Administration

• President Trump said that the administration will petition the Supreme Court to make an expedited ruling on the legality of the IEEPA tariffs. 

Customs and Border Protection (CBP)

• CBP published a new 2025 tariff requirements cheat sheet. View here.
• CBP published a Federal Register Notice effectuating President Trump’s Executive Order ending duty-free de minimis treatment for shipments from all countries.
• CBP published a press release announcing enforcement and processes for the end of the de minimis exception.
• CBP is aware that entries released before Aug. 18, 2025, are being rejected with the error: 794 – Additional Dec Type Required for article. The rejection is occurring for certain steel/aluminum derivative imports. CBP is looking into the issue.
• CBP released guidance for the consensual monitoring of telephone conversations by employees of the Customs Service.
• CBP reminds all importers, brokers, and other trade community members to take the ACE user satisfaction survey. Due September 12, 2025.

Department of Justice (DOJ)

• The DOJ launched a cross-agency Trade Fraud Task Force to ramp up enforcement against importers who seek to defraud the United States. 

Office of Foreign Assets Control (OFAC)

• OFAC announced that a Houston-based freight forwarder has agreed to pay $1.6M to settle its potential civil liability for apparent violations of multiple OFAC sanctions programs, including those on Venezuela and Iran.
• Updates to the Specially Designated Nationals list.

Bureau of Industry and Security (BIS)

• BIS announced the end of the Validated End-User (VEU) program, a program the agency found to act as a loophole for a handful of foreign companies to export semiconductor manufacturing equipment and technology to China license-free. 
• BIS published a rule easing licensing requirements for civilian exports to Syria.

The rule implements the policy on Syria established in Executive Order 14312, signed June 30, 2025.

United States Trade Representative (USTR)

• USTR held a public hearing on September 3, 2025, regarding the Section 301 investigation of Brazil’s acts, policies, and practices related to digital trade and electronic payment services; unfair, preferential tariffs; anti-corruption enforcement; intellectual property protection; ethanol market access; and illegal deforestation.

Food and Drug Administration (FDA)

• The FDA placed four companies on Import Alert for improperly weighing seafood. 

Congress

• The House Appropriations Committee released a draft of its funding plan for several federal agencies. Under the draft plan, funding for the Bureau of International Labor Affairs would be eliminated. The bureau is responsible for the annual report on products made with child labor. 

Court of International Trade (CIT)

• The CIT held that the Trade Act of the 1930s provision allowing duty-free treatment for emergency goods doesn’t cover solar cells and modules. The ruling vacated the Commerce Department’s pause on the collection of AD/CVD duties on solar cells and modules from Cambodia, Malaysia, Thailand, and Vietnam.
• The CIT ruled that imports from two New Zealand fisheries violated federal laws that prohibit facilitation of the extinction of marine mammal populations.

International

Despite the fact that the U.S. has failed to enact tariff reductions on EU goods, the EU Parliament is debating a proposal to lower its tariffs on U.S. goods, as agreed to under the U.S.-EU trade deal.

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Customs and Border Protection (CBP) 

• President-elect Trump has selected Rodney Scott as the next CBP Commissioner. 
• CBP and the U.S. Chamber launched a “Shop Smart” campaign to urge holiday shoppers to beware of counterfeits.  
• CBP agricultural specialists at the Dulles airport intercepted two dangerous insect pests – one not seen in 40 years.  
• CBP officers seized a large cache of testosterone and other steroids at Laredo Port of Entry. 
• CBP seized over 34K pounds of sweetened condensed milk at the Pharr International Bridge. 
• Reminder: Brokers must earn 20 continuing education credits from qualifying educational activities that occur beginning January 1, 2025. 
• CBP’s Commercial Customs Operations Advisory Committee (COAC) held its quarterly public meeting on December 11. 

Bureau of Industry and Security (BIS) 

• BIS added 8 entities to the Entity List for Enabling Human Rights Abuses. 
• BIS released a report on U.S. companies’ use of legacy chips manufactured by entities based in China. 
• BIS issued a final rule cementing the procedures it will follow in investigating foreign adversary threats to information and communications technology and services (ICTS) transactions that may harm U.S. national security. 
• BIS is imposing new controls on certain dual-use and munitions items to or within Pakistan due to concerns that certain items are being sought by entities listed on the Entity List. 

U.S. Department of Commerce 

• The Commerce Department issued a final rule making changes to antidumping and countervailing duty procedures including changes to the nonmarket economy policy. 

United States Trade Representative (USTR) 

• USTR announced a Section 301 investigation on Nicaragua’s acts and policies related to labor rights, human rights, and the rule of law.  
• USTR announced tariff increases under Section 301 for imports from China of certain tungsten products, wafers, and polysilicon. These increases will take effect on January 1, 2025. 
• USTR announced that the first agreement under the U.S.-Taiwan Initiative on 21st Century Trade will enter into force on December 10. This agreement includes commitments on anti-corruption, good regulatory practices, services domestic regulation, customs administration and trade facilitation, and small and medium-sized enterprises. 

Department of Justice (DoJ) 

• Manager of U.S. freight forwarding company indicted for circumventing export controls. 
• A Chinese national was indicted for conspiracy, wire fraud, smuggling, and a violation of the Arms Export Control Act for his role in an illegal scheme to send export-controlled defense-related technical data to China. 

U.S. Food and Drug Administration (FDA) 

• The FDA announced that, on January 1, 2025, the agency will open the Voluntary Qualified Importer Program (VQIP) application portal for fiscal year 2026. The application portal will remain open until September 1, 2025. 

U.S. Department of Agriculture (USDA) 

• Reminder: an updated USDA APHIS PGA message set implementation guide is now available. Changes went into effect December 10, 2024. 

U.S. International Trade Commission (USITC) 

• The USITC has made affirmative determinations in its preliminary phase antidumping and countervailing duty investigations concerning Hard Empty Capsules from Brazil, China, India, and Vietnam. 

Federal Maritime Commission (FMC) 

• The FMC is closing one of its two investigations of how Canadian ballast water regulations impact shipping in the Great Lakes. The remaining investigation will continue to permit the agency to assess if Canadian government policies create unfavorable conditions affecting U.S. flagged vessels operating in the U.S.-Canada trade. 
• FMC announced that the Premier Alliance Agreement will not go into effect next week because more information is needed for the agency to determine the potential competitive impacts of the arrangement.  

 Congress 

• Senator Rick Scott of Floria wrote a letter to U.S. Trade Representative Katherine Tai asking the agency to open a Section 301 trade investigation on Chinese garlic growers, arguing that the industry is using forced labor. 
• Text of the must-pass National Defense Authorization Act for Fiscal Year 2025 was released, without inclusion of de minimis legislation. The NDAA was one of the last chances to pass de minimis before the end of the Congress, making its ultimate passage unlikely. 

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Administration 

• White House announces further Section 301 tariff hikes on Chinese goods. Impacted sectors include: steel and aluminum, semiconductors, electric vehicles, batteries, critical minerals, solar cells, ship-to-shore cranes, and medical products. 
• The Administration announced several new solar panel related policies including the removal of the bifacial module exclusion under Section 201. 

Customs and Border Protection (CBP)  

• CBP issues April monthly update. Highlights: 
  • Stopped 392 shipments valued at more than $184 million for further examination based on the suspected use of forced labor. 
  • Identified duties of nearly $6.4 billion to be collected. 
  • Seized 1,736 shipments that contained counterfeit goods valued at more than $235 million. 
• CBP has created several resources for small businesses engaging in imports and exports. These include videos and slick sheets with access to relevant information.  
• CBP issued guidance on importer obligations in completing origin documents.  
  • The origin declarations, origin statements, or certifications of origin must be completed and signed by an official of the importer, exporter, or producer or agent of the importer, exporter, or producer having knowledge of the relevant facts to the origin of the goods, as specified by the respective trade preference program. 
• CBP announced an upcoming new mandatory prompt for company ACE ID. The agency will begin requiring trade community users to identify the subject company whenever a report is run or scheduled in ACE Reports. The change will be rolled out from May to August 2024. 
• CBP delays retirement of CSPOA feature in legacy ACE portal. The agency said additional messaging will be provided when CBP determines a new retirement date. 
• CBP updated its Automated Broker Interface Software Vendors List.  
• CBP officers at the Port of Rochester discovered counterfeit NFL, NBA, and MLB championship rings. 
• CBP announces seasonal opening of Port of Chief Mountain in Glacier, Montana. 

Department of Commerce 

• Commerce issues preliminary scope determination in AD/CVD investigation on aluminum extrusions from 14 countries. 
• Commerce presented the 2024 Presidential Awards for Export Achievements. The 64 winners represented 32 states and were recognized at a ceremony at the U.S. Department of Commerce Headquarters in Washington, D.C. 

Department of Homeland Security (DHS) 

• DHS announces 26 additional PRC-based textile Companies to the UFLPA Entity List. 
• New AD/CVD case filed against disposable aluminum containers, pans and trays from China. 

 Office of Foreign Asset Control (OFAC) 

• OFAC sanctions Nicaragua-Based Russian institution and gold companies. The action aims to degrade the ability of the Ortega-Murillo regime to manipulate the gold sector and profit from the corrupt operations. 
• Updates to Specially Designated Nationals list. 

Bureau of Industry and Security (BIS) 

• BIS issues final rule making conforming and clarifying changes to the Export Administration Regulations (EAR). These changes include: 
• Conforming changes to ensure that destination names reflect the current destination names that are recognized by the United States Government 
• Clarifying the removal of certain license requirements for exports, reexports, and transfers (in-country) to and within Australia and the United Kingdom 
• Conforming change to reflect that Cyprus is no longer a Country Group D:5 country 
• 37 additions to the Entity List. 

U.S. Food and Drug Administration (FDA) 

• The FDA added 191 devices to the list of artificial intelligence and machine learning (AI/ML)-enabled devices legally marketed in the United States by 510(k) clearance, granted De Novo request, or premarket approval.  
• The FDA announced a webinar that will be held on June 27, 2024, for those interested in learning more about the final guidance Remanufacturing of Medical Devices.  

U.S. Department of Agriculture (USDA) 

• USDA’s Animal and Plant Health Inspection Service (APHIS) announced a new process to improve inspections and expedite trade for air shipments of pre-cleared commodities from Chile and Thailand; and both air and maritime shipments from Argentina. 

Congress 

• The Congressional-Executive Commission on China (CECC) issued the Commission’s 2023 Annual Report on human rights conditions and rule of law developments in China. Report highlights: 
  • The report found that China continues to fail to fulfill its obligations under international treaties and continues its systematic violation of human rights.  
• Congressman Golden of Maine introduced the Protecting American Autoworkers from China Act (H.R. 8351) which would increase import duties on all imported automobiles manufactured by Chinese automakers to 125% of the base rate. 
• Congressman Golden of Maine introduced the Declaring Our Energy Independence from China Act (H.R. 8352) which would require the President to apply additional tariffs of 25% to all battery components, solar energy components, and wind energy components imported from China.  

Industry News 

• New data reveals freight rates are skyrocketing mid continued disruptions in the Red Sea. Ex-Asia rates have increased by around $1,000 per 40-foot-equivalent units (FEU) in the last few weeks. Rates are now $4,000/FEU for routes to the U.S. West Coast and Northern Europe. 

International News 

• The European Union (EU) voted to continue the suspension of import duties and quotas on Ukrainian exports to the European Union for one year. 

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Customs and Border Protection (CBP)

• U.S. candidate Ian Saunders elected Secretary General of the World Customs Organization
• CBP releases Integrity and Accountability Strategy. The Strategy builds upon CBP’s previous strategy to broaden the focus of integrity in the agency beyond corruption and misconduct to better reflect an enterprise-wide commitment to integrity and accountability.
• Agenda announced for CBP’s Inaugural Green Trade Innovation and Incentives Forum
• Decision in EAPA Case: Scioto Valley Woodworking – CBP concluded that there is not substantial evidence of evasion as defined by EAPA.
• Roberto Vaquero takes command as Director of CBP San Juan Field Operations
• CBP quota bulletin: specialty sugar period 5 opening
• Upcoming: CBP Green Trade Innovation and Incentives Forum on July 11. The event aims to drive implementation of CBP’s Green Trade Strategy by building a community that sees the international trade arena as fertile ground for climate mitigation, resilience and environmentally-beneficial innovation, and is intended to spark dialogue and exchange best practices that will help identify areas of priority action for both CBP and industry.

United States Trade Representative (USTR)

• USTR announced Sarah Ellerman as Assistant U.S. Trade Representative for Southeast Asia and the Pacific

Department of Commerce

• District Export Council nomination opportunity: The Department of Commerce is currently seeking nominations of individuals for consideration for appointment by the Secretary of Commerce to serve as members of one of the 61 District Export Councils (DECs) nationwide.
• Announcement of approved International Trade Administration trade mission. This mission is U.S. aerospace & defense trade mission to Romania & Poland, November 12-17, 2023.
• Final results of Antidumping Duty Administrative Reviews of Goodluck India Limited: certain cold-drawn mechanical tubing of carbon and alloy steel from India.
• Preliminary results of Antidumping Duty Administrative Review and Preliminary Determination of no shipments: polyethylene terephthalate from Taiwan.
• Initiation of Antidumping and Countervailing Duty Changed Circumstances Reviews: certain Quartz surface products from the People’s Republic of China.
• Initiation of Less-Than-Fair-Value Investigations: certain paper shopping bags from Cambodia, the People’s Republic of China, Colombia, India, Malaysia, Portugal, Taiwan, the Republic of Turkey, and the Socialist Republic of Vietnam.
• Final results of the expedited first sunset review of the Countervailing Duty Order: certain aluminum foil from the People’s Republic of China.

Federal Trade Commission (FTC)

• The Federal Trade Commission is rapidly enforcing their new Aug 2021 regulations where companies cannot use unqualified “Made in USA” claims. The agency took action against a group of Massachusetts- and New Hampshire-based clothing accessories companies, along with their owner, Thomas Bates, for falsely claiming that certain company products were manufactured in the U.S.

Food and Drug Administration (FDA)

• FDA publishes new FAQs and additional tools for the Food Traceability Rule

Bureau of Industry and Security (BIS)

• Five Eyes partners agree to formalize cooperation on export control enforcement

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC)

• Russia-related designations update; Publication of Africa Gold Advisory
• OFAC released a joint fact sheet on understanding – UK and U.S. Russia-Related sanctions and the provision of humanitarian assistance

U.S. Congress

• The House Select Committee on the Chinese Communist Party released a report finding that retail giants Shein and Temu are responsible for 30% of packages shipped to the U.S. under the de minimis provision. The report preliminarily finds that the companies are exploiting the de minimis exception to avoid UFLPA compliance screening. UFLPA enforcement remains a high trade priority of the U.S.

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United States Trade Representative 

• On July 14, 2022, the Office of the United States Trade Representative, announced the launch of the U.S. – Kenya Statistic Trade and Investment Partnership. USTR announced that the U.S. and Kenya will develop an ambitious roadmap for enhanced cooperation with the goal of negotiating high-standard commitments in order to achieve economically meaningful outcomes in: Agriculture, Anti-Corruption, Digital Trade, Environment and Climate Change Action, Good Regulatory Practices, Micro, Small and Medium Enterprises, Promoting Workers’ Rights and Protections, Supporting Participation of Women, Youth, and Others in Trade, Standard Collaborations, and Trade Facilitation and Customs Procedures.

• On July 20, 2022, pursuant to authority delegated by the President on July 8, 2022, the U.S. Trade Representative reached an agreement with Canada limiting the export from Canada and the import into the United States of certain crystalline silicon photovoltaic cells (whether or not partially or fully assembled into other products) (CSPV products).

U.S. Customs and Border Protection 

• US. Customs and Border Protection, launched their Green Trade Strategy, highlighting the agency’s efforts to combat climate change in the context of trade and provides a framework to incentivize green trade, strengthen CBP’s environmental enforcement posture, accelerate green innovation, and improve climate resilience and resource efficiency. With the Green Trade Strategy, CBP is looking to set an example for customs authorities around the world to develop higher, greener standards for global trade while creating an opportunity for government, industry, and the public to unify efforts in the creation of a more sustainable future.
• On July 20, 2022, CBP announced their modification of the National Customs Automation Program (NCAP) test concerning Automated Commercial Environment (ACE) Portal Accounts to establish the ACE Vessel Agency Portal Account, and to decommission the Cartman and Lighterman Portal Accounts due to a lack of usage by the public.

Federal Maritime Commission 

• On July 14, 2022 the Federal Maritime Commission (FMC) released an advisory enacting provisions of the Ocean Shipping Reform Act of 2022 (OSRA) by providing a simplified process for container carrier customers who want the FCC to investigate their complaints. The steps outlined include: identifying the carrier and the alleged violation, submitting documentation, confirming that the disputed charge was incurred after the June 16 enactment of OSRA, and submitting all the materials in one email, if possible. When the FCC receives sufficient information, it “will promptly initiate an investigation, which could ultimately result in a civil penalty and order for a refund of charges paid,” the advisory states.

Federal Trade Commission

• The Federal Trade Commission (FTC) has finalized an order against Resident Home LLC and owner Ran Reske for allegedly making false, misleading, or unsupported advertising claims that their imported DreamCloud mattresses were made from 100% USA-made materials. Resident Home LLC and Reske will pay $753,000. Under the terms of the final order, in addition to paying $753,000, Resident Home LLC and Reske are prohibited from making several claims that deceive consumers and harm law-abiding businesses whose sales decreased because of this behavior.

U.S. Food and Drug Administration

• The U.S. Food and Drug Administration (FDA) guidance updates the March 2018 guidance by removing the temporary policy of permitting the use of the entity role code “UNK” in lieu of a DUNs number.
  • Beginning July 24, 2022, the use of the entity identification code “UNK” will no longer be an option. The FSVP importer will be required to ensure that their valid, 9-digit DUNS number is provided in the Entity Number field. CBP will reject an entry line of a food subject to the FSVP regulation when the importer’s DUNS number is not provided in the Entity Number field.

U.S. Department of Commerce

• On July 20, 2022, DOC  announced it will amend the notice of initiation of administrative reviews of antidumping duty (AD) and countervailing duty (CVD) orders with January 2021 anniversary dates to include a company that was inadvertently omitted from the AD administrative review of softwood lumber from Canada.
• On July 20, 2022, DOC has received a covered merchandise referral from U.S. Customs and Border Protection (CBP) in connection with a CBP investigation concerning alleged evasion of the antidumping/countervailing duty (AD/CVD) orders on certain magnesia carbon bricks (bricks) from the People’s Republic of China (China).
• On July 20, 2022, DOC announced it will conduct an administrative review of the antidumping duty order on certain steel nails (steel nails) from the Sultanate of Oman (Oman). This review covers 15 exporters and producers from Oman.

U.S. Department of the Treasury’s Office of Foreign Assets Control

• On July 15, 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced a settlement with American Express National Bank (Amex), a subsidiary of American Express Company. Amex agreed to remit $430,500 to settle its potential civil liability for 214 apparent violations of OFAC’s Kingpin sanctions.

U.S. International Trade Commission 

• On July 20, 2022, notice is hereby given the U.S. International Trade Commission (USITC) has determined to affirm the remand initial determination (“RID”) issued on December 29, 2021, finding that Complainants failed to establish the economic prong of the domestic industry requirement in the above-referenced section 337 investigation.
• On July 20, 2022, USITC announced Section 206 of the ATPA (19 U.S.C. 3204) requires the Commission to report biennially to the Congress and the President by September 30 of each reporting year on the economic impact of the Act on U.S. industries and U.S. consumers, and on the effectiveness of the Act in promoting drug-related crop eradication and crop substitution efforts by beneficiary countries.

U.S. Department of State

• On July 20, 2022, the U.S. Department of State (DOS), Directorate of Defense Trade Controls is publishing two open general licenses, permitting certain reexports and retransfers. This pilot program involves open general licenses that may be used by certain persons in Australia, Canada, and the United Kingdom to retransfer certain defense articles within each of the three countries and to reexport certain defense articles between and among the three countries.

If you have questions about these updates, contact our Diaz Trade Law attorneys at info@diaztradelaw.com or call us at 305-456-3830.

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Under U.S. anti-bribery laws, U.S. citizens, nationals, residents, and businesses are prohibited from giving a corrupt payment to a foreign government official for the purpose of influencing a decision of the official in his or her official capacity. Specifically, a “corrupt payment” is the payment of money or an offer or promise to give anything of value to influence the official in his or her official capacity, to influence the official to violate his or her lawful duty, or to seek an improper advantage. Under the law, even making an offer of payment, as long as it is made with the intent to influence, obtain improper advantage, or induce improper influence, is all that is required for a violation. Even if the official refuses to accept the benefit, or accepts the benefit but does not take the desired action, it is still a violation. The anti-bribery provisions of the FCPA have applied to all U.S. persons and certain foreign issuers of securities. The anti-bribery provisions of the FCPA also apply to foreign firms and persons who cause, directly or through agents, an act in furtherance of such a corrupt payment to take place within the territory of the United States.

There are limited exceptions for common business practices, however. For example, paying the costs of a foreign official to travel to a plant for a plant visit may be legal. In addition, certain payments transmitted as part of a routine government action may be allowed. Because the exceptions are extremely limited, companies should be proactive to investigate whether such payments could violate U.S. anti-bribery laws. The SEC and DOJ jointly publish an FCPA resource guide that further explain FCPA standards.

Building a Strong FCPA Program

Does your business have a strong FCPA compliance program? Or does the strength of your FCPA compliance program need to be reviewed and audited?

Diaz Trade Law, P.A. offers a number of services pertaining to FCPA compliance, including:

• Auditing your company’s operations and building a strong FCPA compliance plan that reflects your organization
• Reviewing your existing FCPA compliance plan to ensure that it’s strong and reflects the latest changes to anti-corruption laws
• Training your employees in avoiding FCPA violations
• Establishing clear lines of responsibility to determine how potential violations are proactively addressed
• Representing your firm in mitigating penalties and reaching settlements with federal agencies after violations have occurred
• Creating corrective action plans so that violations don’t occur again

 Contact Us
If you have questions about your firm’s FCPA compliance plan or are interested in scheduling a training, reach out to us at info@diaztradelaw.com or call us at 305-456-3830.
For information on Diaz Trade Law’s FCPA and export compliance services, check out our relevant articles and webinars:

• Goldman Sachs Pays $2.9 Billion in FCPA Settlement
• The Importance of Regular Export Compliance Training for your Business
• Does Dirty Money Infiltrate your Market Place?
• Introduction to Export Controls

Want more information on FCPA compliance? Read more here.

Co-Authored by

Exporting is a Privilege, Not a Right

Over 95% of the world’s consumers are outside of the United States. Opportunities abound for U.S. companies that export. However, exporting is a privilege and not a right. U.S. exporters have an important responsibility to adhere to U.S. export control laws, including the Export Administration Regulations (“EAR”), the International Traffic in Arms Regulations (“ITAR”) the Office of Foreign Assets Control (“OFAC”) sanctions laws, and the Foreign Corrupt Practices Act (“FCPA”). Violations of export control laws carry hefty civil and criminal penalties. Exporters can pay hundreds of thousands of dollars in penalties, lose export privileges, and even be imprisoned for violations of U.S. export control laws.

The EAR is a set of regulations which governs whether U.S. persons may export or transfer goods, software, and technology outside of the United States or to non-U.S. citizens. The ITAR, on the other hand, is a set of regulations which governs whether defense or military-related technologies may be exported or transferred to non-U.S. citizens. The purpose of both the EAR and the ITAR is to safeguard U.S. national security interests by ensuring that critical technology does not fall into the wrong hands. The EAR is administered by the Commerce Department’s Bureau of Industry & Security (“BIS”) while the ITAR is administered by the State Department’s Directorate of Defense Trade Controls (“DDTC”).

OFAC administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United​ States. U.S. persons are generally prohibited from engaging in transactions, directly or indirectly, with individuals or entities (“persons”) on OFAC’s Specially Designated Nationals and Blocked Persons List, other blocked persons, and those covered by comprehensive country or region embargoes (e.g., Cuba, the Crimea region of Ukraine, Iran, North Korea, and Syria).

The FCPA was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business.  The anti-bribery provisions of the FCPA have applied to all U.S. persons and certain foreign issuers of securities. The anti-bribery provisions also apply to foreign firms and persons who cause, directly or through agents, an act in furtherance of such a corrupt payment to take place within the territory of the United States.

Developing or Enhancing Your Export Compliance Plan

A key foundation of proactive and effective export compliance requires the development of an export compliance plan which establishes a set of procedures for your organization to ensure that everyone is on the same page about how standard processes work, who is responsible for what, how to identify violations, what to do when violations occur, etc. An export compliance plan helps build consciousness in your organization that compliance is critical – both to avoid costly penalties and also to protect national security. Diaz Trade Law helps exporters create export compliance manuals that help prove you have a process in place to classify your merchandise correctly, vet your customers and ensure you can prove you can take compliance seriously and implement all of the important great weight mitigating factors. Diaz Trade Law has significant experience in developing export compliance plans for organizations without plans.

Why is Developing a Strong Export Compliance Plan Important?

A strong export compliance plan is beneficial to your business because it:

• Ensures that all employees understand the export regulations and reinforces internal policies and procedures. Many businesses don’t realize the export control concerns many of their employees, not just the export department. This is because the scope of the term “export” is broad in the EAR and the ITAR. For example, “deemed exports” refer to the release of controlled technology to a foreign person, including within the territory of the United States. Therefore, employees that have little to do with a business’ export activities (e.g. accountants, information technology, customer service) can inadvertently cause your business to violate U.S. export control laws (e.g. by sharing information to non-U.S. persons, by failing to secure data on a cloud server, etc.).
• Demonstrates to federal government agencies that your business is proactive about export compliance. An effective export compliance plan is a great way to demonstrate to BIS and DDTC that you are on top of your export compliance obligations.
• Avoids your business from being subject to costly penalties and even criminal liability. Many U.S. businesses have paid hefty civil penalties for violating U.S. export control laws. L3Harris Technologies, for example, was fined $13 million for illicitly exporting defense technology and software. For more examples of costly civil and criminal penalties, check out BIS’ latest Don’t Let This Happen to You!

U.S. Government Guidance on Compliance Plans

According to the Bureau of Industry & Security, developing an effective export compliance program is “an invaluable way a company can contribute to U.S. national security and nonproliferation priorities while protecting vital company interests.”

BIS identifies the following key factors of an effective export compliance plan:

• Management commitment
• Risk assessment
• Export authorization
• Recordkeeping
• Training
• Audits
• Handling export violations and taking corrective actions
• Building and maintaining your export compliance manual

Similarly, DDTC identifies the following key factors:

• A clear description of organizational structure
• Corporate commitment
• A methodology for identifying, receiving, and tracking ITAR-controlled items or data
• A procedure for handling re-exports and re-transfers and restricted exports
• Recordkeeping
• Internal monitoring
• Training
• A system for proactively handling violations

The U.S. government has published similar guidance for OFAC and FCPA compliance. While having an export compliance plan is not a guarantee that an export violation will not occur, a coherent export compliance program can minimize the risk of non-compliance.

Contact Us

Diaz Trade Law can assist your business in auditing and improving your current plan so that it is in its best shape or building an effective plan from scratch. To learn more about the services we offer, contact us at info@diaztradelaw.com or call us at 305-456-3830.

U.S.-China Trade War

• BREAKING NEWS: U.S.-China Phase 1 Deal Is Officially Signed
• Expanded Export Control Obligations When Exporting to China
• BIS Expands Export Restrictions Targeting China’s Largest Chipmaker
• S. Ends Differential Treatment for Hong Kong

Section 301 China Tariffs

• NEW List 1- Section 301 Extensions
• China Tariff Update – List 2 Exclusions Extended
• NEW LIST 2- SECTION 301 EXTENSIONS
• LIST 3 Exclusion Updates
• List 3 Exclusion Extensions Granted – Did Your HTS Make the Cut?
• List 4 Exclusion Update
• More Section 301 Tariff Exclusion Requests Granted for List 4
• Fifth Round Of 301 Product Exclusions Involving List 4A – $300B
• 6th Round of Section 301 Tariff (List 1) Exclusions Extended
• Pending Section 301 Lawsuit Could Be A Windfall – But You Have to Act Now
• Exclusion Extensions Granted for List 4A
• Diaz Trade Law Now Filing List 4A Complaints – Join Section 301 Refund Lawsuit Now to Demand Refunds
• SECTION 301 TARIFF UPDATES: USTR GRANTS EXCLUSIONS & SEEKS COMMENTS ON PRODUCTS NECESSARY TO COMBAT COVID-19!

Section 301 Large Civil Aircraft Dispute

• USTR Seeks Comments on China Section 301 Product Exclusion Extensions & Enforcement of U.S. WTO Rights In Large Civil Aircraft Dispute

Section 301 Vietnam Investigations

• USTR Targets Vietnam In New 301 Investigations – Submit Request to Testify by Dec. 10

COVID-19

• BAN ON PPE EXPORTS UNDER DEFENSE PRODUCTION ACT
• PPE IMPORTS DURING COVID-19
• Due to Pandemic, BIS Providing Six-Month Export License Extensions
• SECTION 301 TARIFF UPDATES: USTR GRANTS EXCLUSIONS & SEEKS COMMENTS ON PRODUCTS NECESSARY TO COMBAT COVID-19!
• Diaz Trade Law Operations During the Coronavirus
• COVID FLEXIBILITY – FDA Announces Temporary Policy Regarding Certain Labeling Requirements for Foods
• Continuing Education for Licensed Customs Brokers – Comments Due December 28, 2020

Elections 2020

• Election 2020: Trump v. Biden On Trade
• Joe Biden & Trade – What Can Industry Expect from The New Administration?

USMCA

• USMCA Comment Opportunity – Due Dec. 31
• Implementing the USMCA’s Labor Chapter in Mexico

Forced Labor

• CBP Seizes $800k Of Human Hair from China Alleging Forced Labor
• Using WROS To Fight Forced Labor

U.S. Department of Agriculture

• USDA & CBP Combat Non-Compliant WPM

Customs and Border Protection

• CBP Creates New Online Electronic Vessel Manifest Confidentiality Application
• What You Missed at CBP’s Virtual Trade Week

Anti-Dumping and Countervailing Duty Investigations

• PC WIRE STRAND AVAILABILITY AT RISK

Trade Flows

• An Introduction to U.S. Trade Databases
• Florida’s Top 3 Export Markets

Imports

• HOUSEHOLD GOODS AND SERVICES PROVIDERS – WHAT YOU MUST KNOW

Protecting U.S. Critical Technologies

• Strengthening the Public Health Industrial Base Comment Opportunity Due December 23, 2020
• White House Releases National Strategy for Promoting and Protecting Critical Technologies
• Maritime Industry Rocked by Cyber Attacks

Foreign Corrupt Practices Act

• Goldman Sachs Pays $2.9 Billion In FCPA Settlement

Export Compliance

• The Importance of Regular Export Compliance Training for Your Business

Cuba

• U.S.-CUBA TRADE UNDER TRUMP VS. BIDEN

Brazil

• The U.S.-Brazil Trade Agreement Is Imminent

Caribbean

• INVESTING IN THE PETROLEUM INDUSTRY? – WHY HAITI
• The Caribbean Basin Trade Partnership Act Expired October 1 – What You Need to Know
• OPPORTUNITIES IN AGRICULTURE – WHY CHOOSE THE CARIBBEAN?
• USMCA Import Considerations for Practitioners
• NEW EXECUTIVE ORDER: Federal Agencies Directed to Remove Regulatory Barriers

U.S. Food and Drug Administration

• COVID FLEXIBILITY – FDA Announces Temporary Policy Regarding Certain Labeling Requirements for Foods

Intellectual Property

• FREE Webinar Series on Intellectual Property Rights
• President Calls for Greater Enforcement Against Counterfeit Imports

CTPAT

• CTPAT VALIDATION AND MINIMUM-SECURITY CRITERIA & CTPAT MINIMUM SECURITY CRITERIA CHANGES

Catch Up With DTL

• Join DTL And Walk for The Animals!
• DTL Tuned-In to the 2020 World Trade Center Miami’s International Trade Week – Check Out Our Recap:

If you have any questions on the topics above, contact us at info@diaztradelaw.com.

Largest FCPA Settlement to Date

The U.S. Securities and Exchange Commission (“SEC”) and the U.S. Department of Justice (“DOJ”) announced in October that Goldman Sachs Group, Inc. (“Goldman Sachs”) agreed to pay $2.9 billion as part of a settlement agreement. The settlement was a result of the agencies’ enforcement action after they learned that Goldman Sachs had allegedly paid $1.6 billion in bribes to officials in Malaysia and the United Arab Emirates (“UAE”) to secure its position as the underwriter of $6.5 billion in three bond deals with 1Malaysia Development Berhad. The settlement constitutes the largest Foreign Corrupt Practices Act (“FCPA”) settlement ever recorded.

The SEC and DOJ found that Goldman Sachs’ internal controls were deficient because employees were able to engage in corrupt activities despite a comprehensive anti-corruption and compliance program that had been implemented. Furthermore, the agencies explained that Goldman Sachs and ignored “significant red flags” and had failed to voluntarily disclose its conduct.

Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office said:

“When government officials and business executives secretly work together behind the scenes for their own illegal benefit, and not that of their citizens and shareholders, their behavior lends credibility to the narrative that businesses don’t succeed based on the quality of their products, but rather their willingness to play dirty. Greed eventually exacts an immense cost on society, and unchecked corrupt behavior erodes trust in public institutions and government entities alike.  This case represents the largest ever penalty paid to U.S. authorities in an FCPA case.”

FCPA Background

Under U.S. anti-bribery laws, U.S. citizens, nationals, residents, and businesses are prohibited from giving a corrupt payment to a foreign government official for the purpose of influencing a decision of the official in his or her official capacity. Specifically, a “corrupt payment” is the payment of money or an offer or promise to give anything of value to influence the official in his or her official capacity, to influence the official to violate his or her lawful duty, or to seek an improper advantage. Under the law, even making an offer of payment, as long as it is made with the intent to influence, obtain improper advantage, or induce improper influence, is all that is required for a violation. Even if the official refuses to accept the benefit, or accepts the benefit but does not take the desired action, it is still a violation.

There are limited exceptions for common business practices, however. For example, paying the costs of a foreign official to travel to a plant for a plant visit may be legal. In addition, certain payments transmitted as part of a routine government action may be allowed. Because the exceptions are extremely limited, companies should be proactive to investigate whether such payments could violate U.S. anti-bribery laws. The SEC and DOJ jointly publish an FCPA resource guide that further explain FCPA standards.

Building a Strong FCPA Program

Does your business have a strong FCPA compliance program? Or does the strength of your FCPA compliance program need to be reviewed and audited?

Diaz Trade Law, P.A. offers a number of services pertaining to FCPA compliance, including:

• Auditing your company’s operations and building a strong FCPA compliance plan that reflects your organization
• Reviewing your existing FCPA compliance plan to ensure that it’s strong and reflects the latest changes to anti-corruption laws
• Training your employees in avoiding FCPA violations
• Establishing clear lines of responsibility to determine how potential violations are proactively addressed
• Representing your firm in mitigating penalties and reaching settlements with federal agencies after violations have occurred
• Creating corrective action plans so that violations don’t occur again

Contact Us

If you have questions about your firm’s FCPA compliance plan or are interested in scheduling a training, reach out to us at info@diaztradelaw.com or call us at 305-456-3830. For information on Diaz Trade Law’s other training programs, check out our recent article.

Boundless opportunities exist for U.S. businesses when they export their products and services to foreign markets. In fact, over 95% of the world’s consumers are located outside of the United States. However, the vast export opportunities must be tempered by your duty to diligently and effectively comply with U.S. export control laws under the U.S. Department of Commerce’s Export Administration Regulations (“EAR”) and the U.S. State Department’s International Traffic in Arms Regulations (“ITAR”).

The EAR is a set of regulations which governs whether U.S. persons may export or transfer goods, software, and technology outside of the United States or to non-U.S. citizens. The ITAR, on the other hand, is a set of regulations which governs whether defense or military-related technologies may be exported or transferred to non-U.S. citizens. The purpose of both the EAR and the ITAR is to safeguard U.S. national security interests by ensuring that critical technology does not fall into the wrong hands. The EAR is administered by the Commerce Department’s Bureau of Industry & Security (“BIS”) while the ITAR is administered by the State Department’s Directorate of Defense Trade Controls (“DDTC”).

The U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United​ States. U.S. persons are generally prohibited from engaging in transactions, directly or indirectly, with individuals or entities (“persons”) on OFAC’s Specially Designated Nationals and Blocked Persons List, other blocked persons, and those covered by comprehensive country or region embargoes (e.g., Cuba, the Crimea region of Ukraine, Iran, North Korea, and Syria).

The Foreign Corrupt Practices Act (“FCPA”) was enacted for the purpose of making it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business.  The anti-bribery provisions of the FCPA have applied to all U.S. persons and certain foreign issuers of securities. The anti-bribery provisions of the FCPA also apply to foreign firms and persons who cause, directly or through agents, an act in furtherance of such a corrupt payment to take place within the territory of the United States.

U.S. exporters should work hard to establish and maintain an effective export compliance program. According to BIS, developing an effective export compliance program is “an invaluable way a company can contribute to U.S. national security and nonproliferation priorities while protecting vital company interests.” While having an export compliance program is not a guarantee that an export violation will not occur, a coherent export compliance program can minimize the risk of non-compliance.

Why is Export Compliance Training Important?

A foundation of a strong export compliance program is export compliance training. Training is important because it:

• Ensures that all employees understand the export regulations and reinforces internal policies and procedures. Many businesses don’t realize the export control concerns many of their employees, not just the export department. This is because the scope of the term “export” is broad in the EAR and the ITAR. For example, “deemed exports” refer to the release of controlled technology to a foreign person, including within the territory of the United States. Therefore, employees that have little to do with a business’ export activities (e.g. accountants, information technology, customer service) can inadvertently cause your business to violate U.S. export control laws (e.g. by sharing information to non-U.S. persons, by failing to secure data on a cloud server, etc.).
• Demonstrates to federal government agencies that your business is proactive about export compliance. Training is a great way to demonstrate to BIS and DDTC that you are on top of your export compliance obligations. The federal agencies like to see regular export compliance training
• Avoids your business from being subject to costly penalties and even criminal liability. Many U.S. businesses have paid hefty civil penalties for violating U.S. export control laws. L3Harris Technologies, for example, was fined $13 million for illicitly exporting defense technology and software. For more examples of costly civil and criminal penalties, check out BIS’ latest Don’t Let This Happen to You!

Training that Meets Your Organization’s Needs

Fortunately, export compliance training can be highly tailored to meet your company’s needs. Given that many different departments from sales to accounting to human resources can be implicated in export compliance matters (not just the trade department), it’s important that everyone who could violate U.S. export control laws receive a basic level of export compliance training. However, it’s also important that those individuals most involved in export matters receive in-depth training as they are most liable to violate U.S. export control laws. Below, we describe some of the trainings that Diaz Trade Law provides:

• General Awareness Training (Exporting 101): We offer an overview training for your entire organization which introduces all departments in your company to the fundamentals of export compliance. General Awareness Training ensures that your entire organization is on the same page about the importance of export compliance, and understands that export compliance involves more than just the work done by export personnel. General Awareness Training also helps ensure that everyone knows that export violations can occur in every department, and builds consciousness about avoiding export violations altogether, or identifying export violations when they do occur and proactively resolving issues in a transparent and accountable manner.

• Orientation Training: Our orientation training works with your developed export control program to assist new employees in understanding the intricacies of their new role and how it is implicated by export control laws. The orientation training is highly tailored to the new employee and your company processes. The training instills in new employees an understanding of how export violations can occur in their role, establishes good practices to avoid costly export violations, and establishes a system for proactively following-up with identified violations.

• Advanced Training for Export Personnel (Exporting 201): Diaz Trade Law offers more specialized training for export personnel in your organization who are already familiar with the fundamentals of export controls. The focused training provides in-depth training on particular issues of export controls that pertain to your organization; updates your export personnel about the latest developments in U.S. export control laws and policies; provides an opportunity to meaningfully discuss patterns of violations to ensure that these violations occur less often; and instills in the personnel an appreciation of the seriousness of U.S. export controls and the significant civil and criminal penalties associated in violating these laws.

Contact Us

All of your training events include assessments for comprehension, certificates for successful participation, and ample opportunities for Q&A. For your next export compliance training event, trust Diaz Trade Law to provide highly-effective, engaging training. Diaz Trade Law is also fully equipped during the COVID-19 pandemic to provide engaging online training. If you have questions or are interested in scheduling a training, reach out to us at info@diaztradelaw.com or call us at 305-456-3830.