• Revocation of three ruling letters, modification of one ruling letter, and revocation of treatment relating to the tariff classification of certain step stools
  • Pursuant to 19 U.S.C. § 1625(c)(1), CBP is revoking NY N294603, dated March 2, 2018, NY N196451, dated December 27, 2011, NY M84487, dated June 27, 2006, and modifying NY N235681, dated December 5, 2012, and revoking or modifying any other ruling not specifically identified to reflect the analysis contained in HQ H305377, set forth as an Attachment to this notice. Additionally, pursuant to 19 U.S.C. § 1625(c)(2), CBP is revoking any treatment previously accorded by CBP to substantially identical transactions.
  • It is now CBP’s position that a one-step step stool is classified according to its constituent material in heading 3924, if made of plastics or in heading 4421, if made of wood. Accordingly, pursuant to GRI’s 1 and 6, the plastic one-step step stools in NY N294603 and NY N196451 are classified in subheading 3924.90.56, which provides for “Tableware, kitchenware, other household articles and hygienic or toilet articles, of plastics: Other: Other”. The one-step step stool made of MDF in NY N235681 and the wooden step stool in NY M84487 are classified in subheading 4421.99.97, which provides for “Other articles of wood: Other: Other: Other: Other
• Proposed modification of one ruling letter and proposed revocation of treatment relating to the tariff classification of paper face masks
  • Pursuant to 19 U.S.C. § 1625(c)(1), CBP is proposing to modify HQ 088173 and to revoke or modify any other ruling not specifically identified to reflect the analysis contained in the proposed HQ H311239, set forth as Attachment B to this notice. Additionally, pursuant to 19 U.S.C. § 1625(c)(2), CBP is proposing to revoke any treatment previously accorded by CBP to substantially identical transactions.
  • It is now CBP’s position that if imported separately, paper face masks are properly classified in heading 4818, HTSUS, specifically in subheading 4818.90.00, HTSUS, which provides for “Toilet paper and similar paper, cellulose wadding or webs of cellulose fibers, of a kind used for household or sanitary purposes, in rolls of a width not exceeding 36 cm, or cut to size or shape; handkerchiefs, cleansing tissues, towels, tablecloths, table napkins, bed sheets and similar household, sanitary or hospital articles, articles of apparel and clothing accessories, of paper pulp, paper, cellulose wadding or webs of cellulose fibers: Other”
• Ship’s Store Declaration
  • CBP Form 1303, Ship’s Stores Declaration, is used by the carriers to declare articles to be retained on board the vessel, such as sea stores, ship’s stores (e.g., alcohol and tobacco products), controlled narcotic drugs or bunker fuel in a format that can be readily audited and checked by CBP
  • Proposed Change: This form is anticipated to be submitted electronically as part of the maritime forms automation project through the Vessel Entrance and Clearance System (VECS), which will eliminate the need for any paper submission of any vessel entrance or clearance requirements under the above referenced statutes and regulations. VECS will still collect and maintain the same data but will automate the capture of data to reduce or eliminate redundancy with other data collected by CBP.
  • CBP invites the general public and other Federal agencies to comment on the proposed and/or continuing information collections pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). This proposed information collection was previously published in the Federal Register (87 FR 33179) on June 1, 2022, allowing for a 60-day comment period. This notice allows for an additional 30 days for public comments
• Importers of Merchandise Subject to Actual Use Provisions
  • In accordance with 19 CFR 10.137, importers of goods subject to the actual use provisions of the Harmonized Tariff Schedule of the United States (HTSUS) are required to maintain detailed records to establish that these goods were actually used as contemplated by the law, and to support the importer’s claim for a free or reduced rate of duty. The importer shall maintain records of use or disposition for a period of three years from the date of liquidation of the entry, and the records shall be available at all times for examination and inspection by CBP
  • CBP invites the general public and other Federal agencies to comment on the proposed and/or continuing information collections pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). This proposed information collection was previously published in the Federal Register (87 FR 29757) on May 16, 2022, allowing for a 60-day comment period. This notice allows for an additional 30 days for public comments
• Customs-Trade Partnership Against Terrorism (CTPAT) and CTPAT Trade Compliance Program
  • CBP invites the general public and other Federal agencies to comment on the proposed and/or continuing information collections pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). This proposed information collection was previously published in the Federal Register (87 FR 12473) on March 04, 2022, allowing for a 60-day comment period. This notice allows for an additional 30 days for public comments.
  • Written comments and suggestions from the public and affected agencies should address one or more of the following four points:
    • (1) whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility;
    • (2) the accuracy of the agency’s estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used;
    • (3) suggestions to enhance the quality, utility, and clarity of the information to be collected; and
    • (4) suggestions to minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses. The comments that are submitted will be summarized and included in the request for approval.
  • All comments will become a matter of public record.
• Copyright, Trademark, and Trade Name Recordations
  • The following copyrights, trademarks, and trade names were recorded with U.S. Customs and Border Protection in Septem[1]ber 2022. A total of 168 recordation applications were approved, consisting of 3 copyrights and 165 trademarks
  • Recordations can be viewed on pages 35-42 of the bulletin
• RKW Klerks v. United States
  • In a case that involved the classification of two types of net wrap, both of which were synthetic fabrics used to wrap round bales of harvested crops, the U.S. Customs and Border Protection properly classified the net wraps under HRSUS subheading 6005.39.00;
  • The wraps were not “parts” of harvesting or agricultural machinery classifiable under HTSUS subheadings 8433.90.50 or 8436.99.00 because they were not integral to the functioning of round hay balers and were a disposable input and not a part of round baling machines.
  • Plaintiff’s motion for summary judgment denied and defendant’s cross-motion for summary judgment granted.

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

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.

REGISTER TODAY!

Whether you are new to importing or seasoned, this one-hour webinar is a must attend. Register today to hear directly from this specialized, expert trio on the “Top 10 Tips When Importing to Ensure Compliance” with real case studies:

• President and Founder of Diaz Trade Law, Jennifer (Jen) Diaz is a Chambers ranked, Board Certified International Attorney specializing in customs and international trade,
• Trade Advisor at Diaz Trade Law, Donald Woods has worked in the express delivery, freight forwarding, and logistics industries for 34 years in both imports and exports. He retired from UPS after 34 years of service as the VP, Customs & Trade Compliance for the Customs Brokerage business unit.
• Associate Attorney of Diaz Trade Law, Denise Calle assists U.S. and foreign manufacturers, distributors, and importers, with a range of import compliance, regulatory compliance, and enforcement matters involving U.S. Customs.

This one-hour webinar describes the importer’s role as the responsible party for an import transaction. Our speakers will discuss how to comply with U.S. Customs and Border Protection’s (CBP) vast laws and regulations. By the end of the webinar, you will know and understand the importance of tariff classification, customs valuation, country of origin marking, intellectual property rights and free trade agreements.

You will also learn basic customs concepts and terms like CBP Form 7501, CBP 28, CBP 29, protests, detention and seizure cases, liquidated damage claims, penalties/fines, prior disclosures, and the FP&F process. Additionally, you will learn the top 10 tips when importing to ensure compliance. This webinar will provide valuable assistance to all importers, customs brokers, and all trade professionals.

In This Webinar You Will Learn:

• Importance of CBP Rulings for Classification, Valuation and Country of Origin.
• Cost Savings practices like utilizing Free Trade Agreements.
• Importance of protecting intellectual property rights.
• Basic customs concepts and terms.
• Top tips to proactively work with your Customs Broker.
• What to do if you encounter a CBP detention and/or seizure case Learn when to submit a prior disclosure to CBP Top 10 tips when importing to ensure compliance.
• Learn key best practices and hear real life case studies.
• Learn what to do, and more importantly, what NOT to do, and what the consequences are for non-compliance.

Who should attend:

• Importers
• Customs Brokers
• Regulatory Affairs Professionals
• In-house Legal Counsel
• Product Development Managers
• Other Trade Members

This webinar is eligible for continuing education credit from the NCBFAA Educational Institute. Space is limited, registration required! Access instructions will be provided after your registration is complete. Don’t just take our word for how awesome Diaz Trade Law webinars are. Click here to see what our past attendees had to say. Be sure to join us on May 5, 2021!

From September 8-11, U.S. Customs and Border Protection (CBP) held its first virtual trade week. Over the course of the event, CBP held an action-packed series of webinars on the following topics:

• United States-Mexico-Canada-Agreement (USMCA)
• Forced Labor
• Customs-Trade Partnership Against Terrorism (CTPAT)
• E-Commerce
• 21^st Century Customs Framework (21CCF)

In the midst of this global pandemic and the vast challenges that (we are all navigating) the trade community faces, by us coming together in this way collective commitment to continue our persistent and ongoing dialogue about the most pressing issue facing.  CBP believes that improving and delivering effective transparency is an essential element to enhancing trust, and trust is essential to strengthening partnerships and getting things done for your business to thrive and trade community to succeed.

Below are summaries of each of the sessions. Have questions on them? Contact DTL at info@diaztradelaw.com.

USMCA

Whether you choose to refer to it as USCMA, T-MEC, or CUSMA, it continues to work towards economic prosperity and security for North America, and not just a replacement to NAFTA. USCMA provisions are cross-cutting in nature and affect multiple sectors of the economy. This agreement will facilitate mutually beneficial trade leading to freer markets, fairer trade, and robust economic growth in North America. The USMCA seeks to re-balance trading relationships in North America through having changed the legacy NAFTA provisions on investment protection, government procurement, and rules of origin for key manufacturing sectors, especially automobiles.

This Agreement also provides strong effective protection and enforcement through enhanced enforcement capabilities and unprecedented incorporation of the three customs administration best practices, in areas such as trusted trader and authorized economic operator, single window, risk-based analysis, targeting, trade advisory committees, and post-clearance audit. Additionally, it also addresses a new competition policy provision, expending on provisions of legacy NAFTA, to ensure fair competition by requiring parties to adopt and maintain laws against anti competitive business conduct. As for Rules of Origin, the USMCA will be more liberal for some products and stricter for others. Overall, the rules of origin promote production in North America, streamlining certification and verification rules of origin and strengthen enforcement.

USMCA, just as NAFTA once was, is extremely important to the economic recovery of Mexico, and North America as a region. The Mexican President came to Washington DC to convey exactly that when meeting with President Trump. USMCA signifies, or can even be the driver, for productivity working towards attracting investments for job creation, and ultimately for more welfare. That being said, customs authorities are fully engaged and committed to a successful implementation of this agreement. Knowing that such an implementation is paramount to this end. Customs authorities view themselves as partners to companies involved in the trade community, helping you comply with the agreement.

CBSA is responsible for Customs administration in Canada ranging from the risking and processing of commercial goods, per the assessment and reassessment of duties and taxes as well as enforcement of compliance directed by international commitments, domestic law, and security policy procedures. With regards to DGF trade and Dumping program in Canada, CBSA plays a key role in implementing Canada’s commitment in three areas:

1. Origin procedures.
2. New chapter on customs and trade facilitation Chapter 7; and
3. Trade remedies (e.g. anti-dumping)

When it comes to the Agreement and its implementation to Customs, it is safe to say there’s a dual process to the improvements being brought to bear. The first being, the drive to modernize and streamline customs experience, through the adoption of E-solution by reducing unnecessary and unjustified red tape, simplifying procedures, and standardizing how customs works. That thrives to modernize is backstopped by a clear focus on ensuring that the rules are enforced effectively and appropriately by each party. The compliance enforcement is grounded, transparent, predictable expectation in procedures, but due regard to privacy and confidentiality, and close collaboration across customs authorities.

Importers and producers can be a certifier and whoever certifies must have the records to show proof upon request. However, as such, they will have full appeal rights as well. Must provide clear facts establishing origin.

Diaz Trade Law’s President, Jennifer Diaz, and Associate Attorney, Denise Calle provided a thorough review of the agreement in their article published in Bloomberg Law, titled USMCA Import Considerations for Practitioners.

FORCED LABOR 

Unfortunately, the use of forced labor worldwide is extremely prevalent. Currently, roughly 40 million people are victims of modern slavery; over half, approximately 25 million, are victims of forced labor, specifically. Furthermore, over 150 million children around the world are laborers, rather than students. The use of forced labor is not only common but exceptionally profitable. In fact, behind drugs and weapons, Human Trafficking (which encompasses forced labor) is the third most profitable illicit trade, with an annual trade value of more than $144 Billion. According to the Global Slavery Index, the US imports the following items produced by forced labor:

• Electronics ~ $91 Million
• Clothing/Textiles ~$47 Million
• Cocoa ~ $1 Million

Thankfully, U.S. Customs and Border Protection has been working to curb this inhumane practice. The relatively recent push to fight forced labor came about with revisions to Section 307 of the Tariff Act of 1930. Section 307 of the Tariff Act of 1930 codifies into law the prohibition of importing items produced -wholly or in part- by the use of forced labor.

The Trade Facilitation and Trade Enforcement Act of 2015  ended the “consumptive demand” clause in 19 U.S.C. § 1307, which had previously allowed for the importation of goods that had been partially produced by forced labor. Since its repeal, CBP, in partnership with U.S. Immigration and Customs Enforcement, has been actively investigating allegations of forced labor around the globe, examining various supply chains in order to curb the illicit practice. According to CBP, the agency does not target whole product lines or industries, rather it focuses on information regarding specific actors and their merchandise.

The strategic use of Withhold Release Orders (WROs) on certain industries and nations has had a notable effect on mitigating this practice. Since May 2016, the US has implemented 19 WROs, which has had ripples world-wide. Another integral aspect aiding in this effort is Executive Order 13923 and the broad authority it grants to the newly established Forced Labor Enforcement Task Force. This EO aims to strengthen the task force monitoring the prohibition on the importation of goods produced by (or with) forced labor. Today, there is a joint effort between Non-profits, government agencies, as well as private industries to cooperate in quelling this international crisis.

What Can You Do to Address Forced Labor?

According to CBP, importers must exercise reasonable care and due diligence to ensure that forced labor is not included in any aspect of their supply chain. To effectively do this, importers must include forced labor into their internal risk assessment. CBP recommends referencing the International Labour Organization’s eleven (11) Indicators of forced labor, which are:

1. Abuse of Vulnerability
2. Restriction of Movement
3. Withholding Wages
4. Deception
5. Isolation
6. Physical & Sexual Violence
7. Intimidation & Threats
8. Retention of Identity Documents
9. Debt Bondage
10. Abusive Working & Living Conditions
11. Excessive Overtime

Have you taken reliable measures to ensure that you are not inadvertently using forced labor at any point of your supply chain? Ask yourself these 12 questions.

CTPAT

Customs-Trade Partnership Against Terrorism (CTPAT) is a voluntary partnership program between CBP and industry to protect supply chains, identity security gaps, implement specific security and trade compliance best practices, and maintain the integrity of low-risk cargo entering the US. CTPAT has about 11,400 members in the program and 350 trade compliance members. Due to COVID-19 companies have been withdrawing from the program. Out of 100+ Companies that have withdrawn from the program stems from financial reason or change of habits of supply, and not necessarily due to the minimum-security requirement. Pandemic or not, this program is something that companies in the industry need to adhere to.

Companies were given multiple opportunities during the pandemic to provide the information they needed for minimum security criteria that were due in 2018- 2019. Companies were given an ample amount of time to get to what they need to be with the validation report and responses to them but unfortunately plenty of companies have not been responding. Those companies represented about 53% of the total cargo coming into the US by value. Overall, 52 companies have been suspended this fiscal year and 14 of them since January 1. Those 14 companies were suspended not because of what they did in 2020 but what they did not do in 2019, and for some that were due to failure to respond within 30 days. Suspension leads to removal.

CBP is in the process of updating its bulletin on suspensions, removals, appeals, and the reinstatement process. (within the coming weeks). CBP recognizes that seizures have been affecting CTPAT partners. However, with staggering data relating to Narcotics seizure in the South West borders (e.g. methamphetamine and fentanyl) in the commercial environment. CBP is seeking help from partners and CTPAT members to do the right thing by training their employees and giving notice that something may be wrong with shipments. Seizures of Meth have doubled this fiscal year. Have had a number of companies notifying their supply chain specialist telling CBP things they are finding within their supply chain, leading to seizures in the border.

With regards to forced labor, CBP ensured that forced labor was a part of the new minimum-security criteria and was included as a “should”. Companies should have a social compliance policy in place and be transparent as to any discrepancy going on in the supply chain (e.g. drug smuggling from suppliers).

All scheduled in-person validations were postponed indefinitely, on Friday, March 13. At that time, it became clear that CTPAT needed a new approach to its validation process and the ability to validate members without traveling. So far, a few test cases have been conducted with members, while others are in the process of being conducted as well, which is helping how they will develop their internal policy moving forward. The program is working on finalizing its internal policy model along with conducting several more validation tests. CTPAT is tracking data of virtual validation tests to be assessed and compared to the in-person validation process. Once that has been finalized, that process will be scaled through training of SCS’s and most importantly to provide documentation to members on the updated process as well. CTPAT is planning on starting the virtual validation process at the start of fiscal year 20201. Regarding additional validation updates, those scheduled for 2020 (which they are unable to conduct) will be pushed to 2021. If a company is selected for virtual validation, it will always be a requirement of membership that they must uphold. However, CTPAT will work with companies to make reasonable accommodations on an as-needed basis. While finale decision is still forthcoming it is most likely that the 2021 validation cycle will be pushed to 2022. There is a potential for “self-certification”. Still in discussion, but any company considered for this would be based on their demonstration of being very low risk. CTPAT is also working on a long term validation process (e.g. Enhancement and Capability to conduct live facility tours, as well as Interviews with secure tool).

This enhanced platform for members and SCS’s is to conduct live interviews and upload facility tours and additional videos, to enhance proof of compliance with MSC and to reduce reliance on visiting member facility in person. This will help reduce administrative burning and generate additional time for SCS’s to tailor their assessment to focus further on critical areas of member risk and compliance.

Included below are helpful tips to navigate this process:

• First step: identify activity to automate and streamline the virtual validation process
  • Data
  • Document for member upload
  • Pre-validation information
  • Electronic communication
  • Secure data exchange with members, government, and MRA partners.
• Cognitive analytics and anomaly detection for virtual validation, research analytics tools that can help CTPAT assess member risk and flag threats based on validation, to inform risk-based validation actions in training and mass aggregated view of member supply chain risk trends.
• This process came about, similar to cybersecurity, was to navigate through this world of the virtual platform and actually see what the government (e.g. CBP and CHS) had in their repertoire to go through this new process.
  • Supply chain specialists will be able to establish their own private room (i.e. private connections) and invite important members or points of contact, subject matter experts – to the virtual validation, knowing that this link is as secure as it can be from a federal point of view.
  • CTPAT will always be a boot on the ground program. That is the methodology of this entire process, which is to physically go and view supply chains. SCS’s will visit facilities and every member at that facility will gain the knowledge and experience about the supply chain that is sorely needed.
  • CTPAT continues to learn from this process. Developing a risk-based approach (SOP) to make sure that candidates for virtual validation are recognized. A low risk-based operation, not a one size fits all. Not everyone eligible for virtual validation.
• Virtual Validation is another tool in CTPAT’s toolbox. Although it continues to learn from the process, CTPAT will always be a boot on the ground program.

Diaz Trade Law’s President, Jennifer Diaz, and Associate Attorney, Denise Calle provided an in-depth discussion of the relevant changes in their article, CTPAT Minimum Security Criteria Changes, published by Bloomberg Law.

E-COMMERCE

E-Commerce is one of the fastest-growing sectors of the US economy. Although E-Commerce has become increasingly more common over the past several decades, since the onset of the pandemic in early 2020, the prevalence of E-commerce has propelled by 3-5 years. Not only did the value of e-commerce in the second quarter of 2020 (Q2) see a 45% increase from the same time last year, but also, currently, more than 1 out of every $5 (28%) spent in the United States is related to e-commerce! Below are some e-commerce statistics CBP presented:

• $2.29 trillion in sales (globally)
• 80% of American use at least 1 e-commerce platform
• Nearly 2 Million mail and express shipments enter the US each day; FY 2019 volumes exceeded 600 million shipments
• Over 90% of all IPR seizures occur in the mail and express environments

E-commerce’s share of the market had been growing for years prior to the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA).  In TFTEA, CBP raised the De Minimis value, i.e., the value of a shipment of merchandise imported by one person in one day that generally may be imported free of duties and taxes, from $200 to $800 per shipment. The Section 321 Program provides admission of articles free of duty and of any tax imposed on or by reason of importation, but the aggregate fair retail value in the country of shipment of articles imported by one person on one day and exempted from the payment of duty shall not exceed $800.

The increased definition of “low valued” shipments has seen an accompanying growth in the use of the Section 321 Program. This substantial increase, coupled with a reactive, rather than a proactive federal government has worsened CBP’s ability to efficiency enforcement the required measures. Today, some of the major challenges posed by the growth of E-commerce are:

• As volumes of small e-commerce packages grow rapidly, the inspection challenges intensify
• Transitional criminals ship illicit goods via small packages due to perceived lower interdiction risks and less severe consequences
• High volumes of small packages make it difficult to scale processes and procedures
• Domestic buyers are vulnerable to substandard products

The central message of the e-commerce webinar is modernization. The exponential growth of this eclectic industry has left a gap between private actors and the government agencies tasked with its regulation.  To begin to close the gap between regulations and innovations CBP has laid out four (4) concrete goals:

1. Enhance legal and regulatory authorities to better address emerging threats
2. Adapt all affected CBP operations to respond to emerging supply chain dynamics
3. Drive private sector compliance through incentives and enforcement resources
4. Facilitate international standards for e-commerce to support economic prosperity

Today, the US government partners, the trade community, and foreign customs agencies are cooperating to modernize e-commerce in an efficient and effective manner. The key tenets of bolstering e-commerce enforcement and facilitation are:

• Coordinating on actions set forth in the DHS Report on Combatting Trafficking in Counterfeit and Pirated Goods.
• Coordinating on actions set forth in the Executive Order Ensuring Safe & Lawful E-commerce.
• Establishing an international Framework of Standards for e-commerce through the World Customs Organization
• Applying enhanced Section 321 Data Pilot and Entry Type 88 Test Data (125 Million+ shipments to date) to identify and segment risk
• Leveraging data collection efforts to drive enforcement, enhance trade facilitation, and inform updated regulations
• Creating a predictable enforcement environment and addressing duty evasion by issuing an administrative ruling clarifying Section 321 eligibility.

21^st CENTURY CUSTOMS FRAMEWORK (21CCF)

CBP is a diverse agency and their responsibilities are not limited to just border security, instead, they act as a national security agency. With the ever-changing market conditions within the trade community, as they face new and unforeseeable challenges increasing the urgency to adapt, the U.S. government has been required to act now and set the stage for sustainable success.  Now more than ever, the trade community needs to adapt to cutting off trade rather than increasing trade and maintaining that kind of effect further down the line in case of a force majeure. In today’s world the market condition of the trade community and the challenges they face pertain to.

• The Expansion of the global marketplace
• The rapidly changing technology
• The Emergence of e-commerce
• Forced labor and unethical trade practices
• IPR infringement; and
• Product quality and safety concerns.

CBP’s 21^st Century Customs Framework (21CCF) stems from such unprecedented obstacles in an effort to tackle challenges, leverage emerging opportunities, and achieve transformational long-term changes. With collaboration amongst government agencies, the trade community (e.g. partners and trade agreement members), and Congress the five pillars of the 21CCF as they move towards modernization is,

• To enhance facilitation and security through 21 Century processes
• To define customs and trade responsibilities for emerging and traditional actors
• To ensure seamless data sharing and access
• To employed intelligent enforcement; and
• To protect and enhance Customs infrastructure through secure funding.

As such, these five pillars will be a game-changer for trade centers and government agencies and will further enable them to transform how they facilitate and effectively enforce trade. The 21CCF vision is to drive change by achieving end-to-end supply chain transparency, driving and facilitation data-centric decision making, and decentralizing and diversifying reasonable care standards. As a result, the U.S. government seeks to ensure that legitimate goods are never subject to unexpected delays at the border; that forced labor continues to be reduced within the supply chains; that seamless data sharing enables the same day order fulfillment around the globe; that trade capabilities can scale indefinitely with volume; and lastly, that security and speed no longer remain competing priorities. Through its 21CCF the U.S. government lead the world with innovative trade policy. As companies continue to divert their supply chain across the globe, e-commerce grows more and more as a crucial aspect of the trade community. CBP must look closely at what the future trade landscape is, especially with companies located globally. CBP seeking to evolve in this changing time, through partnership with another governmental agency (e.g.  US of Chamber of Commerce) to help each other adapt to new technology and ensure the on-time sharing of information. CBP asserts that this new initiative will have an extreme impact with all sectors having an equal share of the end game to ensure complete and accurate data collection. This data information is intended to be gathered from the right people, by the right people, and at the right time to properly enforce compliant trade. Today’s Technology is available for the use of proof of origin, proof of concept, IPR proof of concept, and the same for steal and pipeline exports. The U.S. government continues to take advantage of verifiable credential technology, which creates an underlying sense of trust, reduces fraud, and drives efficiency. The steps to such verification of data comprise of:

• Issuer created data credential
• A holder who stores the data credential; and
• Verifier who assure everything is correct.

Data will be made available to all parties. The owner of the data is responsible for what can be shared. They may also choose what data to share and with whom they are being shared. While it is all secured, there is a possibility that bad data be shared. With 21CCF, if bad data is given then the party responsible can be held accountable, as it helps identify discrepancies and anomalies. While Blockchain, which is most simply defined as a decentralized, distributed ledger that records the provenance of a digital asset, is not the only technology out there but was recommended by COAC. Proof of concept is proving very worthwhile and CBP along with other governmental agencies have had some positive feedback. That being said, some of the most important things to overcome across CBP are identifying the responsible parties and holding them accountable (starts and usually ends with importers), but they hope that they will be able to expend to others in the supply chain. The data discussion (i.e. what is being collected, who should be collected, and who already is providing data). Technology is here, but with that biggest challenges would be the legal aspect to it such as statutes and regulations in place for data being capture and who it is being captured from, along with funding. Taking modernization work and extending it for there to be one governmental control for imports and exports.

Have questions about the above topics or any CBP matter generally? Contact our Customs and International Law attorneys at 305-456-3830 or info@diaztradelaw.com.

Session Two: Food and Drug Administration (FDA)

Topic: FDA Import Operations Associated with COVID-19 Efforts

TOP TIP: FDA’s Ruth Dixon, Program Division Director for the Division of Southeast Imports recommends importers of FDA regulated goods to SUBSCRIBE to receive email updates related to COVID-019 and check out FDA COVID-19 Response At-A-Glance Summary for the latest updates.

CSMS COVID-19 related messages:

• CSMS #42118616: Reminder: Update on FDA’s Import Operations During the Coronavirus Disease 2019 (COVID-19) Outbreak
  • Provides operational/functional updates relevant to ongoing activities on FDA Prior Notice review, FDA entry processing, FDA sampling/examination of high risk shipments, FSVP inspections, filer assessments, and compliance activities.
  • Strongly encourages all members of the import community who deal in FDA-regulated articles to utilize the FDA Import Trade Auxiliary Communication System (ITACS) for current entry status and to receive FDA notices electronically.
• CSMS #42253103 – FDA Recommends Use of ITACS During COVID-19 Outbreak
  • AGAIN, Strongly encourages all members of the import community who deal in FDA-regulated articles to utilize ITACS.
    • Why should you get an ITACS account?
      • Contact us to get an ITACS account! You must request an ITACS account from FDA – typically 2-3 business days for approval (or longer).
      • Benefits to the trade community include faster release of your goods because you have the ability to receive more detailed entry statuses than what is currently transmitted to filers via Customs’ Automated Broker Interface (ABI) reducing the need for phone calls inquiring about the status of entries and eliminating the need to email, mail or fax entry documentation.

FDA To Temporarily Conduct Remote Importer Inspections Under FSVP Due to COVID-19

• On April 3, 2020 FDA announced importers would be requested to send records required under the Foreign Supplier Verification Programs for Importers of Food for Humans and Animals (FSVP) rule electronically (or through other prompt means) to the Agency as it shifts to conducting these inspections remotely during the COVID-19 public health emergency.

Warning Letters Issued to Companies Making Bogus COVID-19 Claims

To date, the FDA has issued 42 warning letters to companies making bogus COVID-19 claims, including one to a seller of fraudulent chlorine dioxide products, equivalent to industrial bleach, frequently referred to as “Miracle Mineral Solution” or “MMS”, as a treatment for COVID-19. After the seller refused to take corrective action, a federal court issued a preliminary injunction requiring the seller to immediately stop distributing its unproven and potentially dangerous product.

CLICK HERE TO DOWNLOAD PRESENTATION

 Session Five: CBP – Miami CTPAT Field Office

Topic: CTPAT – State of the Program / Minimum Security Criteria Updates

 TOP TIP: The CTPAT Portal will included the Minimum Security Criteria Updates Starting June 1st. An excel spreadsheet with the new MSCs is available on the CTPAT Portal – BEAT THE RUSH – complete it now and submit on June 1st!

 Impact of COVID-19:

• Supply Chain Security Specialists (SCSS) continue to perform their job requirements; however, do to travel restrictions Validations, PIAs, and Joint Security Assessments are currently on stand still while CTPAT determines an alternative option during COVID-19.

Updated MSCs & Enforcement | 2020 Initiatives: Building CTPAT’s Future

• As CTPAT continues to evolve, the Program will advance key initiatives that foster partnerships, improve supply chain transparency and security, and continue to ensure CTPAT’s trusted Members receive benefits for their collaboration in these efforts.
• New Study on new MSCs:
  • UNIVERSITY OF HOUSTON STUDY
    • Obtain information on perceptions of CTPAT
    • Evaluate program, identify trouble areas and suggest improvements
    • Identify cost-benefit enhancements for members and the program
    • Establish new performance metrics
• New MARITIME SECURITY UNIT (MSU)
  • Specialized SCSSs that will focus on certified partners in the maritime environment
  • Sea carriers, US Marine Port or Terminal Operators and Foreign Based Marine Port Terminal Operators
  • Eventually conduct validations with USCG

CTPAT by the Numbers

Member Benefits:

CLICK HERE TO DOWNLOAD THE PRESENTATION

Contact our Customs and International Law attorneys at info@diaztradelaw.com or 305-456-3830, to discuss the topics discussed at the World Trade Center Miami’s International Trade Week and how they apply to you.

Diaz Trade Law regularly advises clients on the guidelines necessary to implement within your supply chain to ensure U.S. Customs you have a secure supply chain worthy of entry into the CTPAT program. Diaz Trade Law regularly helps companies apply for admission into the CTPAT program, go through the validation process, and assists with the yearly update process to keep companies in good standing with CBP.

CBP

• Registration Now Open- 2019 CBP Trade Symposium.
• CBP, BIS, And Other Agencies Launch A New Task Force to Combat Counterfeit Goods.
• CBP Needs Your Help to Improve Their Operations in The 21st Century Business Environment – Comment Period Now Open!
• Recap of The 2019 CBP Trade Symposium.
• The New Miscellaneous Tariff Bill Process Set to Begin.
• Ignorance Is No Defense! Learn What CBP Considers Prohibited/Restricted.
• CBP Wants to Hear From You on its Proposed New Rules for Customs Brokers!
• CBP’s Section 321 Data Pilot Program to Begin August 22. 
• Civil Forfeiture – Know Your Rights!

FDA

• FDA Issues its First FSVP Warning Letter.
• Here are The Major Changes FDA is Proposing to Make to The Sunscreen Rule!
• Did You Know That Sunglasses Are Regulated by The FDA as Medical Devices?

Intellectual Property Rights (IPR)

• 33,810 IPR Seizures In 2018!
• How CBP Protects Your Intellecutual Property Rights at The Border / ¿Derechos de Propiedad Intelectual en La Frontera?
• Top 10 Mistakes Made by Trademark Owners.
• Top 11 Copyright Myths and Misconceptions / Los Top Once Mitos y Conceptos Erróneos Sobre Los Derechos de Autor.

Trade War with China

• Paying Chinese Tariff’s & Your Competitors Aren’t?
• Breaking News: China Trade War Update – List 4A Reduced to 7.5% And List 4B Will Not Become Effective On 12/15.
• China Trade War Intensifies.
• U.S. And China Reach ‘Phase 1 Deal’.
• China Imposes Retaliatory Tariffs and US Intends to Strike Back – Tell The USTR Why Your Product Should Not Be On The New List!
• China Tariff Hike Postponed – USTR To Establish an Exclusion Process – Seminar On “China Tariffs/AD/CVD 101”.
• Section 301 – List 3 Tariff Exclusion Requests Open Until September 30^th
• Top 5 Strategies to Mitigate The Impact of Tariffs.
• List 4 Split Into Two HTS Lists.
• Section 301- List 4 Tariffs in Effect Starting September 1.
• Breaking News: Exclusion Portal to Open for List 4A.
• List 3 Exclusion Requests to Open June 30 Via Online Portal.
• Wondering if Your Exclusion Request has Been Granted or Denied? Find Out Here!
• Comment Today! USTR Publishes Preliminary List of EU Products to Be Covered by Additional Duties.
• News Alert – USTR’s Newly Announced List 3 Exclusion Process and List 4 Comment and Hearing Process.
• Update: USTR Increases Section 301 Tariffs To 25% Duty for Products on List 3.

FTC

• New FTC Warning Letters Issued to Companies Selling CBD Products.

CTPAT

• Voice Your Comments About CTPAT & The Trusted Trader Program!
• Recap of The 2019 CTPAT Conference #PATHFORWARD

First Sale

• Using A Middleman? Learn How to Lower Your Customs Value Using First Sale!

Forced Labor

• CBP Issues Withhold Release Order Targeting Tuna Harvested With Forced Labor. 

ACE

• Why You Need Your Very Own Ace Account.

Blockchain

• Government Agencies Seek Out Blockchain Solutions to Strengthen Current Systems.

Cuba

• President Trump Strengthens U.S. Policy Toward Cuba.
• Update: Non-Commercial Airplanes and Cruise Ships on Temporary Sojourn are Now Prohibited to Travel to Cuba.

GSP – India

• India Removed From GSP, Potential Problems Permeate.

Mexico

• Updated – Trump No Longer Threatening to Impose Tariffs Mexico (For Now)

European Union

• U.S. Expands Trade War to EU.

Catch Up With DTL

• A Year in Review!
• We Already Knew Jen Was Super! Here’s Proof.
• Catch Up on DTL’s Top Blogs From 2018!
• Customs and International Trade Attorney Jennifer Diaz Featured on Legal News and Review Radio.

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

Established by the 1974 Trade Act, the GSP is the largest and longest-running preference program. It is designed to facilitate free trade amongst allies and interests of the United States, specifically focusing on economic development in “designated beneficiary” countries.

According to the Office of the United States Trade Representative (USTR), in order to earn the classification of “designated beneficiary”, a nation must meet the following criterion: affording workers’ rights to their people, enforcing intellectual property rights, and supporting the rule of law, as well as providing the US with reasonably fair market access.

The Trump Administration cited India’s failure to “provide equitable and reasonable access to its markets” as reasons for its removal from the program. Until its removal, India received more in US goods than any other nation. In fact, in 2017, India acquired $5.7 Billion from Duty-Free items exported to the US. However, similar to trade disputes with other nations, the Trump Administration seeks to better balance the playing field for American companies overseas.

Similar to tactics of other nations entrenched in trade disputes with the US, India appears to be targeting primarily agricultural goods, in an effort to affect Trump voters and their opinions of the president.

While the level of the proposed duties appear extreme, geopolitical norms suggests that India announced these tariffs for two reasons: (1) A form of retaliation for their removal from GSP, (2) as a means of getting the administration’s attention in order to renegotiate any sort of trade agreement in the near future.

Additionally, both the removal of India from GSP and the imposition of the proposed tariffs bode beneficial for no one. Not only do hundreds of US businesses, which account for billions of dollars in profit, oppose the decision, but also the US Congress and the Indian Government.

Due to the mutual disservice, the Trump Administration presumably initiated the process in order to provide the US with additional leverage going into trade negotiations. Negotiators last met in New Delhi on Friday, July 12, to no avail. Although there is no indication of exacerbation, and negotiators are set to meet in Washington in August, it appears that the two nations may be on the precipice of a growing trade conflict.

If these tariffs do go into effect, industries in both nations will suffer. Obviously, we hope this is not the case, but, if it is, don’t fret. Many involved parties are unaware of the various options available to mitigate import duties.

If you import or export items to or from India, contact Diaz Trade Law for assistance with any and all inquiries. Call us at 305-456-3830 or email us at info@diaztradelaw.com

United States Customs and Border Protection (CBP), one of the principal agencies under the leadership of DHS, has released an updated list detailing items prohibited from entry into the US. These goods fall under a variety of classifications, including “dangerous toys, cars that don’t protect their occupants in a crash, bush meat, or illegal substances like absinthe and Rohypnol”.

Many of these items are available for legal purchase while abroad, presenting a potential quagmire for international travelers. In order to avoid purchasing and effectively smuggling these illegal goods into the country, CBP recommends travelers to familiarize themselves with the given prohibited and restricted items prior to departure.

Due to the hundreds of laws that regulate and restrict the importation of goods into the US, one must understand the given consequences prior to purchase. These items are not limited to individual travelers attempting to bring back souvenirs from vacation, rather they place a much heavier burden on potential importers.

Considering that fair and free trade reside highly on the government’s priorities, many seemingly harmless goods are subjected to extra scrutiny, as well as duties or penalties. Many importers of prohibited or restricted items may not even be cognizant of their malfeasance. However, ignorance is not a defense for criminality. For this reason, DTL highly recommends international travelers and importers alike to review the listed items and they perform pre-compliance PRIOR to importing.

Diaz Trade Law provides expert assistance primarily for companies attempting to comply with the multitude of U.S. federal laws and regulations related to both import and export transactions as well as supply chain security. We are passionate about strategizing with clients to achieve successful results and optimizing compliance with U.S. federal government agencies. We represent global clients of every size, from individuals and small businesses to Fortune 500 companies. For more information, call us today at 305-456-3830 or email info@diaztradelaw.com.