ACE Archives | Customs & International Trade Law Blog

Big News! 352 of 549 Proposed China Tariff Exclusions Reinstated

On March 23, 2022, the U.S. Trade Representative (“USTR”) announced that 352 of the 549 proposed exclusions have been reinstated. The reinstated product exclusions will apply as of October 12, 2021, and extend through December 31, 2022. For a full list of reinstated exclusions, please see this Federal Register announcement.

On October 8, 2021, USTR invited comments on whether to reinstate 549 previously granted and extended exclusions. This recent determination was a result of USTR’s review of public comments regarding whether and which of the proposed exclusions should be reinstated.

Diaz Trade Law filed comments on behalf of several clients who have had their exclusions reinstated. Are your products on the list of exclusions that were reinstated? Do you have questions about navigating Section 301 China tariffs? We are here for you! Diaz Trade Law has significant experience working on Section 301 exclusions. Contact us today at info@diaztradelaw.com.

A list of all the exclusions can be found below:

A. Effective with respect to good entered for consumption, or withdrawn from warehouse for
consumption, on or after 12:01 a.m. eastern daylight time on October 12, 2021, and before
11:59 p.m. eastern daylight time on December 31, 2022, subchapter III of chapter 99 of the
Harmonized Tariff Schedule of the United States (HTSUS) is modified:
1. by inserting the following new heading 9903.88.67 in numerical sequence, with the
material in the new heading inserted in the columns of the HTSUS labeled
“Heading/Subheading”, “Article Description”, and “Rates of Duty 1-General”,
respectively:
Heading/Subheading: 9903.88.67

Article Description: Effective with respect to entries on or after
October 12, […]

By Jennifer Diaz|2022-03-28T10:37:08-04:00March 23, 2022|301 INVESTIGATIONS, ACE, China, China Trade War, Import, Reasonable Care, Trade Policy, U.S. Customs and Border Protection (CBP), U.S. Trade Representative (USTR)|Comments Off

Export Controls & Cybersecurity

Introduction

In order to protect U.S. national security interests and promote foreign policy objectives, various U.S. agencies collectively administer and enforce U.S. export control laws and participate in various multilateral export control regimes to prevent the proliferation of weapons of mass destruction and prevent destabilizing accumulations of conventional weapons and related materials. To that end, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) governs the export and reexport of commodities, software, and technology falling under the jurisdiction of Export Administration Regulations. BIS promotes continued U.S. strategic technology leadership and is responsible for enforcing the regulation of export, reexport, and transfer of items with commercial uses that can also have a dual use, and be used in conventional arms, weapons of mass destruction, terrorist activities, or human rights abuses, and less sensitive military items, which bleeds into cybersecurity as well.

Cybersecurity has recently become an essential aspect in export controls and on October 21, 2021, BIS published its Interim Final Rule (this rule is effective January 19, 2022), which summary states:

SUMMARY: This interim final rule outlines the progress the United States has made in export controls pertaining to cybersecurity items, revised Commerce Control List (CCL) implementation, and requests from the public information about the impact of these revised controls on U.S. industry and the cybersecurity community. Specifically, this rule establishes a new control on these items for National Security (NS) and Anti-terrorism (AT) reasons, along with a new License Exception Authorized Cybersecurity Exports (ACE) that authorizes exports of […]

By Jennifer Diaz|2022-02-15T13:12:15-05:00February 15, 2022|ACE, EAR, Enforcement, Export, International Trade, U.S. Bureau of Industry and Security (BIS)|Comments Off

Customs and Trade Law Weekly Snapshot

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

Apparel

Nike has ended 2021 as the most valuable apparel firm globally. According to data presented by FinancePR.com, the American outfit achieved a $30.44 billion valuation in 2021, placing it at the helm of the top ten garment firms worldwide.

CBP

On November 30, 2021, U.S. Customs and Border Protection officers in Cincinnati seized a shipment containing counterfeit designer jewelry and scarves. The fakes, which came from China, would have been worth a total of $3.09 million had they been genuine.
On December 6, 2021, a garment importer based in downtown Los Angeles was sentenced to 12 months and one day in federal prison for scheming to undervalue imported garments and avoid paying duties to the United States, and failing to report income on tax returns and large cash transactions to the federal government.
On December 13, 2021, Chris Magnus was sworn in as Commissioner of United States Customs and Border Protection following his Senate confirmation last week. Magnus becomes the fifth confirmed CBP Commissioner since the law enforcement agency’s creation under DHS in 2003.
CBP has reorganized all Informed Compliance Publications (ICPs) on CBP.gov under each applicable Center of Excellence and Expertise.
U.S. Customs and Border Protection is modernizing the ACE Secure Data Portal over multiple phases in 2022. The modernization effort will entail the transition of existing functionality to an upgraded platform, offering […]

By Jennifer Diaz|2022-07-01T11:15:32-04:00January 14, 2022|ACE, China, China Trade War, HTS, Import, International Trade, Seizures, Snapshot, U.S. Customs and Border Protection (CBP), U.S. Food and Drug Administration (FDA), U.S. Office of Foreign Assets Control (OFAC)|Comments Off

2021: A Year in Review

From all of us at Diaz Trade Law, we are incredibly thankful and grateful for your support this year. Despite this ongoing pandemic, Diaz Trade Law still managed to save our clients MILLIONS of dollars in 2021. It is with great joy that we finish off 2021 filled with numerous achievements and accomplishments were humbled to share with you. We look forward to assisting you in what we envision will be a better and brighter 2022!

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By Jennifer Diaz|2022-04-25T16:55:36-04:00December 30, 2021|ACE, AD/CVD, Best Practices, CBP 28, China, COVID-19, Currency Seizure, Export, HTS, Import, Import Alert, International Trade, IPR, Trademarks and Logos, Prior Disclosures, Seizures, U.S. Customs and Border Protection (CBP), U.S. Federal Aviation Administration (FAA), U.S. Federal Trade Commission (FTC), U.S. Food and Drug Administration (FDA), U.S. Office of Foreign Assets Control (OFAC)|Comments Off

9801.00.10: Updated Requirements for Returned Goods

Background on HTSUS Subheading 9801.00.10

Ever hear of U.S. goods returned and wondered what it really meant? The Harmonized Tariff Schedule of the United States (“HTSUS”) subheading 9801.00.10 is used for re-importing U.S. made products back into the United States, duty-free. Previously, this classification only covered merchandise originally made in the United States and now reentering the country (hence “US Goods Returned”). In order to qualify for classification under subheading 9801.00.10 and duty-free treatment, these products entering the United States had to be unimproved in condition or value. In other words, the products had to not be subject to further processing abroad. For example, subheading 9801.00.10 may be used when goods are being re-imported as returned product to the seller or for repair. Under subheading 9801.00.10, the importer has the burden to prove their claim for duty-free treatment.

CBP Issues Updated Guidance

On August 20, 2021, subheading 9801.00.10 was expanded to include products which originated from foreign countries. HTSUS subheading 9801.00.10 now states: “Products of the United States when returned after having been exported, or any other products when returned within 3 years after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad.” In other words, non-U.S. origin products that are returned to the United States will ALSO qualify for duty-free treatment under subheading 9801.00.10. However, the timing requirements for U.S.-origin and foreign-origin products are different. U.S.-origin products currently have no time limit to file […]

By Jennifer Diaz|2021-11-09T12:23:27-05:00November 23, 2021|ACE, Best Practices, Customs Broker, Customs Expert, Enforcement, Import, International Trade, Pre-compliance, Reasonable Care, U.S. Customs and Border Protection (CBP)|Comments Off

Customs Issues Notice of Proposed Rulemaking on Broker Continuing Education – Comments Open

CBP’s Proposed Rule

On September 10, 2021, U.S. Customs and Border Protection (“CBP”) published a Notice of Proposed Rulemaking regarding broker continuing education. In the proposed rule, CBP is proposing mandatory continuing education requirements for individual licensed brokers. CBP underscores the benefits of mandatory continuing education for customs brokers in its proposed rule:

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By Jennifer Diaz|2021-10-13T15:25:44-04:00October 12, 2021|ACE, Best Practices, Customs Broker, Import, International Trade, Pre-compliance, Supply Chain, U.S. Customs and Border Protection (CBP)|Comments Off

How to Build and Maintain an Effective Import Compliance Plan

CBP enforcement is on the rise. If your business is importing into the U.S., or wants to start, our one-hour, NEI accredited, webinar on “Building & Maintaining an Effective Import Compliance Plan” will provide best practices and TOP tips to build an import compliance plan.

Register today to to hear directly from Senior Trade Advisor, Don Woods, DTL’s president, Jennifer Diaz, and Associate Attorney, Denise Calle as they discuss real life stories, current trends/risks associated with the import process, proactive ways to stay compliant, and the importance of training to avoid costly encounters with CBP. […]

By Jennifer Diaz|2021-10-01T09:43:08-04:00October 1, 2021|ACE, Best Practices, Counterfeits, CTPAT, Currency Seizure, Customs Broker, Customs Expert, Enforcement, Forced Labor, Freight Forwarding, ICE, Import, International Trade, IPR, Trademarks and Logos, Labeling, Labor Rights, Penalty, Pre-compliance, Reasonable Care, Seizures, U.S. Customs and Border Protection (CBP)|Comments Off

Jennifer Diaz Presenting at Global Trade Educational Conference 2021

The NCBFAA Educational Institute invites all global logistics professionals to its 7th Annual Global Trade Educational Conference (GTEC). This two-day event in Baltimore, MD will give customs brokers, freight forwarders, NVOCCs, OTI, service providers, importers, exporters and all global logistics professionals an opportunity to update themselves on industry developments and connect with colleagues new and old.

Join us IN PERSON in Baltimore, MD, July 26-27, 2021. NCBFAA NEI and hotel staff will be complying with all state and venue COVID-19 protocols so you can feel safe attending the event! Virtual attendance is available, so you can gain knowledge from anywhere!

REGISTER TODAY!

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By Jennifer Diaz|2021-07-06T09:17:36-04:00July 6, 2021|ACE, Counterfeits, CTPAT, Currency Seizure, Customs Broker, Customs Expert, Enforcement, Forced Labor, Freight Forwarding, ICE, Import, International Trade, IPR, Trademarks and Logos, Labeling, Labor Rights, Penalty, Pre-compliance, Reasonable Care, Seizures, Speaking, U.S. Customs and Border Protection (CBP)|Comments Off

Potential Relief from China Tariffs Coming

Background on Section 301 Tariffs

A key element of the U.S.-China trade war, initiated under the Trump administration and continuing through Biden’s first term, was the imposition of China tariffs under Section 301. Section 301 is a mechanism via which the President can retaliate against foreign countries that violate U.S. trade agreements or engage in acts that are “unjustifiable” or “unreasonable” and burden U.S. commerce. With regard to China, the U.S. Trade Representative (“USTR”) found that China’s acts, policies, and practices related to intellectual property and innovation are unreasonable or discriminatory and burden or restrict U.S. commerce. Accordingly, a broad set of tariffs were instituted. Section 301 tariffs for goods originating from China have been so expansive that U.S. Customs revenue has nearly doubled from $41.6 billion in FY 2018 to $71.9 billion in FY 2019 and $74.4 billion in FY 2020.

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By Jennifer Diaz|2021-10-07T14:51:06-04:00June 7, 2021|301 INVESTIGATIONS, ACE, China, China Trade War, Customs Expert, Import, International Trade, Trade Policy, U.S. Customs and Border Protection (CBP), U.S. Trade Representative (USTR)|Comments Off

ACE: Auditing Your Export History

If a company or individual believes they have violated export control regulations and the U.S. government is unaware of this violation, proactively and voluntarily disclosing the potential wrongdoing can substantially reduce penalties. A key component of filing a successful voluntary self-disclosure (“VSD”) is uncovering and providing the correct data. Diaz Trade Law has significant experience analyzing ACE export data to evaluate your export compliance and submit successful VSDs that substantially mitigate penalties.

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By Jennifer Diaz|2021-10-07T14:55:38-04:00May 13, 2021|ACE, Best Practices, EAR, EEI, Export, HTS, International Trade, ITAR, Supply Chain, U.S. Bureau of Industry and Security (BIS), U.S. Census Bureau|Comments Off