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Customs and Border Protection Agriculture Specialists (CBPAS) are tasked with preventing the introduction of invasive species and toxic substances into American agriculture and natural resources. To accomplish this task, a CBPAS will utilize targeting, detection and interception techniques while examining passengers returning to the United States and commercial cargo arriving into U.S. ports of entry. CBPAS’ also work to identify and prevent any attempts at agro-terrorism via the intentional introduction of disease or the contamination of food products with toxic substances. The diversity of passengers and cargo attempting to enter the United States on a daily basis can lead to some interesting interceptions by agriculture specialists.
One recent example took place at the Minneapolis-Saint Paul International Airport in early October. CBPAS’ inspected a small box carried by a passenger returning from Kenya. To the specialists surprise, the box contained giraffe fecal material. The passenger then advised that she had obtained the droppings in Kenya and planned to make a necklace with them, also stating that she had used moose feces at her home in Iowa in the past for the same purpose. The box was then seized and destroyed.
Another recent example occurred at the Chicago O’Hare International Airport. Two passengers returning from Congo were referred for inspection. Inside their baggage was found an unknown meat along with 15 pounds of raw goat viscera including, among other things, the heart, lungs and entire digestive system of a goat. The items, of course, were confiscated. Never a dull moment in the life of a CBPAS!
Customs and Border Protection (CBP) quietly unveiled a new online portal, ePetition, for the filing of required documentation for petitions for mitigation of amounts charged in penalty notices and liquidated damage claims. Petition filers, however, should still make contact with the responsible CBP officer stated on the notice to confirm that uploaded documents are well received. Petitions can then subsequently be looked up on the portal and the status checked.
As of November 1, 2023, the Traffic Mitigation Fee (TMF) charged at the ports of Los Angeles and Long Beach will increase 4 percent. The increase is a result of the 4 percent increase in longshore wage and assessment rates recently ratified in the coastwide contract between the International Longshore and Warehouse Union and the Pacific Maritime Association. The TMF was instituted as a way to encourage shippers to have their cargo picked up at the terminals during late night shifts or on weekends to reduce the congestion at the terminals occurring during normal business hours. Beginning November 1, the TMF will be $35.57 per TEU (twenty-foot equivalent unit) or $71.14 per forty-foot container.
Customs and Border Protection (CBP) recently announced that it will be providing a quarterly series of webinars free of charge to assist and train small and medium-sized businesses on how to report trade violations that could threaten their bottom line and hurt the overall economy. The webinars will run from November 7, 2023, through September 10, 2024, and will guide participants through the process of reporting commercial trade violations using the Trade Violations Reporting Tool. The webinars will demonstrate how to report allegations of a variety of trade violations, including antidumping and countervailing duty evasion, forced labor, and natural resource crimes.
On November 23, Thanksgiving Day will be celebrated in the United States. In the town of Leiden, Netherlands stands an ancient church, called the Pieterskerk, that has a unique connection to the Thanksgiving Day celebration. Inside this church, you will find a large display dedicated to the Pilgrims who landed at Plymouth, MA on December 22, 1620. The one hundred or so individuals who arrived in Plymouth on the vessel Mayflower are widely known for having fled England to escape religious persecution for their Puritan faith. However, less widely known, is that many of these pilgrims actually first fled to Leiden in the Netherlands and lived there for around 12 years before setting sail for America. Their pastor John Robinson was buried at this church and there is a prominent memorial display for him inside. The church also has an ancient pipe organ that is still played and that contains some pipes dating to the 1400’s. Another interesting fact about Leiden is that during the same time the pilgrims were living there, a teenager by the name of Rembrandt Harmenszoon van Rijn was living there as well. This young man became known to history as a brilliant painter and printmaker, going simply by his first name, Rembrandt. If you ever travel to the Netherlands, make sure to visit Leiden and the Pieterskerk.
JAS Forwarding had its ninth facility certified for cargo screening as a Certified Cargo Screening Facility (CCSF) by the Transportation Security Administration (TSA) on August 9, 2023. Located in Somerset, NJ, the facility handles eCommerce and, as a result, 60 pallets a day on average are being screened. This equates to approximately 10,000 to 15,000 pieces of cargo being screened at this one facility. With the approaching eCommerce peak season about to start in November, the volume of cargo screened is expected to increase 150%! The primary screening method is K9, therefore, our K9 handlers and K9’s such as Zeus (pictured above and below) will be hard at work!
A U.S. government shutdown was averted at the eleventh hour on the evening of September 30, when both the House of Representatives and Senate passed bills to extend present government funding levels for 45 days to November 17. Additional aid to Ukraine and provisions to enhance border security were left out of the measures, while a large appropriation of $16 billion for disaster relief was included. The limited term of the measures, however, means that a shutdown could well become imminent again unless longer term funding bills are approved within the next 45 days.
The Commerce Department’s Bureau of Industry and Security (BIS) imposed a civil penalty of $48,750 against a leading manufacturer of aircraft engines to resolve 13 violations of the antiboycott provisions of the Export Administration Regulations (EAR) as was alleged in a Proposed Charging letter. Between May 2019 and March 2020, the manufacturer received requests on thirteen different occasions from a Middle Eastern airline to not import any Israeli origin goods into the Middle East to fulfill purchase orders from the airline. The manufacturer failed to report to BIS the receipt of these requests as required by 15 CFR 760.5. However, the manufacturer fully cooperated with the investigation and significantly reduced the penalty imposed as a result of the remedial measures taken after discovery of the conduct. This is another reminder of the need to have robust procedures in place to monitor receipt of any such boycott requests and to have a mechanism in place to report them immediately to BIS.
Another chapter in the ongoing softwood lumber dispute between the United States and Canada was opened on September 1. Canada’s Trade Minister Mary Ng announced that Canada was launching a Chapter 10 United States-Mexico-Canada Agreement (USMCA) challenge to the latest countervailing duties (CVD) in place on importations of softwood lumber into the U.S. Additionally, a suit is being filed by Canada in the U.S. Court of International Trade to challenge the antidumping duties (ADD) on softwood lumber from Canada also now in effect.
The dispute goes back to 1981 when the U.S. lumber industry first requested the Department of Commerce to investigate Canadian stumpage programs and impose countervaling duties. The issue is rooted in the fact that most Canadian land where softwood lumber is harvested from is owned by provincial governments, and the fees charged to harvest timber on the land, or the stumpage rates, are set by government regulation. In the United States, most softwood timber land is privately owned and the stumpage rates are determined by market forces. U.S. lumber companies have long claimed that the stumpage rates charged to harvesters by the provinces in Canada are well below market rates and are, therefore, countervailable subsidies. An agreement to suspend the application of any ADD or CVD that had been in effect expired in 2015, and the battle has raged on ever since. The World Trade Organization (WTO) ruled in favor of Canada in 2020 and stated that the United States CVD measures were not in conformity with its WTO obligations. However, the U.S. has ignored that determination for the most part. Talks between the leaders of Canada and the U.S. in Ottawa earlier this year did not break the impasse.
The Food and Drug Administration recently published its much anticipated Draft Guidance on Registration and Listing of Cosmetic Product Facilities and Products as mandated by the Modernization of Cosmetics Regulation Act of 2022. The guidance provides details on which facilities must register and the information required to be provided in cosmetic product listings. FDA also published screenshots for the “Cosmetics Direct” electronic submissions portal to be utilized for the registration and listings. The portal is supposed to be available in October.
The recent passage of the Inflation Reduction Act of 2022 along with the increased attention given to clean energy transportation alternatives and environmental protection has highlighted the increasingly important role played in the economy by what are termed critical minerals and rare earth elements. The Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) has published a very helpful primer that explains what these items are, where the main sources of supply are, and their end uses and applications. The IGF is a forum of more than 80 member countries established to support the advancing of sustainable development goals through effective laws, policies, and regulations for the mining sector.
As the primer states, critical minerals are the minerals and metals necessary for renewable energy and clean technology. It further states that “there is no universally agreed upon definition of what “criticality” means, and criticality changes over time, depending on the needs of society and the availability of supply”. Rare earth elements are “a set of 17 metallic elements that are considered critical because of their properties”. These elements are not in fact rare but are referred to as rare because they can be difficult to extract and can be complex to process.
The need for and importance of these minerals and elements will only increase and will continue to have major impacts on United States trade policy and the logistics industry.
JAS employees were on the move in September as Compliance Project Manager Scott Cassell and Miami FTZ Administrator Ivel Martinez attended the National Association of Foreign-Trade Zones “Celebrating 50 Years of NAFTZ” conference held in Miami on September 10 to 13. JAS operates foreign trade zones (FTZ) in both Charleston, SC and Miami, FL and the conference was a great opportunity for the JAS team to stay abreast of the current issues and regulatory changes affecting FTZ’s.
The entire JAS compliance team also meet on September 19 and 20 at the JAS headquarters in Atlanta for their annual meeting. Led by Vice President of Compliance Laurie Arnold this year’s theme was “Coming together is a beginning, keeping together is progress, working together is success!”. Various topics were discussed and strategies for the coming year were formulated.
It is October and that means Halloween is around the corner! The Library of Congress reports that Halloween has its roots in the ancient Celtic festival of Samhain (pronounced “SAH-win”). Samhain was a pagan religious celebration at the time of the harvest at the end of summer in which people would light bonfires and wear costumes to ward off ghosts. Then, in the eight century, Pope Gregory III designated November 1 as a day to honor Catholic saints and this was called All Saints Day. All Saints Day incorporated some of the traditions of Samhain. The evening before All Saints Day then became a holiday as well and was celebrated as All Hallows Eve, from which we derive Halloween. The Halloween tradition of carving pumpkins into Jack O’Lanterns is rooted in the Celtic legend about a man named Stingy Jack who was able to repeatedly trap the devil and would only let him go if he promised that Jack would never go to hell. However, when Jack died, heaven did not want him either, so he had to wander the earth as a ghost for eternity. The devil then gave Jack a burning lump of coal in a carved-out turnip to light his way. The tradition then started in Ireland of carving scary faces in turnips to frighten the ghost of Jack and other evil spirits away. Have a safe and happy Halloween and look out for Jack!
In a Federal Register notice, the Transportation Security Administration (TSA) announced the opportunity for qualified, interested shippers to register as Certified Cargo Screening Facilities (CCSF). While the TSA had approved shippers to become CCSF’s previously when requested, the TSA had never fully integrated these operations into the Certified Cargo Screening Standard Security Program (CCSSSP). An incentive for shippers to consider becoming a CCSF is that, on October 31, the Impracticable to Screen (ITS) amendments that the TSA had in effect will expire. These amendments allowed cargo not easily screened due to the commodity packaging type or size to move via airfreight. After October 31, ITS cargo will require 100% screening. ITS cargo could be screened by the airline or other third-party service provider, however, higher costs for the shipper are likely to result.
To initiate the registration process, shippers must send an email indicating their interest to an address identified in the notice and TSA will respond with additional information regarding the application requirements.
Several prominent information technology associations, including the Semiconductor Industry Association, Retail Industry Leaders Association, and the Information Technology Industry Council, sent a letter to U.S. Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo expressing concern over the recent announcement by the Indian Government to require a license to import computers and related information and communication technology products into India. The licensing requirement is to take effect on November 1, 2023. One concern raised was that the licensing regime could make it difficult for U.S. companies with data centers in India to import servers into India that are needed for their operations. While the government announcement included certain exemptions, the associations requested more comprehensive details on the scope of the exemptions. Licensing requirements have also been used in the past as major non-tariff import barriers by various countries, which was another concern raised. The U.S. government was urged to request that India reconsider the implementation of the policy.
In an important recent decision, the U.S. Court of Appeals for the Federal Circuit ruled in the case, Royal Brush Manufacturing, Inc. vs. United States Dixon Ticonderoga Company, that Customs and Border Protection (CBP) violated the Fifth Amendment right to due process of Royal Brush by providing only redacted versions of reports that CBP utilized in making its determination that antidumping duty (ADD) evasion occurred in connection with an Enforce and Protect Act (EAPA) investigation. The EAPA investigation centered around pencils shipped from the Philippines to Royal Brush in the United States. CBP concluded that the pencils were of Chinese origin and were transshipped via the Philippines to avoid paying the ADD under case A-570-827 for Cased Pencils from China. However, in making this determination, CBP relied on reports from a verification visit made to the Philippine factory. When Royal Brush requested copies of the reports, production number data and photographs taken at the factory were redacted due to CBP deeming this information to be confidential business information. CBP stated that there was no provision in the EAPA law itself that empowered them to issue a protective order which could have allowed release of the confidential information. Royal Brush then filed suit in the Court of International Trade (CIT).
The CIT ruled in favor of CBP, then Royal Brush appealed. The appellate court stated in its decision: “In short, the law is clear that, in adjudicative administrative proceedings, due process includes the right to know what evidence is being used against one.” The decision further stated: “As best we can make out, the government’s argument is that due process does not require public disclosure of confidential business information relied on in adjudication but only requires disclosure to affected parties under protective orders… We are aware of no case supporting any such extraordinary theory, and it is untenable on its face. The right to due process does not depend on whether statutes and regulations provide what is required by the constitution.” The case was remanded back to the CIT for CBP to provide Royal Brush the redacted information and give them an opportunity for rebuttal.
In legal circles, it is believed that this decision could also have an impact on CBP’s investigations under the Uyghur Forced Labor Prevention Act as CBP often does not release the evidence that it has compiled to the party whose cargo is being detained, which may now lead to court challenges of those decisions.
In separate Cargo Systems Messaging Service (CSMS) messages, Customs and Border Protection (CBP) announced postponements of two important system enhancements. First, CBP stated on 08/22/23 that it was disabling the testing of the Ocean House Bill Release in its ACE test Certification Environment. This testing was a precursor to having Ocean Bill Release go live in ACE. A new date for when either testing will continue or the Ocean House Bill Release will go live is to be determined.
Also, on 08/25/23 CBP announced that it was postponing the migration of declarations-related functionality as a part of the Phase 4 ACE portal functionality modernization. A new date for this update is to be determined as well.
Violations of anti-boycott prohibitions enforced by the Commerce Department via the Export Administration Regulations and the Internal Revenue Service via Internal Revenue Code Section 999(a)(3) can lead to very costly penalties, as law firm Sandler, Travis , & Rosenberg reminded the trade in a recent article. Any company that agrees to or actually refuses to do business with or discriminates against Israel or other blacklisted companies, inter alia, can be subject to these penalties, which include hefty fines and even jail time for criminal violations. Therefore, companies must perform their due diligence to ensure that violations of these regulations are not occurring anywhere in their operations.
In a recent advisory opinion, the Bureau of Industry and Security (BIS) of the Commerce Department, set forth the requirements for the export, reexport, or transfer of licensed technology and software between a licensed U.S. entity and foreign nationals of a related foreign company who are on temporary rotational assignment in the United States. As long as the technology or software is within the scope of the license in question, then release to these foreign nationals would be authorized. However, any new technology or software to be released to these foreign nationals that is not authorized by the existing license would require a new export license.
In a notice to be published in the Federal Register, the United States Trade Representative (USTR) announced that it will be extending to December 31, 2023 the 352 previously reinstated Section 301 duty exclusions and the 77 COVID-related 301 exclusions that were set to expire on September 30. The required four-year review of the Section 301 duties imposed on certain products from China is still underway and this extension will allow for a transition period as that review continues.
Customs and Border Protection (CBP) held its inaugural Green Trade Forum on July 11. Various strategies to incentivize green trade and encourage innovation were discussed. Several commentators mentioned the possibility of utilizing the Harmonized Tariff Schedule to promote green trade by adding tariff breakouts for goods made with environmentally preferred materials such as recycled or organically grown materials. CBP Acting Commissioner Troy A. Miller spoke at the event highlighting such CBP actions as a goal to have 50% of the CBP vehicle fleet consist of electric vehicles by 2030, CBP’s goal to digitize any remaining manual and paper-based processes, and their commitment to work with interagency partners, such as the Environmental Protection Agency (EPA) and the U.S. Fish and Wildlife Service (FWS), inter alia, to prevent natural resource crimes such as illegal deforestation and logging and illegal, unreported, and unregulated fishing. A recording of the forum will be made available soon on the Green Trade Innovation and Incentives Forum page on the CBP website.
In a recent letter, the National Customs Brokers and Freight Forwarders Association of America (NCBFAA) asked the U.S. Food and Drug Administration (FDA) to delay for a year the requirement for cosmetic facility registration under the Modernization of Cosmetics Regulation Act of 2022 (MoCRA). MoCRA requires any establishment that manufacturers or processes cosmetic products that are distributed in the United States to assume various new responsibilities as follows:
The present deadline for registration and product listing is December 31, 2023. FDA, however, has not outlined exactly how the registation process will work or what system will be utilized. Therefore, NCBFAA is requesting a year extension to allow the trade more time to prepare.
On July 28, Customs and Border Protection (CBP) announced adjusted amounts for certain user fees for fiscal year 2024 as mandated by the Consolidated Omnibus Budget Reconciliation Act (COBRA). The COBRA requires CBP to adjust certain fees to reflect increases in inflation. The changes will be in effect as of October 1, 2023. Some of the listed changes include :
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On June 23, Customs and Border Protection (CBP) published in the Federal Register its much-anticipated final rule for Continuing Education for Licensed Customs Brokers. The rule will be effective as of July 24, 2023. The final rule closely resembles the proposed rule that was published on September 10, 2021, with some minor changes. Some key elements of the rule:
As the European Union’s Import Control System 2 (ICS2) second release deployment window comes to an end on July 1, requiring all airlines to submit detailed shipment information into a new centralized system known as the “Shared Trader Interface” before goods are loaded onto an aircraft, JAS USA is more than ready. Laurie Arnold, Vice President Compliance of JAS USA, stated:
“We're going to be ready. We know what we're doing. We're not going to have to try to figure out how we're going to transmit this data to the airlines or how the airlines are going to get it and transmit it to the government. We will be ahead of the game.”
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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