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The U.S. Commerce Department’s Bureau of Industry and Security (BIS) announced significant revisions to the Export Administration Regulations (EAR), imposing stricter controls on exports and reexports to Nicaragua. This move comes in response to mounting concerns regarding human rights abuses perpetrated by the Nicaraguan government against its citizens and civil society groups, as well as its continued military and security cooperation with Russia.
The amendments, effective immediately, see Nicaragua being shifted from Country Group B to Country Group D:5, resulting in a more restrictive classification. Consequently, a stricter licensing policy will apply to items controlled for national security reasons, with the country now subject to 'military end use' and 'military end user' restrictions.
Under Secretary of Commerce for Industry and Security Alan Estevez emphasized the alignment of U.S. national security and foreign policy with its values, stating, "We will not allow peaceful trade to be diverted in ways that undermine our values and weaken our security." Assistant Secretary of Commerce for Export Administration Thea D. Rozman Kendler echoed this sentiment, highlighting the role of export controls in preventing U.S. technology from being misused to support human rights abuses.
This rule builds upon previous actions by BIS, including the addition of the Nicaraguan National Police to the Entity List in March 2023. It reflects ongoing efforts by the U.S. Government to restrict the availability of items subject to EAR to Nicaragua’s military and security services.
The move signifies a continued escalation in U.S. efforts to address the situation in Nicaragua, as international concern grows over the Ortega government's crackdown on dissent and violations of human rights.
The U.S. Customs and Border Protection (CBP) has issued a Withhold Release Order (WRO) against work gloves manufactured a Chinese company and its subsidiaries, based on evidence suggesting the use of convict labor. This action is part of the U.S. government's efforts to combat forced labor globally. With nearly 28 million workers suffering under such conditions worldwide, WROs are a means to deter companies from exploiting labor and to protect vulnerable populations. By enforcing laws prohibiting the importation of goods produced by forced labor, CBP aims to safeguard American workers, businesses, and consumers. Currently overseeing and enforcing numerous WROs and Findings, CBP emphasizes its commitment to eliminating forced labor from U.S. supply chains and encourages reporting of suspected violations.
The National Customs Brokers & Forwarders Association of America (NCBFAA) headquartered in Washington, DC metro area, represents many companies in international trade, including the nations’ leading freight forwarders, customs brokers, ocean transportation intermediaries (OTIs), NVOCCs and air cargo agents. NCBFAA is at the forefront of trade related topics in Washington DC and around the United States. The NCBFAA members handle 97% of the entries for goods imported into the United States. Further, members operating as OTIs are involved with approximately 80-85% of all exports from the United States.
Laurie Arnold has served as the Treasurer for the NCBFAA and was recently elected as the new Secretary of the NCBFAA. Seen on the far left in this photo, Laurie is contributing on a panel discussing “Liquidated damages, penalties, and other CBP fan mail.” Also on the panel was US Customs FP&F Director Lisa Santana Fox. She discussed the new Customs portal for mitigation request submissions. Laurie helped facilitate constructive discussion with the membership on the process and timelines of mitigation requests.
Leah Ellis serves as the NCBFAA Legislative Committee Chair. In this capacity, Leah works closely with the legislative committee advisor for the NCBFAA. The NCBFAA Legislative Committee works with legislators in Washington to advance positions of the trade community. Seen on the left in this photo, Leah was discussing Generalized System of Preferences (GSP) bill HR4986 and the end China de minimis bill HR7979. The panel also discussed and answered questions pertaining to the passing and signing of the Customs Business Fairness Act.
JAS Forwarding (USA) Inc.’s Compliance Project Manager, Scott Cassell, spent some time in Texas in the month of April facilitating Incoterms training on behalf of clients and was also invited to speak at the ATX Trade Compliance Round Table Luncheon in Austin, TX. The event was attended by numerous trade professionals from Austin and the surrounding area.
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