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Recently, the US has been experiencing a shortage of solar energy modules, and energy producers have not been able to keep up with demand for clean energy alternatives. On June 6th, the current administration declared “an emergency to exist with respect to the threats to the availability of sufficient electricity generation capacity to meet expected customer demand.” This emergency declaration allows for solar panels originating from Cambodia, Malaysia, Thailand, and Vietnam to be imported to the US duty-free for the next 24 months, at the discretion of the Secretaries of Commerce, Treasury, and Homeland Security.
On June 16th, the current administration signed the Ocean Shipping Reform Act of 2022 (OSRA) into law. This act will provide additional powers to the Federal Maritime Commission (FMC) which will help combat rising freight costs, enhance oversight on international ocean carriers, and prohibit carriers from unreasonably denying US exports. The Act will allow the FMC to conduct investigations into ocean carriers and apply enforcement measures based on their findings. The Act also changes some rules on demurrage and detention charges, passing the burden of proof from the invoiced party to ocean carriers to verify the demurrage and detention charges, and ensuring that these charges meet federal regulations.
On August 1st and 2nd, 2022, the NCBFAA National Educational Institute will host the annual Global Trade Educational Conference (G-TEC) in Chicago. The conference is open to all importers and exporters, and will have sessions on many different topics featuring subject matter experts and prominent leaders in the industry. Topics include CTPAT, Binding rulings, export sanctions, trade remedies, forced labor prevention, tips on managing remote work, and many more. This event is a great opportunity for importers and exporters to learn more about compliance and improve the effectiveness of their due diligence. and provide due diligence. NCBFAA members that register will have access to member pricing and earn 14 CCS/CES credits. This event is also a great opportunity to network with others in the global trade industry.
CBP’s Office of Trade Relations are hosting webinars during the first few weeks of June. These webinars will provide an overview of the Uyghur Forced Labor Prevention Act (UFLPA), as well as strategies on implementation of the act before it goes into effect on June 21st.
The UFLPA establishes a rebuttable presumption that the importation of any goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China, or produced by certain entities, is prohibited by Section 307 of the Tariff Act of 1930 and that such goods are not entitled to entry to the United States.
CBP is also urging all importers to do their due diligence and review their supply chains to ensure their goods are not being produced with forced labor before UFLPA is implemented.
On May 9th, the Department of Commerce announced that the Section 232 Tariffs on Ukrainian steel will be lifted for one year. This follows similar tariff suspensions on Ukraine-originating goods by other allied countries around the world. Ukraine’s steel industry is one of the most important parts of their economy and employs a significant portion of the country. This suspension will provide relief to this industry, allowing for additional export opportunities as their steel mills begin production again.
The FDA recently released updated guidance on Foreign Supplier Verification Programs for Food Importers (FSVP), requiring that every entry line of food being imported to the US has a unique facility identifier (UFI). Earlier guidance allowed for using “UNK” (unknown) in place of the DUNS number in the UFI field, as this was a new requirement and importers would need time to gather the necessary information. As of July 24th, 2022, the FDA will no longer allow the use of “UNK” in the UFI field. All foods subject to FSVP must have the corresponding DUNS number in the UFI field of each entry. Moving forward, CBP will reject any entry line for foods subject to FSVP if there is no DUNS provided.
Laurie Arnold Vice President Compliance for JAS Forwarding (USA) Inc. was elected as the Treasurer to the National Customs Brokers & Freight Forwarders Association of America (NCBFAA) at the 49th Annual NCBFAA conference in Tucson AZ on May 2nd. The NCBFAA is a national membership headquartered in Washington DC that represents more than 1,000 member companies with over 110,000 employees in international trade-the nation’s leading freight forwarders, customs brokers, ocean transportation intermediaries, NVOCC’s and air cargo agents, serving more than 250,000 importers and exporters. The NCBFAA established in 1897, is the effective national voice of the industry. The association keeps a close eye over legislative and regulatory issues affecting the international trade community.
Laurie has served the last 3 years as the Legislative Committee Chair for the NCBFAA, working with the congressional offices on a variety of issues, including the America Competes Act currently in congress. The America Competes Act (HR4521) covers multiple areas including the Illegal Fishing & Forced Labor Prevention Act (SIMP) and Import Security & Fairness Act. Working on The Customs Business Fairness Act (CBFA) HR4816 by far is where her passion shows. She was instrumental in having the language from this bill included in the Cares Act of 2020. The provision provided customs brokers a year reprieve of being required to return any customs duty received from the importer and provided to US Customs as a pass through if the importer filed bankruptcy. While the provision did expire at the end of 2021, she has remained committed to making the CBFA permanent. Laurie is looking forward to serving in her new role as the Treasurer for the NCBFAA.
The US and UK have reached a new agreement to adjust the Section 232 tariffs on steel and aluminum imported form the UK. These changes allow the US to import a certain amount of UK steel and aluminum products without facing Section 232 tariffs. The deal also lifts tariffs placed on certain US goods exported to the UK. This agreement mandates an annual third-party audit of financial records for UK steel businesses controlled by Chinese companies to identify whether the company is being unduly influenced by the Chinese government. The tariffs will be lifted on June 1st, 2022.
On March 14th, CBP announced they are detaining all imported merchandise produced by Li-Ning Sporting Goods, a major Chinese sporting goods company. A recent CBP investigation concluded that Li-Ning Sporting Goods is using North Korean labor in their supply chain, which violates The Countering America’s Adversaries Through Sanctions Act (CAATSA). CAATSA prohibits the entry of goods, wares, and articles mined, produced, or manufactured wholly or in part by North Korean nationals or North Korean citizens anywhere in the world, unless clear and convincing evidence is provided that such goods were not made with forced labor. All Li-Ning merchandise arriving at US ports will be detained until the importer is able to provide evidence that the goods were not made using forced labor, or else the goods may be subject to seizure and forfeiture.
The quarterly Internal Revenue Service interest rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties will increase from the previous quarter. For the calendar quarter beginning April 1, 2022, the interest rates for overpayments will be 3 percent for corporations and 4 percent for non-corporations, and the interest rate for underpayments will be 4 percent for both corporations and non-corporations.
On March 11th, President Biden signed an executive order banning the importation of Russian seafood* and alcohol. The order also bans exports of luxury goods to Russia and restricts any new investments in Russia’s economy by US citizens. This order is one of several orders aimed at reducing Russia’s ability to fund their invasion of Ukraine, and part of a greater global effort to prevent further escalation in this conflict.
* The OFAC General License 17a authorizes the import of Russian seafood and fish until June 23, 2022, provided the requirements in the license are met.
The Uyghur Forced Labor Prevention Act (UFLPA) is scheduled to go into effect on June 21, 2022. In preparation for the implementation of this act, CBP has created a webpage as well as a new email for questions and information on the implementation of UFLPA. The website will be regularly updated with the most up to date information, and their inbox is open for inquiries and compliance advisement. The Forced Labor Enforcement Task Force (FLETF) will also be holding a public hearing on the methods used to prevent goods produced with forced labor from entering the US. The hearing is on April 8th, and members of the public can register on the CBP site if they wish to provide public testimony.
The Bureau of Industry and Security has issued additional sanctions and export controls against Russia in response to their invasion of Ukraine. These new rules are intended to severely impact Russian financial systems, disrupt their economy, and reduce their access to high-tech imports. The largest Russian banks targeted by these sanctions have been cut off from US financial systems. The ruling also places restrictions on the Russian military, preventing access to exports from the US and certain exports that utilize US-originating goods. Several Russian elites and their families have also had severe sanctions placed upon them and their US assets have been frozen. Canada, Japan, Australia, the EU, and other US allies are also placing their own sanctions against Russia in a unified effort to further damage Russia’s ability to carry out their invasion.
Please note the situation in Ukraine is changing rapidly, and this report is based on the most up to date data available at time of publishing.
New data shows that Chicago CBP officers seized around $2.88 million worth of counterfeit goods during the month of January alone. One of the biggest busts in January was a shipment from Israel with over $713,000 in counterfeit jewelry. Officers say they see counterfeit goods passing through on a near daily basis, with reports showing 29 counterfeit seizures in Chicago throughout January. The fake items seized cover all manner of accessories including jewelry, watches, shoes, and handbags. Estimates show the United States spends over $100 billion every year on counterfeit goods that infringe on intellectual property laws.
The U.S. and Japan have reached an agreement to adjust the Section 232 tariffs on Japanese steel imports. This new agreement sets a quota for Japanese steel, allowing for up to 1.25 million tons to be imported without any Section 232 duties imposed. This plan is similar to a resolution passed last year easing EU steel and aluminum tariffs, though this agreement only affects Japanese steel imports. These multinational agreements are part of a larger strategy to fight China’s anti-competitive trade practices, as well as creating a greener steel trade industry.
The Department of the Treasury's Office of Foreign Assets Control (OFAC) is issuing a final rule to adjust certain civil monetary penalties (CMP) for inflation pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. OFAC imposes CMPs pursuant to the penalty authority in five statutes: The Trading With the Enemy Act; the International Emergency Economic Powers Act ; the Antiterrorism and Effective Death Penalty Act of 1996; the Foreign Narcotics Kingpin Designation Act; and the Clean Diamond Trade Act . The new rule went into effect February 9th.
In early January, US Customs and Border Protection released their annual statistics for Fiscal Year 2021. Among the data provided was information on the ongoing efforts to protect consumers from products made using forced labor. In the last fiscal year, CBP has prevented almost $500 million worth of goods manufactured using forced labor from entering the US. Trade seizures were also up from last year, with over 83,000 shipments siezed over alleged trade violations. CBP also noted a record year in imports, collecting almost $94 billion in duties and taxes.
The International Trade Commission (ITC) has opened an AD/CVD investigation to determine whether there is a reasonable indication that an industry in the United States is materially injured or threatened with material injury, by reason of imports of steel nails, provided for in subheadings 7317.00.55, 7317.00.65, and 7317.00.75 of the Harmonized Tariff Schedule of the United States, that are alleged to be sold in the United States at less than fair value from India, Sri Lanka, Thailand, and Turkey and alleged to be subsidized by the Governments of India, Oman, Sri Lanka, Thailand, and Turkey. Unless the Department of Commerce (“Commerce”) extends the time for initiation, the Commission must reach a preliminary determination in antidumping and countervailing duty investigations in 45 days, or in this case by February 14, 2022. The Commission's views must be transmitted to Commerce within five business days thereafter, or by February 22, 2022.
Investigation Nos. 701-TA-673-677 and 731-TA-1580-1583 (Preliminary)
On January 24th, the Department of Homeland Security announced that they are seeking public comment on the Uyghur Forced Labor Prevention Act. These comments are intended to help shape the way the act will be implemented and enforced. Included in the notice are instructions on how to submit a comment, and a series of questions to help ensure DHS gets the information they need. The commenting period is open now and will close March 10th at midnight. For further information on the bill or details on how to submit a comment, please see the below links.
New legislation has been introduced to the House that aims to reduce exploitation of the Section 321 de minimis threshold. Section 321 de minimis currently allows goods from foreign countries to be imported duty-free and tax-free as long as the value of the goods is under $800. Over the past several years, the amount of packages arriving in the US under Section 321 has expanded exponentially, currently averaging over 2 million packages per day. There are major concerns that this is reducing the competitiveness of US businesses, and allows bad actors in the industry to exploit the lack of oversight on these lower-value shipments. The Import Security and Fairness Act is intended to close this loophole and provide additional oversight to the de minimis import process. The Act also will require CBP to collect information on all de minimis shipments in order to prevent further abuse of the rule, as well as ensuring de minimis is not being used to bring in goods made with forced labor.
Starting January 22nd, DHS will begin enforcing a requirement for all non-US citizens traveling to the United States via land port of entry or ferry terminals to be fully vaccinated against COVID-19. This new requirement is part of a series of changes to Non-Citizen entry into the US that was created in October of last year in order to fight the ongoing spread of COVID-19. As of January 22nd, any non-US individuals entering the US - regardless of their reasoning for entry – will need to verbally state their vaccination status and provide proof of a CDC-approved COVID-19 vaccination, along with the usual documents required to cross into the United States.
The Census Bureau is proposing to amend its regulations to reflect new export reporting requirements related to the country of origin. Specially, the Census Bureau is proposing to add a conditional data element, country of origin, when foreign origin is selected in the Foreign/Domestic Origin Indicator field in the Automated Export System (AES). In addition to the new export reporting requirement, the proposed rule would make remedial changes to the FTR to improve clarity and to correct errors.
Written comments are requested and must be received on or before February 14, 2022.
Earlier this year, the Uyghur Forced Labor Prevention Act was introduced to the Senate. The bill includes measures to restrict certain goods imported from the Xinjiang Uyghur Autonomous Region due to alleged human rights violations and forced labor being used to manufacture exported goods. The only exceptions for imported goods from this region will be if CBP can establish proof that the goods were not made through exploitive or forced labor practices. The bill will also empower the current administration to impose and enforce sanctions against any businesses or individuals supporting any forced labor practices within the region. This bill was passed in the House on December 8th, and the Senate on December 16. The bill was signed by the President on December 23, 2021.
On December 13th, Chris Magnus was sworn in as the Commissioner of the United States Customs and Border Protection agency. The new Commissioner will lead the United States’ largest law enforcement agency, with nearly 65,000 people. Magnus brings with him over 40 years of experience in law enforcement leadership from across the US and has served as police chief in several cities. Magnus has stated that he wants to work together with Congress to address the most pressing issues for the CBP.
The US Chamber of Commerce has sent a letter to Congress encouraging Congress to take action on renewing GSP (Generalized System of Preferences) and the MTB (Miscellaneous Tariff Bill), both of which expired in December of 2020. The Chamber pointed out the impact to US business and urged Congress urgently approve this legislation before the end of the year.
The last 30 days have brought many updates to Section 301 duties, exclusions and more. The action all started on May 14, 2024, when the USTR announced that further action would be taken against China’s unfair technology transfer policies and practices. It was announced that key products would be subject to new rates over the next two years.
May 22, 2024, there was a follow up to the May 14 announcement which further defined that 382 HTSUS subheadings and 5 statistical reporting numbers of the HTSUS are the specific products that will have the increases in 2024, 2025 and 2026. This notice also noted that an exclusion process is being established for machinery used in domestic manufacturing and under certain subheadings under chapters 84 and 85 of the HTSUS. Finally, this notice proposes 19 temporary exclusions for solar manufacturing equipment.
Finally, on May 24, 2024, the USTR published details about the disposition of the existing Section 301 exclusions 9903.88.67 and 9903.88.68 which have been scheduled to expire on May 31, 2024. In summary, all exclusions under 9903.88.67 and 9903.88.68 have been extended to July 14, 2024. On July 15, 2024, a new exclusion will be effective. The new exclusion, under 9903.88.69 will cover 87 of the original 352 exclusions under 9903.88.67.
For more details, check out our 3 Client advisories released during May linked below.
CBP publishes numerous Informed Compliance Publications. These documents can be extremely useful in answering detailed questions about the application of CBP rules/laws on a wide range of topics. Some of the topics covered include Valuation, classification of sets, classification of specific product types, drawback, reasonable care, recordkeeping, rules of origin and the list goes on. These documents are publicly available and can be viewed online or downloaded. To check them out, follow the link below!
The U.S. Commerce Department’s Bureau of Industry and Security (BIS) has updated the process for excluding certain steel and aluminum imports from tariffs, effective July 1, 2024. This revision removes twelve General Approved Exclusions (GAEs), aiming to strengthen domestic steel and aluminum production and reduce reliance on foreign manufacturing. The changes follow public feedback and are intended to ensure fairness and transparency in the exclusions process while upholding national security interests. BIS has been overseeing this process since tariffs were imposed in 2018, and these adjustments reflect ongoing efforts to refine controls and support U.S. industrial base.
In December, 2023, FDA issued guidance for Industry regarding the registration and listing of Cosmetic Product Facilities and Products. The publication lists product categories and provides a Q&A section with answers to specific cosmetic product questions. The deadline is July 1, 2024. For more info and links, check out our most recent client advisory linked below:
Insect Repellent is regulated by EPA and FDA for importations and classified in chapter 3808 of the HTS book. It can be imported as a cream, spray and other methods such as bracelets. Some repellents can be applied directly to the skin and other methods can be applied directly to the clothing.
Here are a few ways to reduce your exposure to mosquitoes this summer:
A multinational organization based in Bangkok, Thailand, has agreed to pay $20,000,000 to settle potential civil liability for 467 apparent violations of OFAC sanctions on Iran. Between 2017 and 2018, the company facilitated $291 million in wire transfers through U.S. financial institutions for the sale of Iranian-origin high-density polyethylene resin (HDPE), manufactured by a joint venture involving the parent company in Iran. HDPE is a robust resin used in various plastic products such as food and beverage containers, shampoo bottles, and industrial items. Concurrently, the company initiated U.S. dollar wire transfer transactions to settle the joint venture’s debts to third-party vendors.
BIS has released the newest iteration of their guidance on export enforcement. The “Don’t Let This Happen to You” guidance document is dated March 2024 and is 76 pages of important guidance for the export community. The opening letter states “Export controls have never been more important to our collective security interests than they are today.” Follow the link below to check out more details!
The U.S. Customs and Border Protection (CBP) has issued a Withhold Release Order (WRO) against work gloves manufactured in a Chinese company and its subsidiaries, based on evidence suggesting the use of convict labor. This action is part of the U.S. government's efforts to combat forced labor globally. With nearly 28 million workers suffering under such conditions worldwide, WROs are a means to deter companies from exploiting labor and to protect vulnerable populations. By enforcing laws prohibiting the importation of goods produced by forced labor, CBP aims to safeguard American workers, businesses, and consumers. Currently overseeing and enforcing numerous WROs and Findings, CBP emphasizes its commitment to eliminating forced labor from U.S. supply chains and encourages reporting of suspected violations.
JAS Forwarding (USA) Inc. VP Compliance Laurie Arnold (Secretary NCBFAA) and Leah Ellis, Compliance Manager (NCBFAA Legislative Chair) attended the NCBFAA annual conference in Ft Lauderdale in April.
The National Customs Brokers & Forwarders Association of America (NCBFAA) headquartered in Washington, DC metro area, represents many companies in international trade, including the nations’ leading freight forwarders, customs brokers, ocean transportation intermediaries (OTIs), NVOCCs and air cargo agents. NCBFAA is at the forefront of trade related topics in Washington DC and around the United States. The NCBFAA members handle 97% of the entries for goods imported into the United States. Further, members operating as OTIs are involved with approximately 80-85% of all exports from the United States.
Laurie Arnold has served as the Treasurer for the NCBFAA and was recently elected as the new Secretary of the NCBFAA. Seen on the far left in this photo, Laurie is contributing on a panel discussing “Liquidated damages, penalties, and other CBP fan mail.” Also on the panel was US Customs FP&F Director Lisa Santana Fox. She discussed the new Customs portal for mitigation request submissions. Laurie helped facilitate constructive discussion with the membership on the process and timelines of mitigation requests.
Leah Ellis serves as the NCBFAA Legislative Committee Chair. In this capacity, Leah works closely with the legislative committee advisor for the NCBFAA. The NCBFAA Legislative Committee works with legislators in Washington to advance positions of the trade community. Seen on the left in this photo, Leah was discussing Generalized System of Preferences (GSP) bill HR4986 and the end China de minimis bill HR7979. The panel also discussed and answered questions pertaining to the passing and signing of the Customs Business Fairness Act.
JAS Forwarding (USA) Inc.’s Compliance Project Manager, Scott Cassell, spent some time in Texas in the month of April facilitating Incoterms training on behalf of clients. Scott was also invited to speak at the ATX Trade Compliance Round Table Luncheon in Austin, TX. The event was attended by numerous trade professionals from Austin and the surrounding area.
Pictured in the photo from left toright are Scott Cassell, Antonio Pastrana (JASBM-Laredo), Lindsay Gambee (JASRegional Sales Dir SW), Helga Acosta (JAS BDM-HGC), Ernest Osei (JASBM-Dallas), and Curtis Corley (JAS BDM-DAL).
In recent years, gardening has blossomed into a global phenomenon, not merely as a pastime but as a vital component of sustainable living and environmental stewardship. As more people recognize the benefits of cultivating their own green spaces, the gardening industry has witnessed significant growth, reflecting in both domestic practices and international trade.
The United States, with its diverse climate and rich agricultural heritage, plays a pivotal role in the global gardening market. Examining import and export data reveals intriguing insights into the dynamics of this flourishing industry.
Imports:
The importation of gardening-related products reflects the diverse interests and needs of American gardeners. From exotic plants to specialized tools, the U.S. imports a wide array of goods to cater to the demands of enthusiasts.
Exports:
Conversely, the United States also contributes to the global gardening market through its exports, showcasing its expertise and innovation in horticulture.
The Green Economy:
The gardening trade exemplifies the growing importance of the green economy. Beyond economic transactions, it fosters environmental awareness, promotes sustainable practices, and fosters community engagement.
As the world grapples with environmental challenges, gardening emerges as a grassroots solution, empowering individuals to connect with nature and cultivate greener, healthier lifestyles.
JAS Forwarding (USA) Inc.’s VP Compliance, Laurie Arnold and Compliance Operations Manager and NCBFAA Legislative Committee Chair, Leah Ellis, has diligently championed to help pass the Customs Business Fairness Act (CBFA) for many years alongside the National Customs Brokers & Freight Forwarders Association of America (NCBFAA). In a significant victory for Customs Brokers the bill was included in a continuing resolution bill that passed both the House and Senate. The CBFA has finally come to fruition. “The CBFA bill has been a long-standing passion of mine to help prevent Customs Brokers from having to return customs duties when an importer has filed bankruptcy and at long last (20 years) this bill has passed and signed into law and I am very happy to have been a part of the march to protect the Customs Brokers of our industry,” said Laurie Arnold when asked for her reaction on the passing of CBFA.
The CBFA, a long-standing initiative of the NCBFAA, aims to protect customs brokers and their employees by advocating for changes in bankruptcy laws. The bill seeks to grant "subrogation" rights to customs brokers, allowing them to assume the priority rights of U.S. Customs and Border Protection (CBP) when importers file for bankruptcy. This would prevent payments made to CBP through customs brokers from being subject to preference payment recovery actions during the 90-day period preceding the importer's bankruptcy filing.
NCBFAA President Jose D. (JD) Gonzalez lauded the passage of CBFA, emphasizing its importance to the customs broker industry. He credited the dedicated efforts of the association's Legislative Committee leadership, Legislative Advisor Nicole Bivens Collinson, and member companies for lobbying lawmakers and pushing for the bill's passage.
Special recognition was extended to Rep. Andrew Garbarino (R-NY) for his role in championing CBFA in the House of Representatives. Garbarino reintroduced the bill at the association's request in 2023, garnering bipartisan support with 28 co-sponsors. NCBFAA expressed gratitude to its members for their engagement in advocacy efforts, including letter-writing campaigns urging Representatives to support the bill.
NCBFAA also acknowledged the contributions of individuals and organizations who worked tirelessly over the past two decades to advance CBFA. Past and current leaders of the association's Legislative Committee, along with former NCBFAA Legislative Representative Jon Kent, were recognized for their efforts. Additionally, the longstanding lobbying efforts of organizations such as the New York/New Jersey Foreign Freight Forwarders & Brokers Association, JFK Airport Customs Brokers and Forwarders Association, and International Trade Surety Association were highlighted as instrumental in the bill's progress.
In a recent enforcement action at International Falls, Minnesota, U.S. Customs and Border Protection (CBP) officers intercepted over 7,800 lighting fixtures bearing counterfeit Underwriters Laboratories (UL) certification marks. These fixtures, as part of shipments from China and imported by a U.S. home design company, were deemed unsafe after inspection, raising concerns about potential fire hazards.
The seized lighting fixtures, among the cargo transiting from Canada into the United States, were inspected by CBP officers at International Falls, the busiest rail port in the country. Upon discovering the counterfeit UL certification marks, which falsely implied safety testing, CBP seized the shipments and initiated enforcement actions.
DeAnn O’Hara, CBP’s Fines, Penalties, and Forfeitures Officer for the area port of Pembina, North Dakota, highlighted the seriousness of the issue. "When U.S. consumers purchase a lighting fixture with a UL trademark on it, they are under the impression that the lighting fixture has been tested for safety. When Chinese manufacturers fraudulently place a UL trademark on untested fixtures, they are tricking consumers into buying a product that may not be safe and could start a fire in their homes," she explained.
CBP imposed fines totaling $100,000 on the shipments, in addition to seizing and destroying the lighting fixtures. This enforcement action underscores CBP's commitment to protecting the American public from unsafe and counterfeit products.
The seized lighting fixtures represent just one facet of CBP's broader efforts to safeguard public safety and enforce trade regulations. Beyond intercepting unsafe goods, CBP's Fines, Penalties, and Forfeitures Division (FP&F) plays a crucial role in adjudicating enforcement actions, ensuring compliance with laws, and facilitating the forfeiture process for seized items.
FP&F, comprised of a team of officers, paralegals, seized property specialists, and technicians nationwide, handles a wide range of cases, from drug seizures to intellectual property rights violations. The division follows a strict process with defined timeframes to ensure fairness and due process for all parties involved.
In addition to its enforcement duties, FP&F is instrumental in returning stolen property and cultural artifacts to their rightful owners. Recent successes include repatriating stolen artifacts to countries like Ukraine and Yemen, showcasing CBP's dedication to preserving cultural heritage and combating illegal trade.
While CBP faces challenges in keeping pace with evolving trade patterns and increasing volumes of shipments, its collaboration with other law enforcement agencies and commitment to public safety remain steadfast. As DeAnn O’Hara emphasized, "At CBP, we take the safety of the American public very seriously. That’s why we work so hard to remove unsafe products from the U.S. commerce before they can ever reach consumers."
In a significant interception, U.S. Customs and Border Protection Officers (CBP) at the San Ysidro Port of Entry apprehended over $11 million worth of blue fentanyl pills concealed within a vehicle recently.
A staggering estimated 561,000 fentanyl pills, with a total weight of 123.6 pounds, were confiscated by CBP officers during the operation, highlighting the continuous efforts to curb the influx of illicit drugs across the border.
The interception unfolded around 8:20 p.m. when a 37-year-old man driving a 2008 sedan applied for admission into the United States from Mexico at the San Ysidro Port of Entry. A CBP K-9 unit, conducting routine pre-primary inspections, alerted officers to the glove compartment area, indicating potential narcotics present presence.
Following the canine alert, CBP officers proceeded with further examination, leading them to refer both the driver and the vehicle for comprehensive inspection in the secondary inspection area.
Upon meticulous scrutiny, CBP officers uncovered a startling discovery – a total of 100 packages containing blue pills meticulously concealed within the vehicle's dashboard and the front passenger seats. Subsequent testing confirmed the contents as fentanyl, a potent synthetic opioid known for its lethal potency.
Mariza Marin, Port Director for the San Ysidro Port of Entry, emphasized the gravity of the situation, stating, “Fentanyl is a very lethal drug that continues to be encountered along our southern border. I’m very proud of the exceptional work by our officers who skillfully interdict illicit narcotics on a daily basis.”
The apprehended individual was promptly handed over to the custody of Homeland Security Investigations for further investigation, while both the narcotics and the vehicle were seized by CBP officers as part of the operation.
This seizure is part of Operation Apollo, a collaborative regional effort involving federal, state, and local agencies aimed at combating the pervasive threat posed by fentanyl and other illicit synthetic narcotics. Operation Apollo underscores the commitment of law enforcement entities to safeguard communities against the devastating impact of drug trafficking.
For more information about Operation Apollo and ongoing efforts to combat the drug trade, interested individuals are encouraged to seek additional details through official channels.
The successful interception serves as a testament to the unwavering dedication of CBP officers in safeguarding the nation's borders and preventing dangerous substances from infiltrating communities.
The U.S. Commerce Department’s Bureau of Industry and Security (BIS) announced significant revisions to the Export Administration Regulations (EAR), imposing stricter controls on exports and reexports to Nicaragua. This move comes in response to mounting concerns regarding human rights abuses perpetrated by the Nicaraguan government against its citizens and civil society groups, as well as its continued military and security cooperation with Russia.
The amendments, effective immediately, see Nicaragua being shifted from Country Group B to Country Group D:5, resulting in a more restrictive classification. Consequently, a stricter licensing policy will apply to items controlled for national security reasons, with the country now subject to 'military end use' and 'military end user' restrictions.
Under Secretary of Commerce for Industry and Security Alan Estevez emphasized the alignment of U.S. national security and foreign policy with its values, stating, "We will not allow peaceful trade to be diverted in ways that undermine our values and weaken our security." Assistant Secretary of Commerce for Export Administration Thea D. Rozman Kendler echoed this sentiment, highlighting the role of export controls in preventing U.S. technology from being misused to support human rights abuses.
This rule builds upon previous actions by BIS, including the addition of the Nicaraguan National Police to the Entity List in March 2023. It reflects ongoing efforts by the U.S. Government to restrict the availability of items subject to EAR to Nicaragua’s military and security services.
The move signifies a continued escalation in U.S. efforts to address the situation in Nicaragua, as international concern grows over the Ortega government's crackdown on dissent and violations of human rights.
JASVP Compliance, Laurie Arnold attended the CBP Trade Facilitation and Cargo Security Summit in Philadelphia, PA from March 26 through March 28, 2024. The US Customs Trade Facilitation & Cargo Security Summit in Philadelphia addressed updates on ACE 2.0, continuing education, and ecommerce.
Also, JAS’ own Scott Cassell, Corporate Compliance Project Manager attended the Commerce Department’s BIS Update Conference on Export Controls and Policy in Washington DC from March 27 through March 29, 2024. A wide variety of topics related to US export controls were updated by members of the Commerce Department and related agencies involved in export controls.
Every year on April 4th, carrot enthusiasts and food lovers alike come together to celebrate National Carrot Day. This humble vegetable, with its vibrant orange hue and crisp texture, holds a special place in the hearts and diets of people worldwide.
Carrots, scientifically known as Daucus carota, have a rich history dating back thousands of years. Originating in Central Asia, they were initially cultivated for their medicinal properties rather than culinary appeal. Ancient civilizations, including the Greeks and Romans, recognized carrots for their health benefits, particularly for improving eyesight.
Over time, carrots evolved from a medicinal herb to a staple ingredient in cuisines around the globe. From soups and salads to stews and desserts, carrots lend their unique flavor and nutritional value to a myriad of dishes. Their versatility in both savory and sweet recipes makes them a favorite among chefs and home cooks alike.
Nutritionally, carrots pack a powerful punch. They are an excellent source of beta-carotene, a precursor to vitamin A, which is crucial for eye health, immune function, and skin health. Additionally, carrots provide a healthy dose of fiber, vitamins C and K, potassium, and antioxidants, making them a nutritious addition to any diet.
National Carrot Day offers an opportunity to celebrate this underrated vegetable and explore its culinary potential. Whether enjoyed raw as a crunchy snack, roasted to caramelized perfection, or blended into a velvety soup, there are endless ways to savor the flavor and goodness of carrots.
Beyond their culinary appeal, carrots have also found their way into popular culture, appearing in folklore, literature, and even as beloved cartoon characters. Who can forget Bugs Bunny munching on a carrot as he outsmarts his foes?
In addition to indulging in carrot-centric dishes, National Carrot Day encourages awareness of sustainable farming practices and the importance of supporting local agriculture. Choosing organic, locally grown carrots not only ensures freshness and flavor but also reduces carbon footprint and supports small-scale farmers.
So, whether you're a devoted carrot connoisseur or simply looking to incorporate more vegetables into your diet, National Carrot Day provides the perfect opportunity to celebrate this crunchy and nutritious root vegetable. So grab a bunch of carrots, get creative in the kitchen, and join in the festivities on April 4th!
On February 26, the Federal Maritime Commission (FMC) issued its long-awaited final rule for Demurrage and Detention Billing Requirements. The issuance and processing of detention and demurrage invoices by common carriers and marine terminal operators has long been a contentious issue in the logistics industry. The FMC deserves credit for taking this issue on and working to bring some standards to the process. The final rule will be effective as of May 28, 2024. Some of the key elements of the final rule are:
• A list of required minimum information that must be included on any invoice for detention or demurrage. If any of this information is missing, that will eliminate the obligation for the billed party to pay.
• An invoice for detention or demurrage must be issued by a billing party to either the consignee or the person for whose account the billing party provided ocean transportation or storage of cargo and who contracted with the billing party for the ocean transportation or storage of cargo.
• A billing party must issue a demurrage or detention invoice within thirty (30) calendar days from the date on which the charge was last incurred. If billed after thirty (30) calendar days, then the billed party is not required to pay.
• If the billing party is a non-vessel-operating common carrier (NVOCC), then it must issue a demurrage or detention invoice within thirty (30) calendar days from the issuance date of the demurrage or detention invoice it received. If the NVOCC issues an invoice after thirty (30) calendar days, then the billed party is not required to pay.
• The billing party must allow the billed party at least thirty (30) calendar days from the invoice issuance date to request mitigation, refund, or waiver of fees from the billing party. The billing party must then resolve such a request within thirty (30) calendar days of receiving the request or at a later date as agreed upon by both parties.
Customs and Border Protection (CBP) recently released an update to its 1991 Directive 3510-004 – Monetary Guidelines for Setting Bond Amounts. The updated guide is entitled "A Guide for the Public: How CBP Sets Bond Amounts”. The new guide brings the previous directive up to date by amending many minimum bond requirements, adding information on bond activity codes that were not included in the earlier directive such as for Importer Security Filing bonds and Marine Terminal Operator bonds, and adding information on ACE eBond procedures.
A large tractor and agricultural equipment manufacturer agreed via a stipulated judgment to pay $2 million in penalties for falsely labeling wholly-imported replacement parts as “Made in the USA”. It was also agreed that the company would submit compliance reports and notices to the Federal Trade Commission (FTC) for the next 20 years. The FTC had initiated the proceeding against the company to enforce its Made in USA Labeling Rule. This rule states that for items to be labeled as “Made in the USA”, the final assembly or processing of the good, and all significant processing that goes into the good, must occur in the United States. Further, all or virtually all ingredients or components of the good must be made and sourced in the United States.
A Florida couple were sentenced to 57 months in prison and were ordered to pay over $42 million in forfeitures, as well as reimbursing the government for over $1.6 million in storage costs, after pleading guilty to conspiring to import plywood in violation of the Lacey Act and customs laws and conspiring to sell the illegally imported plywood. An employee of theirs was also sentenced to 3 years probation and ordered to pay a $3,000 fine. From 2016 to 2020, the couple, via several companies set up for the purpose, imported numerous containers of plywood products and falsely declared the species, country of origin and country of harvest to avoid paying antidumping and countervailing duties that had been instituted on such products from China in 2017. Some of the plywood was shipped to Malaysia from China and re-loaded in containers to appear to be of Malaysian origin. False Lacey Act declarations were then made upon entry into the U.S.
On February 12, Customs and Border Protection (CBP) announced in the Federal Register that the Global Business Identifier (GBI) Evaluative Proof of Concept (EPoC) will be extended to February 23, 2027. The test is also being expanded to include entries of merchandise classifiable under any subheading of the Harmonized Tariff Schedule and for merchandise of any country of origin. Previously, the test was limited to certain categories of merchandise from only 10 specific countries of origin. The purpose of the test is to evaluate a possible replacement for the Manufacturer Identification Code (MID). The MID is a code that is required to be submitted on all customs entries to identify the manufacturer or shipper involved. For the test, all or one of three alternative codes can be used to identify the manufacturer, shipper, and seller on entries. These alternatives are the nine (9)-digit Data Universal Numbering System (D–U–N–S®), thirteen (13)-digit Global Location Number (GLN), and/or twenty (20)-digit Legal Entity Identifier (LEI). All of these alternatives provide more detailed and specific information on the parties involved and would create greater visibility into supply chains.
The long negotiated United States initiative, the Indo-Pacific Economic Framework For Prosperity (IPEF), finally had one of its agreements enter into force on February 24, 2024. The Supply Chain Resilience Agreement was negotiated “to establish a framework for deeper collaboration to prevent, mitigate, and prepare for supply chain disruptions, such as those experienced in recent years from the COVID-19 pandemic”. The IPEF has 14 countries as participants - the United States, Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. The first step in implementation of this agreement will be the establishment of three bodies, the Supply Chain Council, Crisis Response Network, and Labor Rights Advisory Board, with a goal of “identifying and notifying partners of each country’s list of critical sectors and key goods for cooperation under the Agreement by no later than 120 days after the date of the entry into force for each country”.
Recently at the Logan Airport in Boston, a passenger who was returning from the Democratic Republic of Congo had a suspicious piece of baggage screened. The passenger advised the Customs and Border Protection (CBP) Agriculture Officer on the scene that the baggage only contained dried fish. However, upon further inspection, the officer found four dead and dehydrated bodies of monkeys in the baggage. Minimally processed wild animal meat such as this is often referred to as “bushmeat”. Bushmeat can come from a variety of wild animals and can, therefore, carry numerous germs and viruses, such as Ebola, which can pose a significant heath risk. The bushmeat in this case, however, might not have been discovered if there was not another officer on the scene, CBP K9 Buddey! K9 Buddey is a part of one of the 180 canine teams that assist CBP officers at air passenger terminals, border crossings, cruise terminals and other locations. The CBP officer handlers and their canine partners undergo 10 to 13 weeks of intense training together before being deployed in the field. Beagles and beagle mixes are the preferred breed of dog for use as K9’s since beagles have a very keen sense of smell and have a gentle disposition towards the public. They are usually trained to alert handlers of contraband by sitting near or pawing at the offending baggage. Next time you see a K9 in action, salute them for their service, but hope that they do not come and sit down next to you…
The Bureau of Industry and Security (BIS) released its Export Enforcement Review for last year stating that 2023 was the year with the highest number ever of convictions, temporary denial orders and post-conviction denial orders. Some of the actions taken that the BIS highlighted were:
• Imposed the largest standalone administrative penalty in BIS history – a $300 million penalty related to the continued shipment of millions of hard disk drives to a sanctioned entity even after other competitors stopped shipping due to the foreign direct product rule.
• Obtained a guilty plea from a program administrator for a NASA contractor who secretly funneled sensitive aeronautics software to a Chinese University, which was on the Entity List for its involvement in developing Chinese military rocket systems and unmanned air vehicle systems.
• Imposed a $2.77 million penalty on a 3D printing company related to its sending export-controlled blueprints for aerospace and military electronics to China.
• Worked with the Department of Justice to bring eight separate indictments charging 14 people for their role in procuring items for the Russian military and Russian security service.
• In coordination with the Office of Foreign Assets Control, imposed a $3.3 million combined penalty against a major U.S. software firm for alleged and apparent violations of U.S. export controls and sanctions laws, including violations involving Russia, Cuba, Iran, and Syria.
BIS also emphasized the launch of the Disruptive Technology Strike Force with the Department of Justice “to protect U.S. advanced technologies from illegal acquisition and use by nation-state adversaries like Russia, China, and Iran. The Strike Force brings together experienced agents and prosecutors in fourteen locations across the country, supported by an interagency intelligence effort in Washington, D.C., to pursue investigations and take criminal and/or administrative enforcement action as appropriate”.
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