February 2025 | Customs & International Trade Law Blog

What Happened This Month in International Trade (February 2025)

Another busy month in international trade. Here is a roundup of the latest legal and policy developments.

Customs and Border Protection (CBP)

CBP released their January 2025 monthly update. Highlights:
- Seized 1,977 shipments that contained counterfeit goods.
- Stopped 1,986 shipments for suspected use of forced labor.
- Identified $71 million in duties and fees owed to the U.S. government.
CBP announced the results of their recently completed global interoperability standards technology demonstrations. The results will help the agency in its efforts to modernize ACE 2.0 and make it consistent with CBP’s 21st Century Customs Framework.

Administration

In a Truth Social post, President Trump stated that the suspended 25% tariffs on goods from Mexico and Canada will go into effect on March 4. He also stated that China will also face an additional 10% tariff beginning March 4.
President Trump issued a memorandum titled “Defending American Companies and Innovators From Overseas Extortion and Unfair Fines and Penalties.” The memo instructs USTR to consider whether to renew 301 investigations of several Digital Services Taxes and other policies that may discriminate against the United States.
In a Truth Social post, President Trump announced that on March 1, the Administration is terminating the “Concession Agreement” that the Biden Administration reached with Nicolas Maduro of Venezuela. The agreement involved oil transactions and electoral conditions. According to the post, the electoral conditions have not been met and the country has failed to transport Venezuelan migrants back to Venezuela.
During a White House Cabinet meeting […]

By Jennifer Diaz|2025-02-28T07:25:52-05:00February 28, 2025|news, Snapshot|Comments Off

Importing Drones into the U.S.: Key CBP Requirements You Need to Know

Authors:
Jennifer Diaz, President, Diaz Trade Law
Jonathan Rupprecht, Aviation Attorney at Rupprecht Law

Importing goods into the U.S. requires navigating a web of regulations that spans 47 federal agencies. If you are the importer of record, it is your duty to exercise “reasonable care” in meeting these obligations. As part of this duty, importers must take adequate steps to properly classify and determine the value of imported goods, provide information to CBP in properly assessing duties, and determine whether other applicable legal standards and requirements have been met.

When importing drones into the U.S., importers need to be mindful of several requirements including classification, intellectual property, additional duties, and a changing U.S. trade policy.

Classification

When importing goods into the United States, importers must correctly classify their products. The Harmonized Tariff Schedule of the United States (HTSUS) is the primary resource for classifying goods and determining which tariffs apply.

The HTSUS is issued annually by the International Trade Commission (ITC). It is comprised of a 10-digit import classification system that is specific to the United States. This 10-digit code encompasses the World Customs Organization’s (WCO) six-digit uniform classification system shared among more than 200 countries.

An HTSUS is formatted to list the first 6-digits set forth by the WCO, also known as a heading and subheading and the last four digits assigned by the ITC that are specific to the U.S.

Prior to 2022, the HTSUS has lacked classifications specific to Unmanned Aircraft System (UAS). Importers had to classify under codes applicable to crewed aircraft […]

By Jennifer Diaz|2025-02-28T07:13:31-05:00February 28, 2025|Forced Labor, Import, U.S. Customs and Border Protection (CBP)|Comments Off

Trade Policy Is Changing Rapidly—Prepare Your Business for What’s Next

Trade policies are shifting faster than ever, with new tariffs, complicated regulations, and heavy enforcement measures impacting businesses across industries. If you are an importer, staying ahead of these changes is critical to maintaining smooth operations and avoiding financial setbacks.

With trade policy in flux, now is the time to ensure you are on solid footing by auditing your compliance strategies, reassessing tariff exposure, and ensuring your business is prepared for what’s ahead.

Audit Your Business Before CBP Does

Conducting an audit of your business to check for import compliance is an essential step to avoid costly penalties, thwart supply chain disruptions, and to minimize legal risk. An audit helps identify potential compliance gaps, ensuring that your existing business practices are in compliance with all applicable regulations. It also allows businesses to proactively address issues before they escalate.

Import Report Card

Diaz Trade Law can provide a customized ACE report card to give you an overview of your import compliance. The report contains a summary of your import transactions and identifies potential issues in your business’ processes as well as substantive recommendations to ensure compliance. The report provides information like:

Your last 5 years of import history
List of HTS’s you use
Total amounts paid in AD/CVD
Manufacturer ID’s reported to Customs
Inconsistencies in reporting
Total value of imports and duties paid by year
Review of countries of origin of your imported merchandise
Use of Free Trade Agreements
Your surety, bond coverage, and bond type
And more!

Lastly, the Report Card service […]

By Jennifer Diaz|2025-02-28T07:10:19-05:00February 27, 2025|ACE, Best Practices, Import, U.S. Customs and Border Protection (CBP)|Comments Off

Florida Company Pays $165K, Implements Self-Financed Monitoring to Resolve FMC Allegations

Authors:
Jennifer Diaz, President, Diaz Trade Law
Vin DiCianni, President, Affiliated Monitors

Double Ace Cargo, a non-vessel-operating common carrier (NVOCC) based in Florida, has paid $165,000 in civil penalties and will self-finance independent monitoring of its business practices under two separate compromise agreements it reached with the Federal Maritime Commission (FMC).

Under the first agreement, reached in June 2023, Double Ace paid $115,000 in civil penalties to resolve allegations that it violated the law (46 U.S.C. § 41104(a)(11)) by transporting shipments on behalf of entities that were not licensed NVOCCs, did not have bonds, and did not publish tariffs. 46 U.S.C. § 41104(a)(11) governs common carriers and prohibits them from knowingly and willfully accept cargo from or transport cargo for the account of a non-vessel-operating common carrier that does not have a tariff, or an ocean transportation intermediary that does not have a bond, insurance, or other surety.

In reviewing the June 2023 compromise, the FMC ordered the Bureau of Enforcement, Investigations, and Compliance (BEIC) to conduct a second investigation to re-examine the conduct of Double Ace and to ensure the company was complying with all obligations. The investigation resulted in a second compromise agreement where the company paid $50,000 in civil penalties for transporting shipments on behalf of entities that were not licensed NVOCCs, did not have bonds, and did not publish tariffs, in violation of 46 U.S.C. § 41104(a)(11).

As part of the second compromise agreement, Double Ace agreed to pay for independent monitoring for 12 months. The monitor is providing monthly reports […]

By Jennifer Diaz|2025-02-26T16:34:05-05:00February 26, 2025|U.S. Federal Maritime Commission|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 their January 2025 monthly update. Highlights:
- Seized 1,977 shipments that contained counterfeit goods.
- Stopped 1,986 shipments for suspected use of forced labor.
- Identified $71 million in duties and fees owed to the U.S. government.
The next 17th term Commercial Customs Operations Advisory Committee (COAC) quarterly public meeting will take place Wednesday, March 5th, 2025, in Atlanta, GA from 1:00-5:00 p.m. Eastern Time.
CBP intercepted a first in the nation pest at the Calexico Port of Entry.
Chicago CBP seized over 161K counterfeit U.S. Forever stamps.
On February 22, CBP will migrate the ACE Portal account user access management functionality to the modernized ACE Portal retiring the legacy ACE Portal.

Administration

At a press conference, President Donald Trump said that he will “probably” say more about […]

By Jennifer Diaz|2025-02-21T15:02:29-05:00February 21, 2025|news, Snapshot|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 announced the results of their recently completed global interoperability standards technology demonstrations. The results will help the agency in its efforts to modernize ACE 2.0 and make it consistent with CBP’s 21st Century Customs Framework.
CBP published a Federal Register notice decreasing the IRS rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties.
Reminder: Registration for the April 23 CBLE is open and will close March 12 at 4:30 p.m. EDT.
CBP created Harmonized Systems Updates 2505 and 2506.

Administration

President Trump signed two Presidential Proclamations imposing 25% Section 232 duties on all imported steel and aluminum.

Bureau of Industry and Security (BIS)

BIS has paused reviews of new export license applications submitted this month without explanation.

Federal Maritime Commission (FMC)

A Florida-based non-vessel-operating common carrier (NVOCC) has paid $165,000 in civil penalties and agreed to accept and self-finance independent monitoring of their business practices as part of […]

By Jennifer Diaz|2025-02-18T20:58:15-05:00February 14, 2025|news, Snapshot|Comments Off

Trump Administration Announces Plan for Reciprocal Tariffs

On February 13, the Trump Administration published a memorandum and fact sheet directing several U.S. agencies to explore the implementation of new reciprocal tariffs.

The memorandum directs the Secretary of Commerce and the United States Trade Representative, in consultation with the Secretary of the Treasury, the Secretary of Homeland Security, the Assistant to the President for Economic Policy, and the Senior Counselor to the President for Trade and Manufacturing to take all necessary actions to investigate the harm to the United States from any existing non-reciprocal trade arrangements. The agencies must then submit a report to the President detailing proposed remedies in pursuit of reciprocal trade relations with each trading partner.

According to the memorandum, it is the policy of the United States to reduce large and persistent trade deficits and to address other unfair and unbalanced aspects of trade with foreign partners. In pursuit of this policy, President Trump stated in the memo that he is introducing the “Fair and Reciprocal Plan” that will work to counter non-reciprocal aspects of trading arrangements including tariffs, taxes, and any other impediments to fair competition with the market economy of the United States.

The fact sheet outlines several examples where trading partners do not give the United States reciprocal treatment and states that reciprocal tariffs will “bring back fairness and prosperity to the distorted international trade system.”

Diaz Trade Law will continue to monitor for developments.

By Jennifer Diaz|2025-02-13T22:06:07-05:00February 13, 2025|Tariffs|Comments Off

ICYMI: Trump Administration Imposes 25% Steel and Aluminum Tariff

On February 11, 2025, President Trump issued two Proclamations imposing enhanced import duties on steel and aluminum products under Section 232 of the Trade Expansion Act of 1962. The orders eliminate certain exemptions from the duties, expand their scope to cover additional products, and raise the duties on covered aluminum goods from 10% to 25%.

On February 18, 2025, two Federal Register Notices were published that included lists of “derivative” products subject to the 25% tariffs on steel and aluminum under Section 232. The Federal Register Notices, which include the specific HTS subheadings for the derivative products in Annex 1 are available here (steel) and here (aluminum).

As of March 12, 2025, additional Section 232 tariffs of 25% will apply to covered aluminum and steel products from all countries. This means that countries that previously had certain exemptions from the 232 tariffs such as Argentina, Australia, Brazil, Canada, the EU, Japan, Mexico, South Korea, and the United Kingdom will also be subject to the 25% tariffs. Imports of derivative aluminum articles that contain “any amount of primary aluminum used in the manufacture of the derivative aluminum articles is smelted in Russia, or the derivative aluminum articles are cast in Russia,” are subject to a duty of 200%.

In addition, the additional 25% tariffs will apply to the lists of aluminum and steel derivatives identified in the annexes to the Federal Register Notices once the U.S. Department of Commerce certifies that “adequate systems are in place to fully, efficiently, and expediently process and collect tariff […]

By Jennifer Diaz|2025-02-19T16:48:46-05:00February 12, 2025|Canada, China, Countries, Import, Mexico, news|Comments Off

New Tariffs on Mexico, Canada, and China: Key Updates for Importers

Over the weekend, President Trump first issued a fact sheet and thereafter signed three executive orders imposing new tariffs on imports from Canada, Mexico, and China:

25% tariff on imports from Canada will take effect at least 30 days from Feb. 4, 2025.
25% tariff on imports from Mexico are now scheduled to take effect on March 4, 2025.
10% tariff on imports from China will take effect on February 4, 2025.

In a Truth Social post on February 27, President Trump confirmed that the tariffs on Canadian and Mexican goods will go into effect on March 4. He also announced that China will face an additional 10% tariff starting March 4.

Energy resources from Canada will have a lower 10% tariff. The orders ended duty-free de minimis treatment under 19 U.S.C. 1321 for products from China subject to these additional tariffs. However, President Trump signed a subsequent executive order pausing the suspension of de minimis treatment.

Tariffs will be on top of any other in place (301, 232, ADD, etc.) The Federal Register Notice for Canada can be found here and the Federal Register Notice for China can be found here. […]

By Jennifer Diaz|2025-02-28T08:30:28-05:00February 3, 2025|Canada, China, Countries, Import, Mexico, news|Comments Off