Both Mexico and the United States have robust legal frameworks to eradicate the use of forced labor and have made great strides in detection and enforcement. However, the secretive nature of the forced labor industry, changing bad actor tactics, and the intensive resourcing required presents challenges to both countries.

Forced Labor in Mexico

While Mexico has made great strides in identifying and preventing forced labor, it is still a problem that impacts hundreds of thousands of citizens. Certain risk factors[3] may make certain individuals more vulnerable to forced labor than others, including:

• Poverty
• Unstable immigration status
• Language barriers
• Lack of social support systems
• Physical or developmental disabilities

An estimated 850,000 people are still living in modern slavery today in Mexico.[4] The Department of Labor has identified a list of goods it has reason to believe are produced using child labor and forced labor in Mexico including[5]:

• Beans
• Cattle
• Chile peppers
• Coffee
• Cucumbers
• Eggplants
• Garments
• Leather goods/accessories
• Melons
• Onions
• Poppies
• Pornography
• Sugarcane
• Tobacco
• Tomatoes

Investigations have also uncovered severe forms of child labor including using children in the production and trafficking of drugs and in dangerous agricultural work.[6]

Mexico Efforts to Eliminate Forced Labor in Mexico

Over the past several years, the Mexican government has both acknowledged the prevalence of forced labor and taken steps to identify it and stop it. The government has amended its labor laws, signed a national pact that establishes nationwide objectives, and committed to transparency and reporting. However, both the Mexican government and international bodies recognize that there is more work to be done.

Mexico has been actively working to combat forced labor, driven by both international commitments and domestic reform initiatives. These efforts are guided by the country’s obligations under the USMCA, the ILO conventions, and Mexico’s own labor law reforms. Below is an overview of Mexico’s approach, recent actions, and the challenges it faces in eliminating forced labor.

1. Labor Law Reforms

Mexico’s comprehensive labor reform, enacted in 2019, introduced protections for workers and mandated independent labor courts to replace corrupt conciliation boards.[7] These reforms include provisions that make it easier to report forced labor practices and give workers the right to unionize and demand fair labor conditions.

 The reform also specifies penalties for employers who engage in exploitative labor practices, including forced labor. These penalties apply across industries and include potential fines and imprisonment for offenders.

2. Commitments under the USMCA

Mexico’s commitments under the USMCA include specific provisions addressing forced labor, as well as a general commitment to uphold internationally recognized labor rights. To avoid trade restrictions or sanctions, Mexican exporters must ensure that their goods are produced under fair labor conditions. The Mexican government collaborates with U.S. and Canadian authorities to address forced labor concerns within specific industries.

Mexican facilities suspected of labor rights violations, including forced labor, can be investigated and required to take corrective actions. Mexico has worked with the U.S. in cases involving the automotive and agricultural sectors, where reports of labor abuses have been more prevalent.

3. Focus on Child Labor

Child labor remains a significant challenge in Mexico. Approximately 3.7 million children aged 5 to 17 are engaged in child labor, with 2 million involved in hazardous work.[8] These children are often found in agriculture, construction, and informal urban economies, where they face significant health and safety risks.

To combat this issue, in 2023, the state secretaries of labor, the Federal Commission for Addressing Child Labor, and state-level commissions signed a national pact (Pacto del Mayab) that established shared objectives to combat child labor and forced labor in Mexico.[9] The federal commission also published a guide for employers on regulation compliance, expectations for general working conditions, and required benefits for working adolescents. The government also publishes a digital handbook informing minors aged15-17 about their working rights.

4. Enforcement and Monitoring

Mexico has taken steps to strengthen the enforcement of labor standards, including measures specifically targeting forced labor. The Ministry of Labor and Social Welfare (STPS) plays a central role in monitoring labor practices, conducting inspections, and enforcing labor laws.

To enhance its efforts, the STPS has increased labor inspections, especially in high-risk sectors such as agriculture, construction, and manufacturing. Inspectors are trained to identify signs of forced labor, such as withholding of wages, restricted movement, and abusive working conditions.

The Mexican government has also increased funding and training for labor inspectors to address forced labor and other labor rights violations more effectively.[10] This includes specific training on identifying and handling cases of forced labor and child labor.

5. International Partnerships and Capacity Building

Mexico collaborates with international organizations and the U.S. to build capacity for identifying and eliminating forced labor. These partnerships provide Mexico with resources and expertise to address forced labor comprehensively.

Mexico works with the ILO to align its labor standards with international guidelines. The ILO provides technical assistance, resources, and training for Mexican officials on forced labor issues.

Mexico also leverages U.S. assistance programs. For example, through the USMCA, the U.S. Department of Labor and USAID support Mexico’s labor reform efforts, including programs that help identify and prevent forced labor.[11] This includes funding for monitoring initiatives, worker education programs, and training for Mexican labor inspectors.

6. Awareness Campaigns and Worker Protections

Public awareness campaigns and legal protections are essential to combating forced labor in Mexico. These initiatives help inform workers about their rights and provide channels for reporting labor abuses.

The Mexican government and labor organizations conduct public campaigns to inform workers of their rights, including protections against forced labor. These campaigns are targeted at vulnerable populations, including migrant and seasonal workers, who are at a higher risk for exploitation.

Mexico has established hotlines[12] and complaint mechanisms for workers to report labor abuses. Workers can anonymously report instances of forced labor, allowing the government to investigate and take action.

Recommendations to Eliminate Forced Labor from Products Imported into the U.S. from Mexico

Mexico has made great strides in taking action to eliminate the use of forced labor. Mexico’s laws are consistent with international standards and Mexico has ratified all key international conventions concerning child labor. However, lack of resourcing for enforcement and coordination as well as limited social programs may hold back the ultimate goal of eliminating forced labor.

A. Enforcement

Additional resourcing could improve Mexico’s enforcement of both in-country labor laws and enforcing laws against the importation of goods produced with forced labor.

1. In-country labor laws

 There are multiple opportunities for Mexico to improve enforcement of its own forced labor laws.

Inspector resourcing

Enforcement of forced labor laws in Mexico continues to be limited by lack of resourcing. Mexico’s STPS would benefit from greater funding and resources to expand the number of labor inspectors, especially in rural and informal sectors where forced labor risks are highest.

Additionally, inspectors could greatly benefit from focused training on identifying forced labor, particularly in agriculture and manufacturing. This training would help inspectors detect abuses more effectively and avoid over- or underenforcement.

Business compliance

Mexico can take action to strengthen compliance and accountability measures for businesses. Requiring companies to perform labor due diligence, similar to standards in the U.S. and the EU, would help reduce forced labor in supply chains. Companies could be required to certify compliance with labor laws, conduct third-party audits, and disclose labor practices in their supply chains.

Mexico could establish tax incentives or other benefits for companies that demonstrate compliance with labor laws and engage in ethical labor practices. Recognizing and rewarding compliant businesses would encourage broader adherence to labor standards.

Stronger Penalties

Mexico could increase penalties for companies and individuals involved in forced labor to act as a stronger deterrent. This might include higher fines and tougher criminal consequences, sending a clear message that force labor will not be tolerated.

2. Trade Enforcement Mechanisms

Mexico could implement a customs-based enforcement tool to block goods produced with forced labor from being exported. This would align Mexico’s enforcement with the U.S. and send a strong message to businesses to comply with labor laws.

Mexico could also consider enhancing penalties for forced labor violations, including significant fines and potential facility closures.

B. Government Policies

Additional policy development is needed to ensure consistency and transparency in the enforcement of forced labor laws.

Inspection Standards & Coordination

The Mexican government can ensure that state-level labor inspectors conduct targeted, routine, and unannounced labor inspections in all sectors. There is also a need for improved coordination and information sharing between federal and state labor inspectors.

Transparency

Mexico’s forced labor enforcement programs would benefit from additional reporting and transparency. Currently, the government does not report information at the state or federal levels on the number of violations uncovered, fines that were collected, prosecutions, or convictions.

Strengthen Unions

Empowering unions can help workers organize and advocate against forced labor practices. Mexico should continue to support unionization efforts in high-risk industries, ensuring that unions are independent and representative.

Training for Law Enforcement

Finally, more resources are needed to ensure that criminal law enforcement agencies are equipped to conduct thorough investigations and prosecute forced labor crimes. Training for law enforcement, investigative teams, and judges is needed.

Expand Partnerships with NGOs and International Organizations

Collaboration with the ILO and local NGOs can help provide additional resources, training, and monitoring in areas where forced labor is prevalent. NGOs can also serve as intermediaries for workers who may be hesitant to report labor abuses directly to the government.

Mandatory Training

Require companies to provide training for employees and suppliers on identifying and mitigating forced labor risks within supply chains.

Mexico should also use the labor standards outlined in the USMCA and other trade agreements to secure technical and financial support from partner countries. This could help further labor reforms and inspection capacity.

C. Social Programs

While Mexico has taken steps to provide resources to victims of forced labor, more can be done to provide education and targeted outreach.

Education Access

Expand access to education for children in vulnerable communities to reduce child labor. Invest in scholarships and school infrastructure in rural areas.

School Coordination

Mexico can ensure that school children are screened for indicators of forced labor and that child victims of forced labor are placed in child protection centers instead of detention centers, with access to social services and education. The government can also provide additional support to migrant, refugee, and internally displaced children to reduce their risk for child labor.

Improve Worker Awareness and Reporting Channels

Targeted awareness campaigns can educate workers about their rights and the illegality of forced labor. Using local languages and accessible communication channels like radio, television, social media, and posters in high-risk regions can help reach vulnerable populations.

Offering more robust anonymous reporting channels, such as hotlines and mobile apps, can encourage workers to report abuses without fear of retaliation. These mechanisms should also connect workers to resources and legal assistance.

Targeted Programs for Vulnerable Populations

Certain populations, such as migrant workers, are at high risk of forced labor, especially in agriculture and construction. Mexico could expand targeted protections, such as access to identification documents, fair wage protections, and the right to change employers.

Mexico could also provide rehabilitative and legal services for forced labor survivors. Survivors can provide insight into labor practices, aiding efforts to identify and dismantle forced labor networks.

Conclusion

Eradicating forced labor from supply chains remains a priority trade issue for the United States. The U.S. government is determined not only to prevent goods made with forced labor from entering the country, but also to stop them from being made in the first place.

As a top trading partner, the U.S. is heavily invested in Mexico’s efforts to eradicate forced labor. In recent years, Mexico has been recognized by international organizations for their improvements in enforcing forced labor laws. The government’s efforts to adopt policies, identify forced labor, and conduct enforcement have brought the country closer to the standards of other developed nations. However, additional work remains to improve the identification of forced labor as well as the consistency of Mexico’s enforcement efforts.

Preventing forced labor requires a unified effort across government institutions, private sectors, and civil society. By strengthening enforcement of labor laws, providing education, and fostering international collaboration, both the U.S. and Mexico can address the root causes of forced labor and ensure bad actors are brought to justice.

As the U.S. and Mexico continue to combat forced labor, the countries have an opportunity to set a powerful example of commitment and cooperation to human rights on the global stage.

[1] International Labour Organization. Forced labour, modern slavery and trafficking in persons.

https://www.ilo.org/topics-and-sectors/forced-labour-modern-slavery-and-trafficking-persons

[2] Id.

[3] U.S. Department of Homeland Security. What is Forced Labor?  https://www.dhs.gov/blue-campaign/forced-labor

[4] Walk Free. The Global Slavery Index. (2023) https://cdn.walkfree.org/content/uploads/2023/05/17114737/Global-Slavery-Index-2023.pdf

[5] U.S. Department of Labor. 2024 List of Goods Produced by Child Labor or Forced Labor. (2024) https://www.dol.gov/sites/dolgov/files/ilab/child_labor_reports/tda2023/2024-tvpra-list-of-goods.pdf

[6] U.S. Department of Labor, Bureau of International Labor Affairs. Child Labor and Forced Labor Reports (2023). https://www.dol.gov/agencies/ilab/resources/reports/child-labor/mexico

[7] U.S. Department of Labor, Bureau of International Labor Affairs, Building an Independent & Democratic Labor Movement to Protect Worker Rights in Mexico. https://www.dol.gov/agencies/ilab/building-independent-democratic-labor-movement-protect-worker-rights-mexico

[8] International Labour Organization, Child Labour- Facts and Figures in the world. https://www.ilo.org/projects-and-partnerships/projects/child-labour

[9] U.S. Department of Labor, Bureau of International Labor Affairs, Child Labor and Forced Labor Reports.

https://www.dol.gov/agencies/ilab/resources/reports/child-labor/mexico

[10] U.S. Department of Labor, Bureau of International Labor Affairs, Strengthening Mexican Inspectorate for Forced Labor Enforcement (CAMINOS). https://www.dol.gov/agencies/ilab/strengthening-mexican-inspectorate-labor-enforcement-caminos

[11] U.S. Department of Labor, Bureau of International Labor Affairs, Labor Rights and the United States-Mexico-Canada Agreement (USMCA).

https://www.dol.gov/agencies/ilab/our-work/trade/labor-rights-usmca

[12] Contratados, Binational Anti-Trafficking Hotline Launched to Combat Human Trafficking.

https://contratados.org/es/node/35331

New Tariffs on Mexico, Canada, and China

On February 1, 2025, President Trump first issued a fact sheet and thereafter signed three executive orders imposing new tariffs on imports from Canada, Mexico, and China:

• 25% tariff on imports from Canada
• 25% tariff on imports from Mexico
• 10% tariff on imports from China

The tariffs on imports from China went into effect February 4, 2025. The tariffs on imports from Canada and Mexico were initially set to take effect February 4, 2025, but were delayed by one month following commitments made by both countries to secure the border and stop the flow of drugs into the United States.

In a Truth Social post on February 27, President Trump confirmed that the tariffs on Canadian and Mexican goods will go into effect on March 4. He also announced that China will face an additional 10% tariff starting March 4.

On March 3, 2025, President Trump issued an Executive Order increasing tariffs on imports from China from 10% to 20%. The Federal Register Notice for China can be found here.

On March 5, 2025, the Administration announced a temporary one-month pause on automobile tariffs for Mexico and Canada. Subsequently, on March 6, 2025, President Trump temporarily suspended tariffs on certain goods from Canada and Mexico that meet the United States-Mexico-Canada Agreement (USMCA) requirements, effective March 7, 2025. The Federal Register Notice for Canada can be found here, the Federal Register Notice for Mexico can be found here. Customs and Border Protection (CBP) issued guidance on the additional tariffs on imports from Canada and Mexico and China. The official CBP statement can be accessed here.

On March 11, 2025, two Federal Register Notices were issued, amending the Notice of Implementation of Additional Duties on Products of Mexico Pursuant to Executive Order 14194 and the Notice of Implementation of Additional Duties on Products of Canada Pursuant to Executive Order 14193. These Federal Register amendments notices can be accessed [here for Mexico] and [here for Canada]. Both notices reduced the duty on potash from 25% to 10%.

Energy resources from Canada will have a lower 10% tariff. The orders ended duty-free de minimis treatment under 19 U.S.C. 1321 for products from China subject to these additional tariffs. However, President Trump signed a subsequent Executive Order pausing the suspension of de minimis treatment. President Trump also signed two executive orders preserving de minimis treatment for Canada and Mexico until “adequate systems are in place” collect tariff revenue from these shipments.

Tariffs will be on top of any other in place (301, 232, ADD, etc.)

Customs and Border Protection (CBP) issued guidance on the additional tariffs on imports from China, Canada, and Mexico. CBP also issued guidance on the processing of de minimis shipments, available here. 

The Administration said the tariffs are aimed at curbing the flow of undocumented immigrants and drugs into the U.S. The White House Fact Sheet said the tariffs will hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping fentanyl and other drugs from flowing across the border. The tariffs will remain in effect “until the crisis is alleviated.”

Steel and Aluminum Tariffs

On February 11, 2025, President Trump issued two Proclamations imposing enhanced import duties on steel and aluminum products under Section 232 of the Trade Expansion Act of 1962. The orders eliminate certain exemptions from the duties, expand their scope to cover additional products, and raise the duties on covered aluminum goods from 10% to 25%.

On February 18, 2025, two Federal Register Notices were published that included lists of “derivative” products subject to the 25% tariffs on steel and aluminum under Section 232. The Federal Register Notices, which include the specific HTS subheadings for the derivative products in Annex 1 are available here (steel) and here (aluminum). The Federal Register Notices implementing the enhanced import duties are available here (steel) and here (aluminum).

On March 3, 2025, the Department of Commerce released an unpublished Federal Register notice on the Implementation of Duties on Steel pursuant to Proclamation 10896, adjusting imports of steel into the United States, and an unpublished Federal Register notice on the Implementation of Duties on Aluminum pursuant to Proclamation 10895, adjusting imports of aluminum into the United States. Both are scheduled for official publication on March 6, 2025. The notices are available here (steel) and here (aluminum). In accordance with the notices, the additional 25% tariffs on the steel derivative products that fall under Chapter 73 that are listed in Annex 1 to the February 18 Federal Register Notice and on the aluminum derivative products that fall under Chapter 76 will of Annex 1 to the February 19 Federal Register Notice will begin March 12. Derivatives listed in these annexes that fall outside Chapters 73 and 76 will begin upon public notification by the Secretary of Commerce that adequate systems are in place to collect the additional tariffs.

Also as of March 12, 2025:

• Additional Section 232 tariffs of 25% will apply to covered aluminum and steel products from all countries. This means that countries that previously had certain exemptions from the 232 tariffs such as Argentina, Australia, Brazil, Canada, the EU, Japan, Mexico, South Korea, and the United Kingdom will also be subject to the 25% tariffs.
• Imports of derivative aluminum articles that contain “any amount of primary aluminum used in the manufacture of the derivative aluminum articles is smelted in Russia, or the derivative aluminum articles are cast in Russia,” are subject to a duty of 200%.
• Newly added HTSUS codes in Chapters 73 and 76 will be subject to tariffs under subheadings 9903.85.07 and 9903.81.90.
  • HTSUS Changes:
    • 19 new subheadings for aluminum derivatives under Chapter 76.
    • 157 new subheadings for steel derivatives under Chapter 73.

New subheadings will be used to differentiate between newly covered and previously covered products:

• 9903.85.02 – will be used for increased and expanded tariffs on aluminum, which are now set at 25% and will now also apply to Argentina, Australia, Canada, Mexico, the EU and the U.K., all of which previously had deals to avoid the tariff
• 9903.81.87 – will be used for Section 232 tariffs on iron and steel, including for goods that were previously subject to Section 232 steel tariffs (except for those on derivatives), as well as newly subject goods from Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the U.K., Ukraine and the EU that are no longer exempt or eligible for quota.
• 9903.85.04 – will be used for the previously existing list of aluminum derivatives
• 9903.81.89 – will be used for previously tariffed steel derivatives.
• 9903.81.88 & 9903.81.93 – will apply the tariffs on steel and steel derivatives admitted to a foreign-trade zone prior to March 12 under privileged foreign status.
• 9903.81.92 & 9903.85.09 – Newly tariffed derivatives exempt from tariffs because the steel was melted and poured in the U.S. or the aluminum was smelted and cast in the U.S.

USTR Requests Comments on Unfair Trade Practices and Non-Reciprocal Trade Arrangements

On February 25, 2025, the United States Trade Representative (USTR) published a Federal Register Notice seeking comments from the public to assist USTR in reviewing and identifying any unfair trade practices by other countries, and in initiating all necessary actions to investigate the harm to the United States from any non-reciprocal trade arrangements.

USTR was directed to initiate the unfair trade practices and non-reciprocal trade arrangements proceeding under the America First Trade Policy Presidential Memorandum and the Presidential Memorandum on Reciprocal Trade and Tariffs.

The Federal Register Notice invites any interested party to provide information relating to any unfair trade practice by a foreign country or economy or with respect to a non-reciprocal trade arrangement.

The notice stated that unfair trade practices may include a wide range of practices, such as policies, measures, or barriers that undermine or harm U.S. production or exports. Unfair practices may also include failure by a country to take action to address a non-market policy or practice in a way which harms the United States.

USTR is particularly interested in information related to the largest trading economies, such as G20 countries, as well as economies that have the largest trade deficits with the United States. Comments are due March 11, 2025.

232 Investigations

On February 25 2025, President Trump signed an executive order directing the Secretary of Commerce to initiate an investigation under Section 232 of the Trade Expansion Act of 1962 to determine whether imports of copper threaten to impair U.S. national security.

On March 1, 2025, President Trump signed an executive order directing the Secretary of Commerce to initiate an investigation under Section 232 of the Trade Expansion Act of 1962 to determine whether imports of timber, lumber and their derivative products threaten to impair U.S. national security.

Within 270 days of the issuance of the orders, the Secretary must submit the findings of the investigations along with recommendations on actions to mitigate such threats. Recommendations may include tariffs, export controls, or incentives to increase domestic production.

What Importers Should Do

While these tariff increases and changing trade policies will undoubtedly have a significant impact on any business involved in importing goods into the U.S., importers are not without options.

Now is the time importers should audit their operations and compliance program and ensure they are operating in the most efficient way possible. There are also several ways to legally minimize tariffs including:

• Duty Drawback
• Tariff Engineering
• Country of Origin Change
• First Sale
• Duty Deferral
• Negotiate DDP Incoterm

Importers exploring options to minimize tariff liability should always work with an expert to ensure they continue to meet all U.S. Customs regulations. Duty evasion is a serious crime and can result in serious monetary penalties or even prison time in the case of fraud.

At Diaz Trade Law, we have a strong track record in tariff minimization and customs compliance.  To learn more about how we can help, contact us at info@diaztradelaw.com or call us at 305-456-3830.

Learn more:

• Webinar: Navigating Tariff Challenges, Mitigation Tools and Tactics
• ICYMI: Trump Administration Imposes 25% Steel and Aluminum Tariff
• Bloomberg Law: Tariff Classification Basics
• Webinar: Navigating CBP Regulations: Essential Practices for Import Success
• Webinar: Building and Maintaining an Effective Import Compliance Plan
• Webinar: Introduction to Importing

On February 18, 2025, two Federal Register Notices were published that included lists of “derivative” products subject to the 25% tariffs on steel and aluminum under Section 232. The Federal Register Notices, which include the specific HTS subheadings for the derivative products in Annex 1 are available here (steel) and here (aluminum).

As of March 12, 2025, additional Section 232 tariffs of 25% will apply to covered aluminum and steel products from all countries. This means that countries that previously had certain exemptions from the 232 tariffs such as Argentina, Australia, Brazil, Canada, the EU, Japan, Mexico, South Korea, and the United Kingdom will also be subject to the 25% tariffs. Imports of derivative aluminum articles that contain “any amount of primary aluminum used in the manufacture of the derivative aluminum articles is smelted in Russia, or the derivative aluminum articles are cast in Russia,” are subject to a duty of 200%.

In addition, the additional 25% tariffs will apply to the lists of aluminum and steel derivatives identified in the annexes to the Federal Register Notices once the U.S. Department of Commerce certifies that “adequate systems are in place to fully, efficiently, and expediently process and collect tariff revenue for covered articles.”

Foreign trade zones and Drawback

Derivative steel and aluminum articles admitted into a U.S. Foreign Trade Zone (FTZ) after March 12, 2025, must be admitted as “privileged foreign status” (unless eligible for “domestic status”) and will be subject to the additional duties upon entry for consumption into the United States. Importers cannot reclaim these duties under the duty drawback program.

Exclusions

As of February 19, 2025, no new exclusions or exemptions have been announced. If an importer has an existing product-specific, importer-specific product exclusion for steel or aluminum products, the exclusion will remain effective until the expiration date or until their excluded volume is exhausted, whichever occurs first. The current general approved exclusions will lapse on March 12, 2025, and will not be renewed.

The proclamation establishes an exclusion for derivative steel products processed in another country if they originate from steel articles that were melted and poured in the U.S. and for derivative aluminum products processed in another country if they originate from aluminum articles that were smelted and cast in the U.S.

Authority & Rationale

Section 232 of the Trade Expansion Act of 1962 allows the president to impose import restrictions based on an investigation and affirmative determination by the U.S. Department of Commerce that certain imports threaten to impair U.S. national security. Commerce conducted investigations and released a report in February 2018 finding that excessive steel and aluminum imports had weakened the domestic industries, reducing their ability to meet national defense and critical infrastructure needs.

In response to this report, the first Trump Administration imposed a 10% tariff on aluminum and 25% tariff on steel imports in March 2018. The proclamation states that despite this action, aluminum imports into the United States have continued at unacceptable levels. As a result, domestic producers have been forced to idle additional production and shut down facilities. The proclamation states that this action is necessary to allow U.S. aluminum producers to restart production and to incentivize new capacity.

Next Steps

The proclamation directs several departments and agencies to take action to implement the policy:

• Within 90 days, Commerce must establish a process allowing U.S. steel and aluminum producers to request the inclusion of additional derivative products under these tariffs.
• Within 10 days, the United States International Trade Commission shall revise the HTSUS to reflect the new policy.
• The Secretary shall take all actions, including publication in the Federal Register, necessary to terminate the product exclusion process.
• CBP is directed to publish regulations or guidance implementing the requirements as soon as practicable.
• CBP is directed to promptly notify Commerce if it finds evidence of any efforts to evade payment of the additional duties.
• The Secretary may issue regulations and guidance to address operational necessity.

In addition, going forward, importers must provide steel and aluminum content information for derivative steel articles to U.S. Customs. CBP will prioritize the review of product classification for imported steel and aluminum articles. If misclassification is detected, maximum penalties will be imposed, with no consideration for mitigating factors.

Diaz Trade Law will continue to monitor for developments and will provide additional information as it becomes available.

Learn more:

• New Tariffs on Mexico, Canada, and China: Key Updates for Importers
• Bloomberg Law: Tariff Classification Basics
• Webinar: Navigating CBP Regulations: Essential Practices for Import Success
• Webinar: Building and Maintaining an Effective Import Compliance Plan
• Webinar: Introduction to Importing

• 25% tariff on imports from Canada will take effect at least 30 days from Feb. 4, 2025.
• 25% tariff on imports from Mexico are now scheduled to take effect on March 4, 2025. 
• 10% tariff on imports from China will take effect on February 4, 2025. 

In a Truth Social post on February 27, President Trump confirmed that the tariffs on Canadian and Mexican goods will go into effect on March 4. He also announced that China will face an additional 10% tariff starting March 4.

Energy resources from Canada will have a lower 10% tariff. The orders ended duty-free de minimis treatment under 19 U.S.C. 1321 for products from China subject to these additional tariffs. However, President Trump signed a subsequent executive order pausing the suspension of de minimis treatment.

Tariffs will be on top of any other in place (301, 232, ADD, etc.) The Federal Register Notice for Canada can be found here and the Federal Register Notice for China can be found here. Customs and Border Protection (CBP) issued guidance on the additional tariffs on imports from China and Canada which can be found here and  here. CBP also issued guidance on the processing of de minimis shipments, available here.

Policy Rationale & International Response 

The Administration said the tariffs are aimed at curbing the flow of undocumented immigrants and drugs into the U.S. The White House Fact Sheet said the tariffs will hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping fentanyl and other drugs from flowing across the border. The tariffs will remain in effect “until the crisis is alleviated.” 

Canada and China immediately vowed to impose retaliatory tariffs and countermeasures. Canadian Prime Minister, Justin Trudeau, announced tariffs starting at 25 percent on approximately $30 billion worth of U.S. goods, with $85 billion more to follow within three weeks. China announced it would implement a 10% tariff on crude oil, agricultural machinery and large-engine cars, as well as a 15% tariff on coal and liquefied natural gas. China’s commerce ministry also said they would file a case against the U.S. at the World Trade Organization.

Following a meeting between President Trump and Mexico President Claudia Sheinbaum, tariffs on Mexico will be paused for one month. Sheinbaum vowed to immediately reinforce Mexico’s northern border with 10,000 National Guard soldiers to curb drug trafficking from Mexico to the U.S. Following a meeting between President Trump and Canada Prime Minister Justin Trudeau, tariffs on Canada will be paused for one month. Trudeau announced Canada will implement their $1.3 billion border plan which includes reinforcing the border and increased resources to stop the flow of fentanyl. CBP subsequently issued issued guidance pausing the application of additional duties on imports from Canada.

What Importers Should Do: 

While these increases will undoubtedly have a significant impact on any business involved in importing goods into the U.S. from these countries, importers are not without options.

Now is the time importers should audit their operations and compliance program and ensure they are operating in the most efficient way possible. There are also several ways to legally minimize tariffs. 

Duty Drawback 

If you import products into the U.S. only to export them to another country, you may be entitled to compensation for the duties paid upon importation to the U.S. Duty Drawback provides for the refund of up to 99% for certain duties, internal revenue taxes, and fees collected by CBP upon importation. The drawback may be granted only after the subjected item(s) have been either exported or destroyed (under CBP supervision). Note: importers may not utilize duty drawbacks to mitigate the new tariffs discussed above. 

Tariff Engineering 

Tariff engineering involves altering the condition of a good before it is imported so that it is legally classified under a favorable Harmonized Tariff Schedule of the U.S. (HTSUS) classification to benefit from a lower duty rate. Since CBP can only levy tariffs based on the condition of goods at the time of importation, tariff engineering gives importers the opportunity to redefine their imported products and pay lower duties. 

Country of Origin Change 

While potentially costly to initially relocate, changing the country of origin will allow you to import the exact same item(s) without paying the additional duties. If considering this option, one must be cognizant of the list of nations that have a free-trade agreement with the United States. Even though another nation may not be subjected to substantial duties, shifting your supply chain to a nation that has a formal, free and fair-trade agreement with the U.S. ensures accountability and reliability. 

Per the “America First Trade Policy” memorandum issued by the White House on January 20, 2025, all free trade agreements are under review by the United States Trade Representative, with a report expected by April 1, 2025. 

First Sale 

First Sale is a system that decreases the dutiable value of imported goods by authorizing importers to use the price paid in the first sale.  It allows an earlier sale to be used in declaring customs value as long as that sale can be documented as a sale for exportation to the United States and the importer meets all other Customs requirements. 

Consequently, that equivalent value is assigned according to the transaction between the manufacturer and the middleman, not between the middleman and the new buyer. 

Duty Deferral 

If an importer cannot lower the tariff burden, they can consider deferring the cost of duties through Foreign Trade Zones and/or Bonded Warehouses. Note: importers may not utilize foreign trade zones to defer the recently imposed tariffs discussed above.  

Foreign Trade Zones 

Foreign Trade Zones (FTZs), although technically within the geographic limits of the U.S., are secured areas considered outside U.S. Customs territory. Foreign and domestic merchandise may be admitted into an FTZ for operations such as storage, exhibition, assembly, manufacture, redistribution, processing, and more. FTZs allow users to defer, reduce, or eliminate Customs duties. Prior to any manipulation or manufacture of merchandise, which would change its tariff classification, importers may also apply for merchandise in the zone to be given privileged foreign status. Merchandise with privileged foreign status is classified and appraised and duties and taxes are determined as of the date the application is filed. 

Bonded Warehouse 

Unlike FTZs, bonded warehouses are within U.S. customs territory. A customs-bonded warehouse is a secured area in which imported merchandise may be stored without payment of duty for up to 5 years. 

Importers may repackage, sort, or label imports at these locations under the supervision of U.S. customs officials. Manipulation of merchandise is generally prohibited unless approved by U.S. Customs. 

Negotiate DDP Incoterm 

International commercial terms (“Incoterms”) are published by the International Chamber of Commerce (ICC) as a commitment to facilitate international trade and promote open markets. The ICC developed Incoterms to provide a common language for traders and to establish a global system of rules to govern trade. Incoterms are not law, and instead are designed to prevent confusion between global traders by clarifying contract obligations of buyers and sellers. 

Negotiating Incoterms with partners is another way to minimize import costs. Importers should review their contracts and negotiate a “delivery duty paid” (DDP) incoterm. DDP terms place the responsibility (including export and import clearance, transport costs, import duties, and packaging costs) for the delivery of goods on the seller. The seller acts as the importer of record and has the ability to deduct costs like freight, duty, and insurance from the dutiable value. Another advantage of the DDP term is that, if properly structured, it can reduce the total impact of the tariffs.  

Proceed with Caution When Attempting to Minimize Tariffs 

Importers exploring options to minimize tariff liability should always work with an expert to ensure they continue to meet all U.S. Customs regulations. Duty evasion is a serious crime and can result in serious monetary penalties or even prison time in the case of fraud. 

At Diaz Trade Law, we have a strong track record in tariff minimization and customs compliance.  To learn more about how we can help, contact us at info@diaztradelaw.com or call us at 305-456-3830. 

Learn more: 

• Bloomberg Law: Tariff Classification Basics 
• Webinar: Navigating CBP Regulations: Essential Practices for Import Success 
• Webinar: Building and Maintaining an Effective Import Compliance Plan 
• Webinar: Introduction to Importing 

Steel and Aluminum Proclamation Background

On July 10, 2024, President Biden issued two proclamations on adjusting imports of steel and aluminum into the United States. The proclamations increased the section 232 duty rate for both products and adjusted the requirements for avoiding section 232 duties.

The steel proclamation implemented 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%.

Effective November 21, 2024, importers are required to report to CBP the country of melt and pour for certain imported steel articles from all countries; and for imported derivative steel articles that are products of Mexico; regardless of whether Section 232 duty treatment, quota treatment, or an exception treatment applies.

CBP Guidance on Steel

The new guidance provides information on codes for reporting the country of smelt, certificates to be submitted via the Automated Commercial Environment (ACE), and advises importers on changes that have been made in ACE.

Reporting Codes & Certificates

The guidance states that when reporting the country of melt and pour, the International Organization for Standardization (ISO) country code where steel was originally melted and poured is mandatory. For imports of derivative steel products, the code is only required for products of Mexico. For derivative steel that are products of Mexico only, the applicability code “OTH” (Other) can be used if an ISO code was not provided in the country of melt and pour field.

A steel mill certificate is required to be submitted via the Document Image System (DIS) in ACE for steel imports in Chapter 72 or headings 7301 to 7307 of the Harmonized Tariff Schedule of the United States (HTSUS).

ACE Updates CATAIR Entry Summary

CBP also notified importers that the ACE CBP and Trade Automated Interface Requirements (CATAIR) Entry Summary Dictionary has been updated to include new declaration type code. The updates were deployed on October 22, 2024.

Looking Ahead

Importers should revisit their policies and procedures governing steel imports to ensure compliance with these requirements. We will continue watching closely for any changes that may occur with the new Administration.

For assistance or for more information on how these changes will impact your business, contact Diaz Trade Law.

Learn more:

• Reminder: New Section 232 Duties on Certain Steel and Aluminum Products from Mexico
• From Chaos to Compliance: A Guide for Importers
• Webinar: Basics on Tariff Classification
• Bloomberg Law: Tariff Classification Basics
• Webinar: ACE – Auditing Your Import History

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.

The Coalition is comprised of U.S. producer Ardagh Glass Inc. and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (“USW”). The petitions allege that the Chinese, Chilean, and Mexican industries have been dumping wine bottles in the U.S., harming the U.S. market and destroying American jobs.

Full list of producers here. Full list of U.S. importers here.

The petition alleges dumping margins of:

• China: 280.10% and 620.03%
• Mexico: 78.55% and 102.09%
• Chile: 615.68%

The scope of merchandise covered includes a wide array of products including both clear and colored bottles in the Bordeaux, Burgundy, Champagne, or Sparkling shapes. Full scope here.

The Commerce Department will determine whether to initiate the investigations within 20 days. The USITC will reach a preliminary determination of material injury or threat of material injury within 45 days. Final determinations will likely occur late 2024.

As with any proceeding, participation is very important to protect your rights. We urge anyone that imports glass wine bottles to pay close attention to this case and to ensure that all appropriate steps are taken to mitigate any damage.

Diaz Trade Law will continue to monitor this case and share updates. For more information or questions get in touch with us at 305-456-3830 or info@diaztradelaw.com.

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. 
• OFAC is publishing the names of one or more Russian nationals 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 designated four members of an Islamic State of Iraq and Syria (ISIS) cell operating in South Africa who have provided technical, financial, or material support to the terrorist group. Treasury also designated eight companies owned, controlled, or directed by the individuals in this ISIS cell. Treasury remains committed to exposing and disrupting terrorist financing on the African continent. 
• OFAC designated pursuant to Executive Order (E.O.) 14014 one individual and one entity that facilitate weapons purchases for Burma’s military regime. This action, which is in conjunction with newly issued European Union sanctions, marks the second anniversary of the last general election in Burma on November 8, 2020, which was brutally overturned by a military coup on February 1, 2021. 
• 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 and vessels 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 
• OFAC designated Alex Adrianus Martinus Peijnenburg (Peijnenburg), Martinus Pterus Henri De Koning (De Koning), Matthew Simon Grimm (Grimm), and nine entities pursuant to Executive Order (E.O.) 14059 for supplying illicit fentanyl, synthetic stimulants, cannabinoids, and opioids to U.S. markets through internet sales and a host of shell companies. 
• OFAC designated two business associates of a sanctioned al-Qa’ida financial facilitator and external operations plotter. The two individuals designated today are Mohamad Irshad Mohamad Haris Nizar and Musab Turkmen, who conducted businesses activities to assist Ahmed Luqman Talib (Talib), who was previously designated by OFAC for facilitating the international movement of individuals and finances in furtherance of al-Qa’ida’s objectives.
  • Australian authorities arrested Talib on March 25, 2021, and days later charged him with plotting incursions into foreign states for the purpose of engaging in hostile activities. 
• OFAC is designating two individuals for engaging in transportation and procurement activities on behalf of the Democratic People’s Republic of Korea (DPRK). These individuals have acted on behalf of Air Koryo, an entity previously designated by OFAC for operating in the transportation industry in the DPRK economy. 

United States Department of Commerce (DOC)

• The U.S. Department of Commerce (DOC) preliminarily determines that certain producers/exporters of certain hot-rolled steel flat products from the Republic of Korea received de minimis countervailable subsidies during the period of review. The DOC is rescinding this review with respect to 13 companies.  
• DOC preliminarily determines that the sole mandatory respondent, Habas Sinai ve Tibbi Gazlar Istihsal Endustrisi A.S., a producer and exporter of certain hot-rolled steel flat products from the Republic of Turkey, did not make sales of subject merchandise in the United States at prices below normal value during the period of review.  
• DOC preliminarily determines that Celik Halat ve Tel Sanayi A.S., a producer/exporter of prestressed concrete steel wire strand from the Republic of Turkey and sole respondent for this administrative review, received countervailable subsidies during the period of review.  
• DOC and the U.S. International Trade Commission (USITC) have determined that revocation of the antidumping duty and countervailing duty orders on stainless steel sheet and strip from the People’s Republic of China would be likely to lead to the continuation or recurrence of dumping, net countervailable subsidies, and material injury to an industry in the US. Therefore, DOC is publishing a notice of continuation of these AD and CVD orders. 
• DOC preliminarily finds that Soci Nouvelle des Couleurs Zinciques made sales of subject merchandise at less than normal value during the period of review. 
• DOC determines that countervailable subsidies are being provided to the producers and exporters subject to the administrative review of carbon and alloy steel threaded rod (threaded rod) from the People’s Republic of China during the period of review  July 29, 2019, through December 31, 2020. 
• DOC preliminarily determines that there were no shipments of merchandise subject to the antidumping duty order on stainless steel butt-weld pipe fittings from the Philippines during the period of review February 1, 2021, through January 31, 2022, from any of the companies under review. The DOC invites interested parties to comment on these preliminary results. 
• DOC and  International Trade Administration (ITA), is organizing an Executive-Led Clinical Waste Management Mission to Indonesia and Malaysia on September 11-15, 2023. Clinical Waste Management Trade Mission to Indonesia and Malaysia– originally scheduled for March 6-10, 2023, is now postponed to September 11-15, 2023. The application deadline is now June 30, 2023. 
• DOC determines that Jilin Bright Future Chemicals Co., Ltd. sold certain activated carbon from the People’s Republic of China at less than normal value during the period of review (POR), April 1, 2020, through March 31, 2021. Commerce also determines that Datong Juqiang Activated Carbon Co., Ltd. (Datong Juqiang) did not make sales of subject merchandise at less than normal value during the POR.  
• DOC is initiating a changed circumstances review to determine if Kader Exports Private Limited is the successor-in-interest to the Liberty Group in the context of the antidumping duty  order on certain frozen warmwater shrimp from India. DOC preliminarily determined that Kader Exports is the successor-in-interest to the Liberty Group. 
• DOC finds that Qufu Xinyu Furniture Co., Ltd. did not make sales of subject merchandise at less than normal value during the period of review October 9, 2019, through March 31, 2021; Shanghai Beautystar Cabinetry Co., Ltd. is part of the People’s Republic of China-wide entity; and Jiang Su Rongxin Wood Industry Co., Ltd. is the successor-in-interest to Jiangsu Rongxin Cabinets Co., Ltd.  

United States International Trade Commission (USITC)

• The U.S. International Trade Commission (USITC) has received a complaint entitled Certain Automated Retractable Vehicle Steps and Components Thereof, DN 3653; 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. 
• The USITC has issued a limited exclusion order against infringing products manufactured and/or imported by or on behalf of Proton Sports Inc. of Scottsdale, Arizona, and a cease-and-desist order against Proton. The investigation is terminated. 
• The USITC has determined to issue a limited exclusion order barring entry of certain electrolyte containing beverages and labeling and packaging thereof that are imported by or on behalf of the following defaulting respondents: Carbonera Los Asadores de C.V.; Comercial Trevin˜o de Reynosa, S.A. de C.V.; Distribuidora Mercatto S.A. de C.V.; H & F Tech International S.A. de C.V.; Leticia Ange´lica Saenz Fernandez; Yoselen Susana Martinez Tirado; Grupo Comercial Lux del Norte S.A. de C.V.; and Caribe Agencia Express, S.A. de C.V. The investigation is terminated. 
• The United States Patent and Trademark Office (USPTO), DOC, in collaboration with the United States Food and Drug Administration (FDA) and the Department of Health and Human Services, is announcing a public listening session on January 19, 2023. The purpose of the listening session is to seek public comments on proposed initiatives for collaboration between the agencies to advance President Biden’s Executive Order on ‘‘Promoting Competition in the American Economy’’.  
  • To assist in gathering public input, the USPTO and the FDA are announcing the establishment of a docket to track feedback received through this notice and a request for comments on these collaborative efforts. 

• DOC received a countervailing duty petition concerning imports of paper file folders from India filed in proper form on behalf of the Coalition of Domestic Folder Manufacturers (the petitioner), the members of which are domestic producers of paper file folders. The Petition was accompanied by antidumping duty petitions concerning imports of paper file folders from the People’s Republic of China, India, and the Socialist Republic of Vietnam.  
  • DOC finds that the petitioner filed the Petition on behalf of the domestic industry because the petitioner is an interested party as defined in section 771(9)(F) of the Act. DOC also finds that the petitioner demonstrated sufficient industry support with respect to the initiation of the requested CVD investigation. 

United States Department of Agriculture (USDA)

• The United States Department of Agriculture (USDA) proposal invites comments on updates to the Harmonized Tariff Schedule numbers for paper and paper-based packaging products in the Paper and Paper-Based Packaging Promotion, Research, and Information Order. In addition, this action proposes new language that allows assessment collection to continue even if HTS numbers change in the future. Comments must be received by December 7, 2022. 

United States Customs and Border Protection (CBP)

• U.S. Customs and Border Protection (CBP) warns travelers to not bring counterfeit consumer goods back from overseas trips after officers last week seized more than $77,000 worth of clothing bearing unauthorized designer brand logos at Washington Dulles International Airport. 
• CBP’S Jones Act Division of Enforcement (JADE) held local training to raise awareness of the 102-year-old federal statute, officially known as the Merchant Marine Act of 1920. U.S. Coast Guard (USCG) officers, along with CBP import specialists and other personnel, were in attendance to learn the complexities of the act which governs U.S. maritime cabotage. 

The Maritime Administration  (MARAD)

• The Maritime Administration (MARAD) announced the renewal of the Voluntary Tanker Agreement Program and the publication of its revised Voluntary Tanker Agreement (VTA). The revised VTA replaces a prior version that was last published in September 4, 2008. After publishing the proposed text in the Federal Register in 2019 and hosting a public hearing in August 2020, MARAD has incorporated public input into the revised VTA. 

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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Customs and Border Protection (CBP)

• Customs and Border Protection(CBP) initiated 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”), for Pitts Enterprises, Inc. (“Pitts”).
• CBP issued a determination on February 23, 2022, against Splendid Trading Co. (also doing business as NGY Group (Chino) Inc.) (collectively, Splendid Trading) and Superior Granite and Marble by Vivaldi LLC (also doing business as Vivaldi Interiors LLC and Vivaldi Commercial LLC) (collectively, Superior) for evading customs duties in Enforce and Protect Act (EAPA) Case 7607.
• CBP announced it has added Uyghur Forced Labor Protection Act (UFLPA) Region alert that will require a new mandatory data element for reporting imports via ACE system.
• CBP reminds that the Period 3 (August 8, 2022 to November 7, 2022) 300,000 quota for large residential washing machines is open.  
• CBP officers, working with Homeland Security Investigations (HSI) and the Food and Drug Administration, in the span of just two days, seized eight shipments involving counterfeit merchandise and FDA violative cosmetics at a local express consignment facility in Kenner.
• CBP officers that inspect packages at the Louisville Port of Entry seized one package concealing bracelets, necklaces, and earrings would total over $2.5 million had the merchandise been genuine. 
• CBP has initiated an investigation into Double L Group, LLC, to determine whether they have violated the Enforce and Protect Act (EAPA) by evading antidumping duty and countervailing duty orders.
• CBP will deploy the Uyghur Forced Labor Prevention Act (UFLPA) Region Alert enhancement to the Automated Commercial Environment (ACE) on a date to be determined. This enhancement will provide an early notification to importers of goods that may have been produced in the Xinjiang Uyghur Autonomous Region (XUAR) which would be subject to UFLPA restrictions per H.R. 6256. 

Federal Maritime Commission (FMC)

• Federal Maritime Commission (FMC) member Carl Bentzel proposed to carry extra transparency to the ocean delivery business. Bentzel unveiled his plan on the American Affiliation of Port Authorities’ annual conference Oct. 17. 

United States Department of Commerce (DOC)

• Department of Commerce (DOC) and USITC determine that revocation of the antidumping duty (AD) order on 1,1,1,2-Tetrafluoroethane (R–134a) from the People’s Republic of China (China) would likely lead to a continuation or recurrence of dumping and material injury to an industry in the United States, Commerce is publishing a notice of continuation of the AD order. 
• DOC determines that countervailable subsidies are being provided to producers and exporters of stainless steel flanges (steel flanges) from India during the period of review, January 1, 2020, through December 31, 2020.
• DOC, as a result of expedited sunset reviews, finds that revocation of the antidumping duty (AD) orders on welded ASTM A–312 stainless steel pipe (WSSP) from the Republic of Korea (Korea) and Taiwan would be likely to lead to continuation or recurrence of dumping.  
• DOC each year announces during the anniversary month of the publication of an antidumping or countervailing duty order, finding, or suspended investigation, an interested party, may request the DOC conduct an administrative review of AD/CVD order, finding, or suspended investigation.  
• DOC’s National Marine Fisheries Service issued a proposed rule to implement Amendment 52 to the Fishery Management Plan for the Commercial King and Tanner Crab Fisheries of the Bering Sea and Aleutian Islands (Crab FMP) and a regulatory amendment to revise regulations on Economic Data Reports (EDR) requirements for groundfish and crab fisheries off Alaska. 
• DOC and USITC determines that revocation of the antidumping duty (AD) and countervailing duty (CVD) orders on aluminum extrusions from the People’s Republic of China (China), would likely lead to a continuation or recurrence of dumping, net countervailable subsidies, and material injury to an industry in the United States, Commerce is publishing a notice of continuation of the AD and CVD orders. 
• DOC preliminarily determines that producers and exporters of hot-rolled steel flat products (hotrolled steel) from Japan, sold subject merchandise in the United States at prices below normal value during the period of review (POR) October 1, 2020, through September 30, 2021. 
• DOC finds, as a result of a sunset review, that revocation of the antidumping duty (AD) order on furfuryl alcohol from the People’s Republic of China (China) would be likely to lead to continuation or recurrence of dumping at the dumping margins.
• DOC has received requests to conduct administrative reviews of various antidumping duty (AD) and countervailing duty (CVD) orders with September anniversary dates.
• DOC finds, as a result of this expedited sunset review, finds that revocation of the antidumping duty (AD) order on dioctyl terephthalate (DOTP) from the Republic of Korea (Korea) would be likely to lead to continuation or recurrence of dumping.  
• DOC determines that producers and/or exporters of large diameter welded pipe (welded pipe) from the Republic of Korea (Korea) received countervailable subsidies during the period of review (POR), January 1, 2020, through December 31, 2020.
• DOC and USITC, based on affirmative final determinations, is issuing an antidumping duty order on sodium nitrite from the Russian Federation.  
• DOC preliminarily determines that certain preserved mushrooms (preserved mushrooms) from Poland are being, or are likely to be, sold in the United States at less than fair value (LTFV). 
• DOC preliminarily determines that certain preserved mushrooms (preserved mushrooms) from Spain are being, or are likely to be, sold in the United States at less than fair value (LTFV). 
• DOC preliminarily determines that certain preserved mushrooms (preserved mushrooms) from the Netherlands are being, or are likely to be, sold in the United States at less than fair value (LTFV). 
• DOC preliminarily determines that white grape juice concentrate (WGJC) from Argentina is being, or is likely to be, sold in the United States at less than fair value (LTFV). 
• DOC, through the Office of Trade and Economic Analysis (‘‘OTEA’’) of the International Trade Administration, has received an application for an amended Export Trade Certificate of Review (‘‘Certificate’’). 
• DOC announced on January 6, 2020, in the U.S. District Court for the Southern District of Texas, Jose Martin Gallegos-Luevanos (‘‘Gallegos-Luevanos’’) was convicted of violating 18 U.S.C. 554(a) for fraudulently and knowingly attempting to export from the United States to Mexico, one Barret .50 caliber bolt rifle, three FA Cugir Romanian AK–47 rifles, seven Century Arms VSKA AK–47 rifles, one Century Arms WASR AK–47 rifle, and 85 assorted magazines, in violation of 18 U.S.C. 554. 
• DOC and USITC, based on affirmative final determinations, is issuing an antidumping duty order on sodium nitrite from the Russian Federation.

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) 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 took action on October 28, 2022, against the 15 Khordad Foundation, an Iran-based foundation that has issued a multi-million-dollar bounty for the killing of prominent Indian-born, British-American author Salman Rushdie. 
• OFAC on November 1, 2022, took action against the Islamic State in Somalia (ISIS-Somalia), its first designations against this affiliate of the Islamic State of Iraq and Syria (ISIS). 

United States International Trade Commission (USITC)

• U.S. International Trade Commission (USITC) has received a complaint entitled Certain Video Processing Devices and Components Thereof, DN 3651; 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 given notice that on September 16, 2022, the presiding Chief Administrative Law Judge (‘‘Chief ALJ’’) issued an Initial Determination on Violation of Section 337.
• USITC invites comments from the public on whether changed circumstances exist sufficient to warrant the institution of a review pursuant to section 751(b) of the Tariff Act of 1930 regarding the Commission’s affirmative determination in investigation No. 731–TA–860 (Final). 
• USITC announces they will be holding the Sunshine Act meetings on November 4, 2022, in Washington D.C. and it will be opened to the public.  
• USITC hereby gives notice that it has instituted reviews pursuant to the Tariff Act of 1930 (‘‘the Act’’), as amended, to determine whether revocation of the antidumping and countervailing duty orders on high pressure steel cylinders from China would be likely to lead to continuation or recurrence of material injury. 
• USITC hereby gives notice that it has instituted reviews pursuant to the Tariff Act of 1930 (‘‘the Act’’), as amended, to determine whether revocation of the antidumping duty orders on stainless steel butt-weld pipe fittings from Italy, Malaysia, and the Philippines would be likely to lead to continuation or recurrence of material injury.  
• USITC hereby gives notice that it has determined not to review an initial determination (‘‘ID’’) (Order No. 70) of the presiding administrative law judge (‘‘ALJ’’) granting respondent Google LLC’s (‘‘Google’’) unopposed motion to terminate the modification proceeding based on withdrawal of its petition for modification. 
• USITC had a complaint filed with them 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.
• USITC on the basis of the record developed in the subject investigation, determines, pursuant to the Tariff Act of 1930 (‘‘the Act’’), that an industry in the United States is materially injured by reason of imports of sodium nitrite from Russia, provided for in subheading 2834.10.10 of the Harmonized Tariff Schedule of the United States, that have been found by the U.S. Department of Commerce (‘‘Commerce’’) to be sold in the United States at less than fair value (‘‘LTFV’’).
• USITC instituted Investigation No. 332–593, U.S.- Pacific Islands Trade and Investment: Impediments and Opportunities following receipt on September 29, 2022, of a request from USTR.

Bureau of Industry and Security (BIS)

• 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. 

Foreign Agricultural Service (FAS)

• Foreign Agricultural Service (FAS), in accordance with the Paperwork Reduction Act of 1995, intends to request a revision of a currently approved information collection for the Refined Sugar Re-Export Program, the Sugar-Containing Products Re-Export Program, and the Polyhydric Alcohol Program. 

United States Food and Drug Administration (FDA)

• United States Food and Drug Administration (FDA) is proposing to amend the color additive regulation to increase the fee for certification services. The change in fees will allow FDA to continue to maintain an adequate color certification program as required by the Federal Food, Drug, and Cosmetic Act (FD&C Act). 

United States Trade Representative (USTR)

• United States Trade Representative (USTR) Katherine Tai and Secretary of Labor Marty Walsh released on October 27, 2022, the following statements after workers at a Saint Gobain facility in Cuautla, Mexico elected a new, independent union to represent them in collective bargaining agreement negotiations. 
• USTR received on September 8, 2022, a petition requesting an investigation of certain alleged acts, policies, and practices of the government of Mexico concerning seasonal and perishable agricultural products.  
• USTR Katherine Tai, and Julio José Prado, Minister of Production, Foreign Trade, Investment and Fisheries of Ecuador met on October 28, 2022, in Washington, DC, and agreed to establish a Fair Trade Working Group and explore potential negotiations on labor, environment, and digital trade.
• USTR on October 17, 2022, announced its request for comments on “the effectiveness of the actions in achieving the objectives of the investigation, other actions that could be taken, and the effects of such actions on the United States economy, including consumers.” USTR has posted the list of Four-Year Review Questions that it will work to determine whether tariffs should be maintained; whether the approach to China regarding trade needs to be changed; or whether the tariffs should end entirely.  

Department of Homeland Security (DHS)

• Department of Homeland Security (DHS), CBP will be submitting the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995 (PRA). 

The White House

• President Biden on September 15, 2022, issued Executive Order further elaborating upon current statutory factors and add national security factor the Committee on Foreign Investment in the United States must consider in its review process of covered transactions.  
• Government officials from the United States and Jordan convened the fourth Labor Subcommittee under the United States-Jordan Free Trade Agreement on October 31, 2022. 

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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Customs and Border Protection (CBP)

• Customs and Border Protection (CBP) officers seized more than $227,000 from travelers departing Washington Dulles International Airport to Africa during the months of September and October for violating U.S. currency reporting laws. 
• CBP announced today its commitment to the 30×30 Initiative, a coalition of law enforcement leaders, researchers and professional organizations who have joined together to advance the representation and experiences of women in all ranks of policing across the United States.

United States Department of State (DOS)

•  Department of State (DOS) and the Office of the United States Trade Representative (USTR) are providing notice that the United States and Panama plan to hold meetings of the United States-Panama Environmental Affairs Council (the ‘‘Council’’) and Environmental Cooperation Commission (the ‘‘Commission’’) on December 5, 2022, in Panama City, Panama. 
• DOS and the Office of the United States Trade Representative (USTR) are providing notice that on November 30– December 1, 2022, the United States and Peru will hold the eighth meeting of the Environmental Affairs Council (the ‘‘Council’’), the tenth meeting of the Sub-Committee on Forest Sector Governance (the ‘‘Sub-Committee’’), and the sixth meeting of the Environmental Cooperation Commission (the ‘‘Commission’’). 

United States Department of Commerce (DOC)

• U.S. Department of Commerce (DOC) published on August 30, 2022, the notice of initiation and preliminary results of changed circumstances reviews (CCR) of the antidumping duty (AD) and countervailing duty (CVD) orders on certain cold-rolled steel flat products (cold-rolled steel) and certain corrosion-resistant steel products (CORE) from the Republic of Korea (Korea). 
• DOC is rescinding the administrative review of the countervailing duty (CVD) order on certain non-refillable steel cylinders (non-refillable cylinders) from the People’s Republic China (China), covering the period August 28, 2020, though December 31, 2021. 
• DOC determines that imports of quartz slab manufactured in the People’s Republic of China (China) and processed in Malaysia are covered by the scope of the antidumping duty (AD) and countervailing duty (CVD) orders on certain quartz surface products from China. 
• DOC on October 11, 2022, published a notice in the Federal Register, in which Commerce amended its notice of final results for the 2020 administrative review of the countervailing duty (CVD) order on certain softwood lumber products (softwood lumber) from Canada.
• DOC is initiating a CCR of the antidumping duty (AD) order on silicomanganese from India. Additionally, Commerce preliminary determines that NAVA Limited (NAVA) is the successor-in-interest to Nava Bharat Ventures Limited (NBVL). 
• DOC announced the initiation of a countervailing duty investigation into certain freight rail couplers and parts thereof from the People’s Republic of China.  
• DOC preliminarily determines that two exporters of certain frozen warmwater shrimp (shrimp) from the People’s Republic of China (China) under review had no shipments of subject merchandise during the period of review (POR) February 1, 2021, through January 31, 2022. 
• DOC determines that sales of finished carbon steel flanges (flanges) from Spain were made at less than normal value (NV) during the period of review (POR) June 1, 2020, through May 31, 2021. 
• DOC, as a result of this expedited sunset review, finds that revocation of the antidumping duty (AD) order on light-walled welded rectangular carbon steel tubing (LWR tubing) from Taiwan would be likely to lead to continuation or recurrence of dumping at the level indicated in the ‘‘Final Results of Sunset Review’’ section of this notice. 
• DOC is conducting an administrative review of the antidumping duty order on uncovered innerspring units (innersprings) from the People’s Republic of China (China) during the period of review (POR) February 1, 2021, through January 31, 2022.
• DOC is initiating a Less-Than-Fair-Value investigation into certain freight rail couplers and parts thereof from the People’s Republic of China and Mexico.
• DOC announced on October 9, 2019, in the U.S. District Court for the Western District of Texas, Claudia Delgadillo (‘‘Delgadillo’’) was convicted of violating 18 U.S.C. 554(a). Specifically, Delgadillo was convicted of knowingly and willfully combining, conspiring, confederating and agreeing with others to knowingly and unlawfully conceal, buy, and facilitate the transportation and concealment of various rifles and handguns, knowing they were to be exported from the United States to Mexico.
• DOC, on June 28, 2022, published the preliminary results of the 2020–2021 administrative review of the antidumping duty order on polyethylene terephthalate film, sheet, and strip (PET Film) from Taiwan. 
• DOC, based upon the timely withdrawal of all review requests, is rescinding the administrative reviews covering the periods of review and the antidumping duty (AD) and countervailing duty (CVD) orders identified.
• DOC is initiating a circumvention inquiry to determine whether certain lawn mowers assembled or completed in the United States by attaching Chinese cutting deck shells (attached to at least one significant non-engine component) to internal combustion engines, are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on certain walk-behind lawn mowers and parts thereof (lawn mowers) from the People’s Republic of China (China). 
• DOC received scope ruling applications, requesting that scope inquiries be conducted to determine whether identified products are covered by the scope of antidumping duty (AD) and/or countervailing duty (CVD) orders and that Commerce issue scope rulings pursuant to those inquiries. 
• DOC determines that certain superabsorbent polymers (SAP) from the Republic of Korea (Korea) are being, or are likely to be, sold in the United States at less than fair value (LTFV). 
• DOC seeks public comment on any subsidies, including stumpage subsidies, provided by certain countries exporting softwood lumber or softwood lumber products to the United States during the period January 1, 2022, through June 30, 2022. 
• U.S. Secretary of Commerce has determined that U.S. imports of quartz surface products manufactured in China and processed in Malaysia are covered by the antidumping and countervailing duties (“AD/CVD”) orders on imports from China. 

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) 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 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 within the Department of the Treasury is soliciting comments concerning OFAC’s Hizballah Financial Sanctions Regulations Report on Closure by U.S. Financial Institutions of Correspondent Accounts and Payable Through Accounts. 
• OFAC on October 26, 2022, is designating 10 Iranian officials for the brutal ongoing crackdown on nationwide protests in Iran, as well as two Iranian intelligence actors and two Iranian entities involved in the Iranian government’s efforts to disrupt digital freedom. 
• OFAC on October 26, 2022, took action to counter the Government of the Russian Federation’s (GoR) persistent malign influence campaigns and systemic corruption in Moldova by imposing sanctions on nine individuals and 12 entities. 
• OFAC, as part of its enforcement efforts, published an updated list on October 26, 2022, of “Specially Designated Nationals” (SDNs). Their assets are blocked and U.S. persons are generally prohibited from dealing with them. 

United States International Trade Commission (USITC)

• United States International Trade Commission (USITC) determines on the basis of the record developed in the subject five-year reviews, pursuant to the Tariff Act of 1930 (‘‘the Act’’), that revocation of the antidumping and countervailing duty orders on aluminum extrusions from China would be likely to lead to continuation or recurrence of material injury to an industry in the United States within a reasonably foreseeable time. 
• USITC received a complaint filed on September 15, 2022, under section 337 of the Tariff Act of 1930, as amended, on behalf of Pratum Farm, LLC of Salem, Oregon. Letters supplementing the complaint were filed on September 15, October 3, and October 4, 2022.
• USITC received a complaint filed on September 15, 2022, under section 337 of the Tariff Act of 1930, as amended, on behalf of Maxell, Ltd. of Japan. A supplement was filed on September 26, 2022. 
• 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 antidumping duty orders on certain welded stainless steel pipe from South Korea and Taiwan would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.
• 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 pneumatic off-the-road (‘‘OTR’’) tires from India would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.
• 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 and antidumping duty orders on 1- hydroxyethylidene-1, 1-diphosphonic acid (HEDP) from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. 
• 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 stainless steel wire rod from India would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. 
• USITC received a complaint on September 16, 2022, under the Tariff Act of 1930, as amended, on behalf of EDST, LLC of Lubbock, Texas and Quext IoT, LLC of Lubbock, Texas. The complaint was supplemented on September 22, and October 5, 2022. 
• USITC determines, on the basis of the record developed in the subject five-year reviews, pursuant to the Tariff Act of 1930 (‘‘the Act’’), that revocation of the antidumping duty and countervailing duty orders on imports of stainless-steel sheet and strip from China would be likely to lead to continuation or recurrence of material injury to an industry in the United States within a reasonably foreseeable time. 
• USITC has received a complaint entitled Certain Video Processing Devices and Products Containing the Same, DN 3650; 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 the basis of the record developed in the subject five-year review, determines, pursuant to the Tariff Act of 1930, that revocation of the antidumping duty order on 1,1,1,2- tetrafluoroethane (R–134a) from China would be likely to lead to continuation or recurrence of material injury to an industry in the United States within a reasonably foreseeable time. 
• USITC, on the basis of the record developed in the subject five-year review, determines, pursuant to the Tariff Act of 1930, that revocation of the antidumping duty order on phosphor copper from South Korea would be likely to lead to continuation or recurrence of material injury to an industry in the United States within a reasonably foreseeable time. 
• USITC has determined not to review an initial determination (‘‘ID’’) (Order No. 7) of the presiding administrative law judge (‘‘ALJ’’), finding respondent Top Golf Equipment Co. Limited (‘‘Top Golf’’) in default.

United States Census Bureau (USCB)

• U.S. Census Bureau (USCB) reminded in a memo on October 27, 2022, that the disclosure of electronic export information (EEI) to foreign entities and foreign governments is not permitted.  

United States Trade Representative (USTR)

• Office of the United States Trade Representative (USTR) announced on October 23, 2022, that it will pursue avenues to assist the Southeast seasonal produce industry in coordination with the United States Department of Agriculture after Members of Congress requested an examination of certain issues in a September 8, 2022, Section 301 petition. 
• USTR invites applications from eligible individuals wishing to be included on the roster of individuals to serve on binational panels convened to review final determinations in antidumping or countervailing duty (AD/CVD) proceedings and amendments to AD/ CVD statutes of a USMCA Party.

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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