July 2025 | Customs & International Trade Law Blog

New AD/CVD Case Filed: Unwrought Palladium from the Russian Federation

A new antidumping and countervailing duty (AD/CVD) action has been filed against unwrought palladium from the Russian Federation (Russia). The allegation is that imports from Russia are unfairly subsidized and are 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 unwrought palladium, whether or not refined.

The products subject to the investigations are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under subheading 7110.21.0000. 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 […]

By Jennifer Diaz|2025-07-30T19:39:12-04:00July 30, 2025|AD/CVD, U.S. Department of Commerce (DOC)|Comments Off

Breaking Trade News: Trade Deals with Japan & Philippines, CBP Fee Increase, New IEEPA Lawsuit

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

Administration

President Trump announced a trade deal with Japan. A 15% tariff rate will apply to all Japanese imports. Japan also committed $550B to invest in U.S. industry.
President Trump announced a trade deal with the Philippines. A 19% tariff rate will apply to all Philippine imports.
During a Congressional reception, President Trump threatened to ban the import of German cars if the EU doesn’t allow drugmakers to sell in their countries at higher prices.

Customs and Border Protection (CBP)

CBP published a Federal Register notice announcing the agency will be adjusting certain customs user fees and corresponding limitations established by the Consolidated Omnibus Budget Reconciliation Act (COBRA) for Fiscal Year 2026.

Court of International Trade (CIT)

CIT hands down $3.4M penalty against importers for duty evasion.
Two orange juice importers asked the CIT to either temporarily, preliminarily, or permanently enjoin the federal government from imposing and enforcing the Administration’s threatened 50% tariff on Brazil.

United States Trade Representative (USTR)

The Senate Appropriations Committee advanced a funding bill that included an increase […]

By Jennifer Diaz|2025-07-25T10:36:06-04:00July 25, 2025|news, Snapshot, Uncategorized|Comments Off

CIT Hands Down $3.4M Penalty for Duty Evasion

On July 18, 2025, the Court of International Trade (CIT) granted the government’s motion for default judgment against importer Rayson Global and its owner, Doris Cheng, for negligently failing to pay duties.

The Case

The government’s case was filed in 2023, alleging that the importers had falsely declared that Chinese-origin goods as Thai origin to evade duties. The government asserted this false declaration avoided payment of ordinary 6% duties, Section 301 duties ranging from 10% to 25%, and 234.51% antidumping duties.

The government asked the court to impose a penalty for negligence. The penalty amount is twice the loss of revenue or the domestic value, whichever is lower. After the importer failed to answer the complaint (a huge mistake), the U.S. moved for summary judgment.

The CIT granted the government’s motion and ordered the importer to pay a nearly $3.4 million penalty as well as all unpaid duties, taxes, and cash deposits on the unliquidated entries in question.

Duty Evasion is on the Rise

This case is just one example of the growing incentive to cheat that comes with higher tariffs. Whether it’s through misclassifying goods, undervaluing imports, or using deceptive transshipment routes, some companies are turning to creative or outright illegal strategies to reduce their tariff liability.

These incentives have even contributed to the emergence of a cottage industry of “tariff reduction” companies that suggest ways to cut import costs. However, many of these so-called strategies amount […]

By Jennifer Diaz|2025-07-25T10:16:56-04:00July 25, 2025|Enforcement, Import, International Trade, Penalty, Reasonable Care, U.S. Customs and Border Protection (CBP), U.S. Department of Justice (DOJ)|Comments Off

AD/CVD News: New Case Filed Against Freight Rail Couplers From the Czech Republic and India

A new antidumping and countervailing duty action has been filed against certain freight rail couplers and parts from the Czech Republic and India. The allegation is that imports from Czech Republic and 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 freight railcar couplers (also known as “fits” or “assemblies”) and parts thereof.

The products subject to the investigations are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under subheadings 8607.30.1000, 8607.30.1010, 8607.30.1050, 8607.30.1090, 7326.90.8688, 8606.10.0000, 8606.30.1000, 8606.91.0000, 8606.92.0000, 8606.99.0130, 8606.99.0160, 9803.00.50, and 7325.99.5000.

Full scope here.

Next Steps

The Commerce Department will determine whether […]

By Jennifer Diaz|2025-07-23T18:35:45-04:00July 23, 2025|AD/CVD, U.S. Department of Commerce (DOC)|Comments Off

ICYMI: BIS Initiates 232 Investigations of UAS and Polysilicon Imports

On July 15, 2025, the Bureau of Industry and Security announced Section 232 National Security Investigations of: (i) Unmanned Aircraft Systems (UAS) and their parts/components, and (ii) polysilicon and related derivatives.

The Federal register notices are available here (UAS) and here (polysilicon).

BIS is specifically interested in the following information:

The current and projected demand for these products and the extent to which domestic production can meet this demand
The role of foreign supply chains, particularly of major exporters, in meeting United States demand
The concentration of U.S. imports from a small number of suppliers and the associated risks
The impact of foreign government subsidies and predatory trade practices
The economic impact of artificially suppressed prices due to foreign unfair trade practices and state-sponsored overproduction
The potential for export restrictions by foreign nations
The feasibility of increasing domestic capacity to reduce import reliance
The impact of current trade policies on domestic production and whether additional measures, including tariffs or quotas, are necessary to protect national security

The deadline to submit comments is August 6, 2025.

The investigations could result in new trade restrictions, including tariffs. If you import products covered under these investigations, make your […]

By Jennifer Diaz|2025-07-22T07:45:54-04:00July 22, 2025|Enforcement, Export, Import, International Trade, Tariffs, Trade Policy, U.S. Bureau of Industry and Security (BIS)|Comments Off

Breaking Trade News: Indonesia Trade Deal, Brazil 301 Investigation, New 232 Investigation

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

Administration

President Trump told reporters that Section 232 tariffs on pharmaceuticals will start “probably at the end of the month.”
President Trump told reporters that the Administration would be sending a letter to 150 “small countries” notifying them of their new tariff rate.
President Trump announced a trade deal with Indonesia. A 19% tariff rate will apply to all Indonesian imports.

Customs and Border Protection (CBP)

CBP launched a new and improved Withhold Release Orders (WROs) and Findings Dashboard. The new dashboard displays active WROs or Findings issued by CBP from 1950 to the present and is updated as new WROs or Findings are issued.
CBP issued guidance on applying Section 232 auto tariffs on non-U.S. content for USMCA-qualifying imports of passenger vehicles and light trucks.

United States Trade Representative (USTR)

USTR launched a Section 301 investigation on Brazilian policies that discriminate against American firms. Comments are due August 18.

U.S. Food and Drug Administration (FDA)

The FDA announced that […]

By Jennifer Diaz|2025-07-18T11:29:00-04:00July 18, 2025|news, Snapshot|Comments Off

ICYMI: USDA Plan Calls for Stronger Enforcement of Agricultural Imports

On July 8, 2025, the U.S. Department of Agriculture (USDA), along with the Department of Homeland Security (DHS), the Department of Justice (DoJ), and the Department of Defense (DoD), released a National Farm Security Action Plan to elevate American agriculture as a key element of the country’s national security.

Plan Details

The action plan will enable USDA to work closely with governors, state legislators, and federal partners to further integrate agriculture into the broader national security efforts over the coming months and years.

The USDA and its government partners will take “aggressive action” across seven critical areas:

Secure and Protect American Farmland – Address U.S. foreign farmland ownership from adversaries head-on. Total transparency. Tougher penalties.
Enhance Agricultural Supply Chain Resilience – Refocus domestic investment into key manufacturing sectors and identify non-adversarial partners to work with when domestic production is not available. Plan for contingencies.
Protect U.S. Nutrition Safety Net from Fraud and Foreign Exploitation – Billions have been stolen by foreign crime rings. That ends now.
Defend Agricultural Research and Innovation – No more sweetheart deals or secret pacts with hostile nations. American ideas stay in America.
Put America First in Every USDA Program – From farm loans to food safety, every program will reflect the America […]

By Jennifer Diaz|2025-07-17T09:41:31-04:00July 17, 2025|Enforcement, Food, Import, International Trade, Supply Chain, U.S. Department of Agriculture (USDA), U.S. Department of Homeland Security (DHS), U.S. Department of Justice (DOJ)|Comments Off

Jennifer Diaz Featured in the Wall Street Journal

We are pleased to announce that DTL President Jennifer Diaz was recently featured in the Wall Street Journal!

Reporter Corinne Ramey walks through the recent uptick in efforts to evade rising tariffs and how the federal government is responding. She quoted Jennifer on DTL’s approach to advising clients on enforcement.

Below are a few snippets from the piece. Read the full article on the WSJ.com here.

“First came President Trump’s announcements of sweeping tariffs. Next up, lawyers say, is the cheating.

Trade lawyers say that as tariffs skyrocket, so too do the incentives not to pay them. Clients are inundating them with questions about the line between lawful loopholes and fraud.

At the same time, the Justice Department’s shifting white-collar priorities to pursue tariff and customs-related cases more aggressively have helped create a perfect storm for more trade enforcement. And lawyers say they have seen a sharp increase in calls from whistleblowers looking to file their own cases about alleged wrongdoing…”

“Jennifer Diaz, a Florida trade lawyer, said her firm was ramping up its criminal expertise to prepare for a new wave of enforcement. The firm now advises clients on regulatory matters and navigating customs rules.

‘To have this topic being front page news on a daily basis is a trade lawyer’s dream,’ Diaz said.”

Diaz Trade Law is […]

By Jennifer Diaz|2025-07-15T08:34:41-04:00July 15, 2025|Enforcement, Tariffs, U.S. Department of Justice (DOJ)|Comments Off

Breaking Trade News: Tariffs Postponed, New Copper Tariffs, Census Trade Report

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

Administration

President Trump issued an Executive Order that officially postpones the effective date of the country-specific reciprocal tariffs from July 9 to Aug. 1.
President Trump announced that a 50% tariff on copper imports will take effect on August 1, 2025.
On July 4, President Trump signed the “Big, Beautiful Bill” into law. The bill includes provisions that will terminate the $800 de minimis exception for commercial shipments from all countries as of July 1, 2027.
President Trump sent a letter to Brazil’s president, threatening a 50% tariff on Brazilian goods and calling for the end of the trial of former President Jair Bolsonaro.
President Trump posted screenshots of letters he sent to 22 countries regarding reciprocal tariff rates that will take effect on August 1. Letters were sent to Brazil, Algeria, Iraq, Libya, Sri Lanka, Brunei, Moldova, Philippines, Laos, Myanmar, Cambodia, Thailand, Serbia, Bangladesh, Indonesia, South Africa, Bosnia and Herzegovina, South Korea, Japan, Kazakhstan, Malaysia, and Tunisia.

Customs and Border Protection (CBP)

Several FDA-regulated products previously exempt from partner government agency filing requirements when falling under the $800 de minimis threshold

By Jennifer Diaz|2025-07-11T10:16:37-04:00July 11, 2025|news, Snapshot|Comments Off

High Tariffs, High Stakes: The Rise in Customs Fraud and Enforcement Risk

As tariffs climb and global trade grows more complex, a growing number of importers are testing the limits, or outright breaking the law, to reduce or avoid duty payments. U.S. enforcement agencies, including Customs and Border Protection (CBP) and the Department of Justice (DOJ), have made it clear that customs fraud will not be tolerated and is a top enforcement priority.

High Tariffs = High Incentive to Cheat

High tariffs create an incentive to cheat. Whether it’s through misclassifying goods, undervaluing imports, or using deceptive transshipment routes, some companies are turning to creative or outright illegal strategies to reduce their tariff liability.

This is not theoretical, we’ve seen it before. During the U.S.–China trade war of 2018–2019, there was a surge in country-of-origin fraud, particularly Chinese goods re-labeled as “Made in Vietnam.” Known as a “country of origin wash,” this practice misleads CBP and avoids duties tied to China.

These incentives have contributed to the emergence of a cottage industry of “tariff reduction” companies that advertise ways to cut import costs. However, many of these so-called strategies amount to evasion, putting importers at serious legal risk.

DOJ Prioritizes Customs Fraud

The Department of Justice is watching closely. In a May 2025 memo, Matthew Galeotti, head of the DOJ’s Criminal Division, named trade and customs fraud as one of the top enforcement priorities in white-collar crime.

The DOJ also expanded its Corporate Whistleblower Awards Pilot Program […]