Self-Assessment Tools

DOL launched four voluntary self-assessment tools that provide practical, user-friendly guidance to help companies map supply-chain risks and evaluate labor practices. The tools can also guide companies in taking steps to ensure alignment with U.S. forced labor laws and strengthen supply chains that support American workers and American industry.

The new tools are: 

• LaborShield: A mobile app that features information on egregious labor violations in over 145 countries (formerly the Sweat and Toil app).
• ImportWatch: A resource that brings together the department’s labor abuse research with U.S. import data from the U.S. Census Bureau to produce a red-flag list of all high-risk goods for U.S. importers.
• SourcingStrong: A tool to help U.S. businesses build strong labor due diligence systems to identify and manage risk in their supply chains.
  
• Supply Chain Traceability Portal: The portal provides visibility across supply chains and beyond the first tier to expose where exploitative labor hides.

Announcement Insights 

Diaz Trade Law was in attendance at the launch event in Washington, D.C. – hosted by the DOL and co-sponsored by the Responsible Business Alliance. The program featured remarks from Deputy Secretary of Labor Keith Sonderling, followed by a fireside chat with top executives from leading U.S. industries.

At the event, DOL representatives stated the department wants “good actors” to use these tools and to give feedback on them. Panelists highlighted that they have been engaging with DOL for years on the issues of forced labor in foreign supply chains. DOL’s stated goal is to level the playing field for U.S. businesses by making foreign actors play fair.

Forced Labor Enforcement Focus

DOL, among other government agencies, have made clear that enforcement of the U.S.’s forced labor laws is a priority. 

For importers, understanding who is supplying you with a product is not enough, you also need to know who is supplying them. You should have a comprehensive understanding of your supply chain that includes documentation of the various tiers of suppliers. Detailed documentation can help identify gaps and high-risk areas that may need to be revisited down the road.  

Diaz Trade Law has significant experience in a broad range of import compliance matters including forced labor compliance and enforcement mitigation. For assistance with developing or updating a forced labor compliance plan, forced labor compliance training, communicating with CBP regarding goods detained by CBP, or utilizing the new DOL tools contact us today at info@diaztradelaw.com or 305-456-3830.

Learn more:

• Webinar: Forced Labor – Practical Tips to Secure Your Supply Chain and Comply with Regulatory Requirements
• Breaking the Chains: Forced Labor in Mexico’s Supply Chains
• CBP Launches New Forced Labor Portal 
• Bloomberg Law: U.S. Customs Targets the Use of Forced Labor
• UFLPA Guidance: What Importers Need to Know
• Uyghur Forced Labor Prevention Act (UFLPA): What You Need to Know
• CBP’s Forced Labor Process Flowchart

Customs and Border Protection (CBP)

• U.S. Customs and Border Protection (CBP) on October 18,2022, published two Final Rules that update provisions in 19 CFR 111: Modernization of the Customs Broker Regulations (87 FR 63267) and Elimination of Customs Broker District Permit Fee (87 FR 63262). 
• CBP is transitioning all customs brokers to a single national permit and expanding the scope of the national permit authority to allow national permit holders to conduct any type of customs business throughout the customs territory of the United States. 
• CBP provides this message to provide guidance regarding the amendment of a previously granted Section 301 China product exclusion to conform with the U.S. International Trade Commission’s (USITC) Harmonized Tariff Schedule (HTS) changes effective July 1, 2021. 
• CBP on October 18, 2022, published two Final Rules that updated provisions in 19 CFR 111: Modernization of the Customs Broker Regulations (87 FR 63267) and Elimination of Customs Broker District Permit Fee (87 FR 63262). 
• CBP is hosting two webinars to discuss changes to 19 CFR 111. The first webinar “Customs Broker Modernization Regulations – Detailed changes to 19 CFR 111,” is scheduled for Thursday, October 27, 2022, from 1-2 p.m., Eastern Daylight Time. 
• CBP announced the revocation of three ruling letters, modification of one ruling letter, and revocation of treatment relating to the tariff classification of certain step stools.  
• CBP announced the proposed modification of one ruling letter and proposed revocation of treatment relating to the tariff classification of paper face masks.  
• CBP announced a proposed change to CBP form 1303, used for declaring articles to be retained on board the vessel, such as sea stores, ship’s stores (e.g., alcohol and tobacco products), controlled narcotic drugs or bunker fuel in a format that can be readily audited and checked by CBP.
• CBP invites the general public and other Federal agencies to comment on the proposed and/or continuing information collections pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). 
• CBP invites the general public and other Federal agencies to comment on the proposed and/or continuing information collections pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). 
• CBP announced the following copyrights, trademarks, and trade names recorded with CBP.  

United States Department of Treasury (USDT)

• Department of the Treasury (USDT), as Chair of the Committee on Foreign Investment in the United States (“CFIUS” or the “Committee”), released on October 20, 2022, the first-ever CFIUS Enforcement and Penalty Guidelines.   

United States Department of Commerce (DOC)

• DOC preliminarily determines that six exporters of certain hardwood plywood products (hardwood plywood) from the People’s Republic of China (China) under review had no shipments of subject merchandise during the period of review (POR) January 1, 2021, through December 31, 2021. 
• DOC has issued an order temporarily denying export privileges for URAL Airlines for a period of 180 days.  
• DOC announced on October 20, 2022, a renewal of temporary denial of export privilege for Aviastar in the in the public interest to prevent an imminent violation of the regulations.  

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

• OFAC and OFSI on October 13, 2022, concluded a multi-day technical exchange in London that will bring significant benefits to both organizations and reinforce coordination and collaboration between the U.S. and UK in the years to come. 
• OFAC announced on October 18, 2022, the issuance of a finding of Violation to Nodus International Bank, Inc. (Nodus), an international financial entity located in Puerto Rico, for violations of the Venezuelan Sanctions Regulations (VSR), and the Reporting, Penalties and Procedures Regulations (RPPR). 
• OFAC on October 19, 2022, designated Juan Francisco Valenzuela Valenzuela and the Valenzuela Drug Trafficking Organization (“Valenzuela DTO”), among others, pursuant to Executive Order (E.O.) 14059.     
• OFAC, in coordination with the U.S. Department of Justice and the Federal Bureau of Investigation (FBI), on October 19, 2022, designated a Russian network that procured military and sensitive dual-use technologies from U.S. manufacturers and supplied them to Russian end-users.
• OFAC, in conjunction with BIS, and the Department of State have imposed an unprecedented range of sanctions and export controls in response to Russia’s attack on Ukraine.   

United States International Trade Commission (USITC)

• U.S. International Trade Commission (USITC) has received a complaint entitled Certain Electronic Devices, Semiconductor Devices, and Components Thereof, DN 3647; the Commission is soliciting comments on any public interest issues raised by the complaint or complainant’s filing pursuant to the Commission’s Rules of Practice and Procedure. 
• USITC has found no violation of section 337 of the Tariff Act of 1930, as amended, in the investigation into certain artificial eyelash extension systems, products, and components thereof. The investigation is terminated. 
• USITC has determined not to review two initial determinations (‘‘IDs’’) of the presiding administrative law judge (‘‘ALJ’’): (1) Order No. 23 terminating the investigation as to claims 17–21 of U.S. Patent No. 8,468,547 (‘‘the ’547 patent’’) (collectively, the ‘‘Withdrawn Claims’’); and (2) Order No. 24 granting complainants’ motion to amend the complaint and notice of investigation (‘‘NOI’’) in the graphics systems investigation to correct the names of two respondents. 
• USITC hereby give notices that on October 7, 2022, the presiding administrative law judge (‘‘ALJ’’) issued an Initial Determination on Violation of Section 337. The ALJ also issued a Recommended Determination on remedy and bonding should a violation be found in the Robotic Floor Cleaning Devices investigation. 
• USITC hereby gives notice that a complaint was filed on August 23, 2022, under section 337 of the Tariff Act of 1930, as amended, on behalf of Daedalus Prime LLC of Bronxville, New York. A supplement to the complaint was filed on September 12, 2022. 
• USITC has implemented certain changes to the Harmonized Tariff Schedule of the United States (HTSUS) to reflect Harmonized System modifications adopted by the World Customs Organization and changes to statistical categories. 
• USITC announces conforming amendments to legal note provisions in the HTSUS associated with the actions in the section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. 
• USITC announces the cancellation of hearings for full five-year reviews in the Circular Welded Carbon-Quality Steel Pipe from Oman, Pakistan, and the United Arab Emirates investigation.
• USITC hereby gives notice of the institution of investigations and commencement of preliminary phase antidumping and countervailing duty investigation Nos. 701–TA–683 and 731–TA–1594–1596 (Preliminary) pursuant to the Tariff Act of 1930 (‘‘the Act’’) to determine whether there is a reasonable indication that an industry in the United States is materially injured or threatened with material injury, or the establishment of an industry in the United States is materially retarded, by reason of imports of paper file folders from China, India, and Vietnam, provided for in subheading 4820.30.00 of the Harmonized Tariff Schedule of the United States, that are alleged to be sold in the United States at less than fair value and alleged to be subsidized by the Government of India.  
• USITC received a complaint on September 13, 2022, under section 337 of the Tariff Act of 1930, as amended, on behalf of Daedalus Prime LLC of Bronxville, New York. 
• USITC received a complaint on September 13,2022, under section 337 of the Tariff Act of 1930, as amended, on behalf of Vego Garden, Inc. of Houston, Texas. 
• USITC received a complaint on September 13,2022, under section 337 of the Tariff Act of 1930, as amended, on behalf of Daedalus Prime LLC of Bronxville, New York. 
• USITC is holding Sunshine Act Meeting on October 26, 2022, in Washington, D.C.  
• USITC hereby gives notice of the scheduling of expedited reviews pursuant to the Tariff Act of 1930 (‘‘the Act’’) to determine whether revocation of the countervailing duty order on finished carbon steel flanges from India and the antidumping duty orders on finished carbon steel flanges from India, Italy, and Spain would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. 
• USITC has received a complaint entitled Certain Semiconductors Devices Having Layered Dummy Fill, Electronic Devices, and Components Thereof, DN 3649; the Commission is soliciting comments on any public interest issues raised by the complaint or complainant’s filing pursuant to the Commission’s Rules of Practice and Procedure. 

United States Department of Labor (DOL)

• Department of Labor (DOL) announced pursuant to the Federal Advisory Committee Act (FACA), as amended, and the Workforce Innovation and Opportunity Act (WIOA), notice is hereby given of the next meeting of the Native American Employment and Training Council (Council), as constituted under WIOA. 

United States Department of Justice (DOJ)

• United States Department of Justice (DOJ), on behalf of the FDA, on October 18, 2022, filed complaints for permanent injunctions in federal district courts against six e-cigarette manufacturers. 

The White House and Congress

• President Biden on October 7, 2022, signed executive order 14086 “Enhancing Safeguards for United States signals Intelligence Activities.”

RKW Klerks V. United States

• RKW Klerks V. United States: In a case that involved the classification of two types of net wrap, both of which were synthetic fabrics used to wrap round bales of harvested crops, the U.S. Customs and Border Protection properly classified the net wraps under HRSUS subheading 6005.39.00.  

Defense Trade Advisory Group (DTAG) 

• Defense Trade Advisory Group (DTAG) will meet in open session from 1:00 p.m. until 5:00 p.m. on Wednesday, November 9, 2022. The purpose of the meeting will be to discuss current defense trade issues and topics for further study. 

U.S. Department of the Treasury (USDT) 

• U.S. Department of the Treasury (USDT) on October 17, 2022, designated a network of al-Shabaab financial facilitators who hold leadership roles within al-Shabaab and act as key interlocutors between the group and local companies in Somalia.  

United States Trade Representative (USTR)

• United States Trade Representative (USTR) announced with this notice its determination to make two technical amendments to certain previously reinstated exclusions associated with the section 301 investigation of China Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. 

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

To receive an email notification whenever a new post is published, please subscribe to our weekly blog here.

Customs and Border Protection (CBP)

• President Biden signed H.R. 8982, the Bulk Infant Formula to Retail Shelves Act on October 10, 2022. Duty-free treatment will only be provided to importers of base powder to be manufactured into infant formula authorized to be marketed in the United States or subject to an enforcement discretion letter from the Food and Drug Administration (FDA). The effective date is October 13, 2022, the third day after signature.
  • Should you have questions regarding enforcement discretion, please refer to the Enforcement Discretion to Manufacturers to Increase Infant Formula Supplies FDA website.

The Office of the United States Trade Representative

• The Office of the United States Trade Representative announced the next steps in the statutory four-year review of the tariff actions in the Section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation following requests for continuation from representatives of domestic industries
  • USTR is seeking public comments, consistent with the statutory directive, to consider the effectiveness of the actions in achieving the objectives of the investigation, other actions that could be taken, and the effects of the actions on the United States economy, including consumers.

United States Department of Commerce (DOC)

• Department of Commerce (DOC) announced on October 3, 2022, an opportunity to request administrative review and join annual inquiry service list for products on AD/CVD lists.  
• DOC is issuing a final rule to implement Proclamation 10414, “Declaration of Emergency and Authorization for Temporary Extensions of Time and Duty- Free Importation of Solar Cells and Modules from Southeast Asia.” 
• DOC is amending the Export Administration Regulations (EAR) in response to Russia’s further invasion of Ukraine on February 24, 2022.
• DOC and the International Trade Commission (USITC) announced a petition filed on Oct. 12 which alleges paper file folders from China, India, and Vietnam are being sold at less than fair value in the U.S. market, and in India benefiting from countervailable subsidies. The alleged average dumping margins are 116.69 percent for China, 174.19 percent for India, and 214.53 percent for Vietnam.
• DOC and the U.S. International Trade Commission (USITC) announced on October 12, that revocation of the antidumping duty  order on certain artist canvas from China would likely lead to a continuation or recurrence of dumping and material injury to an industry in the U.S. 
• DOC determined on October 12, that POSCO and its affiliated companies, made sales of subject merchandise in the United States at less than normal value during the period of review May 1, 2020, through April 30, 2021.
  • DOC intends to disclose the
    calculations for these final results of
    review within five days of the date of
    publication of this notice in the Federal
    Register.
• DOC and the U.S. International Trade Commission (USITC) announced on October 12, that revocation of the AD/CVD orders on certain biaxial integral geogrid products from China would likely lead to continuation or recurrence of dumping, countervailable subsidies, and material injury to an industry in the U.S.
• DOC determines that certain steel nails from the United Arab Emirates were sold in the United States at less than normal value during the period of review May 1, 2020, through April 30, 2021.
  • DOC plans to adopt the Preliminary Results as the
    final results of their review.
• DOC continues to determine that the 30 companies subject to this administrative review of the antidumping duty order on  magnesia carbon bricks from China are part of the China-wide entity because they did not demonstrate eligibility for separate rates.
  • The period of review is September 1, 2020, through August 31, 2021.

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

• U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned three individuals on October 6, 2022, and one entity connected to Burma’s military regime pursuant to Executive Order (E.O.) 14014. Following the February 1, 2021, coup that overthrew Burma’s democratically elected civilian government, the military has committed numerous atrocities against people in Burma, including the violent repression of political dissent, the killing of over 2,300 innocent civilians, and displacement of more than 900,000 people. 
• OFAC on October 6, 2022, designated seven senior leaders within Iran’s government and security apparatus for the shutdown of Iran’s Internet access and the continued violence against peaceful protesters in the wake of the tragic death of 22-year-old Mahsa Amini, who was arrested for allegedly wearing a hijab improperly, and died in the custody of Iran’s Morality Police. 
• OFAC on September 30, 2022, placed hundreds of Russian individuals and entities on the Specially Designated Nationals (SDN) List in response to Russia’s illegal annexation of Ukrainian territories.  
• OFAC on September 29, 2022, sanctioned an international network of companies involved in the sale of hundreds of millions of dollars’ worth of Iranian petrochemicals and petroleum products to end users in South and East Asia. 
• OFAC on October 7,2022, designated Malaysian national Teo Boon Ching, the Teo Boon Ching Wildlife Trafficking Transnational Criminal Organization (TCO), and the Malaysian company Sunrise Greenland Sdn. Bhd. for the cruel trafficking of endangered and threatened wildlife and the products of brutal poaching. 
• OFAC on October 7, 2022, designated two individuals and three entities for activities related to the exportation of petroleum to the Democratic People’s Republic of Korea (DPRK), which directly supports the development of DPRK weapons programs and its military. 
• OFAC and Financial Crimes Enforcement Network (FinCEN) announced settlements for over $24 million and $29 million, respectively, with Bittrex, Inc. (Bittrex), a virtual currency exchange based in Bellevue, Washington. 
• OFAC is publishing one general license (GL) issued pursuant to the Iranian Transactions and Sanctions Regulations: GL D-2, which was previously made available on OFAC’s website.
• OFAC is publishing one sectoral determination issued pursuant to an April 15, 2021 Executive order, as well as a category of services determination issued pursuant to an April 6, 2022 Executive order.
• OFAC is publishing one general license (GL) issued pursuant to the Russian Harmful Foreign Activities Sanctions Regulations: GL 13B, which was previously issued on OFAC’s website.
• OFAC is publishing nine general licenses (GLs) issued in the Venezuela Sanctions Regulations program: GLs 3, 3A, 3B, 3C, 3D, 3E, 3F, and 3G, each of which was previously issued on OFAC’s website and is now expired, as well as GL 3H, which was also previously issued on OFAC’s website.
• OFAC is publishing eight general licenses (GLs) issued in the Venezuela Sanctions Regulations program: GLs 9, 9A, 9B, 9C, 9D, 9E, and 9F, each of which was previously issued on OFAC’s website and is now expired, as well as GL 9G, which was also previously issued on OFAC’s website.
• OFAC published the names of one or more persons that have been placed on OFAC’s Specially Designated Nationals and Blocked Persons List (SDN List) based on OFAC’s determination that one or more applicable legal criteria were satisfied. All property and interests in property subject to U.S. jurisdiction of these persons are blocked, and U.S. persons are generally prohibited from engaging in transactions with them.

United States International Trade Commission (USITC)

• United States International Trade Commission (USITC) hereby gives notice of the institution of investigations and commencement of preliminary phase antidumping and countervailing duty investigation Nos. 701-TA-682 and 731-TA-1592-1593 (Preliminary) pursuant to the Tariff Act of 1930 (“the Act”) to determine whether there is a reasonable indication that an industry in the United States is materially injured or threatened with material injury, or the establishment of an industry in the United States is materially retarded, by reason of imports of certain freight rail couplers and parts thereof from China and Mexico, provided for in subheadings 8607.30.10 and 7326.90.86 of the Harmonized Tariff Schedule of the United States, that are alleged to be sold in the United States at less than fair value and alleged to be subsidized by the Government of China. 

United States Department of Labor (DOL)

• Department of Labor (DOL) has updated its list of goods produced by child or forced labor on September 28, 2022, and is now comprised of 158 goods from 77 countries.  

The White House and Congress

• President Biden issued an executive order on September 15, 2022, elaborating upon existing statutory factors and include additional national security factors the Committee on Foreign Investment in the United States (CFIUS or “Committee”) must consider in its review process of a covered transaction. 
• United States Senate on September 21, 2022, ratified the Kigali Amendment which will phase down global production and consumption of hydrofluorocarbons (HFCs), super-polluting chemicals in technology markets.  
• President Biden on September 15, 2022, issued an executive order elaborating on statutory factors and additional national security factors the Committee on Foreign Investment in the United States must consider in its review process of covered transactions.

Bureau of Industry and Security (BIS)

• The Bureau of Industry and Security (BIS) is amending the Export Administration Regulations (EAR) to implement necessary controls on advanced computing integrated circuits (ICs), computer commodities that contain such ICs, and certain semiconductor manufacturing items.
  • In addition, BIS is expanding controls on transactions involving items for supercomputer and semiconductor manufacturing end uses.
• BIS is amending the Export Administration Regulations (EAR) by adding 31 persons to the Unverified List (UVL). The 31 persons of China are added to the UVL on the basis that BIS was unable to verify their bona fides because an end-use check could not be completed satisfactorily for reasons outside the U.S. Government’s control.

British Broadcasting Channel (BBC)

• BBC reports that shares in major Asian computer chipmakers have fallen following the U.S. implementing a ban on American firms from selling certain chips.

Customs and Border Protection (CBP) Bulletin Weekly, Vol. 56, October 5, 2022, No. 39

• Extension and Amendment of Import Restrictions on Archaeological and Ethological Materials from Mali
  • This document amends the U.S. Customs and Border Protection (CBP) regulations to reflect an extension and amendment of import restrictions on certain categories of archaeological and ethnological material from the Republic of Mali (Mali) to fulfill the terms of the new agreement, titled ‘‘Agreement Between the Government of the United States of America and the Government of the Republic of Mali Concerning the Imposition of Import Restrictions on Categories of Archaeological and Ethnological Material of Mali.’’
  • The Designated List, which was last described in CBP Dec. 17–12, is amended in this document to reflect additional categories of archaeological material found throughout the entirety of Mali and additional categories of ethnological material associated with religious activities, ceremonies, or rites, and enforcement of import restrictions is being extended for an additional five years by this final rule
• Quarterly interest rates used in calculating interest on overdue accounts and refunds on Customs duties
  • This notice advises the public that the quarterly Internal Revenue Service interest rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties will increase from the previous quarter.
  • For the calendar quarter beginning October 1, 2022, the interest rates for overpayments will be 5 percent for corporations and 6 percent for non-corporations, and the interest rate for underpayments will be 6 percent for both corporations and non-corporations
• Proposed revocation of two ruling letter and proposed revocation of treatment relating to the tariff classification of pan masala betel nut food product
  • In NY 830068 and DD H890859, CBP classified the pan masala betel nut food product in heading 2106, HTSUS, specifically in subheading 2106.90.6099, HTSUS Annotated (HTSUSA) (currently subheading 2106.90.99, HTSUS, under the 2022 HTSUS), which provides for “Food preparations not elsewhere specified or included: Other: Other: Other: Other.”
  • CBP has reviewed both NY 830068 and DD H890859 and has determined the ruling letters to be in error. It is now CBP’s position that pan masala betel nut food product is properly classified, in heading 2008, HTSUS, specifically in subheading 2008.19.9090, HTSUSA, which provides for “Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included: Other, including mixtures: Other, including mixtures: Other: Other.”
• New American Keg v. United States
  • Because the Department of Commerce failed to explain why it was appropriate to inflate a Mexican labor wage rate using Brazilian data and why doing so was superior to using a Brazilian labor wage rate and to identify the evidence in the administrative record that supported granting a company a separate rate, the case had to be remanded.
• Hyundai Steel Company v. United States
  • Because the Commerce Department reopened the record and necessary information was available, the court concluded that the Department’s decision to recalculate plaintiff’s dumping margin at 0.46% without applying facts available was supported by substantial evidence. Because the court sustained the Department’s decision to not use facts available in recalculating plaintiff’s dumping margin, consideration of the Department’s reiterated benefit determination in the remand results would have no practical significance and was mooted.
• United States v. Zhe “John” Liu
  • Zhe “John” Liu and GL Paper Distribution, LLC (collectively, “Liu”), has moved pursuant to USCIT Rule 12(f) to strike portions of the complaint presented by the United States (“Government”), arguing that paragraphs 5–10, 14, 16, 17, 21, 22, and the majority of paragraph 3 of the complaint are “wholly unrelated to the underlying action and contain allegations that are potentially prejudicial.”
  • Motion to strike denied
• Eteros Technologies v. United States
  • Washington State’s repeal of certain prohibitions attending marijuana-related drug paraphernalia “authorized” plaintiff such that plaintiff’s importation of component parts of an agricultural machine, which was designed to separate the leaf from the flower of cannabis or other plant material, through the Port of Blaine, Washington was exempted by the federal Controlled Substances Act, 21 U.S.C.S. § 863(f)(1), from the federal prohibition on importing drug paraphernalia.

Customs and Border Protection (CBP) Bulletin Weekly, Vol. 56, October 12, 2022, No. 40

• Extension of import restrictions on archaeological and ecclesiastical ethnological materials from Guatemala
  • This document amends the U.S. Customs and Border Protection (CBP) regulations to reflect an extension of import restrictions on certain categories of archaeological and ecclesiastical ethnological materials from Guatemala to fulfill the terms of the new agreement, titled ‘‘Memorandum of Understanding between the Government of the United States of America and the Government of the Republic of Guatemala Concerning the Imposition of Import Restrictions on Categories Of Archaeological and Ethnological Material of Guatemala.’’
  • CBP Dec. 12–17, which contains the Designated List of archaeological and ecclesiastical ethnological material from Guatemala to which the restrictions apply, is being extended for an additional five years by this final rule.
• Proposed modification of one ruling letter and proposed revocation of treatment relating to the tariff classification of finished wood slats and wood bottom rails with UV coatings used for window blinds
  • In NY N041645, CBP classified various wood components used for the manufacture of window blinds, including two styles of finished wood valances and wood slats that were primed and painted and three styles of finished wood slats and wood bottom rails that were either stained or painted and coated with UV coatings, in heading 4409, HTSUS, specifically in subheading 4409.29.9000, HTSUSA (“Annotated”) , which provides for “[w]ood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, V-jointed, beaded, molded, rounded or the like) along any of its edges, ends or faces, whether or not planed, sanded or end-jointed: Nonconiferous: Other: Other: Other.” CBP has reviewed NY N041645 and has determined the ruling letter to be partially in error.
  • It is now CBP’s position that the finished wood slats and wood bottom rails with UV coatings used for window blinds are properly classified, in heading 4421, HTSUS, specifically in subheading 4421.99.9880, HTSUSA, which provides for “[o]ther articles of wood: Other: Other: Other: Other…Other.”
• Proposed modification of one ruling letter and proposed revocation of treatment relating to the tariff classification of woven upholstery fabrics
  • In NY N319028, CBP classified the woven upholstery fabrics (Style N1829 (Moriarty), Style D1818 (Glossary), and Style J1819 (Fringe)) in heading 5903, HTSUS, specifically in subheading 5903.90.25, HTSUS, which provides for “Textile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 5902: Other: Of man-made fibers: Other.” CBP has reviewed NY N319028 and has determined the ruling letter to be in error.
  • It is now CBP’s position that woven upholstery fabrics are properly classified, within either heading 5407, HTSUS, or heading 5515, HTSUS, dependent on the specific subject merchandise at-issue. Specifically it is CBP’s position that the first woven upholstery fabric (Style N1829 (Moriarty)) is properly classified within in subheading 5407.53.20, HTSUS, which provides for “Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 5404: Other woven fabrics, including 85 percent or more by weight of textured polyester filaments: Of yarns of different colors: Other,” that the second woven upholstery fabric (Style D1818 (Glossary)) is classified within 5407.73.20, HTSUS, which provides for “Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 5404: Other woven fabrics, containing 85 percent or more by weight of synthetic filaments: Of yarns of different colors: Other,” and that the third woven upholstery fabric (Style J1819 (Fringe)) is classified within subheading 5515.12.00, HTSUS, which provides for “Other woven fabrics of synthetic staple fibers: Of polyester stable fibers: Mixed mainly or solely with man-made filaments.”
• Proposed revocation of one ruling letter and proposed revocation of treatment relating to the tariff classification of a woman’s top
  • In NY N324185, CBP classified a woman’s top in heading 6211, HTSUS, specifically in subheading 6211.42.10, HTSUS, which provides for “Track suits, ski-suits and swimwear; other garments: Other garments, women’s or girls’: Of cotton: Other.” CBP has reviewed NY N324185 and has determined the ruling letter to be in error.
  • It is now CBP’s position that the woman’s top is properly classified in heading 6206, HTSUS, specifically in subheading 6206.30.30, HTSUS, which provides for “Women’s or girls’ blouses, shirts and shirt-blouses: Of cotton: Other: Other.”
• Proposed revocation of one ruling letter and proposed revocation of treatment relating to the tariff classification of metal storage lockers and cabinets for garage use
  • In NY N310710, CBP classified the metal storage lockers and cabinets in heading 9403, HTSUS, specifically in subheading 9403.20.0081, HTSUSA (Annotated), which provides for “Other furniture and parts thereof: Other metal furniture: Other: Counters, lockers, racks, display cases, shelves, partitions and similar fixtures: Other”. CBP has reviewed ruling letter to be in error.
  • It is now CBP’s position that the metal locker cabinets are properly classified, in heading 9403, HTSUS, specifically in subheading 9403.20.0050, HTSUSA, which provides for “Other furniture and parts thereof: Other metal furniture: Household: Other: Other
• Proposed revocation of one ruling letter and proposed revocation of treatment relating to the tariff classification of cast-iron cylinder heads and block castings
  • In NY N312073, CBP classified cast-iron cylinder heads and block castings in heading 8409, HTSUS, specifically in subheading 8409.99.91, HTSUS, which provides for “Parts suitable for use solely or principally with the engines of heading 8407 or 8408: Other: Other: Other: For vehicles of subheading 8701.20, or heading 8702, 8703 or 8704.” CBP has reviewed NY N312073 and has determined the ruling letter to be in error.
  • It is now CBP’s position that cast-iron cylinder heads and block castings are properly classified in heading 8409, HTSUS, specifically in subheading 8409.99.10, HTSUS, which provides for “Parts suitable for use solely or principally with the engines of heading 8407 or 8408: Other: Other: Cast-iron parts, not advanced beyond cleaning, and machined only for the removal of fins, gates, sprues and risers or to permit location in finishing machinery.”
• Proposed revocation of one ruling letter, proposed modification of one ruling letter and proposed revocation of treatment relating to the country of origin of certain air purifiers
  • In NY N322681, CBP determined that the air purifiers, manufactured from parts of Chinese and Vietnamese-origin and further assembled in Vietnam into subassemblies and the finished air purifiers, were products of China. It is now CBP’s position that the country of origin of these air purifiers is Vietnam. In NY N322364, CBP determined that air purifiers, manufactured from parts of Chinese and Vietnamese-origin and further assembled in Vietnam into subassemblies and the finished air purifiers, were products of Vietnam in the first manufacturing scenario and products of China in the second manufacturing scenario.
  • It is now CBP’s position that the country of origin of the air purifiers in the second manufacturing scenario is Vietnam
• Xi’an Metals & Mineral Import & Export Co v. United States
  • There was no error in the U.S. Court of International Trade’s determination that the CONNUM-specific rule was not subject to the notice-and-comment rulemaking provisions of the APA; hence, the U.S. Department of Commerce was entitled to clarify the regulation regarding the data used in performing margin calculations in the third administrative review because it needed data that more accurately reflected the costs associated with the production and sale of the subject merchandise;
  • The Court correctly determined that Commerce’s application of facts otherwise available (FA) was supported by substantial evidence; in deciding to apply FA, Commerce reasonably determined that appellant’s repeated failure to submit its cost information on a CONNUM-specific basis meant that necessary information reasonably reflecting the costs of production was not available.
• Kaptan Demir Celik Endustrisi ve Ticaret v. United States
  • A Turkish producer and exporter of steel concrete reinforcing bar was not entitled to a stay pending resolution of its separate action arising from the previous administrative review of the same countervailing duty order where no common legal issue was being reviewed by the appellate court, the administrative reviews were separate actions based on the specific factual records, and thus, the proposed stay did not meaningfully advance judicial economy;
  • In light of the court‘s overarching duty to timely resolve disputes, the interests of the litigants in resolving disputes quickly, as well as the general interest of the public in expeditiously resolving matters of great economic importance, the extensive stay of proceedings requested by the producer and exporter did not meet the pressing need required for such stays.
• HiSteel v. United States
  • Because the foreign producer of heavy walled rectangular welded carbon steel pipes and tubes did not seek any relief separate from that sought by the producer challenging its individual weighted-average dumping margin, the foreign producer could piggyback on the challenging producer’s standing and did not need to establish independent constitutional standing;
  • Because the underlying litigation consisted of a civil action commenced under § 516A of the Tariff Act of 1930, and because the foreign producer was an interested party who was a party to the proceedings, the foreign producer was to intervene as of right by operation of 28 U.S.C.S. § 2631(j)(1)(B) and Ct. Int’l Trade R. 24(a)(1).
• AG der Dillinger Huttenwerke et. Al. v. United States
  • This consolidated action involves a challenge to the final determination in the antidumping (“AD”) investigation conducted by the U.S. Department of Commerce (“Commerce”) of certain carbon and alloy steel cut-to-length plate (“CTL plate”) from the Federal Republic of Germany
  • Since the issue, Commerce’s analysis, and the arguments of the parties are nearly identical to those presented in Dillinger France, the court concludes that a remand is equally appropriate here. Because Dillinger has failed to place information on the record demonstrating the actual cost of production of its non-prime products, Commerce may reasonably rely on facts otherwise available pursuant to § 1677e(a)(1); however, in making its selection of facts otherwise available, Commerce must explain how its reliance on information indicating the “likely selling price” of non-prime products accords with its obligation to ensure that the reported costs of production reasonably reflect the cost of producing the merchandise under consideration

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

To receive an email notification whenever a new post is published, please subscribe to our weekly blog here.

The Bureau of Industry and Security (BIS) 

• BIS published a report summarizing the findings of a Department of Commerce investigation into the effect of imports of titanium sponge on the national security of the United States.
• BIS is seeking public comments concerning the imposition of export controls on certain Brain-Computer Interface (BCI) emerging technology, particularly with respect to its impact on U.S. national security
  • Comments due by December 10, 2021.
  • Contact us at info@diaztradelaw.com for help submitting your comment.
• BIS published this final rule to amend the Export Administration Regulations (EAR) to update the AG Common Control List for dual-use biological equipment.
  • This rule is effective October 5, 2021.

International Trade

• IMF slashes US growth forecast and warns of rising risks to the global economy amid supply chain disruptions and softening consumption.
• 136 countries agree to historic deal implementing a 15% minimum corporate tax rate.

Office of Foreign Assets Control (OFAC) 

• OFAC sanctions Libyan national Osama Al Kuni Ibrahim, who is responsible for serious human rights abuse against migrants in Libya.
• OFAC publishes six Ukraine-related web general licenses (GLs) in the Federal Register: GL 16, GL 16A, GL 16B, GL 16C, and GL 16D, and GL 16E.

U.S. Government 

• U.S. Customs and Border Protection (CBP) is seeking comments on launch of a Global Business Identifier (GBI) Evaluative Proof of Concept (EPoC) aimed at determining a single identifier solution that will uniquely discern main legal entity and ownership; specific business and global locations; and supply chain roles and functions.
  • Comments due by December 6, 2021
  • Contact us at info@diaztradelaw.com for help submitting your comment
• U.S. Department of Labor seeks trade community’s input on three reports issued by the Bureau of International Labor Affairs regarding child labor and forced labor in certain foreign countries.
  • Comments due by January 15, 2022.
  • Contact us at info@diaztradelaw.com for help submitting your comment.

United States Trade Representative (USTR)

• USTR files a request for a Section 332 investigation on the distributional effects of goods and services trade and trade policy to build upon the Biden Administration’s goals of a worker-centric trade policy that is inclusive for all Americans.
• USTR closes investigations into Vietnam‘s acts, policies and practices related to illegal logging and timber trade.
• USTR opened a web portal for importers and other interested parties to comment on whether the USTR should renew certain China tariff exclusions that had previously expired.
  • If you would like assistance submitting a comment about exclusions for your product, reach out to us today.
• USTR Katherine Tai speaks on reimplementation of a targeted tariff exclusion process in speech outlining the Biden-Harris Administration’s new approach to the U.S.-China bilateral trade relationship.

To receive an email notification whenever a new post is published, please subscribe to our weekly blog here.

Co-Authored by

USMCA Background

The U.S.-Mexico-Canada Agreement (“USMCA”) is a free trade agreement that replaced the North American Free Trade Agreement (“NAFTA”) and entered into force on July 1, 2020. The USMCA enjoyed significant bipartisan support and was widely considered a successful effort at “modernizing” NAFTA.

From a labor perspective, the USMCA contains much stronger provisions than its predecessor. Rather than comprising enforceable labor provisions, NAFTA was accompanied by a labor side agreement which only listed guiding principles pertaining to workers’ rights. On the other hand, the USMCA comprises an enforceable chapter dedicated to labor containing strong provisions in favor of workers rights.

A key provision in the USMCA’s labor chapter is a provision which mandates Labor Value Content (“LVC”) rules which require that 30% of work performed on automobiles manufactured in North America should be performed by workers earning at least $16 per hour in order to qualify for duty-free treatment. The LVC requirements apply to passenger vehicles, light trucks, and heavy trucks and applies exclusively at the automotive manufacturing (original equipment) level. This LVC threshold will be gradually elevated to 40% by July 1, 2023.

According to the implementing legislation of the USMCA, the U.S. Department of Labor (“DOL”) issued regulations necessary to administer the high-wage components of the labor value content requirement. The implementing legislation requires importers who claim preferential tariff treatment under the USMCA for goods imported into the United States from Canada or Mexico to create and retain records for examination. 

Comment Opportunity

On December 1, 2020, DOL announced in the Federal Register that it will receive comments submitted by the public regarding the scope and manner in which DOL’s Wage & Hour Division intends to collect from respondents. Comments are due by December 31, 2020. According to the announcement, DOL estimates that its information collection activities will affect 9,455 respondents and require 205,911 hours of these respondents’ collective time (an average of 21.8 hours per respondent).

DOL specifically requests comments responding to the following questions:

1. Whether the collection of information is necessary for the proper performance of the functions of the Department, including whether the information will have practical utility;
2. If the information will be processed and used in a timely manner;
3. The accuracy of the agency’s estimates of the burden and cost of the collection of information, including the validity of the methodology and assumptions used;
4. Ways to enhance the quality, utility and clarity of the information collection; and
5. Ways to minimize the burden of the collection of information on those who are to respond, including the use of automated collection techniques or other forms of information technology.

Contact Us

Diaz Trade Law has extensive expertise on USMCA tariff matters and in preparing and submitting comments. Please reach out to us if you would like to submit comments to DOL in order to inform the agency of how to best collection USMCA LVC information. Diaz Trade Law can be reached at info@diaztradelaw.com and 305-456-3830.