Double Ace Cargo, a non-vessel-operating common carrier (NVOCC) based in Florida, has paid $165,000 in civil penalties and will self-finance independent monitoring of its business practices under two separate compromise agreements it reached with the Federal Maritime Commission (FMC).

Under the first agreement, reached in June 2023, Double Ace paid $115,000 in civil penalties to resolve allegations that it violated the law (46 U.S.C. § 41104(a)(11)) by transporting shipments on behalf of entities that were not licensed NVOCCs, did not have bonds, and did not publish tariffs. 46 U.S.C. § 41104(a)(11) governs common carriers and prohibits them from knowingly and willfully accepting cargo from or transporting cargo for the account of a non-vessel-operating common carrier that does not have a tariff, or an ocean transportation intermediary that does not have a bond, insurance, or other surety.

In reviewing the June 2023 compromise, the FMC ordered the Bureau of Enforcement, Investigations, and Compliance (BEIC) to conduct a second investigation to re-examine the conduct of Double Ace and to ensure the company was complying with all obligations. The investigation resulted in a second compromise agreement where the company paid $50,000 in civil penalties for transporting shipments on behalf of entities that were not licensed NVOCCs, did not have bonds, and did not publish tariffs, in violation of 46 U.S.C. § 41104(a)(11).

As part of the second compromise agreement, Double Ace agreed to pay for independent monitoring for 12 months. The monitor is providing monthly reports directly to the BEIC Director. Requiring a company to pay for ongoing monitoring is new to previous compromise agreements. The arrangement allows BEIC to continue assessing compliance while preserving agency resources.

Independent monitoring is an enforcement mechanism used by a number of federal, state and international agencies. The monitor oversees the probationary terms placed on a company, in which the company must make required improvements in fulfilling the terms of a settlement agreement, deferred prosecution agreement, civil settlements or administrative agreements. The monitors reports are submitted to the agency and can include recommendations for improvements, while the company being monitored is generally responsible to pay for the monitors services.  The benefits of independent monitoring include allowing the company to remain in business, address areas identified as problematic, demonstrating those improvements to the government agency through real time reports from the independent monitor. The wider benefits include helping a company stay compliant with regulatory requirements, retaining a work force, allowing customers to continue to receive services and for the government, continued oversight to protect the public.

Diaz Trade Law can assist with FMC pre-compliance programs that avoid and spot violations before they occur. Get in touch at info@diaztradelaw.com or 305-456-3830.

Affiliated Monitors offers independent monitoring, compliance risk and cultural assessments across industries and government agencies.  Vin DiCianni, President of Affiliated Monitors can be reached at vdicianni@affiliatedmonitors.com.

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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United States Trade Representative 

• On July 14, 2022, the Office of the United States Trade Representative, announced the launch of the U.S. – Kenya Statistic Trade and Investment Partnership. USTR announced that the U.S. and Kenya will develop an ambitious roadmap for enhanced cooperation with the goal of negotiating high-standard commitments in order to achieve economically meaningful outcomes in: Agriculture, Anti-Corruption, Digital Trade, Environment and Climate Change Action, Good Regulatory Practices, Micro, Small and Medium Enterprises, Promoting Workers’ Rights and Protections, Supporting Participation of Women, Youth, and Others in Trade, Standard Collaborations, and Trade Facilitation and Customs Procedures.

• On July 20, 2022, pursuant to authority delegated by the President on July 8, 2022, the U.S. Trade Representative reached an agreement with Canada limiting the export from Canada and the import into the United States of certain crystalline silicon photovoltaic cells (whether or not partially or fully assembled into other products) (CSPV products).

U.S. Customs and Border Protection 

• US. Customs and Border Protection, launched their Green Trade Strategy, highlighting the agency’s efforts to combat climate change in the context of trade and provides a framework to incentivize green trade, strengthen CBP’s environmental enforcement posture, accelerate green innovation, and improve climate resilience and resource efficiency. With the Green Trade Strategy, CBP is looking to set an example for customs authorities around the world to develop higher, greener standards for global trade while creating an opportunity for government, industry, and the public to unify efforts in the creation of a more sustainable future.
• On July 20, 2022, CBP announced their modification of the National Customs Automation Program (NCAP) test concerning Automated Commercial Environment (ACE) Portal Accounts to establish the ACE Vessel Agency Portal Account, and to decommission the Cartman and Lighterman Portal Accounts due to a lack of usage by the public.

Federal Maritime Commission 

• On July 14, 2022 the Federal Maritime Commission (FMC) released an advisory enacting provisions of the Ocean Shipping Reform Act of 2022 (OSRA) by providing a simplified process for container carrier customers who want the FCC to investigate their complaints. The steps outlined include: identifying the carrier and the alleged violation, submitting documentation, confirming that the disputed charge was incurred after the June 16 enactment of OSRA, and submitting all the materials in one email, if possible. When the FCC receives sufficient information, it “will promptly initiate an investigation, which could ultimately result in a civil penalty and order for a refund of charges paid,” the advisory states.

Federal Trade Commission

• The Federal Trade Commission (FTC) has finalized an order against Resident Home LLC and owner Ran Reske for allegedly making false, misleading, or unsupported advertising claims that their imported DreamCloud mattresses were made from 100% USA-made materials. Resident Home LLC and Reske will pay $753,000. Under the terms of the final order, in addition to paying $753,000, Resident Home LLC and Reske are prohibited from making several claims that deceive consumers and harm law-abiding businesses whose sales decreased because of this behavior.

U.S. Food and Drug Administration

• The U.S. Food and Drug Administration (FDA) guidance updates the March 2018 guidance by removing the temporary policy of permitting the use of the entity role code “UNK” in lieu of a DUNs number.
  • Beginning July 24, 2022, the use of the entity identification code “UNK” will no longer be an option. The FSVP importer will be required to ensure that their valid, 9-digit DUNS number is provided in the Entity Number field. CBP will reject an entry line of a food subject to the FSVP regulation when the importer’s DUNS number is not provided in the Entity Number field.

U.S. Department of Commerce

• On July 20, 2022, DOC  announced it will amend the notice of initiation of administrative reviews of antidumping duty (AD) and countervailing duty (CVD) orders with January 2021 anniversary dates to include a company that was inadvertently omitted from the AD administrative review of softwood lumber from Canada.
• On July 20, 2022, DOC has received a covered merchandise referral from U.S. Customs and Border Protection (CBP) in connection with a CBP investigation concerning alleged evasion of the antidumping/countervailing duty (AD/CVD) orders on certain magnesia carbon bricks (bricks) from the People’s Republic of China (China).
• On July 20, 2022, DOC announced it will conduct an administrative review of the antidumping duty order on certain steel nails (steel nails) from the Sultanate of Oman (Oman). This review covers 15 exporters and producers from Oman.

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

• On July 15, 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced a settlement with American Express National Bank (Amex), a subsidiary of American Express Company. Amex agreed to remit $430,500 to settle its potential civil liability for 214 apparent violations of OFAC’s Kingpin sanctions.

U.S. International Trade Commission 

• On July 20, 2022, notice is hereby given the U.S. International Trade Commission (USITC) has determined to affirm the remand initial determination (“RID”) issued on December 29, 2021, finding that Complainants failed to establish the economic prong of the domestic industry requirement in the above-referenced section 337 investigation.
• On July 20, 2022, USITC announced Section 206 of the ATPA (19 U.S.C. 3204) requires the Commission to report biennially to the Congress and the President by September 30 of each reporting year on the economic impact of the Act on U.S. industries and U.S. consumers, and on the effectiveness of the Act in promoting drug-related crop eradication and crop substitution efforts by beneficiary countries.

U.S. Department of State

• On July 20, 2022, the U.S. Department of State (DOS), Directorate of Defense Trade Controls is publishing two open general licenses, permitting certain reexports and retransfers. This pilot program involves open general licenses that may be used by certain persons in Australia, Canada, and the United Kingdom to retransfer certain defense articles within each of the three countries and to reexport certain defense articles between and among the three countries.

If you have questions about these updates, contact our Diaz Trade Law attorneys at info@diaztradelaw.com or call us at 305-456-3830.

To receive an email notification whenever a new post is published, please subscribe to our weekly blog here.

• On April 27, 2022, the Department of Commerce (Commerce) preliminarily determined that Teh Fong Min International Co., Ltd. (TFM), the sole producer and/or exporter subject to this administrative review, made sales of stilbenic optical brightening agents (OBAs) at less than normal value during the period of review (POR) May 1, 2020, through April 30, 2021. They invite interested parties to comment on these preliminary results.
• On April 27, 2022, the International Trade Administration published a notice for the initiation of less-than-fair-value investigations on certain preserved mushrooms from France, the Netherlands, Poland, and Spain. The notice states it was applicable starting April 20, 2022.
• On April 27, 2022, the Enforcement and Compliance, International Trade Administration, Department of Commerce published a notice on the initiation of less-than-fair-value investigation for white grape juice concentrate from Argentina which became applicable April 20, 2022.
• On April 20, 2022, the Department of Commerce (Commerce) initiated its less-than-fair-value and countervailing duty investigations on “White Grape Juice Concentrate from Argentina” (Initiation Notices). The scope of these investigations cover white grape juice concentrate with a Brix level of 65 to 68, whether in frozen or non-frozen forms and regardless of whether it has been certified as kosher, organic, or organic kosher. Commerce requests that all comments be filed by 5:00 p.m. Eastern Time (ET) on May 10, 2022, and any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on May 20, 2022, which is 10 calendar days after the initial comments deadline.
• Beginning June 29, 2022, U.S. Commerce Department (Commerce) Aluminum Import licensing applications will require both fields of “country of largest smelt” and “country of second largest smelt.” Commerce defines the field for the country of smelt for the largest and second largest volume of primary aluminum as the country where the largest volume of new aluminum metal is produced from alumina (refined aluminum oxide) by the electrolytic Hall-Heroult process. Commerce extended the temporary period to allow for license applicants to state “unknown” in the fields for country(ies) of smelt for the largest and second largest volume of primary aluminum until June 28, 2022.
• On April 25, 2022, the Department of Commerce is initiating a country-wide circumvention inquiry to determine whether dual-piston engines exported from the People’s Republic of China will circumvent the antidumping (AD) and countervailing duty (CVD) orders on certain vertical shaft engines between 99cc and up to 225cc, and parts thereof (small vertical engines) from China.
• On April 27, 2022, the Renewable Energy and Energy Efficiency Advisory Committee (REEEAC or the Committee) announced they will hold a virtual meeting via WebEx on Thursday May 12, 2022, hosted by the U.S. Department of Commerce. The meeting is open to the public with registration instructions provided here.

OFAC

• On April 22, 2022, the Office of Foreign Assets Control (OFAC) within the Department of the Treasury solicited comments concerning OFAC’s information collection requirements for persons providing authorized travel or carrier services related to Cuba, which are contained within the Cuban Assets Control Regulations. Written comments must be submitted on or before June 21, 2022 to be assured of consideration.

FMC

• On April 18, 2022, the Federal Maritime Commission’s amendment for regulations governing non-performance by Passenger Vessel Operators (PVO/ cruise lines) became effective, establishing new requirements for when cruise passengers should be provided refunds for cancelled or delayed voyages. The changes define non-performance as canceling a voyage or delaying a voyage by three or more calendar days if a passenger elects not to embark on delayed or substituted voyage offered by a PVO. The Commission will also allow passengers of delayed or cancelled voyages to make direct claims against financial responsibility instruments, such as bonds, maintained by PVOs, after the passenger’s unsuccessful attempt to receive a refund directly from the PVOs.
• On April 22, 2022, a US administrative law judge ordered Hapag-Lloyd to pay a California drayage provider $822,220 in civil damages stemming from a Federal Maritime Commission (FMC) investigation into whether the carrier improperly assessed detention charges on 11 containers in mid-2021. The FMC’s Bureau of Enforcement (BOE) determined that Hapag-Lloyd acted “knowingly and willfully…[in]… imposing and refusing to waive detention charges where there were insufficient appointments to return the empty containers.” The detention charges that were assessed by Hapag-Lloyd’s North America agent to Golden State Logistics (GSL) amounted to $10,135.

If you have questions about these updates, contact our Customs and International trade law attorneys at info@diaztradelaw.com or call us at 305-456-3830.

The FMC already sent out the first 146 notifications. DTL clients who are FMC Licensees may face cancellation if they fail to renew or update their license every three years. The great news is, now you are able to leave the heavy lifting to DTL.

A few things to know about the new online renewal system:

New Features

• The process is now completely online (if you applied via paper, your renewal will still be online).
• You are now able to add/edit a new record or delete an existing record.
• Qualifying individuals cannot be changed but officers can be added.
• Re-certification of licensee or existing qualifying individual will no longer be required for license updates.
• The percentage of ownership for all entries combined must add up to 100% or the system will reject the update.
• The licensee can designate a third party to complete the renewal on their behalf.

Update your P.O.C.

• The FMC prefers a valid and current email address on file. Make sure to list someone who is reliable and consistent.
• You may now designate a third party to be the point of contact. Assigning legal counsel can facilitate communication with the FMC.
• The new online system will provide automatic renewal notifications sent to the email on file ninety (90), thirty (30), and fifteen (15) days prior to the update deadline. If you don’t have a reliable point of contact or a valid and current email, you will not receive these notifications and risk cancellation of your license.

When is your deadline?

• The last two numbers in your license number determine the month and year of the license update deadline. In our picture below, it shows the last two numbers of 77. Using the codes under the image, the licensee would have to renew by July, 2019.

If your three (3) year deadline is approaching, or you are new to the online process and want help, DTL is here to walk you through the process. Contact us at: info@diaztradelaw.com.

What is demurrage?

• Demurrage is “a penalty charge against shippers for delaying a shipment/container at a port of loading or destination beyond the allowed free”.

How Much Time is Provided for Free?

• “Free time is the grace period for which neither of these charges will be incurred.” There is no standard amount of free time. Free time can change from carrier to carrier, from port to port and sometimes from container type to container type. Normally it is anywhere between 3-5 calendar days.
• Free time is supposed to include a realistic time period to assemble cargo for loading, and provide consignees a realistic time period to retrieve cargo at a terminal after unloading.
• The fee charged after the expiration of the “free time” varies. For example, for one carrier, the per diem fee can range anywhere between: $200 to $800 per day!

 What is Being Done to Change this Demurrage Fee?

• Back in December, “the Coalition for Fair Port Practices, a group of 25 members that represent shippers, receivers, motor carriers, port draymen, freight forwarders, third-party logistics companies and customs brokers”, petitioned the Federal Maritime Commission (FMC) in hopes that the FMC would issue a ruling on extending the free time for container storage and equipment use that is disrupted by events outside of their control. Such events could be poor infrastructure, weather events, a carrier bankruptcy, port labor issues, etc.

How is the FMC Involved?

• The FMC has invited comments on this petition until February 28th. You can find the comments and submit your own comments on the docket website. After the comment period is up, the “FMC staff will prepare a report for the five commissioners”, and will then determine how to proceed.
• If the (FMC) agrees to extending the free time for container storage, then this could help shippers and transport intermediaries economically by saving them millions of dollars that they usually would pay for the demurrage and detention fees. Many of the shippers that brought the petition to the FMC, felt that the “terminals and carriers were using the fees as a profit center instead of merely trying to keep equipment flowing smoothly”. Others that filed the petition felt that a lot of the carriers and terminals “lacked clarity in regards to what constitutes reasonable practices” under 46 U.S.C. §41102(c), also known as the Shipping Act.

What can I do to Make My Voice Heard?

• If you are interested in adding comments to the petition, the FMC requires that interested persons submit views or arguments in reply to the Petition no later than February 28th, 2017.
• Replies need to be sent both by mail and email. Requirements for sending the comments can be found here and a sample letter for you to send is here (with thanks to NCBFAA for the draft letter).
• Remember, you must send (1) original and (5) copies of the letter to: Assistant Secretary, Federal Maritime Commission, 800 North Capitol Street, NW; Washington DC 20573-0001 AND a PDF of the letter,  showing the docket number of P4-16 in the reference line, to Secretary@fmc.gov AND mail a copy Karyn Booth, Thompson Hine LLP, 1919 M Street, NW, Washington DC 20036.

If you have any questions or would like to discuss your specific CBP and/or FMC issue, please contact info@diaztradelaw.com.

U.S. Customs & Border Protection (CBP)

• Assisted an importer in having $434,486.00 worth of goods seized returned to it in a RECORD 24 working days, with a signed settlement agreement with CBP in a record 17 working days!
• Assisted an importer in having $324,466.00 worth of goods seized for an underlying AES violation returned.
•  Assisted importers in filing prior disclosures that were accepted by CBP, advising of errors found, and avoiding substantial penalties.
•  Assisted importers in successfully responding to CBP 28’s and 29’s resulting in close outs, and no further enforcement action by CBP!
•  Assisted importers in creating and maintaining pre-compliance programs to evaluate intellectual property rights and pre-report merchandise to CBP resulting in expedited entry into the U.S. with no delays or examinations by CBP.

• Successfully assisted importers in keeping manifest data confidential.
• Post Importation Claim approved by U.S. Customs, resulting in refunds of over $400,000.00!
•  Successfully mitigated a $46,107.00 Liquidated Damages claim down to $768.00!
•  Successfully mitigated a $50,000.00 Liquidated Damages claim down to $10,000.00 and successfully negotiated with the surety to have them pay the mitigated amount!
•  Successfully mitigated a $75,980.00 Penalty for an underlying intellectual property rights violation down to $7,598.00!
•  Successfully mitigated a $75,633.12 Penalty for an underlying intellectual property rights violation down to $7,563.12!
•  Assisted numerous importers in recovering seized hoverboards back (without the non-compliance batteries).
•  Assisted numerous individuals in successfully appealing Global Entry denials and gaining access to the program, as well as filing Traveler Redress complaints, resulting in expedited entry into the U.S. without being sent to secondary.
•  Successfully petitioned CBP for the return of seized Polaris’s.
•  Successfully recorded a USPTO registered trademark with CBP for added protection at all U.S. borders.

U.S. Department of Commerce (DOC)

• Received two positive scope rulings from the DOC’s International Trade Administration (ITA) confirming our clients merchandise is outside of the scope of current AD/CVD orders and not subject to AD/CVD!

Cuba

• Received licenses from the U.S. DOC, Bureau of Industry and Security (BIS) for export of items to Cuba.
• Counseled clients on the legalities of doing business with Cuba.

Federal Maritime Commission (FMC)

• Assisted clients in successfully applying to the FMC for an Ocean Transportation Intermediary (OTI) license to operate as an Ocean Freight Forwarder and Non-Vessel Operating Common Carrier.

Transportation Security Administration (TSA)

• Assisted clients in successfully applying to the TSA for an Indirect Air Carrier (IAC) license.

U.S. Food and Drug Administration (FDA)

• Provided pre-compliance assistance to importers of cosmetics, drugs, and medical devices into the U.S. resulting in expedited entry into the U.S. with no delays or holds by CBP or FDA.
• Assisted numerous importers in registering with the FDA as importers of medical devices.
• Acted as U.S. Agent for numerous overseas manufacturers of food products imported into the U.S.

Customized Training Programs

DTC taught five customized training programs on the following topics:

• Cochran Program for Dominican Republic & Mexico, Discussion of CAFTA and Best Practices when Importing into the U.S.
• Update on U.S. Laws Regarding Commerce with Cuba.
• Importing into the U.S. and Lacey Act Compliance for Chile Week.
• In Partnership with the SBDC, Introduction to Importing into the U.S. and Import Compliance for Small Businesses

DTL spoke at 21 events in 2016, some highlights included speaking for:

• 2016 Americas Forum
• American Bar Association’s Section of International Law’s Spring Meeting in New York
•  Broward County Office of Economic and Small Business Development, 2016 Export Readiness Seminar
•  Caribbean Shipping Association
•  National Customs Brokers and Forwarders Association of America (NCBFAA)
•  FDANews
•  Nova Southeastern University
•  Miami Dade College
•  Cypress Creek Rotary Club
•  Florida International Trade and Cultural Expo (FITCE)
•  MYCLE

DTL would love to be your Customs and International Trade Law Expert! Contact us at info@diaztradelaw.com to schedule your consultation today.

Now’s the time to apply to become a non vessel operating common carrier (NVOCC) and/or ocean freight forwarder (OFF).  FMC has proposed major changes to its regulations and application requirements for Ocean Transportation Intermediaries (OTIs).   Get your application in now to avoid those changes, and/or, learn the changes and spend the time to comment on them while you can.  Detailed summaries of those changes are below.  July 31, 2013 is the cutoff to have your voice heard!

• Qualifying Individual (QI) Changes – Included in the proposed changes are changes to many definitions – this one impacts what it will take to become a QI.  The standards will be tougher.  For one, the QI’s 3 years of relevant experience will only qualify if one has worked for a licensed, bonded, registered OTI. Experience obtained while the individual was employed by a licensed domestic OTI, a vessel operator, or a registered foreign-based NVOCC would be acceptable.
• All Owners will now be Vetted – Background checks will now not be limited to the QI, all owners will go through background checks (and my two cents, your application will take that much longer to be processed with every additional owner)..
• All Licenses will now be Online – FMC proposes to go green in its application process.  Application fees are much cheaper online, $250 vs. the paper application fee of $850.   
• License Renewal Every 2 Years! – All licenses, both forwarder and NVOCC, be renewed every two years, regardless of how long a company has held a license. As part of that renewal process, the licensee would be required to pay a filing fee in an amount yet to be determined. As proposed, the information to be provided would include the name of the current Qualifying Individual, all shareholders, officers and directors (and, their social security numbers), and require the production of corporate good standing certificates. Each company would be required to submit an application for renewal at least 60 days prior to the scheduled expiration dateof its current license. 
• Suspension/Revocation of Licenses – Under the current regulations, a license can be suspended or revoked for failing to respond to a lawful order, making materially false or misleading statements, or failing to have a current tariff or bond. The ANPRM now proposes to also subject licenses to revocation if the OTI “knowingly and willfully accepts cargo from, processes, books, or transports cargo” for, an NVOCC that is either unlicensed or fails to have the required bond. The Commission also proposes to“streamline” the appeals process for any revocation of licenses by eliminating an OTI’s right for a full evidentiary hearing. Indicating that such proceedings are “often lengthy and expensive,” the ANPRM proposes to establish a procedure by which appeals could be handled by a hearing officer on a written record, without any apparent right of discovery concerning matters that may be in the Commission’s files.
• Foreign Registered NVOCCs – The ANPRM would require foreign registered NVOCCs to submit a detailed registration form and a filing fee, with those registrations only valid for a period of two years. Under current regulations, and as is the case with existing OTI licenses, registrations are valid for an indefinite period. The foreign NVOs would be required, in their registration forms, to provide their legal name, any trade names, their principal business address with contact information, a contact person with an email address, and their U.S. resident legal agent.
• Increase Bond Requirements – Citing incidents in which two NVOCCs went out of business owing significantly more than the $75,000 bond, which meant that claimants were unable to recover all monies owed, the ANPRM proposes to increase all OTI bonds as follows: Ocean Forwarder $50,000 $75,000, Licensed NVOCC $75,000 $100,000, Registered NVOCC $150,000 $200,000, Group Bond $3 Million $4 Million
• Tiers for Claims on Bonds – The ANPRM would establish three tiers of payment priorities for claims against the bond.
• FMC Website Publication of Claims – The Commission would publish these notices and claims on its website, which would be available to the general public as well as the various sureties. 
• Prohibit Surety From Payment of 20%+ of Bond – Another proposal would prohibit the surety from paying any claims that amount to more than 20 percent of the face amount of the bond for a period of at least five months after the date the claim is received.
• License Revocation when Bond Termination Occurs – In this proposed rule, FMC licenses and registrations could be revoked “without hearing or other proceeding” in the event the required bond is terminated.
• New Class of NVOCCs for Household Goods – The commission seeks comments on such a change, not an actual proposal at this time.