What makes this potential shutdown different from previous lapses in funding is the lack of contingency plans within the relevant agencies. The White House’s Agency Contingency Plan page is blank. 

Until agencies update their guidance, we can only look to previous contingency plans.

Below is a breakdown of previously issued agency guidance. ,

U.S. Customs and Border Protection

According to the Department of Homeland Security’s most recent contingency plan (March 2025) cargo inspection functions at ports of entry will remain active during a shutdown. However, certain activities, such as training and auditing, are not required to be carried out during this time. In addition, back-office support positions are not likely to be deemed essential and will be furloughed. Refunds, audits, ruling requests, etc., would be delayed until the shutdown ends.

There remains uncertainty around which specific offices will be deemed essential. For example, Forced Labor Communications may be furloughed, resulting in delays in reviewing the Enforce and Protect Act (EAPA) and Uyghur Forced Labor Prevention Act (UFLPA) allegations.

U.S. Department of Commerce

According to the Department of Commerce’s most recent contingency plan (September 2023), some International Trade Administration (ITA) activities, such as trade policy negotiations, will be considered necessary for national security and will operate during a shutdown. However, many other activities are not likely to be deemed essential. For example, in the last shutdown in 2019, the ITA and the Bureau of Industry and Security operated with a significantly reduced staff and budget. All antidumping and countervailing duty (AD/CVD) investigations and administrative proceedings will stop.

U.S. Department of State

According to the department’s most recent contingency plan (August 2023), many administrative functions will be subject to furloughs, which will result in a delay in licensing and other regulatory functions.

Food and Drug Administration (FDA)

Unlike many other agencies that are funded solely by government appropriations, the majority of FDA staff is funded by other revenue (agency fees) and is therefore exempt from a government shutdown. According to the agency’s most recent contingency plan (December 2023), 77% of FDA staff will be retained in the event of a lapse of appropriation. Entry reviews and exams will continue, as well as high-risk investigations. However, importers should expect delays in the processing of import transactions.

While many agencies and employees critical to international trade will not be subject to furloughs during a shutdown, companies should still expect delays and disruptions. Diaz Trade Law will continue to monitor developments and provide updates when they become available.

On August 19, 2024, the U.S. Department of Homeland Security (DHS) announced that it would be adding steel, copper, lithium, caustic soda, and red dates to the list of high-priority sectors for enforcement under the Uyghur Forced Labor Prevention Act (UFLPA). DHS also announced the release of an update to the UFLPA enforcement strategy.

Addition of High-Priority Sectors

Under the UFLPA, DHS is tasked with identifying high-priority sectors for enforcement. A high-priority sector designation indicates that entities in the sector have a higher risk of forced labor or state labor transfer of Uyghurs and other ethnic minorities from Xinjiang. 

In making the announcement of additional sectors, DHS cited each new addition’s connections to forced labor risks. For example, DHS stated that steel and copper have both been government-backed investment focal points in Xinjiang. Similarly, lithium is a government-identified key sector for investment and development in Xinjiang.

UFLPA Enforcement Strategy Update

DHS serves as the chair of the Forced Labor Enforcement Task Force (FLETF). Each year, the task force updates the UFLPA’s Strategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the People’s Republic of China (UFLPA Strategy). The task force is statutorily required to provide annual updates on the UFLPA Entity List, the list of products associated with certain listed entities, plans for enforcement and for identifying additional entities, and high-priority sectors.

The 2025 update highlights several accomplishments since the 2024 update, including:

• Significant expansion of the UFLPA Entity List
• Refinement of internal processes for expanding the UFLPA Entity List
• Providing greater transparency to the trade community
• Supporting the private sector’s due diligence and compliance efforts
• Protecting American industry from unfair trade practices

In the report, Christopher C. Pratt, acting DHS undersecretary for strategy, policy, and plans, reiterates that ending forced labor is “an economic and national security imperative for the United States.”

Contact Us For Assistance with Forced Labor Compliance

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

Learn more:

• UFLPA Guidance: What Importers Need to Know
• Uyghur Forced Labor Prevention Act (UFLPA): What You Need to Know
• Bloomberg Law: U.S. Customs Targets the Use of Forced Labor
• CBP Publishes Additional Guidance On Responding to Cargo Detentions Made Under the Uyghur Forced Labor Prevention Act
• UFLPA DHS Forced Labor Guidance – What Importers Need to Know
• Uyghur Forced Labor Prevention Act (UFLPA): What You Need to Know

Plan Details

The action plan will enable USDA to work closely with governors, state legislators, and federal partners to further integrate agriculture into the broader national security efforts over the coming months and years.

The USDA and its government partners will take “aggressive action” across seven critical areas:

1. Secure and Protect American Farmland – Address U.S. foreign farmland ownership from adversaries head-on. Total transparency. Tougher penalties.
2. Enhance Agricultural Supply Chain Resilience – Refocus domestic investment into key manufacturing sectors and identify non-adversarial partners to work with when domestic production is not available. Plan for contingencies.
3. Protect U.S. Nutrition Safety Net from Fraud and Foreign Exploitation – Billions have been stolen by foreign crime rings. That ends now.
4. Defend Agricultural Research and Innovation – No more sweetheart deals or secret pacts with hostile nations. American ideas stay in America.
5. Put America First in Every USDA Program – From farm loans to food safety, every program will reflect the America First agenda.
6. Safeguard Plant and Animal Health – Crack down on bio-threats before they ever reach our soil.
7. Protect Critical Infrastructure – Farms, food, and supply chains are national security assets and will be treated as such.

The action plan is the next pillar of the USDA “Make Agriculture Great Again” initiative and seeks to protect the country’s agricultural supply chains from security vulnerabilities. 

Increased Enforcement

Notably, the plan also states that the federal government is looking to increase enforcement on “logistics providers, customs brokers, and other trade intermediaries” that are responsible for importing “dangerous biochemicals and biological agents.” 

According to the plan, the USDA intends to review and modernize import restrictions to prevent the spread of dangerous chemicals and agents. USDA will work with federal partners, including CBP, “to strengthen our nation’s borders against entry of restricted goods that could carry animal disease, plant pests, and biological pathogens that can be weaponized against the American public.”

Response and Next Steps

Several members of Congress, governors, and state Agricultural Secretaries issued statements praising the plan, calling it critical to the agricultural economy and to the national security of the United States.

The action plan contains a lengthy list of action items for USDA to take, including an assessment of security risks in the agriculture infrastructure sector, modernizing import restrictions, and eliminating support programs to countries of concern.

Diaz Trade Law will continue to monitor developments as the USDA implements the plan.  

Read more:

• ICYMI: President Trump Signs America First Trade Policy
• USDA Proposes New “Made in the USA” Standard
• USDA Trade Matters

Strategy Background

DHS released the first publication of the UFLPA Strategy in June 2022. The strategy outlines a multi-pronged approach to combating forced labor in global supply chains.The strategy includes a comprehensive assessment of the risk of importing goods with forced labor in the PRC, high priority sectors for enforcement, guidance to importers, recommendations to accurately identify affected goods, and more. DHS released the first update to the publication in August of 2023.

The Latest Update  

The update builds on two years of the Administration’s enforcement of the UFLPA. The latest strategy identified new high priority sectors for enforcement – aluminum, polyvinyl chloride (PVC), and seafood. These industries were identified due to higher risk of forced labor or state labor transfer of Uyghurs and other ethnic minorities from the Xinjiang Uyghur Autonomous Region (XUAR).

Entities in these sectors will now be prioritized for review for enforcement actions such as inclusion on the UFLPA Entity List, sanctions, export limitations, and visa restrictions.

Other products previously identified as high priority such as apparel, cotton and cotton products, silica-based products including polysilicon, and tomatoes remain high priority sectors.

The latest updates also outline how the FLETF has significantly advanced their objectives through several initiatives, such as strong enforcement by U.S. Customs and Border Protection (CBP); expansion of the UFLPA Entity List; new high priority sectors for enforcement; and greater collaboration with stakeholders.

Revisit Your Due Diligence Efforts

With the addition of these new high-priority sectors for enforcement, importers should give extra attention to due diligence efforts on supply chains that interact with these sectors.

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

Read more:

• Bloomberg Law Feature: S. Customs Targets Use of Forced Labor
• Uyghur Forced Labor Prevention Act (UFLPA): What You Need to Know
• UFLPA DHS Forced Labor Guidance – What Importers Need to Know
• Know Your Supply Chain: Forced Labor

The Uyghur Forced Labor Prevention Act (“UFLPA”) went into effect on June 21, 2022. The law creates a rebuttable presumption that imports of all goods mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of China (“Xinjiang”), or by entities identified on the UFLPA Entity List, were made using forced labor and are prohibited from entry into the U.S. under 19 U.S.C. § 1307. For more information about the UFLPA, please see our previous blog articles here and here. U.S. Customs and Border Protection (“CBP”) has been vigorously enforcing this law, detaining hundreds of attempted import shipments every month under both the UFLPA and Withhold Release Orders for suspected forced labor violations.

Importers that have a shipment detained under the UFLPA can seek to have the shipment released under one of two paths. They can either:

• show that in spite of the fact that the goods were produced wholly or partially in Xinjiang or by an entity on the UFLPA Entity List, they were not in fact made using forced labor; or
• show that neither the goods nor the inputs used to make the goods were produced wholly or partially in Xinjiang and have no connection to entities on the UFLPA Entity List (i.e., that the goods fall outside the scope of the UFLPA).

Taking the second path means requesting an “admissibility review.”

Last year, pursuant to the UFLPA, the Department of Homeland Security published a Strategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the People’s Republic of China and CBP published its UFLPA Operational Guidance for Importers (“Operational Guidance”). The Operational Guidance includes information about the type of supply chain tracing information it expects to see in an admissibility review package. Until recently, this was the only guidance available.

New Guidance

On February 23, 2023, CBP published two additional guidance documents for importers attempting to show that their goods fall outside the scope of the UFLPA. The first document, entitled “Best Practices for Applicability Reviews: Importer Responsibilities,” clarifies and expands the Operational Guidance by stating that importers generally need to show documents, produced in the ordinary course of business, that describe the order, purchase, manufacture, and transportation of the inputs that are used to make the imported goods. The document re-emphasizes that CBP’s admissibility reviews are made on a case-by-case basis; because supply chains vary between countries, industries, and companies, there is no checklist or “one-size-fits-all” approach to the type of documents CBP expects importers to produce. However, CBP emphasizes that it is looking for three primary types of documents:

• Documents about the Parties Involved: CBP expects to see information about all parties involved in the sourcing, manufacture, manipulation, transportation, and export of imported goods.
• Documents Related to the Payment and Transportation of Inputs: CBP expects to see documents related to the purchase of the inputs (invoices, contracts, purchase orders, etc.), proof of payment or other financial documents, and documents showing the physical movement of the inputs from one place to another.
• Documents related to the Transaction and Supply Chain: CBP expects to see records that show the country of origin of the imported goods and all of the inputs used to make them, which may include bills of lading, manifests, and packing lists.

Of course, imported goods that have complex supply chains involving many different inputs, suppliers, and stages of production require lengthy admissibility packages that may involve hundreds of documents. The second document CBP published on February 23 provides guidance on how to organize this information. In this document, entitled “Guidance on Executive Summaries and Sample Tables of Contents: Preparing a UFLPA Applicability Review Submission,” CBP explains that admissibility review submissions should include an Executive Summary consisting of:

• An annotated document list;
• A summary of the supply chain; and
• Any additional summary information.

The document also includes two sample tables of contents. The first shows a table of contents organized by the parties involved in the transaction, the documents related to the payment and transportation of the inputs, and the transaction and supply chain. The second is organized by the steps involved in the supply chain.

In addition to the two guidance documents, CBP also expanded its list of Frequently Asked Questions and responses thereto.

Other Important Considerations

• All importers have a responsibility to use reasonable care to ensure the products they import were not made using forced labor and should therefore do due diligence on all of their supply chains.
• Once a detention notice is issued for a suspected UFLPA violation, the importer generally has only thirty days to respond. Thus, importers should ensure that their suppliers, and their suppliers’ suppliers, are maintaining the necessary documents for immediate submission to CBP.
• If an importer is successful in securing the release of goods detained under the UFLPA, it should alert CBP if another shipment with an identical supply chain is detained, for faster review.
• Customs Trade Partnership Against Terrorism (CTPAT) members are given priority review of admissibility packages; importers may want to consider becoming a CTPAT member for this reason.
• While the UFLPA identifies certain high-priority products for enforcement (cotton, tomatoes, and polysilicon), CBP has detained goods in a variety of industries under the UFLPA, including metals, chemicals, foodstuffs, and other products. Any goods suspected of being made in whole or in part in Xinjiang or by an entity on the UFLPA Entity List may be subject to detention.
• CBP plans to add UFLPA enforcement statistics to its website around March 31, 2023. Currently, the only publicly available statistics combine both UFLPA and Withhold Release Order enforcement actions.

Contact Us

Diaz Trade Law has significant experience in a broad range of import compliance matters including forced labor issues. For assistance with importer due diligence in relation to forced labor requirements; or for assistance in submitting documents to dispute the use of forced labor, contact our Customs and International trade law attorneys at info@diaztradelaw.com or call us at 305-456-3830.

U.S. Customs and Border Protection (CBP)

• In December 2022 alone, U.S. Customs and Border Protection (CBP) processed more than 2.5 million entry summaries valued at more than $260 billion, identifying estimated duties of nearly $6.8 billion to be collected by the U.S. government. In December, trade via the ocean environment accounted for more than 40 percent of the total import value, followed by air, truck, and rail.
• In December 2022, CBP identified 310 entries valued at more than $59 million for further examination based on the suspected use of forced labor, and which may be subject to a Withhold Release Order, Forced Labor Finding, or the Uyghur Forced Labor Prevention Act’s rebuttable presumption, and prohibited importation into the United States under 19 U.S.C. § 1307.
• CBP announced intellectual property rights violations continue to put America’s innovation economy at risk. Trade in counterfeit and pirated goods threaten the competitiveness of U.S. businesses, the livelihoods of American workers, and the health and safety of consumers.
• In December 2022, CBP seized 1,501 shipments that contained counterfeit goods valued at more than $178 million.
• CBP completed 26 audits that identified $86.9 million in duties and fees owed to the U.S. government, stemming from goods that had been improperly declared in accordance with U.S. trade laws and customs regulations. CBP collected over $25 million of this identified revenue and from previous fiscal years’ assignments.
• CBP announced new #quota updates on #brooms and #chocolate! For those similarly curious about the chocolate quota – check out more information here: https://www.cbp.gov/trade/quota/bulletins/qb-23-216“

U.S. Department of Agriculture (USDA)

• This rulemaking amends the United States Department of Agriculture (USDA) organic regulations to strengthen oversight and enforcement of the production, handling, and sale of organic agricultural products. The amendments protect integrity in the organic supply chain and build consumer and industry trust in the USDA organic label by strengthening organic control systems, improving farm to market traceability, and providing robust enforcement of the USDA organic regulations.
  • Topics addressed in this rulemaking include: applicability of the regulations and exemptions from organic certification; National Organic Program Import Certificates; recordkeeping and product traceability; certifying agent personnel qualifications and training; standardized certificates of organic operation; unannounced on-site inspections of certified operations; oversight of certification activities; foreign conformity assessment systems; certification of producer group operations; labeling of nonretail containers; annual update requirements for certified operations; compliance and appeals processes; and calculating organic content of multi-ingredient products.

Department of Homeland Security (DHS)

• In this final rule, the Department of Homeland Security (DHS) makes the 2023 annual inflation adjustment to its civil monetary penalties. On November 2, 2015, the President signed into law The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Act).

Food and Drug Administration (FDA)

• The Food and Drug Administration (FDA) is essentially rejecting CBD in dietary supplements and conventional foods. The basic take-away is “Given the available evidence, it is not apparent how CBD products could meet safety standards for dietary supplements or food additives. For example, we have not found adequate evidence to determine how much CBD can be consumed, and for how long, before causing harm. Therefore, we do not intend to pursue rulemaking allowing the use of CBD in dietary supplements or conventional foods.”

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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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.

U.S. Customs and Border Protection (CBP)

• U.S. Customs and Border Protection (CBP) is offering both a remote proctored exam delivery option and an in-person testing option for the October 26, 2022 Customs Broker License Exam (CBLE).
• The Commercial Customs Operations Advisory Committee (COAC) will hold its quarterly meeting on Wednesday, September 14, 2022, in Chicago, Illinois. The meeting will be open for the public to attend in person or via webinar. Due to COVID-19 restrictions, the in-person capacity is limited to 75 persons for public attendees.

U.S. Department of State (DOS)

• On March 23, 2022, the Directorate of Defense Trade Controls (DDTC) announced an International Traffic in Arms Regulation (ITAR) interim final rule (87 FR 16396, effective Sept. 6, 2022). This rule is the first of a project dedicated to better organizing ITAR and serves to consolidate and co-locate the authorities, general guidance, and definitions that have become dispersed throughout the ITAR.
• On August 26, 2022, the U.S. Department of State (DOS) has concluded administrative settlements with Ryan Adams, Marc Baier, and Daniel Gericke, respectively, to resolve alleged violations of the Arms Export Control Act (AECA), 22 U.S.C. § 2751 et seq., and the International Traffic in Arms Regulations (ITAR), 22 C.F.R. Parts 120-130.

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

• The U.S. Department of the Treasury (USDT) and the Ministry of Finance of the State of Israel (MOF) announced the finalization of a bilateral Memorandum of Understanding (“MoU”) on Cybersecurity Cooperation.
• The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is issuing Iran General License M-2, “Authorizing the Exportation of Certain Graduate Level Educational Services and Software”.

U.S. Department of Commerce (DOC)

• As a result of the determinations by the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (USITC) that revocation of the antidumping duty and countervailing duty orders on certain cold-rolled steel flat products  from the People’s Republic of China, India, Japan, the Republic of Korea, and the United Kingdom would likely lead to continuation or recurrence of dumping, net countervailable subsidies, and material injury to an industry in the United States, DOC is publishing a notice of continuation of the AD and CVD orders.
• DOC is amending the final results of the administrative review of the countervailing duty (CVD) order on truck and bus tires from the People’s Republic of China, covering the period of review January 1, 2020, through December 31, 2020, to correct ministerial errors.
• DOC hereby publishes a list of scope rulings and anti-circumvention determinations made during the period April 1, 2022-June 30, 2022.

U.S. Department of Homeland Security (DHS)

• According to the U.S. Department of Homeland Security (DHS), in Consolidated Case Number 7474; Certain Steel Grating from the People’s Republic of China, based upon de novo review of the administrative record in this case, including the timely and properly filed requests for administrative review and response, the June 21 Determination of evasion under 19 USC § 1517(c) is AFFIRMED.
• According to DHS, in Case Number 7250; Diamond Sawblades and Parts from the People’s Republic of China and the Republic of Korea, based upon their de novo review of the administrative record in this case, including the timely and properly filed request for administrative review submitted by Lyke on September 22, 2021, and DSMC’s Response submitted on October 6, 2021, the August 10 Determination of evasion under 19 U.S.C. § 1517(c) is AFFIRMED.
• According to DHS, in Consolidated Case Number 7586; Certain Quartz Surface Products from the People’s Republic of China, based upon their de novo review of the administrative record in this case, including the timely and properly filed request for administrative review and response, the December 6 Determination of evasion under 19 USC § 1517(c) is AFFIRMED.
• According to DHS, in Consolidated Case Number 7603; Wooden Cabinets and Vanities and Components from the People’s Republic of China, based upon their de novo review of the administrative record in this case, including the administrative record, the request for administrative review and response, the January 27th Determination of evasion under 19 U.S.C. § 1517(c) is REVERSED.
• According to DHS, in Consolidated Case Number 7501; Steel Wire Garment Hangers from the People’s Republic of China, based upon their de novo review of the administrative record in this case, including the timely and properly filed request for administrative review submitted by CEK on October 29, 2021, and M&B’s Response submitted on November 16, 2021, the September 16 Determination of evasion under 19 U.S.C. § 1517(c) is AFFIRMED.
• According to DHS, in Case Number 7523; Lightweight Thermal Paper from the People’s Republic of China, based upon their de novo review of the administrative record in this case, including the timely and properly filed request for administrative review submitted by Amlink on September 23, 2021, the August 23 Determination of evasion under 19 U.S.C. § 1517(c) is AFFIRMED.
• According to DHS, in Consolidated Case Number 7553; Wooden Cabinets and Vanities and Components from the People’s Republic of China, based upon their de novo review of the administrative record in this case, including the requests for administrative review and response, the September 16th Determination of evasion under 19 U.S.C. § 1517(c) is AFFIRMED.
• According to DHS, in Consolidated Case Number 7583; Wooden Cabinets and Vanities and Components from the People’s Republic of China, based upon their de novo review of the administrative record in this case, including the timely and properly filed request for administrative review and response, the January 31 Determination of evasion under 19 USC § 1517(c) is REVERSED.

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

• The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is publishing nine general licenses (GLs) issued in the Ukraine-/Russia-related Sanctions program: GL 17, Authorizing the Wind Down of Transactions Involving the So-Called Donetsk People’s Republic or Luhansk People’s Republic Regions of Ukraine, and GLs 18, 19, 20, 21, 22, 23, 24, and 25 which are for related issues.
• OFAC is publishing three web general licenses (GLs) issued in the Syria Sanctions Regulations, Iran Transactions and Sanctions Regulations and Global Terrorism Sanctions Regulations, and Venezuela Sanctions. These licenses authorizing certain activities to respond to the Coronavirus Disease 2019 (COVID-19) Pandemic.
• On August 8, 2022, under the cyber-related designation, OFAC made an update to the specially designated nationals list and added the “Tornado Cash” entity to the OFAC’s SDN List.

U.S. Court of Appeals for the Federal Circuit

• On August 11, the Court of Appeals for the Federal Circuit released a ruling which determined the Court of International (CIT) was wrong to consider China’s non-market economy (NME) status when analyzing whether to grant first sale treatment. The decision overturns and remands a 2021 CIT ruling that said that first sale treatment should not apply for cookware imported by Meyer from Thailand and China through Chinese middleman because China is a NME.

U.S. International Trade Commission

• The United States International Trade Commission (USITC) determined that an industry in the United States is not materially injured or threatened with material injury by reason of imports of acrylonitrile-butadiene rubber from France, Mexico, and South Korea, provided for in subheading 4002.59.00 of the Harmonized Tariff Schedule of the United States, that have been found by the U.S. Department of Commerce (DOC) to be sold in the United States at less than fair value.
• USITC received a complaint entitled Certain Robotic Pool Cleaners, Products Containing the Same, and Components Thereof, DN 3631; 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 received a complaint entitled Certain Solar Power Optimizers, Inverters, and Components Thereof, DN 3630; the Commission is soliciting comments on any public interest issues raised by the complaint or complainant’s filing pursuant to the Commission’s Rules of Practice and Procedure.
• USITC has found a violation of section 337 of the Tariff Act of 1930, as amended, in this investigation and has issued a general exclusion order (“GEO”) prohibiting the importation of certain infringing toner supply containers and components thereof, as well as cease and desist orders (“CDOs”) against certain defaulting respondents. The investigation is terminated.
• USITC has determined to institute a formal enforcement proceeding relating to the limited exclusion order (“LEO”) and cease and desist order (“CDO”) (collectively, “the remedial orders”) issued against The Chamberlain Group, LLC (formerly, The Chamberlain Group, Inc.) (“Chamberlain”) on February 9, 2022, and modified on March 30, 2022.

Federal Trade Commission

• The Federal Trade Commission (FTC) has received reports of people receiving letters in the mail from a law firm, with a false claim of a multi-million-dollar inheritance. The letter’s contents include: splitting the inheritance between you, their law firm, and some charities. The writers of the letter require that the recipient keep this information secret and reach out to them by email — immediately. Here are recommendations provided by the FTC on what to do:
  • Don’t respond. Keep your money — and your information — to yourself. Never send money or information to a stranger who promises big rewards. That’s always a scam.
  • Pass this information on to a friend. You probably throw away these kinds of letters. But you probably know someone who could use a friendly reminder.
  • Report it to the FTC at ReportFraud.ftc.gov.

U.S. Department of Commerce

• On August 4, the U.S. Department of Commerce (DOC) announced it preliminarily determines that certain steel nails from the Republic of Turkey are being, or are likely to be, sold in the United States at less than fair value (LTFV).
• On August 4, DOC announced it preliminarily determines that certain steel nails from Thailand are being, or are likely to be, sold in the United States at less than fair value (LTFV).
• On August 4, DOC announced it preliminarily determines that certain steel nails from Sri Lanka are not being, or are not likely to be, sold in the United States at less than fair value (LTFV).
• On August 4, DOC announced it preliminarily determines that certain steel nails from India are being, or are likely to be, sold in the United States at less than fair value (LTFV).
• On August 4, DOC announced it preliminarily determines that certain lemon from the Republic of South Africa (South Africa) is being, or is likely to be, sold in the United States at less than fair value.
• On August 4, DOC announced it preliminarily determines that certain lemon juice from Brazil is being, or is likely to be, sold in the United States at less than fair value (LTFV).
• As a result of the determinations by the DOC and the U.S. International Trade Commission (USITC) that revocation of the antidumping duty (AD) orders on stainless steel plate in coils (SSPC) from Belgium, South Africa, and Taiwan, and the countervailing duty (CVD) order on SSPC from South Africa would likely lead to a continuation or recurrence of dumping, net countervailable subsidies, and material injury to an industry in the United States, DOC is publishing a notice of continuation of the AD orders and the CVD order.
• DOC preliminarily determines that Metalco S.A. (Metalco), the sole company subject to this administrative review of the antidumping duty (AD) order on corrosion-resistant steel products (CORE) from the People’s Republic of China, is part of the China-wide entity because it did not file a separate rate application (SRA).
• DOC is initiating country-wide circumvention inquiries to determine whether imports are circumventing the respective antidumping duty (AD) and countervailing duty (CVD) regulations: CWP China, CWP Korea, pipe and tube India, pipe and tube Taiwan, CWP Taiwan, LWRPT China, LWRPT Korea, and LWR tubing Taiwan.
• On August 4, DOC preliminarily determines that Daejin Steel Company (Daejin) and Korea Wire Co., Ltd. (KOWIRE), the producers and/or exporters subject to this administrative review, made sales of certain steel nails from the Republic of Korea at less than normal value (NV) during the period of review (POR) July 1, 2020, through June 30, 2021.
• DOC preliminarily determines that certain corrosion-resistant steel products (CORE) from the Republic of Korea were sold in the United States at less than normal value (NV) during the period of review of July 1, 2020, through June 30, 2021.
• DOC preliminarily determines that the exporters subject to this antidumping duty (AD) administrative review did not make sales of subject merchandise at less than normal value, and that one company (Shanghai Smart Chemicals Co., Ltd. (Shanghai Smart)) had no shipments of subject merchandise during the period of review  July 1, 2020, through June 30, 2021.
• DOC preliminarily determines that producers or exporters of steel concrete reinforcing bar from the Republic of Turkey subject to this review made sales of subject merchandise at less than normal value during the period of review July 1, 2020, through June 30, 2021.
• DOC is conducting an administrative review of the antidumping duty order on polyethylene terephthalate film, sheet, and strip (PET film) from India.
• DOC preliminarily finds that producers and/or exporters subject to this administrative review made sales of subject merchandise at less than normal value during the period of review July 1, 2020, through June 30, 2021. Interested parties are invited to comment on these preliminary results.
• DOC preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain corrosion-resistant steel products (CORE) from the Republic of Korea.  
• DOC preliminarily determines that producers/exporters subject to this review made sales of subject merchandise at less than normal value during the period of review July 1, 2020, through June 30, 2021.
• DOC preliminarily determines that countervailable subsidies were provided to producers and exporters of certain collated steel staples from the People’s Republic of China during the period of review from November 12, 2019, through December 31, 2020.
• The Bureau of Industry and Security (BIS) and the U.S. Department of Commerce (DOC), through its Office of Export Enforcement (OEE), has requested the issuance of an Order temporarily denying, for a period of 180 days, the export privileges under the Regulations of Venezuela-based cargo airline Empresa de Transporte Aéreocargo del Sur, S.A., a/k/a Aerocargo del Sur Transportation Company, a/k/a EMTRASUR (“EMTRASUR”).

U.S. Department of Homeland Security

• The U.S. Department of Homeland Security (DHS), as the Chair of the Forced Labor Enforcement Task Force (FLETF), announces the publication and availability of the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, a consolidated register of the four lists required to be developed and maintained pursuant to Section 2(d)(2)(B) of the UFLPA, on the DHS UFLPA website.

U.S. Customs and Border Protection 

• U.S. Customs and Border Protection (CBP) officers in Cincinnati seized three shipments of jewelry and watches deemed counterfeit by CBP’s Centers of Excellence and Expertise. Officers intercepted counterfeit jewelry and watches that, if real, would have been worth over $6.88 million.
  • The first shipment originated from Hong Kong, and was destined to a private residence in Richmond, Virginia. Although it had a declared value of $319, the package held 275 assorted Cartier Love bracelets. Had the 275 bracelets been genuine, the Manufacturer’s Suggested Retail Price (MSRP) would have been $3.27 million
  •  The second shipment also arriving from in Hong Kong. Officers found 385 yellow gold Cartier bracelets and 115 white gold Cartier bracelets. These 500 counterfeit bracelets would have had a total MSRP of $3.2 million, had they been real.
  •  CBP officers seized a third shipment from Hong Kong containing 13 fake Rolex watches- 10 Cosmograph Daytona and three Yacht Master II. These counterfeit watches were heading to a business in Mesquite, Texas. Had these been genuine, the MSRP for these watches would have been over $405,000.

Office of the U.S Trade Representative 

• On July 14, 2022, the U.S. Trade Representative (USTR) announced the launching of the United States-Kenya Strategic Trade and Investment Partnership (STIP). Under this initiative the two governments will pursue enhanced engagement leading to high standard commitments in a wide range of areas with a view to increasing investment; promoting sustainable and inclusive economic growth; benefiting workers, consumers, and businesses (including micro-, small-, and medium-sized enterprises (MSMEs)); and supporting African regional economic integration.

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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