JAS USA COMPLIANCE

News & Insights from JAS Worldwide Compliance

JAS Forwarding (USA), Inc.

6165 Barfield Road
Atlanta GA, 30328
United States
Tel: +1 (770)688-1206
Fax: +1 (770)688-1229

COMPLIANCE SOLUTIONS

JAS USA Compliance Insights

Webinars & Events

JAS USA Compliance Insights on the Impact of COVID-19

CBP LOGO

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.

Link to register for the webinar
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CIFIUS New Penalty Guidlines, National Risk Factors and More

December 7, 2022

2:00 PM ET - 2:30 PM ET

0.5 CCS Credit

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G-TEC

On August 1st and 2nd, 2022, the NCBFAA National Educational Institute will host the annual Global Trade Educational Conference (G-TEC) in Chicago. The conference is open to all importers and exporters, and will have sessions on many different topics featuring subject matter experts and prominent leaders in the industry. Topics include CTPAT, Binding rulings, export sanctions, trade remedies, forced labor prevention, tips on managing remote work, and many more. This event is a great opportunity for importers and exporters to learn more about compliance and improve the effectiveness of their due diligence. and provide due diligence. NCBFAA members that register will have access to member pricing and earn 14 CCS/CES credits. This event is also a great opportunity to network with others in the global trade industry.

Registration and Further Information
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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 Risk Analysis and Survey Assessment – The CBP Audit Transformation

May 10th, 2022
2:00 PM ET - 3:00 PM ET
1 CCS Credit

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First Sale Valuation and Reducing Section 301 Tariffs

February 10, 2022

2:00 PM ET- 3:00 PM ET

Sandler Travis & Rosenberg

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New Product Classifications Under HTSUS 2022

January 11, 2022

2:00 PM ET – 3:30 PM ET

Sandler Travis & Rosenberg

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Customs Audits 101: What to Expect

December 7, 2021

2:00 PM ET- 3:00 PM ET

1 CCS Credit

Sandler, Travis and Rosenberg

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Apparel Classification Series: Everything but Knit Tops- Sandler Travis & Rosenburg

November 2, 2021

2:00 PM ET – 3:30 PM ET

1.5 CCS Credits

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ITAR Exemptions and How to Use Them

Tuesday, October 19, 2021

11:00 a.m. – noon Central Standard Time

REGISTER HERE

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Encryption Controls Seminar

Date:  August 11-12, 2021

Location:  VIRTUAL

The Encryption Controls virtual seminar is an in-depth session that will focus on the unique provisions related to encryption under the Export Administration Regulations (EAR).  Bureau of Industry and Security (BIS) licensing officers will provide a comprehensive overview of controls on encryption in the EAR, including what items are and are not controlled in Category 5 Part 2, License Exception ENC and mass market provisions (740.17), encryption classification and licensing, deemed exports, and rules regarding foreign product development using U.S. origin encryption parts and components.  The program will allow for live Q&A, provide detailed electronic reference materials for ongoing use, and allow attendees the opportunity to view recordings of the sessions for a limited period following the seminar.

2021 Virtual Update Conference on Export Controls & Policy

Date: September 2, 2021

Location:  VIRTUAL

The Bureau of Industry and Security (BIS) is preparing for its annual Update Conference on Export Controls. This major outreach activity draws business and government representatives from around the world to learn and exchange ideas about export control issues. It is one of the Department’s most notable international trade events.

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Re-Export Under the EAR

Date:  July 28, 2021

Location:  VIRTUAL

The Bureau of Industry and Security (BIS) will offer a virtual seminar entitled Reexports under the EAR.  The seminar will explain how to determine if items made outside the United States are subject to the Export Administration Regulations (EAR) by using the Foreign Direct Product (FDP) rules, including the new Entity List related FDP, and the De minimis rules.  They will also discuss how to apply for a reexport license, common license exceptions used to reexport, and compliance tips.

Register Here

2021 Virtual Update Conference on Export Controls & Policy

Date: September 2, 2021

Location:  VIRTUAL

The Bureau of Industry and Security (BIS) is preparing for its annual Update Conference on Export Controls. This major outreach activity draws business and government representatives from around the world to learn and exchange ideas about export control issues. It is one of the Department’s most notable international trade events.

Register Here

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Fabrics for Specialized Uses

Date: June 21, 2021

Location:  VIRTUAL

This webinar hosted by Customs & Border Protection will cover information as it relates to importing fabrics of specialized uses.

SIA 2021 Virtual Summer Back to Basics Conference

Date:  July 12-16, 2021

Location:  VIRTUAL

This five-session conference will provide attendees with the important first step to exporting articles on the United States Munitions List (USML) and the Commerce Control List (CCL) and the associated defense services and technology. This webinar is deal for newcomers (less than 5 years of experience) to exporting under the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR). Attendees will become familiar with the various types of licenses, agreements, exemptions and exceptions and the requirements and conditions associated with each.

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SIA 2021 Spring Virtual Advanced Conference

Date:  May 17-19, 2021

Location:  VIRTUAL

This is a three-day VIRTUAL advanced level forum focusing on the processes and procedures relating to export controls and compliance.  Agenda topics will address a variety of advanced issues of concern to the international trade community in a more intimate setting with attendees from industry, government, and other international trade specialists.


Complying with U.S. Export Controls

Date: June 8-11, 2021

Location:  VIRTUAL

The two-day program is led by BIS's professional counseling staff and provides an in-depth examination of the Export Administration Regulations (EAR). The program will cover the information exporters need to know to comply with U.S. export control requirements on commercial goods.

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POSTPONED - 2022 CBP Trade Symposium

Date: July 20-21, 2021

Location: Anaheim, CA

CBP announced the announced a date change from the Trade Symposium that was originally scheduled for March 2020.  It was rescheduled to be held in March 2021 and has now scheduled to be held July 2021.    

Complying with U.S. Export Controls

Date: April 28-29, 2021

Location:  VIRTUAL

The two-day program is led by BIS's professional counseling staff and provides an in-depth examination of the Export Administration Regulations (EAR). The program will cover the information exporters need to know to comply with U.S. export control requirements on commercial goods.

Register Here

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Partnering for Compliance Conference

Date:  March 9-11, 2021

Location:  Webinar

This collegial and interactive conference will focus on a broad spectrum of export regulatory & compliance matters of current relevance.  Senior-level government and trade speakers will provide solid & recent updates on US initiatives & policies regarding export control licensing/enforcement.

Register Here

POSTPONED!  2021 CBP Trade Symposium

Date:  July 20-21, 2021

Location: Anaheim, CA

CBP announced the announced a date change from the Trade Symposium that was originally scheduled for March 2020.  It was rescheduled to be held in March 2021 and has now scheduled to be held July 2021.

Register Here

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Complying with U.S. Export Controls

Date:  March 2-5, 2021

Location:  Webinar

The two-online workshop is led by BIS's professional counselling staff and provides an in-depth examination of the Export Administration Regulations (EAR).  The program will cover the information exporters need to know to comply with U.S. export control requirements on commercial goods.

2021 CBP Trade Symposium

Date:  March 23-24, 2021

Location: Anaheim, CA

CBP announced the rescheduled dates from the Trade Symposium that was originally scheduled for March 2020.  Save the date!

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U.S. Customs Broker Exam Course

Date:  January 19, 2021 – April 6, 2021

Location:  WEBINAR SERIES

The Los Angeles Customs Brokers and Freight Forwarders Association (LACBFFA) is offering a 12-week-in depth VIRTUAL course for the U.S. Customs Broker exam that will cover various exam topics and review items.

2021 CBP Trade Symposium

Date:  March 23-24, 2021

Location: Anaheim, CA

CBP announced the rescheduled dates from the Trade Symposium that was originally scheduled for March 2020.  Save the date!

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Back to Basics Conference

Date:  February 22 - 26, 2021

Location:  VIRTUAL

The sessions will provide attendees with the important first step to exporting articles on the United States Munitions List (USML) and the Commerce Control List (CCL) and the associated defense services and technology. This webinar is ideal for newcomers (less than 5 years of experience) to exporting under the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR). Attendees will become familiar with the various types of licenses, agreements, exemptions and exceptions and the requirements and conditions associated with each.

Register Here

2020 CBP Trade Symposium - Rescheduled

Date:  March 23-24, 2021

Location: Anaheim, CA

CBP announced the rescheduled dates from the Trade Symposium that was originally scheduled for March 2020.  Save the date!

Register Here

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Back to Basics Conference

Date:  February 22 - 26, 2021

Location:  VIRTUAL

The sessions will provide attendees with the important first step to exporting articles on the United States Munitions List (USML) and the Commerce Control List (CCL) and the associated defense services and technology. This webinar is ideal for newcomers (less than 5 years of experience) to exporting under the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR). Attendees will become familiar with the various types of licenses, agreements, exemptions and exceptions and the requirements and conditions associated with each.

Register Here

2020 CBP Trade Symposium - Rescheduled

Date:  March 23-24, 2021

Location: Anaheim, CA

CBP announced the rescheduled dates from the Trade Symposium that was originally scheduled for March 2020.  Save the date!

Register Here

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Complying with U.S. Export Controls

Date:  October 20-23, 2020

Location:  VIRTUAL

This two-day virtual program is led by BIS's professional counseling staff and provides an in-depth examination of the Export Administration Regulations (EAR). The program will cover the information exporters need to know to comply with U.S. export control requirements on commercial goods.

Register Here

ITAR/EAR Controls for Non-US Companies

Date:  November 16-17, 2020

Location: VIRTUAL

EAR and ITAR regulations are extra-territorial and apply to companies and organizations outside of the United States. Non-compliance can result in serious fines and penalties - even the loss of U.S. Government contracts and the ability to receive U.S. items. Instructors Suzanne Palmer (ECS) and Marc Binder (ITC Strategies) give comprehensive instruction on how the rules apply outside the U.S. and detail best practices for staying in compliance.

Register Here

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Webinars & Events
September 1, 2020

WESCCON

Date:  October 1-4, 2020

Location: VIRTUAL

This conference offers opportunity to meet people in the global logistics industry. It will consist of panels, roundtable discussions and town hall meetings on relevant topics to keep you informed on the latest industry issues and trends.

Register Here

Complying with U.S. Export Controls

Date:  October 20-23, 2020

Location:  VIRTUAL

This two-day virtual program is led by BIS's professional counseling staff and provides an in-depth examination of the Export Administration Regulations (EAR). The program will cover the information exporters need to know to comply with U.S. export control requirements on commercial goods.

Register Here

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Encryption Controls Virtual Seminar

Date:  August 25-26th, 2020

Location:  VIRTUAL

The Bureau of Industry and Security (BIS) will provide a comprehensive overview of controls on Compencryption in the EAR.  The program will include a live Q&A, provide detailed electronic reference materials for ongoing use, and allow attendees the opportunity to view recordings of the sessions for a limited period following the seminar.

Register Here

Complying with U.S. Export Controls

Date:  September 9-10, 2020

Location:  VIRTUAL

This two-day virtual program is led by BIS's professional counseling staff and provides an in-depth examination of the Export Administration Regulations (EAR). The program will cover the information exporters need to know to comply with U.S. export control requirements on commercial goods.

Register Here

WESCCON

Date:  October 1-4, 2020

Location: VIRTUAL

This conference offers opportunity to meet people in the global logistics industry. It will consist of panels, roundtable discussions and town hall meetings on relevant topics to keep you informed on the latest industry issues and trends.

Register Here

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GTEC 2020

The Show Must Go On(line)!!!  

Date:  August 3-4th, 2020

Location:  VIRTUAL

The NCBFAA Educational Institute invites all global logistics professionals to its 6th Annual Global Trade Educational Conference (G·TEC). This two-day event will be held online and  that will give customs brokers, freight forwarders, NVOCCs, OTI, service providers, importers, exporters and all global logistics professionals an opportunity to update themselves on industry developments and connect with colleagues new and old.

REGISTER HERE

WESCCON

Date:  October 1-4, 2020

Location: VIRTUAL

This conference offers opportunity to meet people in the global logistics industry. It will consist of panels, roundtable discussions and town hall meetings on relevant topics to keep you informed on the latest industry issues and trends.  

REGISTER HERE

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SEMICONDUCTOR

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.

GOAT

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!

CBP LOGO

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.

CONTAINERS LA

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.

TRAINING GROUP

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.

LEIDEN

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.

CCSF WAREHOUSE

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!

CLOSED SIGN

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.

COMPLIANCE PIECE

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.

SOFTWOOD LUMBER

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.

COSMETIC BAG FDA REGISTRATION

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.

CRITICAL MINERALS

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.

FTZ CONFERENCE OCTOBER

JAS employees were on the move in September as Compliance Project Manager Scott Cassell and Miami FTZ Administrator Ivel Martinez attended the National Association of Foreign-Trade Zones “Celebrating 50 Years of NAFTZ” conference held in Miami on September 10 to 13. JAS operates foreign trade zones (FTZ) in both Charleston, SC and Miami, FL and the conference was a great opportunity for the JAS team to stay abreast of the current issues and regulatory changes affecting FTZ’s.

The entire JAS compliance team also meet on September 19 and 20 at the JAS headquarters in Atlanta for their annual meeting. Led by Vice President of Compliance Laurie Arnold this year’s theme was “Coming together is a beginning, keeping together is progress, working together is success!”. Various topics were discussed and strategies for the coming year were formulated.

HALLOWEEN

It is October and that means Halloween is around the corner! The Library of Congress reports that Halloween has its roots in the ancient Celtic festival of Samhain (pronounced “SAH-win”). Samhain was a pagan religious celebration at the time of the harvest at the end of summer in which people would light bonfires and wear costumes to ward off ghosts. Then, in the eight century, Pope Gregory III designated November 1 as a day to honor Catholic saints and this was called All Saints Day. All Saints Day incorporated some of the traditions of Samhain. The evening before All Saints Day then became a holiday as well and was celebrated as All Hallows Eve, from which we derive Halloween. The Halloween tradition of carving pumpkins into Jack O’Lanterns is rooted in the Celtic legend about a man named Stingy Jack who was able to repeatedly trap the devil and would only let him go if he promised that Jack would never go to hell. However, when Jack died, heaven did not want him either, so he had to wander the earth as a ghost for eternity. The devil then gave Jack a burning lump of coal in a carved-out turnip to light his way. The tradition then started in Ireland of carving scary faces in turnips to frighten the ghost of Jack and other evil spirits away. Have a safe and happy Halloween and look out for Jack!

Worker Examination

In a Federal Register notice, the Transportation Security Administration (TSA) announced the opportunity for qualified, interested shippers to register as Certified Cargo Screening Facilities (CCSF). While the TSA had approved shippers to become CCSF’s previously when requested, the TSA had never fully integrated these operations into the Certified Cargo Screening Standard Security Program (CCSSSP). An incentive for shippers to consider becoming a CCSF is that, on October 31, the Impracticable to Screen (ITS) amendments that the TSA had in effect will expire. These amendments allowed cargo not easily screened due to the commodity packaging type or size to move via airfreight. After October 31, ITS cargo will require 100% screening. ITS cargo could be screened by the airline or other third-party service provider, however, higher costs for the shipper are likely to result.

To initiate the registration process, shippers must send an email indicating their interest to an address identified in the notice and TSA will respond with additional information regarding the application requirements.

PCB

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.

Pencils

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.

Allow Delay

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.

Law Book

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.

Passport

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.

USTR Logo

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.

American Flag

Hard to believe, but it will be 22 years this September 11th since the terrorist attacks on September 11, 2001 caused the death of nearly 3,000 people at the World Trade Center in New York, the Pentagon in Virginia and on United Airlines Flight 93 that crashed in Pennsylvania. We still mourn and honor those whose lives were sacrificed. What you may not know is that 187 years prior another event occurred in the month of September. On September 14, 1814, poet Francis Scott Key was watching the British bombardment of Fort McHenry in Baltimore during the continuation of the War of 1812 between the United States and Britain. As the U.S. soldiers gained the advantage, a large U.S. flag was hoisted above the fort. Inspired by the bravery and tenacity of the soldiers, Key penned the words to a song titled “The Star-Spangled Banner” and the rest, of course, is history! In remembrance of those who lost their lives on September 11th, we share a not so well-known additional stanza of the anthem:

O thus be it ever when freemen shall stand

Between their loved home and the war's desolation!

Blest with victory and peace may the heaven rescued land

Praise the power that hath made and preserved us a nation!

Then conquer we must, when our cause it is just,

And this be our motto - "In God is our trust,"

And the star-spangled banner in triumph shall wave

Over the land of the free and the home of the brave

SHEFFIELD HALLAM RELEASES EXTENSIVE LIST OF UYGHUR REGION COMPANIES

Sheffield Hallam University in the United Kingdom via its Forced Labor Lab released another forced labor resource in the form of a spreadsheet listing over 50,000 companies that operate in the Uyghur Region of China. The spreadsheet also has a section grouping over 35,000 companies under specific industry categories. Sheffield Hallam provides numerous resources on its website relating to forced labor issues in the Uyghur region, including a 50+ page report on automotive supply chain connections to forced labor in the region.

United States Capitol

A letter signed by 66 members of the U.S. House of Representatives was sent to the Chairman of the House Ways and Means Committee, Rep. Jason Smith of Missouri, urging renewal of the Generalized System of Preferences Program (GSP). The GSP is a trade program that provides nonreciprocal, duty free treatment for certain U.S. imports from eligible developing countries. The program expired in December 2020. Various measures to renew the program have been introduced since its expiration, some with provisions to alter eligibility requirements, however, the program remains expired at present.

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