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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.”
Customs and Border Protection’s (CBP) Baltimore Field Office (which covers the ports of Baltimore MD, Norfolk VA, and Philadelphia PA, inter alia) took the top spot for intercepting the most stolen vehicles attempting to be exported during the 2022 fiscal year. A total of 239 stolen vehicles were seized with an estimated total value of $11,500,000. The most expensive vehicle recovered was a 2022 Bentley Bentayga, valued at $187,600. Some other interesting aspects of these seizures were:
Although the Continued Dumping and Subsidy Offset Act of 2000 (CDSOA) was repealed in 2005, there are still antidumping and countervailing duty orders with assessed amounts that can be claimed by affected domestic producers who qualify and submit the required certifications by July 31, 2023.
Customs and Border Protection has also recently initiated several Enforce and Protect Act (EAPA) investigations alleging evasion of antidumping/countervailing duty orders. Some of the products concerned are Chassis and Subassembiles from China, Quartz Surface Products from China, and Xanthan Gum from China.
U.S. Customs and Border Protection (CBP) announed on 05/12/23 an indefinite delay in the deployment of the much anticipated Ocean House Bill of Lading Release in the Automated Commercial Environment (ACE). A follow-up notice will be issued once a new date is established. Also, the recently announced deloyment date of 05/20/23 for the “Automation of CBP Form 6051D for Detentions Filed in ACE” was changed to “TBD” (To be determined). This was noted on the ACE Deployment Schedule without an official announcement.
On April 19, 2023, the Bureau of Industry and Security (BIS) issued the largest standalone administrative penalty in its history. The US Company and its Singaporean affiliate were imposed a $300 million civil penalty to resolve alleged violations of U.S. Export Controls related to selling hard disk drives to Huawei Technologies Co. Ltd. The US Company continued to do business with Huawei despite being aware of the August 2020 controls that BIS imposed on Huawei. This is another reminder of the importance of entity screening and the need to discontinue relations with sanctioned entities. To read more details, check out the BIS press release in the link below.
As a reminder, per 15 CFR 30.60, the Electronic Export Information (EEI) collected by the Census Bureau is confidential and it "shall not be disclosed to anyone by any officer, employee, contractor, agent of the federal government or other parties with access to the EEI other than to the USPPI or the authorized agent of the USPPI."
The implementation of UFLPA has led to a marked increase in Customs and Border Protection (CBP) detentions which, at present, are notified to the trade via a paper CBP form 6051D Notice of Detention. On May 20, 2023, CBP will deploy to the ACE Secure Data Portal the automation of the form to allow the trade to complete the form and provide additional documentation to CBP via the portal.
The lead Congressional sponsor of UFLPA, Senators Jeffrey Merkley and Marco Rubio and Representatives James McGovern and Christopher Smith, sent a letter to Robert Silvers, Chair of the Forced Labor Enforcement Task Force (FLETF) requesting, inter alia, more robust reporting to Congress of UFLPA enforcement measures, expansion of the Entity List, and increased scrutiny of de minimis shipments. To read more, click the button below.
March 30, 2023, CSMS message 55701614 was released indicating “The new requirements for reporting the countries of smelt and cast for imports of aluminum and aluminum derivative products effective on April 10, 2023 have been delayed thirty days until May 10, 2023. This will allow additional time for the trade to update their software programming and systems to comply with these new reporting requirements.”
On March 17, 2023, the United States Court of International Trade held issued its opinion on whether the Office of the U.S. Trade Representative complied with the Administrative Procedure Act. This opinion was related to lists 3 and 4a of the Section 301 tariffs on China. In the opinion, the Trade Court upheld the Section 301 tariff action. To read the full opinion, check out the link below.
CBP has developed a UFLPA dashboard! CBP recently noted “Since UFLPA went into effect last year, CBP has hosted more than 150 engagements with industry providing compliance information and guidance,” said AnnMarie R. Highsmith, Executive Assistant Commissioner for CBP’s Office of Trade. “The Technical Expo and dashboard represent the next major step in our joint engagement with industry towards achieving our mutual goal, not just to prevent forced labor from entering the U.S. commerce, but from ever happening in the first place.”
The Impracticable to Screen (ITS) currently has an amendment to the 100% screening requirements that is set to expire on October 31, 2023. The expiration of this amendment could have significant affects on US shippers that ship cargo that falls within this category, items such as drums and sacks. For more details, we have included our advisory on this issue below.
Updated guidance for processing approved Section 232 product exclusions was announced on February 7, 2023 via CSMS message 55014059.
CBP now directly processes approved Section 232 exclusions based on weekly lists provided by DOC. CBP activates approved product exclusion IDs in ACE on a weekly basis.
Importers can check CBP.gov every Friday, to determine if a Section 232 approved product exclusions is active in ACE. The posting can be found at https://www.cbp.gov/document/publications/active-section-232-product-exclusions-ace.
Polyvinyl chloride, which is one of the most widely produced synthetic plastics, is used in a wide variety of applications including doors, windows and even flooring. PVC may be a new target for CBP in the Forced Labor arena. Sandler Travis & Rosenberg’s article shares a little more on this topic. To check it out click on the link below.
The US Trade Representative Katherine Tai, released a statement regarding Mexico’s resolution aimed at prohibiting imports of merchandise produced with forced labor.
“With this resolution, Mexico has taken an important step toward joining the United States and Canada in prohibiting the importation of goods produced with forced labor. In light of this progress, the United States, Canada, and Mexico will work more closely together to eliminate forced labor from global supply chains and tackle transshipment, leveling the playing field for North American workers while protecting the most vulnerable workers around the world,” said Katherine Tai, US Trade Representative.
U.S. Customs and Border Protection (CBP) officers in Louisville KY detained a shipment believed to be counterfeit jewelry on January 2.
CBP officers examined the shipment to determine the admissibility of the goods and discovered the shipment contained 4,920 pairs of earrings with Chanel logos. They were seized for infringing Chanel’s protected trademarks. The earrings, arriving from China and heading to Maryland, would have been worth a total of $1.37 million had they been genuine.
“This just goes to show you how criminals are using express consignment facilities to ship their items to unsuspecting consumers, damaging our economy,” said LaFonda D. Sutton-Burke, Director, Field Operations-Chicago Field Office. “I want to congratulate our Officers for their outstanding job. CBP is the first line of defense, and we will continue to protect the safety of consumers.”
CBP has established an educational initiative to raise consumer awareness about the consequences and dangers associated with purchasing counterfeit and pirated goods online or in stores. More information about that initiative is available at www.cbp.gov/fakegoodsrealdangers.
The United Kingdom (UK) announced that it will be implementing a Carbon Border Adjustment Mechanism (CBAM) by 2027, joining, among others, the European Union whose own CBAM entered its transitional phase in October with the first reporting period set to end on January 1, 2024. The UK CBAM will place a carbon price on some of the most emissions-intensive industrial goods imported to the UK from the aluminum, cement, ceramics, fertilizer, glass, hydrogen, iron and steel sectors, with the precise list to be provided sometime in 2024 after additional consultations. The liability applied by the CBAM will depend on the greenhouse gas emissions intensity of the imported good and the gap between the carbon price applied in the country of origin (if any) and the carbon price that would have been applied had the good been produced in the UK. CBAM liability will lie directly with the importer of imported products within the scope of the UK CBAM on the basis of emissions embodied in those goods. Further details will be provided in 2024 also after additional consultations. Exporters of products to the U.K., and to the European Union as well, will need to become familiar with these mechanisms, as their customers in these countries will be needing detailed information on the greenhouse gas emissions intensity of the products they import.
The New Democrat Coalition (NDC), a caucus of nearly 100 members of the House of Representatives, recently issued a letter to the President outlining a list of their legislative priorities, one of which stated “Advance equity in trade policy by considering solutions to reduce gender bias and regressivity of the tariff system, in consultation with Congress”. Now, it may seem a stretch to claim that something like the Harmonized Tariff Schedule, a legalistic, inanimate document for the classification of imported products, could be biased towards a particular gender. However, after further examination, it seems that the NDC is correct, and the tariff may be somewhat biased towards women. A study performed by the International Trade Commission entitled “Gender and Income Inequality in United States Tariff Burden” discovered, “Across genders, we find large differences in tariff burden…The gender gap exists because spending on women’s apparel is higher than on men’s and because the average applied tariff rate on women’s clothing is higher than on men’s”. The study found “the average applied tariff rate for women’s apparel was 14.9%, but it was only 12.0% on men’s apparel. It was also noted that “the gender difference in applied tariff rates is mostly attributed to the sourcing of imports as a much greater share of men’s apparel than women’s apparel comes from U.S. Free Trade Agreement partners”. Perhaps some adjustments in the tariff are in order.
In a recent Federal Register notice, the Environmental Protection Agency (EPA) is proposing the prohibition of the manufacture, importation, processing, or distribution in commerce of Trichloroethylene (TCE). TCE is widely used as a solvent in a variety of industrial, commercial and consumer applications including for hydrofluorocarbon (HFC) production, vapor and aerosol degreasing, and in lubricants, greases, adhesives, and sealants. In the proposed rule, EPA lists numerous and diverse industries that would be affected by this proposal. Comments on the proposal are due by December 15, 2023. Importers of products containing TCE should review this proposal and submit any comments deemed necessary.
The annual eligibility review for the African Growth and Opportunity Act (AGOA), in accordance with Section 506A(a)(3)(B) of the Trade Act of 1974, has resulted in the termination of eligibility for the Central African Republic, Gabon, Niger, and Uganda. The White House and the Office of the United States Trade Representative announced that recent unconstitutional changes in government in Gabon and Niger, and the resultant threat to political pluralism and the rule of law, led to their termination. The termination of the eligibility of the Central African Republic and Uganda was a result of gross violations of internationally recognized human and worker rights. On a positive note, the country of Mauritania had its eligibility reinstated based on progress it has made with respect to worker rights and eliminating forced labor across the country. Ethiopia, however, did not have its eligibility reinstated at this time. Recently, there have been a lot of discussions in Congress about the need to renew AGOA well in advance of its current September 2025 expiration date, to ensure the continuity of the program and encourage long term investment in the region.
Customs and Border Protection (CBP) published a new guide entitled “TIPS FOR FILING AN HFC IMPORT IN ACE” to assist the import community with filing obligations related to imports of bulk hydrofluorocarbons (HFCs) under the American Innovation and Manufacturing (AIM) Act. The Environmental Protection Agency (EPA) also announced in November that allocations for the import of HFC’s will be reduced to 60% of the stipulated baseline levels in January 2024. Importers of HFCs should consult this new guide as filing requirements for HFC’s can be complicated. CBP will advise in early January via the Cargo Systems Messaging Service (CSMS) when the new requirements will be operative in ACE.
The protracted quest of Mr. Byungmin Chae to have his 2018 Customs Broker License Examination results changed to a passing grade came to an end when the Supreme Court denied his petition for a writ of certiorari in October. Mr. Chae’s case, if nothing else, proved he possesses ample persistence and determination. The court filing states that his original score on the April 2018 exam was 65%, with 75% or higher being needed for a passing grade. He filed a timely appeal to Customs and Border Protection (CBP) requesting that his answers to 13 of the questions originally marked wrong be deemed correct. Subsequent to his appeal, CBP announced that all test takers would be given credit for 3 particular questions, 2 of which Mr. Chae had been marked wrong on originally. This raised his score to 67.5%. CBP then denied his appeal request for the other 11 questions. Mr. Chae then appealed this decision to the Office of Trade. The Office of Trade granted his appeal for 3 of the questions, raising his score to 71.25%, but still short of a passing grade. Undaunted, Mr. Chae proceeded to file a petition with the Court of International Trade (CIT) as allowed by the regulations.
The CIT gave him credit for one more of the contested questions, raising his total of correct answers to 58 of the 60 he would need for a passing grade. Still undaunted, Mr. Chae filed an appeal of the CIT decision to the Court of Appeals for the Federal Circuit asking for 3 questions to be further reviewed. The Appeals Court gave him credit for one of the questions, raising his correct answer total to 59 of the 60 needed. However, the Supreme Court denial of his certiorari request ended the appeals process, terminating his case and giving new meaning to the phrase “so close, yet so far…”.
A rule proposed December 28, 2022, by the National Marine Fisheries Service (NMFS) to significantly expand the species covered under the Seafood Import Monitoring Program (SIMP) was withdrawn on November 16. The additional species to be added to the SIMP, along with a change stating that the importer of record on the customs filing must also be the party that holds the required International Fisheries Trade Permit, had caused concern in the trade community leading to a significant number of comments being filed with NMFS concerning the proposed rule. The NMFS advised that they will now conduct a comprehensive SIMP review to determine any future action to be taken in order to strengthen the impact and effectiveness of SIMP.
In a recent Cargo Systems Messaging Service message, CBP provided a list of the countries that are members of the European Union and who, therefore, use the Euro as their domestic and international trade currency. It was further stated, “Therefore, all invoices, other documents, and entry transmissions from these countries must show EUR for the foreign value or as their currency code”. CBP is updating its records to reflect the Euro as the appropriate currency for all countries listed.
Customs and Border Protection (CBP) will hold an important webinar on December 15, 2023, from 2PM to 3PM on the topic of the 2024 Permit Annual User Fee and Triennial Status Report Filing. The webinar will explain the process for paying the Permit fee and filing a Triennial Status Report via the e.CBP online portal. A link to register for the webinar is below.
Christmas crackers are a festive holiday tradition in the United Kingdom, Australia, Canada, New Zealand and South Africa. They consist of a decoratively wrapped tube with a prize, a paper hat and a joke card inside. The wrapping on the tube is extended outwards on both sides and twisted around a shock sensitive card strip similar to what is used for cap gun shot caps. A person at each end will then pull on the wrapping simultaneously, generating a bang or cracking sound and causing the tube to open and reveal the prizes. It is believed that Christmas Crackers were invented in London around 1847 by a confectioner named Tom Smith who was looking for a way to repackage the candies he sold to increase sales. The hats and prizes were added by his son Walter Smith to further increase sales as other competitors began selling crackers as well. If you are planning on visiting the United Kingdom and are thinking of bringing back any Christmas Crackers, kindly note that the Transportation Security Administration does not allow crackers in carry-on bags or checked luggage on flights to the U.S.
A petition was filed on October 4, 2023, and an investigation instituted on October 13, 2023, by the Commerce Department and the International Trade Commission to greatly expand the antidumping and countervailing duty orders in effect on aluminum extrusions from China to cover products that are now exempt and to add 14 additional countries. The petition was filed by the United Steelworkers Union and the U.S. Aluminum Extruders Coalition. The requested scope of the order is five pages long and covers aluminum extrusions for a wide variety of applications. The list of countries to be included are Colombia, the Dominican Republic, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, the People's Republic of China ("China"), South Korea, Taiwan, Thailand, Turkey, the United Arab Emirates and Vietnam. Importers of aluminum extrusions from the listed countries should follow the progress of this investigation and possibly pursue legal involvement in the proceedings if appropriate.
The Internal Market and International Trade committees of the European Parliament adopted a draft regulation that would ban the importation and exportation of goods proven to be made with the use of forced labor. Items suspected of being made with forced labor would be halted at the border. If forced labor use is proven, the items would have to be donated, recycled, or destroyed. Any related goods that had already reached the European Union (EU) market would have to be withdrawn from the marketplace. The regulation would also create a list of geographical areas and economic sectors at high risk of using forced labor. For goods from these areas and sectors, there would be a presumption that forced labor was involved and the company attempting to import or export such goods would have the burden of proof to show otherwise. The EU council will review the proposed regulation next and then talks will start over the final shape of the regulation.
On October 25, the Bureau of Industry and Security (BIS) published in the Federal Register several updates to its comprehensive interim final rule of October 7, 2022, which amended the Export Administration Regulations (EAR) to implement controls on advanced computing integrated circuits (ICs), computer commodities that contain such ICs, and certain semiconductor manufacturing items exported to China. The updates, inter alia, adjust the thresholds for which chips are covered by the regulations, expand licensing requirements to an additional 43 countries included in the D:5 Country Group of the EAR, and add several dozen items to the list of controlled semiconductor manufacturing equipment. Exporters of ICs and semiconductor manufacturing items should thoroughly review the notice and submit any comments to BIS by the December 18, 2023, deadline. The Center for Strategic & International Studies has published a concise summary and commentary on these updates prepared by Emily Benson. A link to this commentary is below.
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.
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