The Modernization of Cosmetics Regulation Act (MoCRA) has recently gone into effect. The MoCRA is the most significant expansion of FDA's authority to regulate cosmetics since the Federal Food, Drug and Cosmetic (FD&C) Act was passed in 1938.

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Manufacturers and processors must register their facilities with FDA and renew every two years. Examples of items subject to MoCRA include but are not limited to baby products, bath preparations, various makeups, hair products, and even oral products such as mouthwash.

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There are free tools available to determine whether FDA's new MoCRA regulations apply. Check out the link below to utilize this free tool!

An importer of uniforms and footwear has been penalized $1.3 Million for a fraudulent scheme involving fake invoices that deliberately and materially understated the value of their imports. These goods were being imported from China, Pakistan and Bangladesh. The defendants, including the CEO were also accused of providing invoices misrepresenting the fabric content which resulted in reduced duty amounts.

To read more details, check out the full US District court order.

Indira Coomar from our JAS Forwarding (USA) Inc. Norfolk branch has been with JAS for 14 years in September.  She likes to run each morning.  During her runs, she takes some very beautiful photos of the sunrise over the beach and shares them with an inspirational quote to start many days. One of her recent quotes was “the secret to getting ahead is getting started!”  We appreciate Indira’s motivation, and this attitude perfectly reflects that People Make the Difference.

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July 2024, JAS Forwarding (USA) Inc.’s Laurie Arnold (VP Compliance) and Scott Cassell (Corporate Compliance Project Manager) facilitated a client seminar covering Foreign Trade Zone, Forced Labor and Duty Drawback.  The event was hosted by our JAS Forwarding (USA)Inc. Charlotte Branch!

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CBP publishes monthly trade statistics that provide a snapshot of the volume of shipments being processed.  In May2024, CBP processed more than 2.9 million entry summaries.  This includes numerous modes of transport from all over the world.  

CBP’s monthly trade stats show duties paid, seizures, WRO data and much more.

To read the full article, check out the link below.

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CBP has announced an increase of the Merchandise Processing Fee (MPF) within the Consolidated Omnibus Budget Reconciliation Act (COBRA). The fee increase will be effective on October 1, 2024.

The new minimum will increase from $31.67 to $32.71. The new maximum will increase from $614.35 to 634.62. The ad valorem rate of 0.3464% remains unchanged.

For more details check out the link below.

The USTR (US Trade Representative) has indicated that the increase originally expected on the 301 tariffs on August 1, 2024 will not go into effect as expected.  

The USTR has received 1100 comments from the public and continues to review those comments.  Modifications for 2024will likely take effect approximately two weeks after the final determination is made public.

Check out our client advisory and the links to the USTR and Federal Register Notice dated May 28, 2024.

To read more, check out the full register notice linked below.

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The recent June 12, 2024, Federal Register notice added three entities to the UFLPA Entity List showing increasing focus on three additional commodities. The entities which were added are suspected of working with the Xinjiang Uyghur Autonomous Region to recruit, transport, transfer, harbor or receive forced labor or Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the Xinjiang Uyghur Autonomous Region.

The areas of increased focus include shoe and shoe materials, frozen seafood, vegetables, quick frozen convenience food and other aquatic food, and electrolytic aluminum, graphite carbon, and prebaked anodes.

To read more, check out the full register notice linked below.

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On June 24, 2024, the Assistant Secretary of Commerce, Matthew S. Axelrod signed a settlement agreement with an exporter for violations of EAR. The violations occurred because of forty-two different shipments over the course of 4 years which were classified under ECCNs 1C353. These instances were subject to export licenses, but no licenses were obtained prior to exportation.

The exporter has a compliance team and upon recognition of the issue, submitted a voluntary self-disclosure. To read more details, check out the link below.

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On June 3, 2024, the BIS imposed a civil penalty of $44,750 for violations of the antiboycott provisions of the Export Administration Regulations (EAR).  In the press release, Assistant Secretary for Export Enforcement, Matthew S. Axelrod said “Our antiboycott rules against furnishing prohibited information and failing to report boycott-related requests apply with the same force even when another U.S. company is the one making the information requests.”  He goes on to say “U.S. companies are reminded to be vigilant in examining all transaction documents, regardless of the source, to ensure terms and conditions comply with our antiboycott rules.”

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JAS Forwarding (USA) Inc. Compliance team members Laurie Arnold (NCBFAA Secretary) and Leah Ellis (NCBFAA Legislative Committee Chair) attended the quarterly NCBFAA board meetings in DC discussing Ecommerce, PGA’s, transportation, and customs issues.

One of the most exciting things to do for the 4th of July holiday is to see fireworks with family and friends! Did you know that 88% of fireworks in the United States are imported? It is considered a very specialized product with lots of regulations. CBP seizes tons of firework shipments annually that never make it past the US port of entry. So before getting into the business of importing fireworks consulting with a customs broker like JAS is important! Happy Independence Day!!

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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.

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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!

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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.

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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:

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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:

• Eliminate standing water in containers that could breed mosquitoes.
• Wear long sleeve clothes and socks to avoid exposing the skin.
• Replace outdoor lights with yellow bug lights which tend to attract fewer mosquitoes.
• Follow necessary instructions and labels closely on insect repellents.

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.

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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!

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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.

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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.

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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).

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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.

1. Plants and Seeds: The import of plants and seeds is a prominent aspect of gardening trade.
2. Garden Tools and Equipment: Innovations in gardening tools and equipment drive import trends.
3. Fertilizers and Soil Amendments: The import of fertilizers, compost, and soil amendments supplements domestic production, ensuring optimal conditions for plant growth.

Exports:

Conversely, the United States also contributes to the global gardening market through its exports, showcasing its expertise and innovation in horticulture.

1. Seeds and Bulbs: American seed companies are renowned for their high-quality seeds and bulbs.
2. Landscaping Services: Exporting landscaping services to enhance public and private spaces, U.S. firms contribute to the beautification and sustainable development of landscapes globally.
3. Gardening Knowledge and Technology: Beyond tangible goods, the export of gardening knowledge and technology is gaining traction.

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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.

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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.

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