JAS USA COMPLIANCE

News & Insights from JAS Worldwide Compliance

JAS Forwarding (USA), Inc.

6165 Barfield Road
Atlanta GA, 30328
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JAS USA Compliance Insights

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JAS USA Compliance Insights on the Impact of COVID-19

CBP Releases Guidance for Importers on UFLPA
July 5, 2022
CBP Releases Guidance for Importers on UFLPA

CBP has released the UFLPA Operation Guidance for Importers. This document details the enforcement of the Uyghur Forced Labor Prevention Act and has operational guidance and best practices for importers to comply with the act, which went into effect on June 21, 2022. The guidance has step-by-step instructions on how to submit a request for exception to the rebuttable presumption, which prohibits importation of any “goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in any foreign country by convict labor or/and forced labor or/and indentured labor under penal sanctions.” The guidance also includes an extensive list of resources for importers to use when doing their due diligence and maintaining the security of their supply chain, which CBP recommends all importers do as this act takes effect.

See the CBP Website for more information
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EPA Form 3540-1 Update
July 5, 2022
EPA Form 3540-1 Update

The EPA has updated the 3540-1 Notice of Arrival of Pesticides and Devices (NOA) form. This type of form is generally only used for entries that cannot be done through ACE. The new form clarifies some of the requested data elements and has improved instructions for filling out the form. CBP will continue to accept the old form until July 30th, 2022. After the grace period, all importers should be using the new form when filing entries.

Link to new form with instructions
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Ocean Shipping Reform Act Signed into Law
July 5, 2022
Ocean Shipping Reform Act Signed into Law

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.

White House Press Release
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Temporary Suspension of Tariffs on Solar Panels from Southeast Asia Authorized
July 5, 2022
Temporary Suspension of Tariffs on Solar Panels from Southeast Asia Authorized

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.

See the statement from the white house
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CBP Offering Webinars on the Uyghur Forced Labor Prevention Act
June 1, 2022
CBP’s Office of Trade Relations are hosting webinars during the first few weeks of June.

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.

  • Wednesday, June 1, 2022, 10:00 –11:00 a.m. EDT
  • Tuesday, June 7, 2022, 1:00 – 2:00p.m. EDT
  • Thursday, June 16, 2022, 2:00 –3:00 p.m. EDT
There are 3 webinars scheduled, follow to register
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CBP Launches AD/CVD and Trade Remedies Site
June 1, 2022
CBP recently expanded their Antidumping/Countervailing Duties & Trade remedies web page.

CBP recently expanded their Antidumping/Countervailing Duties & Trade remedies web page. This site has links with the latest information on trade remedies for Sections 201, 232 and 301, AD/CVD information, FAQ’s, Informed Compliance Publications, guides on different trade policies, and a searchable public message system. This site will be an incredibly helpful tool for importers looking to get their products through customs efficiently and avoid delays.

Trade Remedies Site
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US to Temporarily Suspend Section 232 Tariffs on Ukraine Steel Imports
June 1, 2022
On May 9th, the Department of Commerce announced that the Section 232 Tariffs on Ukrainian steel will be lifted for one year.

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.

Press Release Here
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AIM Reporting Requirement Update
June 1, 2022
The US Commerce Department will require aluminum licensing applications to note “country of largest smelt” and “country of second largest smelt” starting June 29, 2022.

The US Commerce Department will require aluminum licensing applications to note “country of largest smelt” and “country of second largest smelt” starting June 29, 2022. This means that importers bringing in aluminum products will need to identify on their applications the country in which the largest and second largest volumes of new aluminum are being produced. There was a one year grace period allowed for importers to use “Unknown” in these fields as they collected the information they would need to meet the requirement. This grace period will expire June 28th, and moving forward, all aluminum import license applications will require these fields to be filled for the aluminum licensing application to be considered.

CSMS Update
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Foreign Supplier Verification Program Requirements Update
June 1, 2022
The FDA recently released updated guidance on Foreign Supplier Verification Programs for Food Importers (FSVP)

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.

CSMS Update
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CBP Known Importer Letter Update
June 1, 2022
CBP 2 Letters

Last month, CBP announced that they would be sending Known Importer Letters to importers that imported goods that may be subject to the Uyghur Forced Labor Prevention Act (UFLPA). Since then, approximately 400 letters have been sent to importers across the US. There are two versions of this letter, one for importers that are part of the Customs Trade Partnership Against Terrorism (CTPAT), and one for those who are not. The CTPAT letters have additional language noting that the importer may be removed from the CTPAT program if they are in violation of UFLPA. CBP is urging all importers to thoroughly review their supply chains before implementation of UFLPA on June 21st.

For more information on the letters and the UFLPA
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CBP To Send Known Importer Letters
May 3, 2022
CBP To Send Known Importer Letters

CBP has announced that they will be sending “Known Importer Letters” to all importers known to have imported goods that may be subject to the Uyghur Forced Labor Prevention Act (UFLPA). These letters are being sent to encourage importers to review their supply chain and identify any potential forced labor issues within. 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” will not be allowed into the United States. CBP will be sending the Known Importer Letters before the rebuttable presumption goes into effect on June 21st. CBP is also encouraging importers to review their supply chain even if they do not receive a Known Importer Letter.  

For Further information please click here
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CIT Ruling On USTR Section 301 Lists
May 3, 2022
CIT Gavel

On April 1st, the Court of International Trade issued an opinion stating that the USTR acted within its rights when implementing lists 3 and 4A of the Section 301 Tariffs. The plaintiffs in the case suggested that lists 3 and 4A violated the Trade Act and should be removed because these tariff lists were in retaliation to new Chinese tariffs on US goods, and not based in the original USTR Section 301 report.

They also suggested that the lists were unlawful because USTR did not start a new Section 301 investigation before implementation. The CIT found that the new lists were not in violation of the 1974 Trade act as alleged, but they found that the USTR did not follow the Administrative Procedure Act because they did not properly respond to the public comments on lists 3 and 4A. The case has been remanded to the Office of the USTR, allowing an opportunity for them to explain the reasoning behind the implementation of these lists. The USTR has been given until June 30th to provide this information.

Opinion from the US CIT
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CBP Monthly Operational Update
May 3, 2022
US CBP Office

CBP has released their monthly statistics for March. See the trade highlights below:

  • Processed over 3.1 million entry summaries valued at over $337 billion.
  • Collected $9 billion in duties.
  • Seized 10,583 shipments that contained over $1.5 billion of counterfeit goods.

The report includes statistics on international travel, border enforcement, drug seizures, agricultural seizures, and CBP’s response to COVID 19. The report also includes links to previous reports and year-over-year comparisons. 

See the full report here
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Expired Section 301 Tariffs Reinstated
April 1, 2022
The Office of the United States Trade Representative announced its determination to reinstate certain previously granted and extended product exclusions in the China section 301 Investigation

The Office of the United States Trade Representative announced its determination to reinstate certain previously granted product exclusions in the China section 301 Investigation. The determination reinstates 352 of the 549 eligible exclusions. The reinstated product exclusions will apply as of October 12, 2021 and extend through December 31, 2022.

The reinstated exclusions are set out in the Federal Register notice linked here.

Clients with products that qualify for reinstated exclusions should contact their local JAS Forwarding USA Inc. branch representative to discuss how to assess impact and define next steps to work towards any duty refunds.

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Section 232 changes – UK STEEL IMPORTS
April 1, 2022
The US and UK have reached a new agreement to adjust the Section 232 tariffs on steel and aluminum imported form the UK

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.

Official Joint Statement
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CBP Detains Imports of Li-Ning Sporting Goods
April 1, 2022
On March 14th, CBP announced they are detaining all imported merchandise produced by Li-Ning Sporting Goods

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.

Read More
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Interest Rate Hike
April 1, 2022
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.

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.

Federal Register
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Executive Order to Ban Russian Alcohol and Seafood
April 1, 2022
On March 11th, President Biden signed an executive order banning the importation of Russian seafood

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.

General LicenseExecutive Order
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CBP Launches UFLPA Webpage
April 1, 2022
New CBP Website for UFLPA

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.

See the new website here
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New Export Controls Against Russia
March 4, 2022

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.

For details on all sanctions being applied, please follow this link. Statement from the white house
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Chicago CBP Counterfeit Seizures
March 4, 2022

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.

See the CBP site
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Agreement Reached on Japanese Steel Imports
March 4, 2022

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.

For the full announcement and further details on the changes to section 232, please follow this link
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CBP 2021 Detentions
February 1, 2022

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.

For the full Fiscal Year 2021 statistics, please see the CBP website
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Petition for Antidumping and Countervailing for Certain Steel Nails
February 1, 2022

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)

For further information on the specific nail types, details on the the affected HTS codes, and links to the investigation documents can be found here
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Public Comment Period for Uyghur Forced Labor Prevention Act
February 1, 2022

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.

DHS.govFederal Register
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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.

AD/CVD (Anti-dumping and countervailing duty) is a hot topic in the trade world these days.  Determining whether AD/CVD applies to products is imperative to understand the costs of imported goods.  Applicability of AD/CVD is typically based on the description of the item as it relates to the scope of the AD/CVD order.  HTS codes are part of AD/CVD scopes but are not the deciding factor.  

Using case numbers, The US Customs & Border Protection system for AD/CVD search AD/CVD search can provide information on specific cases including scope and other background related to individual cases.  Simply enter a case number in the search field and the results will appear.  Users can sort by date, status, type and much more.  

  • While it is often attributed to him, Ben Franklin actually did not come up with daylight saving time as we know it today, but he did pen the idea of adjusting schedules to the available sunlight in an unpublished satirical letter from 1784. In the letter he calculated the money that Parisians could save on candles if they woke with the sun instead of lazily waking at noon.
  • The actual name is Daylight Saving, not Daylight Savings, as it is often called.
  • Daylight Savings was not enacted officially in the US until March 1918. This was later repealed, then enacted again during WWII. After the war, states were allowed to choose whether they wanted to utilize DST or not. This resulted in massive travel issues for citizens crossing multiple state lines.
  • Modern use of DST was established in 1966, when the government passed the Uniform Time Act, creating a standard for daylight savings across the country (minus a few holdout states).
  • Hawaii, Arizona, and most US Territories do not observe DST.
  • There is much debate over whether DST has positive or negative effects on regions that use it, and whether it is necessary at all. Polls indicate that over 60% of Americans generally support the idea of eliminating DST permanently.
  • Studies show that the second Monday in March (the day we “lose an hour” every year) there are noticeable spikes in workplace accidents, traffic accidents, losses of productivity and slight increases in health issues such as heart attacks and strokes.

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.

US importers are responsible for keeping all records related to imporations into the United States for the legal retention period.  In general records must be kept for 5 years from the date of entry, or 5 years from the date of the activity which required the creation of the record.  Failure to produce entry records upon lawful demand can result in significant consequences.  Check out CBP’s informed compliance publication on “Recordkeeping” in the link below to learn more.

Valentine’s Day is just around the corner! Sweep your partner off their feet with these fun Valentine’s facts.

  • In 1875, a Swiss inventor Daniel Peter combined cocoa and condensed milk to create the first Milk Chocolate, which is now the most widely consumed chocolate across the globe. The milk condensation process had been created by Henri Nestlé, who's last name may sound very familiar! These men would go on to create Nestlé, one of the largest food and confectionary companies in existence today.
  • The United States is the biggest importer of chocolate in the world! In 2020, the United States imported $2.9 billion worth of chocolate.
  • Projections for 2022 show that Americans will likely spend over $27 billion on their Valentines. This is an increase of over $5 billion compared to last year!
  • Nothing says “I Love You” like a new diamond bracelet! Lovers all across the United States spent a whopping $5.8 billion on jewelry for their significant others in 2021.  
  • Conversation Hearts (also called Sweethearts), while not exactly considered the best-tasting Valentine’s candy, have become a holiday staple since their creation in 1901 by the famous confectionary company Necco. Approximately 8 billion conversation hearts are made every year!

First Sale Valuation and Reducing Section 301 Tariffs

February 10, 2022

2:00 PM ET- 3:00 PM ET

Sandler Travis & Rosenberg

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.

On December 23, 2021, the White House issued a proclamation to modify the Harmonized Tariff Schedule of the United States.  The White House Press Release says “Section 1205(a) of the Omnibus Trade and Competitiveness Act of 1988 (the “1988 Act”)…directs the United States International Trade Commission (the “Commission”) to keep the Harmonized Tariff Schedule of the United States (HTS) under continuous review and periodically recommend to the President such modifications to the HTS as the Commission considers necessary or appropriate to accomplish the purposes set forth in that subsection.”  On December 28, 2021 the Presidential proclamation was published in the Federal Register and the new changes will be in effect 30 days later (January 27, 2022).

Flagging for reconciliation allows importers to file their entry summaries using the best available information they have on file and electronically “flag” estimated elements, with the mutual understanding that CBP will receive the actual information at a later date.  Importers can then provide the corrected information on a new type of entry called a Reconciliation.  To read more about reconciliation, check out the link below.

January is National Meat Month, and what better way to celebrate than with the perfect steak dinner! Of course, you’ll need some quality ingredients to serve your protein-rich meal, but where did all these ingredients come from? It may surprise you to find that old traditional steak dinner requires foods and goods from all over the globe to come together on your dinner plate. The package label may say ‘New York Strip Steak’ but there is a fair chance that steak was imported from Canada, Mexico, or New Zealand. Once you get the steak going, you can add some flavor by topping it with some shiitake mushrooms, fresh from South Korea! Next, you’ll want a side for the meal, so scallop some Canadian potatoes and top it with some American cheddar cheese. Of course, you’ll need some greens to balance out the meal - time to toss a salad! Take a big pile of leafy lettuce and ripe tomatoes (both imported from Mexico) and top with some fancy cheese and dressing, both Italian! Considering all the countries that had to come together to plate this one meal, maybe we should call it International Meat Month?

New Product Classifications Under HTSUS 2022

January 11, 2022

2:00 PM ET – 3:30 PM ET

Sandler Travis & Rosenberg

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.

On October 1st, APHIS (USDA Animal and Plant Health Inspection Service) began implementing Phase VI of the Lacey Act enforcement scheduled. Last year, APHIS solicited comments on Phase VI and received numerous concerns that trade could be delayed or disrupted if certain products were added to HTS 4415 and required import declarations.  Phase VI now includes rules that benefit shippers by not requiring import declarations on crates, pallets, and other Wood Packaging Materials used to ship goods.  Only new products categorized under HTS 4415 will require declarations upon import.

For further details and a list of all affected products, pleasesee the official statement here  

Starting January 1, 2022 the current tariffs on imports of EU steel (25%) and aluminum (10%) will be replaced with a Tariff-Rate Quota. All steel and aluminum products within-quota will not have any Section 232 duty applied, whereas any steel or aluminum imports that arrive above-quota will be charged their respective Section 232 duty rate. The TRQ will be reviewed annually and recalculated regularly in order to keep up with demand.

Customs Audits 101: What to Expect

December 7, 2021

2:00 PM ET- 3:00 PM ET

1 CCS Credit

Sandler, Travis and Rosenberg

CBP’s website (linked below) for “Official Notice of Extension, Suspension and Liquidation” can be used to determine the status of entries.  Entries must have a status of extension, suspension, or liquidated to produce any results.  Some of the information returned includes Posted date, Liquidation date, Action (meaning change increase or no change, etc.), Port of Entry, Entry date, Entry Type, and the CEE Team designation.

Users can search by entry number along with combinations of filer code and importer of record numbers.  This can be a useful quick check tool to see the status of entries!

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