United States Customs and Border Protection (CBP)

• U.S. Customs and Border Protection (CBP) issued its notification of initiation and interim measures as to evasion by Double L Group, LLC and Manufacturing Network Inc. (collectively, the Importers) in Enforce and Protect Act (EAPA) investigation 7730, examining the evasion of antidumping duty (AD) and countervailing duty (CVD) orders A-570-947 and C-570-948 on steel grating from the People’s Republic of China (China). CBP found there was reasonable suspicion that the Importers had been entering covered merchandise from China that was misclassified as non-covered merchandise.
• CBP issued its determination as to evasion by Big D LLC (Big D), Colorquartz New York Inc. (Colorquartz), Cumberland Cabinet and Design Inc. (Cumberland), Durian Kitchen Depot Inc. (Durian), Flowery Stone Inc. (Flowery Stone), Kat Specialties Inc. (Kat), Kingway Construction Supplier Inc. (Kingway), Nio Kitchen Depot Inc. (Nio), Nomadic Barters Inc. (Nomadic), and Opaly USA LLC (Opaly), as well as several of their doing-business-as (DBA) names, Artist Kitchen and Stone Inc. (Artist Kitchen), MS Stone Co. Ltd. (MS Stone), and Nio Home Depot Inc. (Nio Home Depot) (collectively referred to as the “Importers”) in Enforce and Protect Act (EAPA) investigation 7657, examining the evasion of antidumping duty (AD) order A-570-084 and countervailing duty (CVD) order C-570-085on quartz surface products from the People’s Republic of China (China). CBP found there was substantial evidence that the Importers had been entering covered merchandise from China that had been transshipped through Malaysia, or been entering covered merchandise from China that had been misclassified as non-covered merchandise.
• CBP released the 2022 End of Year Letter from the Director of Customs Trade Partnership Against Terrorism (CTPAT) Manuel A. Garza, Jr. The letter highlights the achievements of the division and CTPAT events throughout the past year. The letter also includes CTPAT’s goals for 2023.
• CBP and Homeland Security Investigations (HSI) in New York hosted a joint media event highlighting counterfeit goods. Just in time for the holiday shopping madness, HSI and CBP offered a presentation about counterfeit goods and how consumers can protect themselves from purchasing “knockoffs” of brand-name items.
  • CBP released a statement, “CBP’s primary mission is to protect our nation while facilitating legitimate travel and trade. This includes protecting consumers from unsafe goods.”. 

Office of the United States Trade Representative (USTR)

• Assistant United States Trade Representative Adam Hodge released a statement in response to the final public reports in United States – Certain Measures on Steel and Aluminum Products (DS544, 552, 556, and 564). Stating “the United States strongly rejects the flawed interpretation and conclusion in the World Trade Organization (WTO) Panel reports”. The reports discussed the challenges to the U.S.’ Section 232 measures on steel and aluminum brought by China and others.
• United States Trade Representative (USTR) Katherine Tai and Japan’s Ambassador to the United States Koji Tomita, confirmed in an exchange of letters that amendments to the beef safeguard trigger level under the U.S.-Japan Trade Agreement (USJTA) will enter into force on January 1, 2023. The letters confirm that both countries have completed their respective domestic procedures with respect to the June 2, 2022,
• On December 9, USTR Katherine Tai met with Canada’s Minister of Labor, Seamus O’Regan. Ambassador Tai and Minister O’Regan emphasized the United States’ and Canada’s joint commitment to ensuring that trade benefits workers across North America. They discussed ongoing efforts to eliminate forced labor in global supply chains, including through the United States-Mexico-Canada Agreement.

United States Department of the Treasury Office of Foreign Assets Control (OFAC) 

• The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), in recognition of International Anti-Corruption Day and Human Rights Day, is sanctioning a diverse array of over 40 individuals and entities that are connected to corruption or human rights abuse across nine countries.
• OFAC is designating a sanctions evasion network led by businessman Sitki Ayan that has facilitated the sale of hundreds of millions of dollars’ worth of oil for Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF). Ayan’s companies have established international sales contracts for Iranian oil with foreign purchasers, arranged shipments of oil, and helped launder the proceeds, obscuring the oil’s Iranian origin and the IRGC-QF’s interest in the sales.
• OFAC sanctioned two individuals, Li Zhenyu and Xinrong Zhuo, and the networks of entities they control, including Dalian Ocean Fishing Co., Ltd. and Pingtan Marine Enterprise, Ltd. (Nasdaq: PME) along with eight other affiliated entities. Additionally, this action identifies 157 People’s Republic of China (PRC) flagged fishing vessels in which these entities have an interest.
  • These actions are taken pursuant to Executive Order (E.O.) 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act and targets perpetrators of serious human rights abuse and corruption around the world.
• OFAC is issuing Global Magnitsky General License 3, “Authorizing Transactions Related to Debt or Equity of Pingtan Marine Enterprise Ltd.” and Global Magnitsky General License 4, “Authorizing the Wind Down of Transactions Involving Certain Vessels.” OFAC is also issuing three Global Magnitsky-related Frequently Asked Questions (FAQs 1100 – 1102).
  • In addition, the SDN list has recently been updated. Please visit this page to access the latest version of the SDN list.

The United Staes Food and Drug Administration (FDA)

• The Food and Drug Administration (FDA) is proposing to replace its current annual reporting requirement for investigational new drug applications (INDs) with a new requirement: the annual FDA development safety update report (FDA DSUR). The proposed annual FDA DSUR is intended to be consistent with the format and content of the DSUR that is supported by the
  International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use.
  • Submit either electronic or written comments on the proposed rule by March 9, 2023. Submit comments on information collection issues under the Paperwork Reduction Act of 1995 (PRA) by January 9, 2023
  • You may submit comments as follows. The https://www.regulations.gov electronic filing system will accept comments until 11:59 p.m. Eastern Time at the end of March 9, 2023. Comments received by mail/hand delivery/courier (for written/ paper submissions) will be considered timely if they are postmarked or the delivery service acceptance receipt is on or before that date.

United States Department of Commerce (DOC) 

• The U.S. Department of Commerce (DOC) is initiating a circumvention inquiry to determine whether imports of boltless steel shelving units prepackaged for sale, which are completed or assembled in Malaysia using certain components from the People’s Republic of China, are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on boltless steel shelving from China.
  • For further information contact: Kabir Archuletta, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–2593.
• DOC has determined that OCTAL SAOC—FZC, the sole respondent subject to this antidumping duty (AD) administrative review, made sales of subject merchandise at less than normal value during the period of review (POR) May 1, 2020, through April 30, 2021.
  • For further information contact: Jonathan Hill, AD/CVD Operations, Office IV, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–3518.
• DOC and the U.S. International Trade Commission (USITC) have determined that revocation of the antidumping duty (AD) order on hot-rolled flat-rolled carbon-quality steel products from the Russian Federation would likely lead to continuation or recurrence of dumping and material injury to an industry in the United States. DOC is publishing a notice of continuation of this AD order.
  • For further information contact: Brian Davis, AD/CVD Operations, Office VI, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–7924.
• DOC determined that sales of circular welded carbon steel standard pipe and tube products from Turkey were made at less than normal value (NV) during the period of review (POR) May 1, 2020, through April 30, 2021.
  • For further information contact: Magd Zalok, AD/CVD Operations, Office IV, Enforcement and Compliance, International Trade Administration, Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–4162.
• DOC determined that Industeel Belgium S.A. made sales of subject merchandise at less than normal value during the period of review (POR), May 1, 2020, through April 30, 2021.
  • For further information contact: Alex Wood or Ann Marie Caton, AD/CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–1959 and (202) 482–2607, respectively.

The Maritime Administration (MARAD) 

• The Maritime Administration (MARAD) requests applications from eligible candidates for possible participation in the Tanker Security Program (TSP). This request for applications is issued in accordance with certain provisions of the National Defense Authorization Act for Fiscal Year 2021 (FY21 NDAA) and the National Defense Authorization Act for Fiscal Year 2022 (FY22 NDAA).
  • Applications for enrollment must be received no later than February 7, 2023. Applications should be submitted to
    sealiftsupport@dot.gov or in hard copy to the Tanker Security Program, Maritime Administration, U.S. Department of Transportation, 1200 New Jersey Avenue SE, Washington, DC 20590. Application forms are available upon request or may be downloaded from MARAD’s website. 

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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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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The U.S. Customs and Border Protection (CBP) valuation methodology (as well as a summary of relevant Customs rulings) are described in detail in the Valuation Encyclopedia (i.e., the best resource on valuation inquiries). CBP permits merchandise to be valued according to one of the six valuation methods listed below. The methods are applied sequentially from first to last until an applicable value is determined. If the first method does not apply, the importer must then evaluate the second, and so on, until an appropriate method applies. The only exception to this sequential evaluation requirement is when evaluating between deductive value and computed value – an importer may choose to use the computed value before the deductive value.

Methods of Valuation:

1. The transaction value of imported merchandise (the majority of imports use transaction value – i.e., the price paid or payable plus assists (see below))
2. The transaction value of identical merchandise
3. The transaction value of similar merchandise
4. Deductive value
5. Computed value
6. Fallback

Detailed information on how each of the valuation methods above are applied is explained in our blog article, Customs Valuation 101.

What is “Undervaluation”

As is the case with many aspects of the law, there are those who don’t comply. There have been numerous high-profile incidents of importations being undervalued to purposefully reduce the amount of overall duties paid. In these cases, typically, the supplier provides two sets of invoices; one for purposes of receiving payment from the buyer, and one for CBP (i.e., for reporting the “transaction value”). Two sets of invoices is clearly fraudulent and can result in both criminal (imprisonment/fines) and civil penalties.

Case Study: Motives Far East and Motives China Limited

A China-based clothing manufacturer was penalized $13.4 million for engaging in fraud by maintaining two different sets of invoices, as part of a civil settlement brought by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and CBP. The manufacturer admitted to underreporting the value of imported merchandise. The lawsuit was brought under the False Claims Act. Read more about double invoicing here.

Case Study: United States ex rel. v. Stargate Apparel, Inc., Rivstar Apparel, Inc., and Joseph Bailey

In another similar case, certain clothing companies and their former CEO settled for $6 million with the U.S. Department of Justice after admitting to engaging in fraudulent schemes involving use of false and inaccurate invoices. According to the Government’s allegations, these companies employed a variety of schemes to defraud the United States by submitting invoices to CBP that falsely understated the true value of the clothing that they imported into the United States in order to avoid paying millions of dollars in customs duties.

Case Study: United States ex rel. Icolari v. Eos Energy Storage

Eos Energy Storage is a New Jersey based, publicly traded company that creates and distributes batteries to power companies. The company recently reached a $1.02 million dollar settlement with the United States Department of Justice, serving on behalf of Homeland Security and CBP for “…failure to declare the true and collect value of the merchandise for which it was the importer of record.” Eos purchased components to build its batteries from third parties in the United States or elsewhere and then would offer those components to a foreign manufacturer responsible for assembling the batteries. Once the batteries were assembled, Eos would import them back into the United States. The infraction occurred when Eos failed to provide the true and correct value of the “assists.” Assists are items or services supplied at free or reduced cost by the buyer of an imported merchandise for use in connection with the production or sale for export to the U.S. of that merchandise. This infraction proved costly and led to Eos ultimately settling with the U.S. government in lieu of a lengthy litigation process.

Case Study: United States ex rel. v. Queen Apparel

QUEEN Apparel is a now defunct New York City-based clothing importer and manufacturer, solely owned by Hank Hyuncho Choi. When in business, QUEEN made and imported garments for third party seller who would sell the garments in American department store chains. The company reached a $50,000 settlement in 2021 with the Southern District of New York for knowingly evading customs duties on imported goods. As part of their settlement, QUEEN has admitted to knowingly undervaluing their imported garments to evade paying customs duties. Though no longer in business, this company serves as an example as to the repercussions that can arise from undervaluing imported goods.

What You Can Do

• Evaluate your valuation practices – It is always a good idea to take the opportunity to evaluate which of the above valuation methodologies you use to report your import value to CBP. Taking a closer look at your valuation practices can provide opportunities for duty savings (like first sale discussed below) and also alert you if you have been inadvertently violating Customs law, (for example by supplying an assist to your supplier without including it in your customs value). Diaz Trade Law and its consultants, which include former customs import specialist and auditors, remain available to review and evaluate your valuation practices.
• Understand the impact of your related party relationships – If you, as the importer, are purchasing merchandise from a related party, (as defined in 19 U.S.C. §1401a(g)), then you have additional valuation-related responsibilities. If you determine that your relationship is, in fact, a related party relationship, then you must report the related party relationship on your entry summary. Furthermore, you must evaluate whether transaction value may still be used when parties are related. The transaction value for related parties may be used when there is an arms’-length transaction between the parties. An arms’-length relationship is demonstrated to CBP via one of two tests: (1) the circumstances of sales test, or (2) the test values test. The circumstances of sales test requires an examination of whether the sales price enables the seller to recover all of its costs plus a profit equivalent to the firm’s overall profit (all costs plus a profit). Alternatively, under the test values, a related party transaction value may be acceptable if the value of that transaction closely approximates one of the following:
  • (i) the transaction value of identical merchandise, or of similar merchandise, in sales to unrelated buyers in the United States;
  • (ii) the deductive value or computed value for identical merchandise of similar merchandise;
  • (iii) but only if each value referred to in clause (i) or (ii) that is used for comparison relates to merchandise that was exported to the United States at or about the same time as the imported merchandise.
  • The purpose of the two related parties tests is to ensure that the customs value reflects the true value of the transaction between the buyer and seller (i.e., that the relationship between the parties did not influence the price).
• Ensure you are correctly classifying your imports – In order to exercise your duty of reasonable care, it is important, that to appropriately classify your import based upon the Harmonized Tariff Schedule of the United States (“HTSUS”). Properly classifying your import has important valuation implications because duty rates and other taxes and fees differ based on which HTSUS you are declaring. If you are unsure how to classify your product, Diaz Trade Law can assist you in determining your appropriate classification, or assist in submitting a binding ruling request, if necessary.
• Consider utilizing the First Sale Rule, if applicable – Sometimes, a transaction involves three parties – a foreign manufacturer, a reseller/middleman, and a U.S. importer. In such circumstances, U.S. customs valuation law permits importers to use the price paid or payable in the sale between the foreign seller and reseller/middleman rather than the price paid or payable in the sale between the reseller/middleman and the U.S. importer. In other words, the “first sale” rather than the second sale is used. Effectively utilizing the First Sale Rule can result in a lower transaction value, which can in turn result in a lower duty amount paid. In order to use first sale, the burden is on the importer to demonstrate to CBP that the imported merchandise should be valued based on the first sale rather than the second sale, and all of the following must apply:
  • The first sale must be a bona fide sale from the manufacturer/seller to the middleman;
  • Merchandise must be clearly destined for the United States at the time of the first sale;
  • The first sale price must be an arm’s length price; and
  • Statutory additions to the price actually paid or payable must be included in the first sale price.
• File a prior disclosure – If a company or individual believes it has violated the law by making material false statements in connection with their importations (i.e., undervaluing by not declaring an assist), and CBP is unaware of this violation, proactively and voluntarily disclosing the potential wrongdoing via a Prior Disclosure can substantially reduce penalties. CBP encourages proactive import compliance, including the submission of PDs by parties who believe they may have violated 19 U.S.C. § 1592. According to CBP, “Both CBP and the importing/exporting community have a shared responsibility to maximize compliance with laws and regulations.” Details on CBP’s PD program are available in CBP’s publication, What Every Member of the Trade Community Should Know: Prior Disclosures. If a company or individual suspects it has violated 19 U.S.C. § 1592, the importer can proactively inform CBP to benefit from the possibility of mitigated penalties offered by a PD. Delaying submission of a PD could result in CBP notifying you that it is commencing a formal investigation, thereby preventing you from filing a PD.

Contact Us:

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

Many companies mistakenly believe that registering a trademark or copyright with the U.S. Government provides sufficient protection and remedies. However, there is an additional step that can significantly enhance protection—recording trademarks or copyrights with U.S. Customs and Border Protection (U.S. Customs).  

This blog explores the distinct goals of these processes and the advantages of recording intellectual property with the U.S. Customs. 

I. Registering with USPTO and Recording with U.S. Customs: Different Goals

• Registering with the U.S. Patent and Trademark Office (USPTO) or U.S. Copyright Office gives public notice of ownership. 
• Recording with U.S. Customs aims to prevent unauthorized importation of merchandise bearing the registered intellectual property. 
• U.S. Customs serves as a critical partner in halting counterfeit and infringing products from entering or leaving the United States.

II. Benefits of Recording Trademarks or Copyrights with U.S. Customs

Seizure and Monitoring: 

• U.S. Customs monitors and seizes infringing merchandise at ports of entry, alleviating the burden on trademark or copyright holders. 
• This proactive approach eliminates the need to individually locate and prosecute every unauthorized importer, distributor, or retailer, safeguarding intellectual property rights.

Impressive Results in IP Protection: 

• In 2021, U.S. Customs seized over 27,000 shipments with an estimated manufacturer’s suggested retail price (MSRP) of $3.3 billion. 
• Collaboration with the Intellectual Property Rights (IPR) Center led to 388 arrests, 155 indictments, and 100 convictions related to IP crimes. 

• Apparel/accessories accounted for 30% of seized merchandise, with watches and jewelry valued at over $1.18 billion. 
• Notably, U.S. Customs seized counterfeit and unapproved COVID-19 products, reflecting their adaptability to emerging challenges. 
• Approximately 57% of counterfeited goods seized in 2021 were manufactured in China, amounting to an estimated MSRP value of $1.9 billion.

Authority to Issue Fines and Prosecute: 

• U.S. Customs possesses the authority to impose monetary fines on individuals involved in facilitating the introduction of seized and forfeited counterfeit merchandise into the United States. 

• U.S. Customs can request the U.S. Attorney’s Office to criminally prosecute those engaged in illegal activities under the Trademark Counterfeiting Act of 1984. 
• Penalties for first-time violators include up to ten years imprisonment and/or a $2 million fine, while repeat offenders face up to 20 years imprisonment and/or a fine of up to $5 million. 

International Raids and Cooperation: 

• U.S. Customs collaborates with foreign law enforcement agencies and coordinates raids on counterfeit production facilities globally. 
• Customs officers stationed at American embassies worldwide regularly share information for the criminal prosecution of manufacturers and exporters of counterfeit goods. 

III. Customs e-Recordation System and Gray Market Protection
 

Trademark and copyright recordations are filed online through the U.S. Customs’ IPR e-Recordation system, adhering to the regulations outlined in 19 C.F.R. Part 133. 

The following is a checklist of the information necessary to submit an trademark or copyright recordation with CBP: 

• Description of trademark or copyright registered with the USPTO 
• USPTO Registration Number 
• Country of manufacture of protected goods bearing the trademark or country of manufacture of genuine copies or phonorecords of the protected copyright work 
• Names of any parent companies, subsidiaries, or other entities that are under common control with, or share any type of ownership interest or relationship with, the U.S. trademark owner, or names of all parties authorized to use or reproduce the copyrighted work 

For those eligible, it is worthwhile to pursue “gray market” protection, which pertains to genuine products bearing a trademark or brand name approved for use in a country other than the U.S. Gray market goods are different from goods bearing counterfeit markets because goods bearing counterfeit marks are never genuine. According to CBP guidance, CBP provides limited protection to trademark owners against importations of certain gray market goods. Only trademarks and trade names that are recorded with CBP are entitled to gray market protection, and gray market status is determined at the time of recordation with CBP. Gray market protection is only offered if you have the following in place: 

• The U.S. and foreign trademarks are not owned by the same person 

• The U.S. and foreign trademark owners are not a parent or subsidiary, or otherwise subject to common ownership or control 

Currently, Phillip Morris is an example of a company that has been able to meet this stringent burden and CBP offers its trademarks gray market protections. The image below is a search result from the CBP IPRS database. 

As a final thought, it is extremely beneficial for a company to record its registered trademark or copyright with CBP, as CBP may be a company’s greatest, and most cost effective ally, when it comes to trademark and copyright enforcement. For help with any pre-compliance matters such as the CBP recordation process or for assistance with enforcement actions such as seizures and penalties, please contact info@diaztradelaw.com and visit our website www.diaztradelaw.com.

Below we share some of our top 2021 success stories with you.

Successfully Mitigated Liquidated Damages Claims 

• For failure to timely refile rejected entries subject to AD/CV duties:
  • After DTL’s strategic involvement CBP substantially mitigated approximately $5 MILLION in claims down to $26,365.00, successfully saving our client over $4.7 MILLION dollars
  • Our client received 36 liquidated damages notices from CBP totaling over $567,000. After Diaz Trade Law’s successful negotiation with CBP, all 36 cases were canceled by CBP, saving our client $over $567,000!!
• CBP sent our client a liquidated damages claim in the amount of $150,000. As a result of Diaz Trade Law’s successful petition, CBP mitigated the liquidated damages claim down to $1,500!
• CBP issued a liquidated damages claim in the amount of $50,000.00. After DTL successfully petitioned CBP, the claim was cancelled!
• CBP issued a liquidated damages claim in the amount of $36,033.00. After DTL successfully petitioned CBP, the claim was mitigated to $360.33 (the best potential mitigation!).

CBP Detention Assistance 

• Mere days after being retained, Diaz Trade Law successfully assisted in negotiating with CBP and numerous trademark owners proving that our clients detained goods (collectively valued over $1,000,000.00) were legitimate, receiving either consent TM holder, and/or convincing CBP to release legitimate merchandise that should not have been detained.
• After CBP detained our client’s electronic merchandise to verify admissibility with the Department of Transportation (DOT)
  • CBP released the electronic goods after DTL proved the merchandise, LED driving lights, were eligible for an “off road” use exception and DOT providing such confirmation.
• After CBP detained our client’s electronic merchandise to verify the validity of a trademark on the product packaging.
  • Diaz Trade Law proactively communicated with the trademark holder and CBP, who, with the authorization of the trademark holder, permitted the importer to manipulate the merchandise and import the goods saving our client from a costly and lengthy seizure case that potentially exposed our client to CBP penalties.
• After CBP detained our client’s electronic merchandise to verify the validity of a trademark on the product packaging.
  • After Diaz Trade Law’s immediate involvement in arguing the product was “confusingly similar” and not counterfeit, DTL persuaded CBP to apply the relief afforded to “confusingly similar” seized merchandise and ultimately CBP permitted the exportation – which is relief that is rarely granted for detained products. DTL saved our client from a seizure case and potential penalties.
• CBP detained 28 containers of our client’s cargo.
  • Diaz Trade Law successfully negotiated with CBP to permit the goods to be reexported and avoid substantial demurrage expenses.

4647 Responses 

• CBP issued our client a CBP Form 4647 – Notice to Mark, because its electronic car accessories labels had both a country of origin marking and a “Designed in the USA” claim (in separate locations on the label).
  • After 48 hours of Diaz Trade Law’s successful escalation and negotiation with the Electronic Center of Excellence and Expertise, CBP granted a rarely used marking waiver permitting the merchandise to be imported as is, saving our client both money and time.
• CBP issued our client a CBP Form 4647 – Notice to Mark, because over 1,000 electronic car accessory units did not bear a country of origin marking.
  • Diaz Trade Law successfully and efficiently guided our client through the marking process. Ultimately, the goods were marked and authorized for distribution within recording timing – less than 10 days from the issuance of the 4647, saving our client both money and time.
• CBPO’s at Port Everglades detained two of our client’s shipments and issued two separate CBP Form 4647s – Notices to Mark because the imported merchandise valued at $98,744.00 did not bear a country of origin marking.
  • Diaz Trade Law successfully and efficiently guided our client through the marking process. Ultimately, the goods were marked and authorized for distribution with record timing – within 7 days from the issuance of the 4647, saving our client both money and time.
• Diaz Trade Law successfully assisted our client in responding to CBP’s Notice to Redeliver (CBP Form 4647) and provided CBP confirmation that the intellectual property rights displayed on the goods was authorized and our client’s merchandise was released in record timing!

Successfully Assisted Numerous Importers Battle Alleged Intellectual Property Rights Violations

• Our client’s merchandise was seized by CBP due to an alleged trademark violation.
  • After Diaz Trade Law’s successful petition, CBP issued a decision authorizing our client to relabel and export its legitimate merchandise.
• CBP detained several shipments of our client’s cargo for both Country of Origin (COO) and Intellectual Property Rights (IPR) reasons.
  • Diaz Trade Law advocated for our client and within less than one week convinced CBP to release our client’s legitimate merchandise detained at numerous ports of entry nationwide.
• Our client’s designer handbags were seized by CBP due to an alleged counterfeit violation.
  • After Diaz Trade Law’s successful petition, proving that the handbags were legitimate, CBP released our client’s legitimate merchandise.
• CBP detained our client’s goods valued at $98,744.00 for an alleged IPR validation.
  • Our firm immediately communicated with the appropriate CBP CEE and submitted evidence supporting the legitimacy of the imported goods requesting their immediate release. The CBP CEE agreed with our request and recommended the local port release the shipment, saving our client from a costly and lengthy seizure case.
• Diaz Trade Law successfully negotiated with CBP on behalf of an aftermarket car part importer to permit the exportation of goods detained for alleged IPR violations, saving the importer from a costly and lengthy seizure and potential penalty.
• Our client imported electronic merchandise which contained a trademark-violating processing system.
  • After Diaz Trade Law’s successful intervention, Diaz Trade Law received authorization from the trademark holder to permit the violative components to be removed and destroyed, and the larger shell merchandise to be imported in its current form. CBP agreed to these terms, and issued a disposition order authorizing the manipulation and release of the goods as Diaz Trade Law had requested.

Successfully Mitigated Penalty Actions Issued by CBP to our Clients 

• For importing noncompliant Wood Packaging Material:
  • $91,714 mitigated to 3% of penalty to $2,751.42, saving our client $88,962
  • $69,900 mitigated to 3% of penalty to $6,990, saving our client $60,000
  • $28,478 mitigated to 10% of penalty to $2,847, saving our client $25,631
  • $27,857 mitigated to 10% of penalty to $2,786, saving our client $25,071
  • $19,980.00 mitigated to 10% of penalty to $1,998, saving our client $17,982
• For filing incorrect Electronic Export Information (EEI)
  • $14,194 mitigated down to $500 (the best possible relief)!
  • $14,194 mitigated to 10% of penalty to $1500, saving our client $12,694

CBP 28 / CBP 29 Responses / CBP Investigations and Rejections

• Our client received a CBP 28 for a U.S. Australia Free Trade Agreement verification.
  • After Diaz Trade Law filed a successful response proving the imported goods were eligible for preferential duty-free treatment, CBP closed the 28 with a positive CBP 29 (Notice of Action).
• Our client received a CBP 28 Request for Information from U.S. Customs to verify GSP eligibility.
  • After Diaz Trade Law submitted a substantive response proving the GSP claim was valid, CBP issued a CBP 29 determining that the merchandise qualifies for GSP and no duties are owed to CBP!
• Our client received a Request for Information (CBP 28) from CBP.
  • Diaz Trade Law filed a 28 response which included a Prior Disclosure. The 28 was closed out, and the disclosure was accepted by CBP resulting in no 1592 penalties being issued to our client.
• CBP physically inspected our client’s cargo at the time of entry and identified that the commercial invoice and packing slip submitted to CBP did not include one model number included in the cargo. Diaz Trade Law immediately negotiated with CBP to accept an updated invoice and packing list. CBP accepted and released the complete cargo with no further enforcement action taken, saving our client costly demerge fees and other expenses.
• CBP rejected and refused an importation of tires because CBP alleged the importer did not have a right to make entry. After three uphill battles with CBP and DTL’s strategic recommendation to change the import transaction model, the importer was successfully able to act as IOR and its merchandise was admitted into the US.

USTR/China Tariffs

• Diaz Trade Law assisted over 100 importers in filing complaints with the Court of International Trade challenging Section 301 tariffs imposed for imported goods under for List 3 and List 4a, requesting full refunds.
• Diaz Trade Law filed numerous exclusions for goods subject to the Section 301 List 3 and List 4. USTR agreed and granted our client’s exclusion!
• Numerous clients that were subject to 301 duties used Diaz Trade Law to actively monitor 301 exclusions to ensure they were notified when refunds were a possibility. Diaz Trade Law assisted with not only actively monitoring the relevant exclusions, but also interpreting the applicability, and fighting for refunds via the Protest or PSC process. CBP has accepted numerous Protests, and hundreds of thousands of dollars of refunds were sent to our clients!
• As a result of Diaz Trade Law’s closely monitoring Section 301 China tariff exclusions, Diaz Trade Law found an applicable exclusion for our client to use and filed two Protests with CBP requesting that CBP refund the China tariffs paid. Our client’s protests were approved by CBP, resulting in a refund of $64,678.00.

Export Compliance and Enforcement Mitigation Assistance

• Diaz Trade Law is actively assisting exporters:
  • Vetting proposed export transactions
  • Providing voluntary self-disclosures to Census and OFAC
  • Developing an effective export compliance plan
  • Developing export compliance training
  • Mitigation and corrective action
  • Presenting export report cards to clients based upon an analysis of ACE data
  • Analyze export trade data
  • With mitigation of export seizures and penalties
• Our client needed urgent assistance to ensure it understood the requirements to properly export hazardous materials. Diaz Trade Law successfully and expeditiously secured Competent Authority Approvals for the hazardous material from the U.S. DEPARTMENT OF TRANSPORTATION Pipeline and Hazardous Materials Safety Administration (PHMSA) as well as the Competent Authority of Turkey and Finland.

OFAC/FAA/HSI 

• Our client’s incoming wire payments of $842,918.92 from Venezuela were blocked by its U.S. bank for possible violations of U.S. sanctions laws.
  • After Diaz Trade Law filed a specific license application with the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), OFAC issued a specific license authorizing the legitimate funds to be unblocked and returned to our client.
• Our client was being investigated by FAA as a result of a hazardous materials incident.
  • As a result of Diaz Trade Law’s successful involvement, the FAA closed the matter with an informal action!
• Our client was being investigated by HSI for possible criminal liability.
  • After Diaz Trade Law’s intervention, HSI closed its investigation into our client.

 Protests

• Diaz Trade Law successfully assisted our client in filing two Protests with CBP. These approvals saved our client over $600,000!!
• After Diaz Trade Law’s successful Protest of CBP’s AD/CVD bills, our client’s protest was approved by CBP, saving our client over $200,000!!

Binding Rulings

• Diaz Trade Law successfully requested and received binding rulings for numerous clients confirming:
  • the correct country of origin for its prospective imported merchandise.
  • the correct harmonized tariff schedule (HTSUS) for its imported merchandise.
  • both the origin of their merchandise and appropriate CBP country of origin marking
  • the applicability of a free trade agreement.

Assisted Numerous Importers in Filing Prior Disclosures and Voluntary Self-Disclosures Accepted by CBP 

• Diaz Trade Law successfully submitted a perfected prior disclosure for underlying classification, valuation, quantity, and 301/China tariff errors. While reviewing ACE data, we identified offsets for the duties owed to CBP. Ultimately, CBP agreed with our assessment and accepted our prior disclosure and tender, resulting in a refund of over $25,000 to our client and ensuring no future penalties would be assessed for our client’s past importing errors.
• After discovering Electronic Export Information (EEI) filing errors made by one of our clients, Diaz Trade Law assisted our client in proactively filing a Voluntary Self-Disclosure (VSD) with the U.S. Census Bureau and assisting our client in fixing all past errors. The VSD filing was accepted and resulted in the U.S. Census Bureau closing out the matter without penalties being assessed.
• On behalf of a client, Diaz Trade Law filed a voluntary disclosure with the Office of Foreign Assets Control (OFAC), disclosing potential sanctions violations.
  • Diaz Trade Law worked proactively with OFAC and received this “No Action letter” with no penalties assessed to our client.
• Diaz Trade Law successfully assisted our client in filing a Voluntary Self-Disclosure (VSD) with the U.S. Census Bureau for violations of the Foreign Trade Regulations.
  • Diaz Trade Law proactively worked with the Census Bureau and corrected past filing errors. The VSD was successfully closed out with no penalties assessed.
• Diaz Trade Law successfully assisted our client in filing a Prior Disclosure. CBP accepted the prior disclosure with no 1592 penalties being assessed!

Bonded Warehouse

• After Diaz Trade Law’s successful application, our client’s Bonded Warehouse Application was approved!
• After its bonded warehouse was activated by CBP, our client realized it wanted to change the total square footage. Diaz Trade Law successfully assisted our client alter its customs bonded warehouse space.

Successfully Assisted Numerous Importers in Various Seizure Cases 

• CBP seized our client’s vehicle after believing it could have been used to import illegal substances. After Diaz Trade Law’s successful petition proving our client’s innocence, CBP released the vehicle with no penalty assessed
• $20,868.81 of our client’s currency was seized by CBP. After Diaz Trade Law’s successful petition, $19,868.81 was returned to our client!
• $15,795 of our client’s currency was seized by CBP. After Diaz Trade Law’s successful petition, $14,795 was returned to our client!
• $12,157.95 worth of jewelry was seized by Customs after our client failed to declare it. After Diaz Trade Law’s successful Petition, CBP released the jewelry within 22 days.

Awards

• In 2021, Diaz Trade Law founder Jennifer Diaz was again Chambers ranked in International Trade: Customs – USA – Nationwide

Publications

Key publications written by Diaz Trade Law in 2021 were:

• Bloomberg Law, Introduction to U.S. Export Controls: Part 2, November, 2021.
• Bloomberg Law, Protecting Intellectual Property Rights in China, October 2021.
• Bloomberg Law, Incoterms 2020, May 2021.
• Bloomberg Law, Submitting Voluntary Self-Disclosures to Bureau of Industry & Security, May 2021.
• Bloomberg Law, Submitting a Voluntary Self-Disclosure to Census, April 2021.
• Bloomberg Law, Submitting a Voluntary Self-Disclosure to OFAC, April 2021.
• Bloomberg Law, U.S. Customs Targets Use of Forced Labor, January 2021.
• Customs and International Trade Bar Association, An Overview of China’s New Export Controls Regime,
• Customs and International Trade Bar Association, COVID-19’s Impact on 2020 Trade Flows,

Customized Training Programs & Webinars

Key compliance programs taught by Diaz Trade Law in 2021 were:

• Intellectual Property Rights and Customs – Amazon Brand Registry
• CTPAT Program: Is CTPAT a Right Fit
• Successfully Navigating the U.S. Customs Detention and Seizure Process
• How to Navigate FDA Enforcement Action: Detentions, Warning Letters, and Import Alerts
• Requests For Information (CBP Form 28) and Prior Disclosures
• How to Build and Maintain an Effective Import Compliance Plan
• How to Build and Maintain an Effective Export Compliance Plan
• Importing Food in Compliance With U.S. FDA and Surviving A FSVP Audit
• Importing Medical Devices in Compliance With U.S. FDA
• 6 Months In – Insights on Biden & Congress on Trade
• Is it a Cosmetic, a Drug, or Both? FDA Enforcement Actions
• ACE: Auditing Your Export History
• ACE: Auditing Your Import History
• Introduction to Export Controls
• Importing 101 – Introduction to U.S. Customs
• Anti-Circumvention / EAPA / Dumping Duties & the Spreadability of Cases (Coated Paper)
• Other Trade Remedies 101 – Every Administration has a Favorite!
• Basics on AD/CVD
• Cleaning for Covid-19 – Importing Cleaning Products: Who Regulates You?
• Forecasting the Next 4 Years of Biden on Trade

Diaz Trade Law values you and appreciates your trust in us to be your Customs and International Trade Law Expert! Contact us at info@diaztradelaw.com to schedule your consultation or customized training today.

CBP 

• In Fiscal Year 2021, CBP at the LA/Long Beach Seaport seized More Than $760 Million in Counterfeit and Prohibited Products, a 652% increase over the previous year.
• CBP issues guidance regarding the extension of product exclusions from additional Section 301 China duties on certain medical-care products to address COVID-19.
• With changes to the HTSUS classification systems possibly coming as early as January 1, 2021, U.S. importers should review their classifications and ensure compliance with U.S. regulations

BIS

• The Bureau of Industry and Security (BIS) requests public comment regarding areas and priorities for U.S. and EU export control cooperation under the Trade and Technology Council.
  • Comments are due by January 14, 2022
• On November 26, 2021, the Department of Commerce’s Bureau of Industry and Security (BIS) published a final rule adding 27 foreign entities and individuals to the Entity List for engaging in activities that are contrary to the national security or foreign policy interests of the United States.

China

• In their most substantial talk since President Biden took office, Chinese President Xi Jinping has warned that encouraging Taiwanese independence would be “playing with fire”.
• On November 12, 2020, the President declared a national emergency to deal with the extraordinary threat to the national security, foreign policy, and economy of the United States constituted by certain companies of the People’s Republic of China.
• Airbnb subject to regulatory risk under U.S. law with more than a dozen homes available for rent in China’s Xinjiang region on land owned by an organization sanctioned by the U.S. government for complicity in genocide and forced labor.
• On December 6, 2021, President Biden announced a U.S. diplomatic boycott of the 2022 Beijing Winter Olympic Games over concerns about China’s human rights record.

Commerce Department

• The Department of Commerce invites the general public to comment on proposed, and continuing information collections to allow for submission of exclusions requests from the remedies adjusting imports of steel and aluminum into the United States.
• Comments are due by January 24, 2022.
• On December 1, 2021, the Department of Commerce announced the opportunity to request an annual administrative review for products that are currently subject to antidumping and countervailing duties.

FDA

• The FDA is sharing a grant opportunity to cover COVID-19-related expenses for eligible FDA-regulated food producers, processors and growers.
  • Applications are due November 22
    • How to Apply – USDA’s Pandemic Response and Safety Grant Program – YouTube
    • Eligibility – USDA’s Pandemic Response and Safety Grant Program – YouTube
    • DUNS Number Registration – USDA’s Pandemic Response and Safety Grant Program – YouTube

Export Controls/Sanctions

• On November 18, 2021, the U.S. Department of the Treasury’s Office of Foreign Assets Control sanctioned senior Houthi military officer Saleh Mesfer Alshaer, for the seizure of property in Yemen valued at greater than 100 million dollars, using a variety of unlawful tactics, including extortion.
• On November 18, 2021, the U.S. Department of the Treasury’s Office of Foreign Assets Control sanctioned six Iranian individuals and one Iranian entity for attempting to influence the 2020 U.S. presidential election.
• On November 24, 2021, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) amended the Syrian Sanctions Regulations to expand the authorizations for nongovernmental organizations (NGO) to engage in certain transactions and activities that ensure the continued provision of humanitarian assistance, including certain early-recovery activities, that benefit the Syrian people.
• On November 24, 2021, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued Venezuela-related General License 8I, authorizing  limited transactions with Petróleos de Venezuela, S.A. or the wind down of operations in Venezuela for certain entities.
• On December 2, 2021, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced the expansion of sanctions against Belarus to include 35 new designations to the Specially Designated Nationals and Blocked Entities List and the issuance of a related wind-down license, General License 5.
• On November 8, 2021, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned 57 cryptocurrency addresses and one exchange for facilitating ransomware and money laundering

DST and Section 301 Investigations

• As part of the to address tax challenges arising from the digitalization of the world economy, the U.S. Trade Representative has determined to terminate the Section 301 Digital Services Tax Investigations of Austria, France, Italy, Spain, and the United Kingdom.
• U.S. and India reach agreement regarding the treatment of Digital Services Taxes prior to full implementation of Pillar 1 of the Organization for Economic Co-operation and Development (OECD) agreement.  As part of the agreement the United States will terminate the currently suspended additional duties on goods of India that had been adopted in the DST Section 301 investigation.
• On November 22, 2021, the U.S. Department of the Treasury (Treasury) issued a joint statement with Turkey regarding a transitional approach to Turkey’s Digital Service Tax (DST) prior to entry into force of Pillar 1. The joint statement reflects a political agreement in which the U.S. Trade Representative has determined to terminate the section 301 action taken in the investigation of Turkey’s DST.

USTR/Trade Policy

• On November 17, 2021, the United States and Japan announced the formation of the “U.S.-Japan Partnership on Trade” to deepen cooperation between the two countries and reaffirm their alliance through regular engagement on trade-related matters.
• United States Trade Representative Katherine Tai and United States Secretary of Commerce Gina Raimondo published an op-ed touting the agreement reached with the European Union that preserves the long-term viability of our steel and aluminum industries by tackling global excess capacity and creates a framework for reducing the carbon intensity of those sectors.

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Did you know in FY2020, U.S. Customs seized more than 26,000 shipments worth more than $1.3 BILLION due to alleged intellectual property rights (IPR) violations? Ensure you’re on the right side of CBP enforcement and register for Diaz Trade Law’s next webinar “Intellectual Property Rights (IPR) and Customs (Including an Update on the Amazon Registry) – Amazon Brand Registry“ taking place on December 15, 2021. This one-hour webinar will provide best practices and TOP tips on how one can protect their IPR using U.S. Customs and Border Protection (CBP) and effective methods to go after IPR infringers.

Register today to hear directly from DTL’s president, Jennifer Diaz, Associate Attorney, Denise Calle and Of Counsel and IPR Specialist, Augusto Perera, as they teach attendees about intellectual property rights and the best ways to protect them.

Why Should I Register for this Webinar?

In FY2019 and FY2020, U.S. Customs (CBP) seized more than 53,000 shipments worth more than $2.8 BILLION because of alleged IPR violations. The vast majority of goods seized have come from China and Hong Kong. During FY2020, CBP reported 18,757 active recordations – more than each of the previous two years.  Importers must be aware of how to import in compliance with IPR laws as well as how to protect their own intellectual property rights

In response to enforcement discussed above, Diaz Trade Law is hosting a NEI accredited webinar, “Intellectual Property Rights and Customs – Amazon Brand Registry” to train industry on top tips to avoid enforcement, and best practices to proactively protect their own brands.

In this webinar, you will learn the basics of intellectual property considerations for your business, how to use Amazon Brand Registry to build your brand, how protecting your brand is an ongoing commitment and the steps you need to take to ensure you do so proactively.

Importers, in-house legal counsel, owners, executives, marketing professionals, and others interested in intellectual property are encouraged to attend either live on December 15, 2021 at 12:00 PM, or on demand thereafter. Register HERE!

Register today to to hear directly from Senior Trade Advisor, Don Woods, DTL’s president, Jennifer Diaz, and Associate Attorney, Denise Calle as they discuss real life stories, current trends/risks associated with the import process, proactive ways to stay compliant, and the importance of training to avoid costly encounters with CBP.

Why Should I Register for this Webinar?

CBP is actively enforcing its laws and regulations against non-compliant importers, as seen by the 70,683 seizure letters issued to importers in FY2021.  Importers are required to develop, maintain, and follow a compliant import plan. Importers must be aware of CBP’s various enforcement mechanisms, and more importantly,  how to avoid  such actions. CBP’s most common enforcement activities include seizures, detentions, and criminal prosecution.

In response to the increase in enforcement discussed below, Diaz Trade Law is hosting a NEI accredited webinar, Building & Maintaining an Effective Import Compliance Plan to train industry on top compliance tips to avoid enforcement, and best practices to maintain and effective and compliant import plan.

Seizures in FY21:

• With Fy21 yet to finish, the CBP has already had more than 70,000 trade seizures
• With Fy21 yet to finish, CBP has already had $2.5 billion worth of IPR Seizures – More than it has seized in each of the past 5 years!

Other Trade Enforcement Activities:

• 1,942 Trade Penalties Issued
• 16,302 Total Trade Liquidated Damages
• $16 million collected in Trade-related penalties and liquidated damages

In this webinar, you will learn the common risks associated with the import process and how to build and maintain an effective Import Compliance Plan . Presenters will discuss… The objective of the webinar is to teach participants how to create an effective import plan that allows importers to avoid CBP altogether.

Importers, Customs Brokers, Regulatory Affairs Professionals, and others engaged in the importation of goods into the United States are encouraged to attend either live on October 6, 2021 at 12:00 PM, or on demand thereafter. Register Here

The Florida Customs Brokers & Forwarders Association (FCBF) encourages all custom brokers, patent, trademark and all international trade professional to join its Intellectual Property Rights (IPR) with U.S. Customs and Border Protection (CBP) and UL. This one-hour webinar will give custom brokers, importers, and all other international trade professionals the ability to learn and understand CBP’s IPR customs and enforcement. 

This webinar will be Friday, September 3, 2021 at 11:30 AM EST.  

Register Now! 

Importers, Manufacturers and Customs Brokers, and others interested in CBP and IPR matters, regardless of affiliation or membership, are invited and encouraged to attend. Learn what customs brokers and importers need to know about UL and the increased safety risk associated with counterfeit products. The webinar will cover: 

• Overview of CBP’s IPR enforcement regime
• Timeframes followed by CBP in suspected IPR violations
• Information CBP is authorized to share with the broker
• Examples of notices and most pertinent information therein
• CBP’s perspective on gray market shipments
• How brokers can be proactive to limit the time flagged shipments are detained
• Best contacts at CBP for any IPR-related inquiries
• Programs available to the trade community

Learn more about our speakers:

President and Founder of Diaz Trade Law, Jennifer (Jen) Diaz is a Chambers ranked, Board Certified International Attorney specializing in customs and international trade. For more than 15 years, Jen has provided legal advice and customized training on import and export compliance to industry, with a strong record of success in mitigating federal administrative enforcement actions. 

Jen has received many accolades from the legal community, including being recognized by “Super Lawyers” as a Top International Attorney, having an AV rating of “Superb,” and serving as President of the Organization of Women in International Trade (2018-2019). 

A frequent media commentator, Jen has authored book chapters, journal articles, and other articles for The Florida Bar, the American Bar Association, Bloomberg Law, and others. Jen is Editor of “Customs & International Trade Law,” a blog recognized by the U.S. Library of Congress as being an important part of the legal historical record. 

Alaina van Horn currently serves as the Chief of the Intellectual Property Rights Branch of U.S. Customs and Border Protection, Office of Trade, where she supervises a team of attorneys and paralegals specializing in border enforcement of intellectual property rights. Prior to this position she served a one year detail in the Office of the U.S. Intellectual Property Enforcement Coordinator (IPEC) in the Executive Office of the President, as a Policy Advisor specializing in customs law. Prior to joining the IPEC she was a Senior Attorney-Advisor in the Intellectual Property Rights Branch of CBP’s Office of Trade for over a decade, where she provided legal support to all ports of entry on border enforcement of trademarks and copyrights, adjudicated administrative petition for relief from seizure, issued binding rulings and infringement determinations, and administered patent and trade secrets based exclusion orders issued by the U.S. International Trade Commission. Ms. van Horn has conducted numerous capacity building trainings on border enforcement of intellectual property rights to foreign governments, international organizations, and domestic audiences in both the public and private sectors.

Lisa Deere has over 20 years’ experience in Intellectual Property, Anti-Counterfeiting, and prosecution. In late 2017 Lisa joined the Global Security and Brand Protection team of UL LLC (Underwriters Laboratories) as a Brand Protection Manager overseeing the United States and Canada.

Prior to joining UL, Lisa was responsible for the enforcement program at Conair Corporation where she launched the Anti-Counterfeiting program, initially with just

the US market, and eventually expanded the program globally.

Lisa’s IP career began while working for a major US charity. During her tenure with the charity, she worked closely with in-house counsel to build an international trademark portfolio, aggressively protected the brand through online enforcement, and assisted in defending against misuse of the charity’s well-respected name.

Lisa is actively involved in several Anti-Counterfeiting organization, including the International Anticounterfeiting Coalition (IACC), the International Trademark Association (INTA), and the Canadian Anti-Counterfeiting Network (CACN). She has served two terms as a member of INTA’s Anti-Counterfeiting committee, numerous terms on the INTA Round Table Subcommittee, and is currently serving as Vice Chair of the CACN Steering Committee. Lisa is a frequent moderator and roundtable host, and often speaks on the topic of health & safety issues related to counterfeit electronics.

REGISTER TODAY!

Join us IN PERSON in Baltimore, MD, July 26-27, 2021. NCBFAA NEI and hotel staff will be complying with all state and venue COVID-19 protocols so you can feel safe attending the event! Virtual attendance is available, so you can gain knowledge from anywhere!

REGISTER TODAY!

All trade professionals, regardless of membership or affiliation, are invited to join to:

• Learn from industry subject matter experts on today’s pressing matters
• Get an opportunity to voice your questions to federal, state and industry experts about the latest issues affecting your business
• Acquire fresh ideas by networking with business colleagues while meeting new people

Diaz Trade Law is enthusiastic to announce that our President, Jennifer Diaz will be a featured speaker alongside Adrienne Braumiller on the topic “Update on CBP Enforcement Efforts: IPR, Section 301, 232, AD/CVD” taking place on July 27th from 9:00 am to 10:30 am EST.

As we all know, Intellectual Property Rights, AD/CVD, Section 301 and 232 are all things on CBP’s priority list for enforcement. What do you have in place to make sure you are complying with the regulations? What have you done to assure yourself that your imports are not affected by the rules, and if they are, how you are managing the additional complexity of these movements?

Learn More About Jen Diaz!

President and Founder of Diaz Trade Law, Jennifer (Jen) Diaz is a Chambers ranked, Board Certified International Attorney specializing in customs and international trade. For more than 15 years, Jen has provided legal advice and customized training on import and export compliance to industry, with a strong record of success in mitigating federal administrative enforcement actions.

Jen has received many accolades from the legal community, including being recognized by “Super Lawyers” as a Top International Attorney, having an AV rating of “Superb,” and serving as President of the Organization of Women in International Trade (2018-2019).

A frequent media commentator, Jen has authored book chapters, journal articles, and other articles for The Florida Bar, the American Bar Association, Bloomberg Law, and others. Jen is Editor of “Customs & International Trade Law,” a blog recognized by the U.S. Library of Congress as being an important part of the legal historical record.

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