Steel Proclamation

The steel proclamation implements a melt and pour requirement for imports of steel articles that are products of Mexico. It also increases the section 232 duty rate for imports of steel articles and derivative steel articles that are products of Mexico that are melted and poured in a country other than Mexico, Canada, or the United States. If the country of melt and pour is any country other than the U.S., Mexico, or Canada, then the steel articles are subject to an additional 25% duty.

In making this adjustment, the Administration stated that domestic steel producers’ capacity utilization remains below the target 80 percent capacity utilization recommended in the Secretary of Commerce’s report of January 11, 2018. Additionally, imports of steel articles from Mexico have increased significantly. In the opinion of the Administration and the Secretary of Commerce, these developments indicate the need for further action under section 232.

Aluminum Proclamation

The aluminum proclamation implemented a country of smelt and country of most recent cast requirement for imports of aluminum articles that are products of Mexico. It also increased the section 232 duty rate for imports of aluminum articles and derivative aluminum articles that are products of Mexico containing aluminum for which the reported primary country of smelt, secondary country of smelt, or country of most recent cast is China, Russia, Belarus, or Iran.

To avoid 232 tariffs, aluminum articles and derivative aluminum articles that are products of Mexico must be accompanied by a certificate of analysis proving the primary country of smelt, secondary country of smelt, or country of most recent cast.

As it did in the steel proclamation, the Administration stated that domestic aluminum producers’ capacity utilization remains below the target 80 percent capacity utilization recommended in the Secretary’s report of January 19, 2018, and imports of aluminum articles from Mexico have increased significantly.

The proclamation stated that these measures will provide an effective, long-term alternative means to address both aluminum article imports that threaten national security and excess aluminum capacity and production.

CBP Guidance on Aluminum

On September 4, 2024, CBP issued guidance to assist importers impacted by the additional duties on aluminum. The guidance provides specific HTSUS headings importers should declare:

• Heading 9903.85.71 for aluminum articles for which the primary country of smelt, secondary country of smelt, or country of most recent cast, is China, Russia, Belarus or Iran.
• Heading 9903.85.72 for derivative aluminum articles for which the primary country of smelt, secondary country of smelt, or country of most recent cast, is China, Russia, Belarus or Iran.
• Heading 9903.85.67 for aluminum articles when any amount of primary aluminum used in the manufacture is smelted in Russia, or when the aluminum articles are cast in Russia.
• Heading 9903.85.68 for derivative aluminum articles when any amount of primary aluminum used in the manufacture is smelted in Russia, or when the derivative aluminum articles are cast in Russia.

The guidance also specifies that filers may only report “N/A” for the primary and secondary country of smelt if the product contains only secondary aluminum and no primary aluminum. 

Looking Ahead

The proclamations state that the United States will monitor the effectiveness of these measures and may reconsider the policies as appropriate.

Importers should revisit their policies and procedures governing steel and aluminum imports in light of these proclamations.

For assistance complying with these new requirements or for more information on how this change will impact your business, contact Diaz Trade Law.

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

• The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is publishing the names of one or more persons that have been placed on OFAC’s List of Specially Designated Nationals and Blocked Persons (SDN List) based on OFAC’s determination that one or more applicable legal criteria were satisfied. 
• OFAC is publishing 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. 
• OFAC is publishing 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.
• OFAC is publishing 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.
•  On November 26th, the Unitary Platform and the Maduro regime announced the resumption of talks in Mexico City; a humanitarian agreement focused on education, health, food security, flood response, and electricity programs that will benefit the Venezuelan people; and agreement on the continuation of talks focused on the 2024 elections. Following this announcement and consistent with U.S. government policy, OFAC issued Venezuela General License (GL) 41, authorizing Chevron Corporation to resume limited natural resource extraction operations in Venezuela.
• OFAC is issuing Venezuela-related General License 8K, “Authorizing Transactions Involving Petróleos de Venezuela, S.A. (PdVSA) Necessary for the Limited Maintenance of Essential Operations in Venezuela or the Wind Down of Operations in Venezuela for Certain Entities” and Venezuela-related General License 41, “Authorizing Certain Transactions Related to Chevron Corporation’s Joint Ventures in Venezuela”.  Additionally, OFAC is issuing two new Venezuela-related Frequently Asked Questions (FAQs 1098 and 1099).
• OFAC announced a settlement with Payward, Inc. d/b/a Kraken, a Delaware-incorporated virtual currency exchange with operations in the United States and elsewhere.  Kraken agreed to remit $362,158.70 to settle its potential civil liability for apparent violations of sanctions against Iran. 

U.S. International Trade Commission (USITC) 

• The U.S. International Trade Commission (USITC) has received a complaint entitled Certain Location-Sharing Systems, Related Software, Components Thereof, and Products Containing Same, DN 3655; 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 determined to review in part the final initial determination issued by the presiding chief administrative law judge  on September 9, 2022. The Commission requests briefing from the parties on certain issues under review, as indicated in this notice.
• USITC has determined to review in part the final initial determination issued by the presiding chief administrative law judge on September 9, 2022. The Commission requests briefing from the parties on certain issues under review, as indicated in this notice.
• USITC as received a complaint entitled Certain Cabinet X-ray and Optical Camera Systems and Components Thereof, DN 3656; 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.

U.S. Department of State (DOS)

• The Department of State (DOS) has submitted the information collection described below to the Office of Management and Budget (OMB) for approval. In accordance with the Paperwork Reduction Act of 1995 we are requesting comments on this collection from all interested individuals and organizations. The purpose of this Notice is to allow 30 days for public comment.

U.S. Consumer Product Safety Commission (CPSC)

• The U.S. Consumer Product Safety Commission (CPSC) has determined that there is an unreasonable risk of injury and death, particularly to children, associated with clothing storage units (CSUs) tipping over. To address this risk, the Commission is issuing a rule regarding the stability of CSUs. 

Department of Commerce (DOC)

• The Department of Commerce (DOC) updated two limits for the European Union Steel Tariff Rate Quota (TRQ) Program effective November 30, 2022 to align with production capabilities in Germany and Luxembourg. The effected steel HTS is 7301.10.0000 “Sheet Piling” under Chapter 99 HTS 9903.81.13. The quantity formerly listed for Country of Origin Germany has been reassigned to the quota limit for Country of Origin Luxembourg effective November 30, 2022.

United States Trade Representative (USTR)

• The U.S. Trade Representative  (USTR) modified the actions in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation by excluding from additional duties certain medical-care products needed to address COVID, and subsequently extended certain of these exclusions. The current COVID exclusions — covering 81 medical-care products — are scheduled to expire on November 30, 2022. This notice announces the U.S. Trade Representative’s determination to further extend the 81 COVID exclusions for an additional three months.
•  USTR announced the United States and United Kingdom jointly hosted the 6^th U.S.-UK Small- and Medium-Sized (SME) Dialogue yesterday, bringing together business representatives from both sides of the Atlantic to identify ways to expand bilateral trade and investment and to enhance broad and inclusive SME participation in that trade and investment.

U.S. Customs and Border Protection (CBP) 

• U.S. Customs and Border Protection (CBP) personnel at all U.S. ports of entry will detain raw sugar and sugar-based products produced in the Dominican Republic by Central Romana Corporation Limited. CBP issued a Withhold Release Order (WRO) against Central Romana based on information that reasonably indicates the use of forced labor in its operations.
  • CBP identified five of the International Labour Organization’s 11 indicators of forced labor during its investigation:  abuse of vulnerability, isolation, withholding of wages, abusive working and living conditions, and excessive overtime.
• CBP released a reminder for transportation carrier companies that transact with CBP’s ACE systems to please pay the Annual SCAC Code Renewal fee for this year (2022) by Monday, December 5th, to the National Motor Freight Traffic Association (NMFTA) if you have not done so already.  The NMFTA SCAC Code Renewal web link is SCAC Renewal and Application Wizard (nmfta.org).  If you have any questions about the renewal, please email customerservice@nmfta.org

Ocean Energy Management Bureau 

• The Bureau of Ocean Energy Management (BOEM) will open and publicly announce bids received for blocks offered in the Cook Inlet Planning Area Outer Continental Shelf Oil and Gas Lease Sale 258 (Cook Inlet Sale 258), in accordance with the provisions of the Outer Continental Shelf Lands Act (OCSLA), as amended, and its implementing regulations.

U.S. Department of  Energy (DOE)

• The U.S. Department of Energy (DOE) announces the availability of the preliminary analysis it has conducted for purposes of evaluating the need for amended energy conservation standards for non-weatherized oil-fired furnaces (NWOFs), mobile home oil-fired furnaces (MHOFs‘), weatherized gas furnaces (WGFs), weatherized oil-fired furnaces (WOFs‘), and electric furnaces (EFs).

U.S. Department of Agriculture (USDA) 

• The United States Department of Agriculture’s (USDA) electronic system for propagative shipment processing will be offline for routine service maintenance, starting Friday, December 2, 2022, beginning at 6:00 p.m. EST, until Saturday, December 3, 2022, at 7:00 p.m. EST.
  • To ensure expedited agriculture clearance of propagative shipments during this time, we recommend the following:
    • For shipments requiring clearance on Saturday December 3, please contact the USDA plant inspection station that you currently work with regarding propagative shipments. This will avoid delays and ensure that all relevant information is available to conduct clearance activities. All shipments will be inspected per normal procedures; however, the document review, sample selection, and cargo release will take place outside of the system and will be processed electronically after the system is back online.

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.

U.S. Customs and Border Protection (CBP)

• U.S. Customs and Border Protection (CBP) has commenced a formal investigation under Title IV, Section 421 of the Trade Facilitation and Trade Enforcement Act of 2015, commonly referred to as the Enforce and Protect Act (EAPA), against Gorilla Paper, Inc. and Gorilla Supply (collectively, Gorilla Paper).1 CBP is investigating whether Gorilla Paper evaded antidumping duty (AD) orders A-428-850 (Germany) and A-580-911 (South Korea) on thermal paper.  
• CBP issued a determination on whether AA Metals Inc., in Enforce and Protect Act (EAPA) Consolidated Case 7469, evaded customs duties. Specifically, it examined the evasion of antidumping and countervailing Duty orders A-570-073 and C-570-074 on common alloy aluminum sheet from the People’s Republic of China.  CBP found there was substantial evidence that the importer had transshipped certain merchandise subject to the orders through Turkey.
• CBP announced EAPA Consolidated Case 7673: Uni-Tile & Marble, Inc., Durian Kitchen Depot Inc., Kingway Construction and Supplies Co., Inc., Lonlas Building Supply Inc., Maika’i Cabinet & Stone Inc., and Top Kitchen Cabinet Inc.

The Executive Office of the United States President  

• The United States and Taiwan, under the auspices of the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office in the United States (TECRO), today concluded two days of productive meetings on the U.S.-Taiwan Initiative on 21st-Century Trade in New York City.  
  • During the meetings, the two sides exchanged views on the key concepts to be addressed in several of the trade areas set out in the negotiating mandate for this new initiative, which can be found here. 
• The White House announced that CBP Commissioner Chris Magnus offered his resignation, and that President Biden has accepted.”President Biden appreciates Commissioner Magnus’ nearly forty years of service and the contributions he made to police reform during his tenure as police chief in three U.S. cities,” said press secretary Karine Jean-Pierre in a statement 
• President Joe Biden has been speaking at a news conference after holding his first face-to-face meeting with Chinese leader Xi Jinping since he became president. He says he’s not looking for “conflict” between the US and China, and there will not be a new Cold War. The meeting comes at a time when relations between the two superpowers have soured. 

United States House of Representatives

• On October 28, 2022, House Representatives Banks, Wittman, and Steube introduced HR 9241, the Prioritizing National Security in Export Controls Act of 2022. The same day, the draft bill was referred to the Committees of Foreign Affairs, Armed Services, and Appropriations for consideration. This proposed legislation marks the culmination of extensive discussions over the last several years regarding the ability of the Department of Commerce to manage export controls covering dual-use goods, software, and technology. 

The Office of the United States Trade Representative (USTR) 

• The Office of the United States Trade Representative (USTR) welcomed the Ukrainian delegation to Washington, D.C., for the eleventh meeting of the United States – Ukraine Trade and Investment Council (Council), aimed at increasing bilateral trade and investment. 
• The United States and the Socialist Republic of Vietnam convened the second meeting of the Timber Working Group under the Agreement Between the Government of the Socialist Republic of Vietnam and the Government of the United States of America on Illegal Logging and Timber Trade (“Timber Agreement”) on November 9 – 10, 2022. 

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

• The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is publishing 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. 
• OFAC is issuing Russia-related General License 53 “Authorizing Transactions for Diplomatic Missions of the Russian Federation Prohibited by Directive 4 under Executive Order 14024”, and publishing one Russia-related Frequently Asked Question (1096). 
• OFAC, alongside the U.S. Department of State, sanctioned a transnational network procuring technology that supports the Russian military-industrial complex. OFAC also designated a global network of financial facilitators, enablers, and others associated with two key Kremlin-linked elites whose fortunes are intertwined with the West. In total, today’s actions designated 14 individuals and 28 entities, and identified eight aircraft as blocked property. 
• OFAC is issuing Russia-related General License 40C “Civil Aviation Safety”.
• The U.S. Department of the Treasury, in consultation with the White House Competition Council, has released a report entitled “Assessing Impacts of New Entrant Non-bank Firms on Competition in Consumer Finance Markets.” The report finds that, while concentration among federally insured banks is growing, new entrant non-bank firms, in particular “fintech” firms, are adding significantly to the number of firms and business models competing in core consumer finance markets and appear to be contributing to competitive pressure.  
• OFAC is designating six senior employees of the Islamic Republic of Iran Broadcasting (IRIB), the Iranian state-run media corporation that has broadcast hundreds of forced confessions of Iranian, dual national, and international detainees in Iran.

Department of Commerce (DOC)

• The U.S. Department of Commerce (DOC) determines that sales of certain pasta from Italy have been made at less than normal value by Pastificio Di Martino Gaetano e Flli S.p.A./Pastificio dei Campi S.p.A. during the period of review (POR) from July 1, 2020, through June 30, 2021. 
• DOC determines that imports of certain uncoated paper rolls from Australia were not completed by conversion into subject sheets of paper in the United States and, therefore, such imports are not circumventing the antidumping duty order on certain uncoated paper from Australia, within the meaning of section 781(a) of the Tariff Act of 1930, as amended.  
• DOC determines that citric acid and certain citrate salts from Colombia was sold in the United States at prices below normal value during the period of review July 1, 2020, through June 30, 2021. 
• DOC finds that producers or exporters subject to this administrative review made sales of subject merchandise below normal value during the period of review June 1, 2020, through May 31, 2021. 

The U.S. International Trade Commission (USITC)

• The U.S. International Trade Commission (USITC) has received a complaint entitled Certain Marine Air Conditioning Systems, Components Thereof, and Products Containing the Same, DN 3654; 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 on October 6, 2022, under section 337 of the Tariff Act of 1930, as amended, on behalf of Bell Semiconductor, LLC of Bethlehem, Pennsylvania. Supplements to the complaint were filed on October 21 and 28, 2022. The complaint alleges violations of section 337 based upon the importation into the United States, the sale for importation, and the sale within the United States after importation of certain. 

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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We’d love to hear your feedback!

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.

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United States Department of Commerce (DOC)

• The U.S. Department of Commerce (DOC) determines that carbon and alloy steel threaded rod (steel threaded rod) from India is not being sold in the United States at below normal value.  
•  As a result of the respective determinations by the DOC and the U.S. International Trade Commission (ITC) that termination of the 2016 Agreement Suspending the Antidumping Duty Investigation on Lemon Juice from Argentina (2016 Agreement) and the underlying antidumping duty investigation on lemon juice from Argentina would likely lead to continuation or recurrence of dumping 
• The DOC preliminarily finds that Hangzhou Ailong Metal Products Co., Ltd. (Ailong) made sales of subject merchandise at prices below normal value (NV) 
• On July 29, 2022, the DOC published the preliminary results of the changed circumstances review (CCR) of the antidumping duty (AD) order on multilayered wood flooring (MLWF) from the People’s Republic of China (China). 
• The DOC published a notice in the Federal Register on August 2, 2022, for the preliminary results and partial recission of the 2020–2021 administrative review of the antidumping duty order on certain pasta (pasta) from Italy 
• The DOC preliminarily finds that large power transformers from the Republic of Korea were not sold in the United States at less than normal value during the period of review (POR), August 1, 2020, through July 31, 2021. 
• The DOC preliminarily determines that certain preserved mushrooms (preserved mushrooms) from France are being, or are likely to be, sold in the United States at less than fair value (LTFV). 
• The DOC determines that 15 companies had no shipments of certain frozen fish fillets from the Socialist Republic of Vietnam (Vietnam) during the period of review (POR) August 1, 2020, through July 31, 2021. 

U.S. Court of International Trade (CIT)

• On August 29, 2022, the U.S. Court of International Trade (CIT) issued its final judgment in SeAH Steel Corporation v. United States, Consol. Court No. 20-00150, Slip Op. 22-101, sustaining the DOC’s (Commerce) remand results pertaining to the administrative review of the antidumping duty (AD) order on certain oil country tubular goods (OCTG) from the Republic of Korea (Korea) covering the period September 1, 2017, through August 31, 2018. 
• On August 26, 2022, the CIT issued its final judgment in SeAH Steel Corp. v. United States, Consol. Court No. 19-00086, Slip Op. 22-100, sustaining the U.S. Department of Commerce’s (Commerce) remand results pertaining to the administrative review of the antidumping duty (AD) order on certain oil country tubular goods (OCTG) from the Republic of Korea (Korea) covering the period September 1, 2016, through August 31, 2017. 

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

• The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Iran’s Ministry of Intelligence and Security (MOIS) and its Minister of Intelligence for engaging in cyber-enabled activities against the United States and its allies. 
• The OFAC is issuing Russia-related General License 13B. 

Food and Drug Administration (FDA)

• FDA is issuing a final rule to reflect changes to the organizational structure of FDA, make the FOIA process easier for the public to navigate, and make certain provisions clearer. Taken together, these changes enhance transparency for the public about FDA activities.

United States International Trade Commission (USITC)

• Purple Innovation, LLC filed a complaint with the U.S. International Trade Commission (USITC) on August 5,2022 alleging violations of patent design and trademark registration based upon the importation, sale for importation, and sale within the United States.  

Office of the U.S. Trade Representative (USTR)

• United States Trade Representative Katherine Tai and Secretary of Commerce Gina M. Raimondo hosted counterparts from the 13 Indo-Pacific Economic Framework for Prosperity (IPEF) partner countries at the first official in-person Ministerial meeting. The ministers announced a substantial milestone in their pursuit of a high-standard and inclusive economic framework.

G7 Germany

• The G7 Finance Ministers met on September 2, 2022 to discuss their response to Russia’s war against Ukraine and its economic impact. They reiterated their support for Ukraine and condemned Russia for their actions.

The White House

• Senior government officials from the United States and Mexico met in Mexico City on September 12th to convene the U.S.-Mexico High-Level Economic Dialogue (HLED).
• On September 11, 2022, the White House released plans to broaden curbs on U.S shipments to China of semiconductors used for artificial intelligence and chipmaking tools.

Bloomberg News

• According to Bloomberg, in Chengdu, famous for its giant pandas, residents in locked-down areas need to remain at home and get tested daily for COVID-19. Those living outside areas deemed to be high risk are only allowed to go out every other day for two hours for groceries and medical needs. 

U.S. Customs and Border Protection

• U.S. Customs and Border Protection (CBP) announced a rule to amend regulations to streamline the vessel repair entry process by extending the timeframe from 90 days to 150 days for vessel owners, masters, or authorized agents (“vessel operators”) to provide completed vessel repair entries and to apply for relief from assessment of those vessel repair duties.

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

• On July 28. 2022. the Department of the Treasury’s Office of Foreign Assets Control (OFAC) has published the name of one entity who has been removed from the List of Specially Designated Nationals and Blocked Persons (SDN List): JSC SB ALFA BANK.
• OFAC is publishing two general licenses (GLs) issued pursuant to the Russian Harmful Foreign Activities Sanctions Regulations: GL 13 and GL 13A, each of which was previously issued on OFAC’s website.
• OFAC is publishing five general licenses (GLs) issued pursuant to the Russian Harmful Foreign Activities Sanctions Regulations: GL 39, GL 40, GL 41, GL 42, and GL 43, each of which was previously issued on OFAC’s website.
• OFAC is publishing two general licenses (GLs) issued pursuant to the Russian Harmful Foreign Activities Sanctions Regulations: GL 45 and GL 46, each of which was previously issued on OFAC’s website.
• On August 1, 2022, OFAC took action against companies used by Iran’s Persian Gulf Petrochemical Industry Commercial Co. (PGPICC), one of the nation’s largest petrochemical brokers, to facilitate the sale of tens of millions of dollars’ worth of Iranian petroleum and petrochemical products from Iran to East Asia. PGPICC is a subsidiary of Iran’s petrochemical conglomerate Persian Gulf Petrochemical Industry Co. (PGPIC), which accounts for half of all of Iran’s total petrochemical exports.
• On August 2, 2022, OFAC imposed a new round of sanctions targeting Kremlin-connected elites, a major multinational company, and a sanctions evasion operation, as well as one yacht pursuant to Executive Order (E.O.) 14024. These elites and businesses operate in economic sectors that generate substantial revenue for the Russian regime, including from sources outside of Russia. OFAC’s designations were taken in tandem with the U.S. Department of State, which imposed additional sanctions on entities and individuals, as well as visa restrictions.
• On August 2, 2022, OFAC announced it is issuing Russia-related General License 40A, General License 43A, General License 47, General License 48, and General License 49.  In addition, the SDN and SSI lists have recently been updated. Please visit the following page to access the latest version of the SDN list. OFAC is also publishing the three following questions to its Frequently Asked Questions (FAQs) in relation to the Russian Harmful Foreign Activities Sanctions:
  • 1075. Is PhosAgro PJSC blocked as a result of the designation of Andrey Grigoryevich Guryev and Andrey Andreevich Guryev? 
  • 1074. Is EuroChem Group AG blocked as a result of the designation of Andrey Igorevich Melnichenko?
  • 1073. Is Sheremetyevo International Airport blocked as a result of the designation of Alexander Anatolevich Ponomarenko? 
• On August 3, 2022, OFAC amended the Russia-related General Licenses (GLs) 40A, 47, 48, which were issued on August, 2, 2022. The licenses apply to the Joint Stock Company State Transportation Leasing Company. The August 2nd, GLs did not include the term “leasing” in the company’s name. The GLs are otherwise unchanged.

U.S. Department of Commerce

• Based upon the timely withdrawal of all review requests, the Department of Commerce (DOC) is rescinding the administrative reviews covering the periods of review and the antidumping duty (AD) and countervailing duty (CVD) orders.
• DOC preliminarily determines that certain hardwood plywood products and veneered panels (hardwood plywood) exported from the Socialist Republic of Vietnam (Vietnam), which were assembled in Vietnam using hardwood plywood inputs sourced from the People’s Republic of China (China) are products of China and are subject to the antidumping duty (AD) and countervailing duty (CVD) orders on hardwood plywood from China.
• On June 13, 2022, DOC published the notice of initiation and preliminary results of the changed circumstances review (CCR) of the antidumping duty (AD) order on citric acid and certain citrate salts (citric acid) from Belgium.
• DOC preliminarily determines that S.A. Citrique Belge N.V. (Citrique Belge) did not sell subject merchandise in the United States at prices below normal value during the July 1, 2020, through June 30, 2021, period of review (POR).
• In response to a request from Zhejiang Yuhua Timber Co. Ltd. (Yuhua), A-Timber Flooring Company Limited (A-Timber), and Mullican Flooring Co. (Mullican) (collectively, Yuhua et al.), DOC is issuing these preliminary results of the changed circumstances review (CCR) of the antidumping duty (AD) order on multilayered wood flooring (MLWF) from the People’s Republic of China (China).
• DOC published notice in the Federal Register of July 8, 2022, in which it announced the final results of the 2019-2020 administrative review of the antidumping duty (AD) order on refillable stainless steel kegs (kegs) from the People’s Republic of China (China).
• On August 2, 2022, the DOC preliminarily determined that certain pasta from Italy was sold in the U.S. at less than normal value (NV) during the period of review:  July 1, 2020, through June 30, 2021. Further, DOC is rescinding this review for fifteen of the companies for which this review was initiated. Interested parties are invited to comment on these preliminary results.
• On August 2, 2022, DOC released an advisory detailing that during the anniversary month of the publication of an antidumping or countervailing duty order, finding or suspended investigation, an interested party, as defined in section 771(9) of the Tariff Act of 1930, as amended, may request in accordance with 19 CFR 351.213, DOC conduct an administrative review of that antidumping or countervailing duty order, finding, or suspended investigation. All deadlines for the submission of comments or actions by Commerce discussed below refer to the number of calendar days from the applicable starting date.
  • Pursuant to 19 CFR 351.213(d)(1), a party that requests a review may withdraw that request within 90 days of the date of publication of the notice of initiation of the requested review
  • An interested party wishing to submit a Particular Market Situation Allegation and supporting new factual information pursuant to section 773(e) of the Act, must do so no later than 20 days after submission of initial Section D responses.

U.S. International Trade Commission 

• In accordance with Section 743 of Division C of the Consolidated Appropriations Act of 2010, the U.S. International Trade Commission (USITC) is publishing this notice to advise the public of the availability of the FY 2019 Service Contract Inventory and the Planned Analysis of FY 2020 Service Contracts Inventory.
• Notice is hereby given that  USITC has determined not to review the presiding administrative law judge’s (“ALJ”) initial determination (“ID”) (Order No. 3) setting a 20-month target date and an ID (Order No. 5) granting Cadence Design Systems, Inc.’s (“Cadence”) motion to intervene.
• Notice is hereby given that USITC has determined not to review an initial determination (“ID”) (Order No. 8) of the presiding administrative law judge (“ALJ”) granting a joint motion to terminate the investigation in its entirety based on settlement. The investigation is terminated.
• Notice is hereby given that USITC has determined that there is a violation of Section 337 of the Tariff Act of 1930, as amended, in the above-captioned investigation. The Commission has issued a general exclusion order (“GEO”) barring entry of certain batteries and products containing same that infringe the patents asserted in this investigation.
• Notice is hereby given that USITC has determined to issue a limited exclusion order against Kappa City Biotech, SAS of Montlucon, France (“Kappa City”).
• The USITC hereby gives notice of the scheduling of full reviews pursuant to the Tariff Act of 1930 (“the Act”) to determine whether revocation of the antidumping duty and countervailing duty orders on ammonium sulfate from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.
• The USITC hereby gives notice of the scheduling of an expedited review pursuant to the Tariff Act of 1930 (“the Act”) to determine whether revocation of the antidumping duty order on wooden bedroom furniture from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

U.S. Court of International Trade 

• On July 15, 2022, the U.S. Court of International Trade (the Court or CIT) issued its final judgment in Pro-Team Coil Nail Enter. v. United States, Consol. Court No. 18-00027, Slip Op. 22-84 ( Pro-Team IV), sustaining the U.S. Department of Commerce’s (DOC) remand results pertaining to the administrative review of the antidumping duty (AD) order on certain steel nails from Taiwan covering the period May 20, 2015, to June 30, 2016.

Office of Trade and Economic Analysis

• On August 2, 2022, a federal register announced the Secretary of Commerce, through the Office of Trade and Economic Analysis (OTEA), issued an amended Export Trade Certificate of Review to California Pistachio Export Council, LLC (CPEC), application no. 03-4A008, on July 22, 2022. An Export Trade Certificate of Review protects the holder and the members identified in the Certificate from State and Federal government antitrust actions and from private treble damage antitrust actions for the export conduct specified in the Certificate and carried out in compliance with its terms and conditions.

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.

BIS

• BIS Publishes Report on Effect of Uranium Imports on National Security
• BIS Publishes First Military End User List

Bloomberg

• Bloomberg Law – Introduction to U.S. Export Controls: Part 2
• Protecting Intellectual Property Rights in China
• Incoterms 2020
• Submitting Voluntary Self-Disclosures to Bureau of Industry & Security
• Submitting a Voluntary Self-Disclosure to Census
• Submitting a Voluntary Self-Disclosure to OFAC
• U.S. Customs Targets Use of Forced Labor

Customs and International Trade Bar Association 

• New CITBA Article – An Overview of China’s New Export Controls Regime
• COVID-19’s Impact on 2020 Trade Flows

China

• OFAC Issues Clarifying Guidance on Communist Chinese Military Companies Sanctions
• Hong Kong’s Initiates Dispute Regarding U.S.-Origin Marking Requirement
• CBP Issues WRO on Cotton, Tomato, & Downstream Products Made in Xinjiang
• Future of First Sale Rule in Question

Crypto

• OFAC Targets Russian Crypto Platform
• Why China’s Cryptocurrency Miners are Moving to Texas

Covid-19

• Recent Government Data Indicates that Florida Trade is Rebounding Fast Despite Pandemic Hit

Export

• What are Routed Export Transactions?
• Understanding the Computer Export License Exception (APP)
• Understanding the GOV Export License Exception
• Vegas Woman Charged with Iran Sanctions Violations
• Do’s and Don’ts of Filing a Commodity Jurisdiction Request
• Understanding Strategic Trade Authorization
• Building a Strong Export Compliance Plan
• Commerce Department Issues Rule Securing Digital Supply Chains Against Foreign Adversaries

Import/CBP

• UK Joins Kimberley Diamond-Trading Process
• FTC issues a Record Breaking $1.2 Million Penalty
• Customs Issues Notice of Proposed Rulemaking on Broker Continuing Education – Comments Open
• Comment Now – CBP Proposed Rule on Country of Origin Determination for Imports under USMCA
• 9801.00.10: Updated Requirements for Returned Goods
• Customs Valuation 101
• Breaking News – New Federal Law Expands Furniture Flammability Testing Standard

AD/CVD

• New Antidumping Petition Against Imports of Certain Honey Products
• New AD/CVD Petition Against Imports of Certain Chinese Mobile Access Equipment

Buy America

• Biden Executive Order Strengthens Buy American Government Procurement Laws

U.S. Fish and Wildlife Service

• Trading in Wildlife? You May Need a License

U.S. Food and Drug Administration

• FDA Seeks Public Comments on Proposed Final Order for OTC Sunscreen Safety
• FDA OPENS NEW FSVP PORTAL FOR IMPORTERS
• FDA Further Extends UFI Flexibility For Food Facility Registrations
• OTC Drug Manufacturers are Required to Pay FDA Facility User Fees by May 10, 2021
• FDA Import Alert on Mexican Hand Sanitizer
• Comment on FDA’s Proposed Rule – French Dressing

USITC

• An Introduction to Safeguard Investigations

OFAC 

• Between a Rock and a Hard Place – Conflicting U.S. & EU Sanctions Policies Towards Iran
• OFAC Sanctions & Licensing
• The CAPTA List – An Introduction
• Treasury Imposes Further Sanctions on Iran
• Trump Administration Designates Cuba State Sponsor of Terrorism

Section 301

• Want Your 301 Exclusion Back? Comment Now!
• Potential Relief from China Tariffs Coming
• 301 Exclusion Extensions for COVID-19 Related Products
• Proposed 25% Tariffs on Section 301 Digital Service Taxes – Comment Now
• USTR Announces Special 301 Review – Comments Due January 28
• US Imposes Additional Tariffs on EU Goods
• USCIT Invalidates 232 Tariffs on Steel and Aluminum Derivatives

Podcasts

• 3-Part Podcast Miniseries – Importing, Exporting, and AD/CVD

Trade Snapshots

• Customs and Trade Law Snapshot
• Customs and Trade Law Weekly Snapshot

USDA 

• Understanding Organic Equivalency Arrangements
• USDA National Organic Program – Enforcement & Compliance Overview

Webinar

• Want Customs to Police Your IPR at all 328 Ports of Entry?
• Customs Classification – A Key Component of an Import Compliance Manual
• Keysight Technologies Pays $6.6M to State Department for Export Violations
• Food Importers: How to Import Food Compliantly & Survive a FSVP Audit
• Don’t Let FDA Target Your Medical Device Company
• Insight on Last 6 Months of Biden/Congress on Trade
• Diaz Trade Law Invites the Trade Community to Two Free Webinars this Summer!
• Don’t be a Target, Learn Best Practices to Mitigate FDA Enforcement
• ACE: Auditing Your Export History
• ACE: Auditing Your Import History
• Exporting 101 – Introduction to Export Controls
• Anti-Circumvention, EAPA, Dumping Duties & the Spreadability of Cases
• Cleaning for COVID-19 – Importing Cleaning Products: Who Regulates You?
• REGISTER TODAY! NEI Accredited Webinar Importing 101 – Introduction to U.S. Customs
• Biden Administration Commits to Modernizing Regulatory Review

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

The U.S. Census Bureau’s mission is to serve as the nation’s leading provider of quality data about its people and economy. The Census Bureau’s Trade Regulations Branch in the Economic Management Division is chiefly responsible for enforcing the Foreign Trade Regulations. The Foreign Trade Regulations (15 CFR. Part 30) require certain exporters to file export information with the U.S. Census Bureau. They detail requirements for filing export information, explain filing procedures, and establish penalties for noncompliance. The regulations require export information to be filed on the Automated Export System (“AES”). The information submitted by exporters on to AES is known as EEI.

EEI filings are required for a wide variety of circumstances, including:

• Exports valued at more than $2,500 to any destination except Canada
• Exports that require an export license under the Export Administration Regulations (“EAR”)
• Exports on the EAR’s Commerce Control List (“CCL”) and destined for China, Russia, or Venezuela
• Exports subject to the EAR and destined for a country in Country Group E:1 or E:2 (currently, Cuba, Iran, North Korea, and Syria)
• Exports subject to the International Traffic in Arms Regulations (“ITAR”)
• Exports containing rough diamonds

Routed Export Transactions

Routed Export Transactions (“RETs”) are a particular kind of export transaction that must be reported in EEI filings. RETs are export transactions in which a Foreign Principal Party in Interest (“FPPI”) authorizes a U.S. agent to facilitate export of items from the United States on its behalf and prepare to file the EEI. In other words, if the foreign party who purchases the goods for export and has the primary foreign financial interest in the export transaction authorizes a U.S. agent to facilitate the export and file EEI, then the transaction would be a RET.

RETs differ from standard export arrangements in which the U.S. Principal Party in Interest (“USPPI”) (i.e., the U.S. person or entity that receives the primary benefit from the export transaction) arranges for export and EEI filings.

In a RET arrangement, the USPPI has unique responsibilities. The FPPI may authorize or agree to allow the USPPI to prepare and file the EEI. If the FPPI agrees to allow the USPPI to file the EEI, the FPPI must provide a written authorization to the USPPI assuming the responsibility for filing. The USPPI may then authorize an agent to file the EEI on its behalf. Alternatively, the FPPI can authorize an agent to prepare and file the EEI itself. A typical RET transaction in which the FPPI authorizes the USPPI to prepare and file the EEI via its agent is depicted in the Census graphic below.

According to 15 CFR 30.6, if an export transaction is a RET and an EEI filing is required, the EEI filing must include a Routed Export Transaction filing indicator that identifies that the shipment is a RET. An affirmative RET filing indicator comprises of a simple “Y” (yes) checkmark in the EEI filing. A failure to declare a RET can result in substantial penalties.

What Should You Do?

Exporters have significant responsibilities to ensure compliance, to avoid penalties and/or jail time (i.e., your compliance manager deserves a raise!). Proper adherence to Foreign Trade Regulations and other export control requirements ensures that your business contributes to safeguarding U.S. national security and avoiding costly penalties.

If you are exporting goods subject to filing requirements under the Foreign Trade Regulations, we propose you should:

• Develop an effective export compliance plan.

A key foundation of proactive and effective export compliance requires the development of an export compliance plan. An export compliance plan 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 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 the important great weight mitigating factors. Diaz Trade Law has significant experience in developing and enhancing export compliance plans for organizations. Additionally, Diaz Trade Law can assist your business in auditing and improving your current plan so that it is in its best shape.

• Engage in regular export compliance training.

A foundation of a strong export compliance program is export compliance training. Training is important because it (1) ensures that all employees understand the export regulations and reinforces internal policies and procedures, (2) demonstrates to federal government agencies that your business is proactive about export compliance, and (3) avoids your business from being subject to costly penalties and even criminal liability. Fortunately, export compliance training can be highly tailored to meet your company’s needs. All 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.

• Thoroughly vet your proposed export transactions

Unsure whether a proposed export transaction violates the Foreign Trade Regulations or other export control laws? Diaz Trade Law has significant experience vetting your potential transaction against U.S. export control laws and in assisting clients to properly file their EEI. Through research and due diligence, Diaz Trade Law ensures that your transaction won’t get you in trouble later down the road.

• Request authorization when necessary

BIS or DDTC export authorization is required for many export transactions of controlled goods. Diaz Trade Law has significant experience in vetting proposed transactions to determine whether BIS or DDTC authorization is required. Furthermore, Diaz Trade Law assists clients by filing export license applications on their behalf.

• Engage in mitigation and corrective actions.

If your business has violated U.S. export control laws, there is a lot you can do to mitigate penalties and prevent future violations. Diaz Trade Law has significant experience representing businesses in dealing with the U.S. Commerce Department’s Bureau of Industry & Security and the Census Bureau. Specifically, Diaz Trade Law has successfully assisted clients in (1) submitting voluntary self-disclosures to mitigate penalties, (2) negotiated agreements with BIS and Census, and (3) built corrective action systems to help ensure that your business does not make the same violation again.

Check out our Bloomberg article on Submitting a Voluntary Self-Disclosure to the U.S. Census Bureau.

Diaz Trade Law’s Upcoming Webinar: Building & Maintaining an Effective Export Compliance Plan

Diaz Trade Law has available an on-demand webinar on Building & Maintaining an Effective Export Compliance Plan. This one-hour webinar will discuss the elements of an effective export compliance plan, best practices, how to train your employees, and an overview of both how to build and effectively maintain a robust export compliance plan.

In the webinar, you will learn:

• Why you Should Have an Export Compliance Plan in Place
• Elements of an Effective Export Compliance Plan
• How to Build and Effective Export Compliance Plan
• Common Risks Associated with the Export Process that Should be Addressed in Your Plan
• What to do When BIS/OFAC/Census/DDTC Come Knocking on Your Door
• How to Maintain an Effective Export Compliance Plan Through Training
• What to Do When All Goes Wrong
• What NOT to Do – Examples from “Don’t Let This Happen to You”

Contact Us

Diaz Trade Law has significant experience in a broad range of export compliance matters. To learn more about the services we offer, contact us at info@diaztradelaw.com or call us at 305-456-3830.

A Las Vegas woman has been indicted by a federal grand jury for conspiracy to export goods from the United States to Iran, in violation of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations. According to the indictment unsealed recently, Tina Chen, 47 — aka Ya When Chen, Wen Tina Chen, Tina Dunbar, and Tina Dubner — is the owner of Top One Zone, LLC, a company exporting electronic and computer components that Chen operates from her residence. As alleged, from about November 2015 to May 2019, Chen conspired with others to buy and export goods from companies in the United States, and then send those goods to individuals in Iran through companies in Hong Kong. Chen concealed the identities of the end users, and she did not have a license from OFAC. Chen is charged with one count of conspiracy to unlawfully export goods to Iran.

According to the allegations in the indictment, Chen engaged in numerous overt acts of conspiracy including:

• Emailing co-conspirators about her plans
• Submitting a Customer End-User Certificate to a U.S. company that falsely stated that Chen was purchasing goods for export to an end user (a Hong Kong university) and falsely certified that the purchased goods would not be sold to a restricted country without obtaining the required government approval
• Submitting a revised End-User Certificate to a U.S. company that falsely stated that the goods would be used for a startup application in Hong Kong and would not be sold to a restricted country without obtaining the required government approval
• Producing fake invoices to substantiate false motives

Specifically Chen worked with her co-conspirator to create fake invoices that intentionally misidentified the end-user. While the actual end-user for a particular shipment was a university in Iran, the invoice listed the end-user in Hong Kong. This was all in writing via emails. Similarly, for another shipment, the co-conspirator emailed Chen instructing her to repackage the goods and to remove the original manufacturer’s name and sensitive labels. Chen emailed her co-conspirator providing details on how fake invoice amounts will be calculated based on the real invoice. These are just some examples of Chen’s actions, much of which were documented by email.

If convicted, Chen faces a statutory maximum penalty of 20 years’ imprisonment and a $1,000,000 fine. Currently, a jury trial is underway. The enforcement effort against Ms. Chen was a joint investigation by the FBI’s Las Vegas Field Office and the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement.

Background on U.S. Sanctions

The U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) administers a number of different sanctions programs. The purpose of U.S. sanctions programs is to advance U.S. foreign policy objectives and protect national security. Currently, OFAC administers 35 sanctions programs. These sanctions programs vary widely – some are comprehensive while others are highly selective.

U.S. sanctions programs generally target one of four categories:

• Foreign countries and regimes
• Terrorist organizations / individuals
• Narcotics traffickers
• Proliferators of weapons of mass destruction

The scope of U.S. sanctions programs can be broad. Depending on the program, sanctions can regulate:

• Non-U.S. persons while in the U.S.
• U.S. citizens and permanent residents wherever located
• U.S. parent companies and the foreign subsidiaries of those entities
• U.S. subsidiaries of foreign parent companies

Current U.S. Sanctions Programs (as of June 2021)

The following is a list of current U.S. sanctions programs administered by OFAC:

• Balkans Sanctions
• ​Belarus Sanctions
• Burma-Related Sanctions
• ​Burundi Sanctions
• Central African Republic Sanctions
• Chinese Military Companies Sanctions
• ​Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA)
• ​Counter Narcotics Trafficking Sanctions
• ​Counter Terrorism Sanctions
• ​Cuba Sanctions
• ​Cyber-Related Sanctions
• ​Democratic Republic of the Congo-Related Sanctions
• ​Foreign Interference in a United States Election Sanctions
• ​Global Magnitsky Sanctions
• Hong Kong-Related Sanctions
• ​Iran Sanctions
• ​Iraq-Related Sanctions
• ​Lebanon-Related Sanctions
• ​Libya Sanctions
• Magnitsky Sanctions
• Mali-Related Sanctions
• ​Nicaragua-Related Sanctions
• ​Non-Proliferation Sanctions
• ​North Korea Sanctions
• ​Rough Diamond Trade Controls
• Russian Harmful Foreign Activities Sanctions
• ​Somalia Sanctions
• ​Sudan and Darfur Sanctions
• ​South Sudan-Related Sanctions
• ​Syria Sanctions
• Syria-Related Sanctions
• ​Transnational Criminal Organizations
• ​Ukraine-/Russia-Related Sanctions
• ​Venezuela-Related Sanctions
• ​Yemen-Related Sanctions
• ​Zimbabwe Sanctions

What You Can Do

Like in the case above, violations of U.S. sanctions laws can result in heavy penalties and even criminal liability. To ensure you are proactive about your sanctions compliance, you should:

• Develop an effective sanctions compliance program – A key foundation of proactive and effective sanctions compliance requires the development of a sanctions compliance plan. A sanctions compliance plan 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. A sanctions 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 businesses create sanctions compliance manuals that help prove you have a process in place to vet proposed transactions 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 sanctions compliance plans for organizations without plans. Additionally, Diaz Trade Law can assist your business in auditing and improving your current plan so that it is in its best shape.
• Perform sanctions compliance training – A foundation of a strong sanctions compliance program is sanctions compliance training. Training is important because it (1) ensures that all employees understand the sanctions regulations and reinforces internal policies and procedures, (2) demonstrates to federal government agencies that your business is proactive about sanctions compliance, and (3) avoids your business from being subject to costly penalties and even criminal liability. Fortunately, sanctions compliance training can be highly tailored to meet your company’s needs. All of your training events include assessments for comprehension, certificates for successful participation, and ample opportunities for Q&A. For your next sanctions compliance training event, trust Diaz Trade Law to provide highly-effective, engaging training.
• Properly vet transactions – Unsure whether a proposed transaction violates OFAC sanctions? Diaz Trade Law has significant experience vetting your potential transaction against U.S. sanctions laws. Through research and due diligence, Diaz Trade Law ensures that your transaction won’t get you in trouble later down the road. In particular, it is important to vet end-uses (how is your product going to be used?), end-users (who will be using your product?), and destinations (where will your product be used?).
• Submit voluntary self-disclosures when appropriate – If your business believes it may have violated OFAC sanctions, it can be in your business’ strategic interest to submit a voluntary self-disclosure (“VSD”). OFAC encourages anyone who may have violated OFAC-administered regulations to disclose the apparent violation to OFAC voluntarily. A voluntary self-disclosure to OFAC is considered a mitigating factor by OFAC in enforcement actions, and pursuant to OFAC’s Enforcement Guidelines, may result in a reduction in the base amount of any proposed civil penalty. Diaz Trade Law has significant experience filing VSDs and mitigating penalties. For detailed information on filing a VSD with OFAC, check out our article Submitting a Voluntary Self-Disclosure to OFAC published by Bloomberg Law.
• Ensure specific license applications are applied for when necessary – A specific license is an authorization from OFAC to engage in a transaction that otherwise would be prohibited. Businesses may apply for OFAC specific licenses to release blocked funds, generally authorize transactions, and many other purposes. Diaz Trade Law has significant experience submitting specific license applications and receiving authorization for proposed transactions on behalf of our clients.
• Have a process in place for corrective action when necessary – If your business has violated U.S. sanctions laws, there is a lot you should do to get back into compliance, ensuring you work to prevent future violations, training your employees, updating your manuals, and this work can assist in mitigating potential penalties. Diaz Trade Law has significant experience representing businesses in dealing with the U.S. Treasury Department’s Office of Foreign Assets Control. Specifically, Diaz Trade Law has successfully assisted clients in (1) submitting voluntary self-disclosures to mitigate penalties, (2) negotiated agreements with OFAC, (3) built corrective action systems to help ensure that your business does not make the same violation again, and (4) updating and enhancing your current export compliance plan.

Contact Us

If you have questions on sanctions or export-related matters, contact Diaz Trade Law today at info@diaztradelaw.com or 305-456-3830.

Co-Authored by Sharath Patil