., sandpapers, grinding wheels, grinding cylinders, grinding discs, etc.) for end use in high-precision manufacturing tools across a variety of industries.

This Petition covers sol gel alumina-based ceramic abrasive […]

By Jennifer Diaz|2024-11-26T20:43:30-05:00November 26, 2024|AD/CVD, 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)

CBP released the October 2024 monthly update. Highlights:
- Stopped 557 shipments for further examination based on the suspected use of forced labor
- Seized 1677 shipments that contained counterfeit goods
- Identified $3.6M in duties and fees owed to the U.S. government
CBP issued updated guidance for importer obligations and requirements in completing origin documents – declarations, statements, and certifications of origin.
Reminder: The Customs Broker Permit User Fee amount changed from $174.80 to $180.57. All broker permits issued on or after October 1, 2024, are subject to the new user fee.
CBP issued guidance implementing USTR’s amendment to Section 301 China duties and product exclusions.
CBP agriculture specialists intercepted live larvae from a rare and potentially destructive fruit fly at Detroit Metropolitan Airport.
CBP and Laboratories and Scientific Services (LSS) opened a Forward […]

By Jennifer Diaz|2024-11-22T12:15:24-05:00November 22, 2024|Snapshot|Comments Off

CPSC Issues New Safety Standards for Aquatic Toys

The Consumer Product Safety Commission (CPSC) published a Notice of Proposed Rulemaking to make the safety standard for aquatic toys more stringent. The primary product targeted in the rule is neck floats which have been reported to pose a serious drowning risk to young children. The rule establishes several testing and performance requirements for these products to ensure the highest level of safety.

Conditioning

The rule would require producers of these products to subject them to conditioning procedures to ensure their durability. These include exposing the products to various temperatures, chlorine and salt water environments, and ultraviolet light.

Minimum standards

To safeguard against unintentional submergence and restraint system failure, the rule proposes additional minimum standards.

Buoyancy Requirements

The Commission is proposing to require that all neck floats demonstrate a minimum upward buoyancy equal to or greater than 30 percent of the expected weight capacity. Additionally, the rule would require that inherently buoyant neck floats to not lose more than 5 percent of their initial buoyancy after being submerged for a 24-hour period.

Restraint Systems

To reduce the likelihood of a restraint system failure on a neck float, which can result in a child slipping through the product, the new rule Commission proposes requirements for the release mode of the fastening mechanism, and overall mechanical integrity of restraint systems.

Marking, Labeling, and Instructional Requirements

In the notice, the CPSC noted that the existing safety messaging for neck floats has limited effectiveness for preventing the submersion hazard. The rule requires new on-product warnings that include:

A description of the hazard;

[…]

By Jennifer Diaz|2024-11-22T07:19:35-05:00November 22, 2024|U.S. Consumer Product Safety Commission (CPSC)|Comments Off

BIS Releases New Edition of “Don’t Let This Happen to You”

The Department of Commerce’s Bureau of Industry and Security (BIS) published an updated version of Don’t Let This Happen to You!, a list of case examples highlighting BIS enforcement efforts including criminal cases.

Case highlights:

The publication highlights over 100 cases covering various violations of export control laws.

Military Controls

The owner of BQ Tree Consulting in Jacksonville, Florida, along with the President and Manager of the company were indicted for conspiring to illegally export military-grade combat rubber raiding craft (CCRC) to China.

The scheme involved providing a U.S. company with false end-use and end-user information for a front company in Hong Kong, which was used to complete the transaction ultimately destined for China. The intention was to reverse engineer the CRRC and engines to mass produce them for the Chinese People’s Liberation Army (PLA) Navy.

The company owner was sentenced to 16 months in prison, two years of supervised release, mandatory mental health screening, and a $200 special assessment. The company President was sentenced to 42 months confinement, three years of probation, a $50,000 criminal fine, and a $200 special assessment. The company manager was sentenced to 17 months in prison, one year of supervised release pending deportation, a prohibition on employment with any company that deals with the military, and a $100 special assessment.

National Security Controls

GlobalFoundries U.S. Inc., a semiconductor wafer manufacturing company headquartered in Malta New York violated the Export Administration Regulations (EAR) by sending 74 shipments of semiconductor wafers, valued at approximately $17.1 million, to SJ Semiconductor (SJS), a company […]

By Jennifer Diaz|2024-11-22T07:18:29-05:00November 22, 2024|EAR, Export, U.S. Bureau of Industry and Security (BIS), U.S. Department of Commerce (DOC)|Comments Off

Navigating Tariff Increases: Strategies to Minimize Tariff Costs Under the Trump Administration

Donald Trump favors tariffs. Leading up to the 2024 election, he called himself the “tariff man” and stated that tariffs are “the greatest thing ever invented” and “the most beautiful word in the dictionary.”

Although the specifics of Donald Trump’s tariff plan have yet to be revealed, he has made numerous public statements about the tariffs he has in mind. At a rally in North Carolina, he suggested imposing a 10-20% tariff on all imported goods. He also said that he would impose a 25% tariff on imports from Mexico if the country does not help curb the flow of immigrants and drugs over the border. He has also suggested a massive 60% to 100% tariff on Chinese origin goods.

So, what can importers do to prepare? A lot!

First, What is a Tariff?

A tariff (also known as a duty) is a tax levied by governments on the value of imported products. Tariffs differ greatly by country and by individual product. In the United States, tariffs are collected by U.S. Customs and Border Protection (CBP) and the money goes to the U.S. Treasury.

The importer of record is responsible for correctly classifying their goods and paying the appropriate duty rate. Tariffs are not paid by the foreign seller or the country from which the goods are imported, thus the costs are generally passed along to the U.S. consumer.

Learn more about how tariffs work here.

Strategies to Minimize Tariff Costs

An increase in tariffs can undoubtedly have a significant impact […]

By Jennifer Diaz|2024-11-18T13:43:13-05:00November 15, 2024|Import|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)

CBP issued a withhold release order (WRO) against a frankincense supplier based in Somaliland, based on the alleged use of forced labor in the production of merchandise.
CBP, in collaboration with the Department of Homeland Security announced the three-part webinar series, UFLPA 101 for the Seafood Sector, on Nov. 12-14.
The Miami Tampa Field Office announced the passing of CBP Operations Specialist Monica “Lisi” Guerrier on October 28, 2024.
CBP published a bulletin proposing to modify and revoke rulings on plastic recycling plants, and wood chipping machines.
CBP announced its FY2025 quarterly webinar series on the Enforce and Protect Act (EAPA) program, the first session will be held on November 21, 2024.
CBP agriculture specialists at the Louisville Port of Entry intercepted a shipment containing 41 dead bats and 41 dead birds.
Reminder: CBP will implement rejections for vague cargo descriptions in ACAS effective 12:00 pm EST on November 12, 2024.
CBP issued a notice of initiation of investigation […]

By Jennifer Diaz|2024-11-08T15:22:24-05:00November 8, 2024|Snapshot|Comments Off