June 2025 | Customs & International Trade Law Blog

Breaking the Chains: Forced Labor in Mexico’s Supply Chains

Forced labor is a severe violation of human rights and a persistent global issue affecting millions of individuals. According to the ILO, 27.6 million men, women, and children are in forced labor globally.[1] Over $236 billion USD is generated in illegal profits using forced labor every year.[2]

Both Mexico and the United States have robust legal frameworks to eradicate the use of forced labor and have made great strides in detection and enforcement. However, the secretive nature of the forced labor industry, changing bad actor tactics, and the intensive resourcing required presents challenges to both countries.

Forced Labor in Mexico

While Mexico has made great strides in identifying and preventing forced labor, it is still a problem that impacts hundreds of thousands of citizens. Certain risk factors[3] may make certain individuals more vulnerable to forced labor than others, including:

Poverty
Unstable immigration status
Language barriers
Lack of social support systems
Physical or developmental disabilities

An estimated 850,000 people are still living in modern slavery today in Mexico.[4] The Department of Labor has identified a list of goods it has reason to believe are produced using child labor and forced labor in Mexico including[5]:

Beans
Cattle
Chile peppers
Coffee
Cucumbers
Eggplants
Garments
Leather goods/accessories
Melons
Onions
Poppies
Pornography
Sugarcane
Tobacco
Tomatoes

Investigations have also uncovered severe forms of child labor including using children in the production and trafficking of drugs and in dangerous agricultural work.[6]

Mexico Efforts to Eliminate Forced Labor in Mexico

Over the […]

By Jennifer Diaz|2025-06-25T16:25:40-04:00June 25, 2025|Countries, Forced Labor, Mexico, U.S. Customs and Border Protection (CBP)|Comments Off

AD/CVD News: New Case Filed Against Oleoresin Paprika from India

A new antidumping and countervailing duty action has been filed against Oleoresin Paprika imported from India. The allegation is that imports from India are unfairly subsidized and being dumped.

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 merchandise covered by these investigations is coloring additive oleoresin paprika.

The products subject to the investigations are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under subheadings 3203.00.8000 and 3301.90.1010. Subject merchandise may also enter under HTSUS subheadings 1301.90.9190, 1302.19.9140, and 3205.00.0500.

By Jennifer Diaz|2025-06-25T14:19:02-04:00June 25, 2025|U.S. Department of Commerce (DOC)|Comments Off

Five Tips for SMEs Looking to Scale Wellness Brands in the US

DTL President Jennifer Diaz was featured in Santander Navigator! Read below or on Santander here.

Pre-planning and investing in regulatory compliance measures are key to success

The US is the most lucrative wellness market in the world – and for some small and medium-sized enterprises (SMEs) that produce supplements, the potential for growth and a bigger bottom line is difficult to ignore.

And who would blame them? The US wellness sector is valued at US$2tn and is poised to continue growing, recording an average annual growth rate of 8.3% between 2019 and 2023, according to research by the Global Wellness Institute.

In contrast, China’s market, ranked the second-largest in the world, trails at a more modest US$870bn, followed by Germany at $310bn.

However, rushing in without being fully compliant could result in products being blacklisted or seized at the border, says Jennifer Diaz, an attorney and founding partner at Miami-based Diaz Trade Law, which specializes in customs and US Food and Drug Administration (FDA) laws and compliance.

Here, Diaz offers her top five tips for new brands to stay compliant and off the FDA’s blacklist.

1. Know the regulators

One of the first steps for SMEs planning to import supplements into the US is to register with the FDA, as they are considered a food product, Diaz says.

Companies also need to designate […]

By Jennifer Diaz|2025-06-17T08:40:04-04:00June 17, 2025|Best Practices, Import, Import Alert, International Business, International Trade, Labeling, Pre-compliance|Comments Off

DOJ Targets Trade Fraud: Importers Now on Notice as Criminal Division Ramps Up Enforcement

On May 12, 2025, Matthew Galeotti, the Head of the U.S. Department of Justice’s Criminal Division, sent a memo to all criminal division personnel highlighting the focus areas of the division for white-collar crime.

The memo included a list of “high-impact areas” that the division will prioritize investigating and prosecuting. Trade and customs fraud, including tariff evasion, was second on the list.

The DOJ also revised its Corporate Whistleblower Awards Pilot Program and added “trade, tariff, and customs fraud by corporations” to the priority list.

Galeotti noted that unchecked fraud in U.S. markets robs hardworking Americans, harms the public, and that efficient enforcement promotes American economic and national security interests.

This memo signals a significant shift in the priorities of the DOJ’s criminal division. Historically, trade violations were not a top criminal priority and were instead handled by CBP and the DOJ’s Civil Division. Relatively few trade law violation cases have risen to the level of criminal prosecution.

What Importers Should Do

Now more than ever it is critical for importers to examine their import compliance programs and ensure that adequate procedures are in place to correctly enter goods into the United States.

Invest in Compliance

CBP expects importers to use “reasonable care” in reporting HTS, value, country of origin, free trade agreement preference, etc. This is a subjective standard; however, CBP […]

By Jennifer Diaz|2025-06-13T13:25:40-04:00June 13, 2025|U.S. Department of Justice (DOJ)|Comments Off

Outdated Trade Regulations – CBP Open to Feedback

Whether you’re a seasoned importer or just entering the trade world, keeping up with thousands of pages of regulations can be a challenge.

A stated priority of the current administration is deregulation. On January 31, 2025, President Trump signed an Executive Order titled “Unleashing Prosperity Through Deregulation.” The Order requires that whenever an agency promulgates a new rule, regulation, or guidance, it must identify at least 10 existing rules, regulations, or guidance documents to be repealed.

At last month’s Trade and Cargo Security Summit, CBP said they and their partner agencies are seeking feedback on what regulations are obsolete or simply don’t reflect the reality of the current trade environment.

Here’s a sampling of some potential obscure and obsolete regulations that CBP may consider revisiting (what are your additions to this list?):

Allowing Non-Resident Importers to Act as an Importer of Record in the U.S.

Although there are many entities that legitimately use the exception found in 19 CFR 141.18, which permits non-resident corporations to make entry of goods into the U.S. (as an importer of record), companies can also do so with malicious intent. The non-resident entity solely needs a U.S. agent for service of process and a customs bond. This particular exception is one that a bad actor can use surreptitiously. For example, a non-resident importer can create a shell […]

By Jennifer Diaz|2025-06-13T10:53:14-04:00June 13, 2025|U.S. Customs and Border Protection (CBP)|Comments Off

Breaking Trade News: China Deal “Done,” CAFC Tariff Ruling, May CPI Report

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

Administration

President Trump announced that the trade deal with China is done, subject to final approval by him and President Xi. In the announcement, the President noted that the China tariff rate would be adjusted to 55%.
The U.S. Court of Appeals for the Federal Circuit stayed the Court of International Trade’s permanent injunction on President Trump’s executive orders implementing tariffs under IEEPA. The case will now be heard by the full bench of active judges in an en banc session on July 31, 2025.
Treasury Secretary Scott Bessent said that Trump is “likely” to push back the July deadline for reciprocal tariffs.

Industry News:

The May Consumer Price Index showed steady inflation and cost of goods, despite economists’ forecasts of increases due to tariffs and trade volatility.
India Prime Minister Modi and Industry Minister Goyal said that the U.S. and India are on track to sign a trade deal very soon.

Customs and Border Protection (CBP)

CBP updated its recent guidance on Section 232 tariffs to remove tariff schedule numbers that had been erroneously included as subject to

By Jennifer Diaz|2025-06-13T08:41:39-04:00June 13, 2025|news, Snapshot|Comments Off

Breaking Trade News: Steel Tariffs to 50%, 301 Exclusions Extension, New WRO

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

Administration

On June 3, 2025, President Trump signed a Proclamation increasing Section 232 tariffs on steel and aluminum from 25% to 50%. The same day, CBP published guidance implementing the increase. All imports of steel and aluminum and their derivative products from all countries (except those from the UK) are subject to the 50% Section 232 Tariffs effective June 4, 2025.

Customs and Border Protection (CBP)

New HQ ruling: CBP ruled that an importer is liable for duties on merchandise that it sought to import, despite arguing that it didn’t consent to having its broker designate it as an importer of record.
CBP issued a WRO against Zhen Fa 7 based on information that reasonably indicates the use of forced labor. Effective May 28, 2025, CBP personnel at all U.S. ports of entry will detain seafood, including but not limited to squid, harvested by Zhen Fa 7.
CBP’s Commercial Customs Operations Advisory Committee (COAC) will be holding its quarterly meeting on June 18, virtually, from Washington, D.C.

Department of Commerce

Commerce Secretary Howard Lutnik testified before the Senate Appropriations Committee. Topics of discussion included trade deals, […]

By Jennifer Diaz|2025-06-06T09:25:55-04:00June 6, 2025|news, Snapshot|Comments Off

New AD/CVD Case Filed Against Steel Concrete Reinforcing Bar from Algeria, Bulgaria, Egypt, and the Socialist Republic of Vietnam

A new antidumping and countervailing duty action has been filed against Steel Concrete Reinforcing Bar imported from Algeria, Bulgaria, Egypt, and Vietnam. The subject merchandise covered by this petition is steel concrete reinforcing bar, which is widely used for nonresidential and infrastructure construction. The allegation is that imports from Algeria, Bulgaria, Egypt, and Vietnam are both unfairly subsidized and are being dumped (sold below cost).

Importers:

ArcelorMittal
Ag Royce Metal Marketing Dba Concrete Reinforcing Products
Duferco Steel LLC
Intermetal Rebar LLC
Macsteel International USA Corp.
Stamford Metal Group

Exporters:

Bulgaria

Helios-Metalurg
Hus Ltd
Intercom Group
Promet Steel
SIDMA
Stad
Stomana Industry

Egypt

Al-Gioshy Steel
Al Madina Steel
Delta Steel Mill Co.
Egyptian Company for Iron and Steel
Egyptian Iron and Steel & Co.
Egyptian Steel
El-Ashry Steel
Elmarakby Steel
Ezz Steel
Misr National Steel
National Port Said Steel Co.
Suez Steel
Etaqa, Adabya St., Suez

Algeria

Algerian Qatari Steel
Metal Steel Company LTS SETIF
The National Long Products Processing Company (ENTPL)
Tosyalı Algérie

Vietnam

Formosa Ha Tinh Steel Corporation
Hoa Phat Group
Hoa Sen Group
Mien Hua Precision Mechanical Co., Ltd.

By Jennifer Diaz|2025-06-05T11:26:20-04:00June 5, 2025|AD/CVD, U.S. Department of Commerce (DOC)|Comments Off

New AD/CVD Case Filed Against L-lysine from the People’s Republic of China

A new antidumping and countervailing duty action has been filed against “L-lysine” imported from China. The L-lysine covered by this petition is animal feed grade L-lysine. The allegation is that imports from China are both unfairly subsidized and are being dumped (sold below cost).

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 merchandise covered by these investigations is animal feed grade L-lysine. Lysine is an essential amino acid added to animal feed that is used in biosynthesis of proteins.

The products subject to the investigations are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under statistical reporting number 2922.41.0090.

Full scope here.

U.S. Imports of Subject […]

By Jennifer Diaz|2025-06-02T15:40:09-04:00June 2, 2025|AD/CVD, China, Countries, U.S. Department of Commerce (DOC)|Comments Off