December 2024 | Customs & International Trade Law Blog

2024: A Year in Review

As we wrap up this extraordinary year, we want to take a moment to thank you for your trust, collaboration, and support. This year was marked by significant milestones and meaningful accomplishments, including saving our clients MILLIONS of dollars.

We look forward to working with you in 2025!

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 November 2024 monthly update. Highlights:
- Identified estimated duties of nearly $6.97 billion to be collected
- Stopped 669 shipments for further examination based on the suspected use of forced labor
- Seized 1,532 shipments that contained counterfeit goods
CBP issued a ruling stating that food that was denied entry but can be reconditioned to meet FDA requirements isn’t prohibited merchandise, so it isn’t eligible for a refund if it’s exported or destroyed.
CBP officers in Louisville seized four shipments containing 962 pieces of counterfeit designer watches, bracelets, necklaces, and earrings.
CBP published updated draft Cargo Release CATAIR, draft Global Business Identifier Enrollment Create-Update, GBI Enrollment GO Status Notification, and GBI Condition Codes documents to its website.

Bureau of Industry and Security (BIS)

BIS imposed a $180,000 mitigated penalty against Indium Corporation for 11 exports of electronics manufacturing components to […]

By Jennifer Diaz|2024-12-28T12:02:42-05:00December 26, 2024|Snapshot|Comments Off

Clock Ticking: Potential Government Shutdown on the Horizon

Government funding will lapse at midnight on Friday, December 20 absent Congressional action. With a number of contentious issues still at play including the debt limit, disaster aid funding, and pay raises for lawmakers, a shutdown is looking more and more likely.

Below is a breakdown of how key agencies will be impacted by a lapse in funding.

U.S. Customs and Border Protection

According to the Department of Homeland Security’s contingency plan, cargo inspection functions at ports of entry will remain active during a shutdown. However, certain activities such as training and auditing are not required to be carried out during this time. In addition, back-office support positions are not likely to be deemed essential and will be furloughed. Refunds, audits, ruling requests, etc. would be delayed until the shutdown ends.

There remains uncertainty around which specific offices will be deemed essential. For example, Forced Labor Communications may be furloughed, resulting in delays in reviewing Enforce and Protect Act (EAPA) and Uyghur Forced Labor Prevention Act (UFLPA) allegations.

U.S. Department of Commerce

According to the Department of Commerce’s contingency plan, some International Trade Administration (ITA) activities such as trade policy negotiations will be considered necessary for national security and will operate during a shutdown.

However, many other activities are not likely to be deemed essential. For example, in the last shutdown in 2019, the ITA and the Bureau of Industry and Security operated with a significantly reduced staff and budget. All antidumping and countervailing duty (AD/CVD) investigations and administrative proceedings will stop.

U.S. Department of Treasury

Under the Department of Treasury’s

By Jennifer Diaz|2024-12-20T17:16:35-05:00December 20, 2024|news|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 authorized the release of most types of merchandise on or after Dec. 17 through Dec. 31 under Immediate Delivery procedures.
Reminder: On January 11, 2025, CBP will deploy the second release of the Section 321 – Does Not Exceed $800 in Aggregated Shipments enhancement to the Automated Commercial Environment (ACE). This enhancement will provide a warning in ACE when a de minimis shipment may exceed the $800 per person/per day threshold.
CBP seized $81.5 million in unapproved electronic nicotine delivery systems.

Consumer Product Safety Commission (CPSC)

CPSC approved a Final Rule to implement electronic filing (eFiling) of Certificate information for regulated, imported consumer products and to revise requirements for Certificates of Compliance.

U.S. Food and Drug Administration (FDA)

The FDA announced new EU requirements for importing honey and other apiculture products, effective November 29, 2024. The EU regulation requires that all establishments importing apiculture products into the EU (including honey, beeswax, royal jelly, propolis, and pollen) must register in the EU’s Trade Control and Expert System (TRACES).

U.S. Department […]

By Jennifer Diaz|2024-12-20T15:02:01-05:00December 20, 2024|Snapshot|Comments Off

CPSC Approves Final Rule to Implement eFiling for Certificates of Compliance

The CPSC voted unanimously in favor of a Final Rule to implement electronic filing (eFiling) of Certificate information for regulated, imported consumer products.

The new eFiling program will apply to all imported consumer products subject to a mandatory safety standard, including de minimis shipments. Requirements impacting most imported consumer products and those produced domestically will take effect in June 2025.

Background – 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 test 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 the 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 the time of import.

On November 22, 2024, the CPSC’s General Counsel circulated a staff briefing memorandum recommending approval and publication of a final rule implementing the eFiling proposal.

eFiling Requirements

The eFiling rule will impose new requirements for how importers manage product certificate data, not which products require a certificate. Any consumer product that is subject to a CPSC […]

By Jennifer Diaz|2024-12-20T14:48:15-05:00December 19, 2024|U.S. Consumer Product Safety Commission (CPSC)|Comments Off

Trade News: New AD/CVD Case Filed on Active Anode Material from China

A new case was filed on Active Anode Material from China by the American Active Anode Material Producers.

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. The domestic industry initiating the investigation is known as the petitioner while the foreign industry participating in the investigation is known as the respondent.

Scope of the Investigation

The product is generally described as: active anode material is most commonly used as the primary component in the anode of lithium-ion batteries. The anode of a lithium-ion battery must be made with active anode material, often combined with silicon. In contrast, the cathode of lithium-ion batteries can be made from a variety of metal oxides, including lithium cobalt oxide, lithium manganese oxide, lithium iron phosphate, or lithium nickel manganese cobalt oxide.

Full scope here.

Next Steps

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 […]

By Jennifer Diaz|2024-12-20T14:48:21-05:00December 18, 2024|AD/CVD, China, 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)

President-elect Trump has selected Rodney Scott as the next CBP Commissioner.
CBP and the U.S. Chamber launched a “Shop Smart” campaign to urge holiday shoppers to beware of counterfeits.
CBP agricultural specialists at the Dulles airport intercepted two dangerous insect pests – one not seen in 40 years.
CBP officers seized a large cache of testosterone and other steroids at Laredo Port of Entry.
CBP seized over 34K pounds of sweetened condensed milk at the Pharr International Bridge.
Reminder: Brokers must earn 20 continuing education credits from qualifying educational activities that occur beginning January 1, 2025.
CBP’s Commercial Customs Operations Advisory Committee (COAC) held its quarterly public meeting on December 11.

Bureau of Industry and Security (BIS)

BIS added 8 entities to the Entity List for Enabling Human Rights Abuses.

By Jennifer Diaz|2024-12-13T15:30:45-05:00December 13, 2024|Snapshot|Comments Off

Trade News: New AD/CVD Case Filed on Erythritol from China

A new anti-dumping and countervailing case was filed on Erythritol from China by Cargill, the sole U.S. producer of Erythritol.

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. The domestic industry initiating the investigation is known as the petitioner while the foreign industry participating in the investigation is known as the respondent.

Scope of the Investigation

The product is generally described as: Erythritol, which is a sugar alcohol, commonly referred to as a polyol, typically produced by the fermentation of glucose using

enzymes and yeast or yeast-like fungi (though the scope includes erythritol produced using

any other feedstock or organism). Erythritol typically appears as a white crystalline, odorless product that rapidly dissolves in water. While erythritol is typically produced in the crystalline form or as a fine powder or in directly compressible form, the scope of these investigations covers all physical forms and grades of erythritol.

Full scope here.

Next Steps

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

By Jennifer Diaz|2024-12-20T14:42:23-05:00December 13, 2024|AD/CVD, China, U.S. Department of Commerce (DOC)|Comments Off

USTR Announces Section 301 Investigation into Nicaragua’s Acts, Policies, and Practices Related to Labor Rights, Human Rights, and the Rule of Law

The United States Trade Representative (USTR) announced the investigation regarding Nicaragua’s acts, policies, and practices related to labor rights, human rights, and the rule of law under Section 301 of the Trade Act of 1974. This is the first 301 investigation involving policies and practices that may violate labor rights and human rights.

301 Background

Section 301 of the Trade Act of 1974 is designed to address unfair foreign practices affecting U.S. commerce. It grants USTR a range of authorities to investigate unfair trade practices and to enforce U.S. rights under trade agreements.

Under 301, the U.S. government may impose trade sanctions on foreign countries that engage in acts that are burdensome to U.S. commerce or that violate trade agreements.

The law does not limit the scope of investigations, but it does mention several categories of activities that are subject to 301 action, including:

(1) a violation that denies U.S. rights under a trade agreement

(2) an “unjustifiable” action that “burdens or restricts” U.S. commerce

(3) an “unreasonable” or “discriminatory” action that “burdens or restricts” U.S. commerce.

“Commerce” is defined to include goods, services, and investment.

Previous examples of 301 investigations include investigations into China’s technology transfer practices, Vietnam’s currency manipulation, and Digital Services Taxes in various countries.

Nicaragua Investigation

The investigation into Nicaragua’s acts follows numerous credible reports that the Ortega-Murillo regime engages in human rights and labor rights violations and dismantling the rule of law. Activities cited by USTR include:

Politically-motivated arrests and imprisonments
Repression of members of religious groups and non-governmental organizations

[…]

By Jennifer Diaz|2024-12-12T22:32:31-05:00December 12, 2024|301 INVESTIGATIONS, U.S. Trade Representative (USTR)|Comments Off

Case Update: 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 30, 2024, we published the below article on the ITC’s AD/CVD investigation of aluminum extrusions. Since then, there have been two significant updates in the case:

The parties who petitioned for the antidumping and countervailing duties to be applied have filed an appeal to the U.S. Court of International Trade. The case is expected to take at least a year and does not create any obligation to continue to deposit AD/CVD duties.
CBP has received the official termination instructions to no longer collect AD/CVD duties for these cases and to refund any AD/CVD duties that an importer may have previously made.

Original article:

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, […]

By Jennifer Diaz|2024-12-10T09:18:06-05:00December 10, 2024|AD/CVD, U.S. Department of Commerce (DOC)|Comments Off

Top 2024 Success Stories

Background – CPSC’s eFiling Proposal

eFiling Requirements

301 Background

Nicaragua Investigation

Investigation Background