Administration 

• President Trump said that he will impose 50% tariffs on any country that sells military weapons to Iran. 
• President Trump said that the U.S. will consider tariff and sanctions relief for Iran as it negotiates an end to the war.  

Customs and Border Protection (CBP) 

• CBP released a new Harmonized System Update containing over 500 Automated Broker Interface records and 116 Harmonized Tariff Schedule records, including updates to 232 duties on aluminum, steel, and copper imports. 
• CBP and the Consumer Product Safety Commission (CPSC) seized nearly 350,000 batteries that did not comply with child protective packaging standards. 

Court of International Trade (CIT) stayed on another IEEPA refund case filed by importer Euro-Notions Florida, and reissued its order requiring CBP to pay IEEPA refunds for all unliquidated, not finally liquidated, and finally liquidated entries.  

Department of Labor (DOL) 

• DOL introduced new tools to support supply chain integrity and address unf
• The lead plaintiff in the IEEPA refund case filed a notice of dismissal in its case at the CIT on April 6. Shortly after, Judge Eaton lifted their foreign labor practices. 

United States Trade Representative (USTR) 

• U.S. Trade Representative Jamieson Greer said that USMCA negotiations are likely to continue past the July 1 deadline, citing the Trump Administration’s dissatisfaction with a lot of the outcomes of USMCA, including a significant surge of auto imports from Mexico and steel and aluminum imports from both countries. 

U.S. Department of the Treasury 

• Treasury’s Financial Crimes Enforcement Network (FINCen) and OFAC issued a joint proposed rule to implement provisions of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act).  

Office of Foreign Assets Control (OFAC) 

• OFAC issued Russia-related General License 13Q, “Authorizing Certain Administrative Transactions Prohibited by Directive 4 under Executive Order 14024.”  
• OFAC published Spanish translations of several Venezuela General Licenses, including licenses involving Venezuelan-origin oil, petrochemical products, and diluents.   

Food and Drug Administration (FDA) 

• Importer F&D international filed a complaint against the U.S. District Court for the Middle District of North Carolina, alleging the FDA unjustifiably detained shipments of imported frozen roasted eel. 
• The FDA posted new and revised Import Alerts on several products including: raw and cooked shrimp from India, processed foods for pesticides, and new tobacco products without required marketing authorization. 

U.S. Department of Agriculture (USDA) 

• USDA’s Foreign Agricultural Service (FAS) extended the comment period for the amendments to the regulation that provides for the issuance of annual licenses to import certain dairy products under tariff rate quotas. 

Consumer Product Safety Commission (CPSC)  

• CPSC added two new frequently asked questions to its eFiling website, guiding filing requirements for noncommercial products and resold products that are meant to be distributed in commerce. 

International News 

• China published new supply-chain security and retaliation regulations establishing a formal system for investigating and responding to foreign actions deemed harmful to the country’s industrial and supply‑chain security. 

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Full list of exporters here. 

Import volume here.  

Background on AD Investigations 

Antidumping duty (“AD”) is brought jointly by the U.S. International Trade Commission (“USITC”) and the U.S. Department of Commerce (“Commerce”). AD investigations are triggered when a domestic industry alleges that it has been injured by competing imports of particular goods from specific countries being sold at less than a fair value. The domestic industry initiating the investigation is known as the petitioner, while the foreign industry participating in the investigation is known as the respondent. 

Scope of the Investigation 

The merchandise covered by these investigations is all forms of polytetramethylene ether glycol (“PTMEG”).  

The products subject to the investigation are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under the following subheadings: 3907.29.00 and 2932.11.00.   

Full scope here.

Next Steps 

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

As with any proceeding, participation is very important to protect your rights. We urge anyone who imports Polytetramethylene Ether Glycol from China, South Korea, Taiwan, or Vietnam to pay close attention to this case and to ensure that all appropriate steps are taken to mitigate any damage. 

AD investigations can result in determinations adverse to respondent interests for years that could effectively prohibit access to the U.S. market. Failure to effectively participate in investigations can put exporters and importers at a significant disadvantage. 

Diaz Trade Law will continue to monitor this case and share updates.

For more information or questions, get in touch with us at 305-456-3830 or info@diaztradelaw.com. 

Self-Assessment Tools

DOL launched four voluntary self-assessment tools that provide practical, user-friendly guidance to help companies map supply-chain risks and evaluate labor practices. The tools can also guide companies in taking steps to ensure alignment with U.S. forced labor laws and strengthen supply chains that support American workers and American industry.

The new tools are: 

• LaborShield: A mobile app that features information on egregious labor violations in over 145 countries (formerly the Sweat and Toil app).
• ImportWatch: A resource that brings together the department’s labor abuse research with U.S. import data from the U.S. Census Bureau to produce a red-flag list of all high-risk goods for U.S. importers.
• SourcingStrong: A tool to help U.S. businesses build strong labor due diligence systems to identify and manage risk in their supply chains.
  
• Supply Chain Traceability Portal: The portal provides visibility across supply chains and beyond the first tier to expose where exploitative labor hides.

Announcement Insights 

Diaz Trade Law was in attendance at the launch event in Washington, D.C. – hosted by the DOL and co-sponsored by the Responsible Business Alliance. The program featured remarks from Deputy Secretary of Labor Keith Sonderling, followed by a fireside chat with top executives from leading U.S. industries.

At the event, DOL representatives stated the department wants “good actors” to use these tools and to give feedback on them. Panelists highlighted that they have been engaging with DOL for years on the issues of forced labor in foreign supply chains. DOL’s stated goal is to level the playing field for U.S. businesses by making foreign actors play fair.

Forced Labor Enforcement Focus

DOL, among other government agencies, have made clear that enforcement of the U.S.’s forced labor laws is a priority. 

For importers, understanding who is supplying you with a product is not enough, you also need to know who is supplying them. You should have a comprehensive understanding of your supply chain that includes documentation of the various tiers of suppliers. Detailed documentation can help identify gaps and high-risk areas that may need to be revisited down the road.  

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

Learn more:

• Webinar: Forced Labor – Practical Tips to Secure Your Supply Chain and Comply with Regulatory Requirements
• Breaking the Chains: Forced Labor in Mexico’s Supply Chains
• CBP Launches New Forced Labor Portal 
• Bloomberg Law: U.S. Customs Targets the Use of Forced Labor
• UFLPA Guidance: What Importers Need to Know
• Uyghur Forced Labor Prevention Act (UFLPA): What You Need to Know
• CBP’s Forced Labor Process Flowchart

Administration

• On April 2, 2026, the President issued a proclamation strengthening Section 232 actions to adjust imports of aluminum, steel, and copper, continuing to cite national security concerns and the need to reinforce domestic metals industries. 

Customs and Border Protection (CBP)    

• CBP filed an update on the progress of the Consolidated Administration and Processing of Entries (CAPE) system that will be used to refund the tariffs imposed under the IEEPA.   
• On April 1, CBP released a modernized ACE Secure Data Portal account application for the trade community.  
• CBP said in a notice that it is no longer actively investigating allegations that cocoa from Cote d’Ivoire is being made with forced labor. 
• CBP filed a stipulated judgment with the CIT stating that products from importer Camel Energy aren’t subject to the Uyghur Forced Labor Prevention Act (UFLPA). The judgment follows a review of Camel’s supply chain, which determined that entries of batteries did not violate the UFLPA.  

United States Trade Representative (USTR) 

• USTR released the 2026 National Trade Estimate Report on Foreign Trade Barriers (NTE). The report highlights significant foreign barriers to U.S. exports, U.S. foreign direct investment (FDI), and U.S. electronic commerce. 
• In an interview with Bloomberg, U.S. Trade Representative Jamieson Greer said plans are in the works to establish a Board of Trade to manage trade between the U.S. and China. 

Congress   

• U.S. Senators Baldwin and Moreno wrote a letter to the Commerce Department asking it to open a 232 investigation into the national security threat of imports of heavy machinery. 
• The Defending American Property Abroad passed the House of Representatives. The bill would give the president the authority to prohibit passenger and cargo ships from calling on U.S. ports if they visited the former Vulcan Materials port in Mexico. 

U.S. Department of the Treasury

• FinCEN proposed a rule to establish a whistleblower program that offers incentives and protections to encourage individuals who have information about potential violations of the Bank Secrecy Act (BSA), International Emergency Economic Powers Act (IEEPA), Trading With the Enemy Act of 1917 (TWEA), and the Foreign Narcotics Kingpin Designation Act (Kingpin Act).

World Trade Organization (WTO) 

• During the 14th Ministerial Conference (MC14), members of the WTO failed to reach an agreement on extending the moratorium on customs duties for electronic transmissions. 

Office of Foreign Assets Control (OFAC)    

• OFAC issued a sanctions advisory to highlight sanctions risks arising from sham transactions used to evade sanctions and to identify factors to consider when evaluating whether property may be the subject of a sham transaction. 
• OFAC issued several Venezuela-related General Licenses, including gold, services for minerals operations, and certain investments in Venezuela’s minerals sector.  

Department of Commerce 

• The Department of Commerce released a Fact Sheet announcing three new energy projects under the U.S.-Japan trade deal. 
• The Department of Commerce’s National Oceanic and Atmospheric Administration (NOAA) issued over $222,000 in civil penalties against two seafood importers accused of mislabeling tuna cans as “dolphin safe.” 

Federal Drug Administration (FDA) 

• The FDA posted several new and revised Import Alerts on the detention without physical examination of, including: processed foods for pesticides, medical instruments from Pakistan, and foods containing undeclared colors. 

Federal Maritime Commission (FMC) 

• The U.S. Court of Appeals for the District of Columbia Circuit upheld the FMC’s 2022 rule defining an unreasonable refusal to deal or to negotiate with respect to vessel space. 

Environmental Protection Agency (EPA) 

• EPA officials visited the port of New York/Newark as part of inspection activities to prevent the importation of illegal toxic and polluting imports.  
• The EPA issued a proposed rule to extend the reporting deadline for the Health and Safety Data Reporting Rule by one year until May 21, 2027. Comments on the rule are due on April 29. 

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What OFAC Defines as a “Sham Transaction” 

Sham transactions occur when blocked persons “give up their property on paper only,” while continuing to benefit from or control the asset. These arrangements often involve: 

• Proxies, straw owners, or front companies acting on behalf of sanctioned individuals. 
• Opaque legal structures, including multi‑layered LLCs, partnerships, or trusts. 
• Transfers to family members or close associates who may serve as facilitators. 
• Commercially unreasonable transfers, such as those lacking adequate consideration. 
• Continued use or control of the asset by the blocked person after the purported transfer. 

Pro Tip: Look beyond legal formalities and identify the economic realities of the transaction. 

Red Flags Identified by OFAC 

The advisory outlines several indicators that a transaction may be a sham designed to evade sanctions. These include: 

• Transfers with no legitimate business purpose or to individuals lacking relevant expertise. 
• Complex corporate structures in high‑risk jurisdictions. 
• Inconsistent or incomplete documentation surrounding the transfer. 
• Timing of the transfer, particularly if it occurs close to a sanctions designation. 
• Evasive or vague responses from intermediaries when questioned about ownership or control. 

Pro Tip: No single factor is determinative; look at the totality of the circumstances instead. 

If your organization needs assistance strengthening sanctions compliance, conducting due diligence, or reviewing internal controls, contact Diaz Trade Law today! 

Learn more: 

• Bloomberg Law: Submitting a Voluntary Self-Disclosure to OFAC 
• Bloomberg Law Feature: Voluntary Self-Disclosures: Recent Guidance From BIS, OFAC & DOJ 
• Office of Foreign Assets Control (OFAC) Sanctions Compliance 

Jennifer Diaz, President, Diaz Trade Law

Amber Pirson, Attorney, Diaz Trade Law

FinCEN’s March 30, 2026, Notice of Proposed Rulemaking (NPRM) marks a major step toward fully operationalizing the agency’s whistleblower program, designed to incentivize reporting of Bank Secrecy Act (BSA), sanctions, IEEPA, and other illicit finance violations. The proposal outlines how whistleblowers can securely submit information, how awards will be determined, and what protections will be available.  

This development reflects the Treasury Department’s broader strategy to strengthen financial system integrity and encourage actionable tips that support enforcement efforts. For financial institutions, compliance professionals, and potential whistleblowers, the NPRM provides long‑awaited clarity on program structure and expectations. 

Overview of the Proposed Rule 

FinCEN’s NPRM proposes a comprehensive framework for administering whistleblower submissions and awards. Key elements include: 

• Secure submission procedures for individuals reporting suspected violations of the BSA, OFAC sanctions, and related laws. 
• Eligibility criteria for whistleblower awards, including documentation requirements and timelines. 
• Award ranges of 10–30% of monetary penalties collected when a whistleblower’s information leads to a successful enforcement action. 
• Robust protections for individuals who provide information, including confidentiality and anti‑retaliation safeguards. 

These provisions aim to encourage early, detailed reporting while ensuring whistleblowers are shielded from adverse consequences. 

Why FinCEN Is Prioritizing Whistleblower Incentives 

The NPRM aligns with Treasury’s broader efforts to combat fraud, sanctions evasion, and illicit finance. On the same day, FinCEN issued an advisory highlighting how transnational criminal organizations exploit federal and state health care programs—underscoring the need for timely, credible tips from insiders. Treasury Secretary Scott Bessent emphasized that whistleblowers play a critical role in protecting U.S. national security and ensuring taxpayer funds are not diverted to criminal activity. 

By formalizing award structures and protections, FinCEN seeks to increase the volume and quality of reports that can lead to enforcement actions. 

What Financial Institutions Should Know 

Financial institutions should closely review the NPRM and consider how it may affect internal compliance programs. Key considerations include… 

• Enhanced reporting expectations: Institutions may see increased whistleblower activity and should ensure internal reporting channels are well‑defined. 
• Documentation and recordkeeping: Detailed records may become even more important as whistleblower tips could trigger investigations. 
• Training and awareness: Employees should understand both internal reporting options and the existence of FinCEN’s external whistleblower portal. 

FinCEN encourages public comments within 60 days of the NPRM’s publication in the Federal Register. The official notice is available here. 

Whistleblowing and IEEPA 

While the proposed rule offers rewards for reporting fraud-related violations of IEEPA, it is unclear whether FinCEN will consider reports of unpaid IEEPA duties to be valid claims of fraud. Given the U.S. Supreme Court’s ruling, which determined that President Trump’s use of IEEPA to impose tariffs was unlawful, companies subject to such whistleblowing reports may have a strong claim of defense.   

Final Thoughts: Take Action Today! 

FinCEN’s proposed whistleblower framework represents a significant shift in how illicit finance violations may come to light. Financial institutions, compliance officers, and legal practitioners should proactively assess the NPRM’s implications and prepare for increased scrutiny and reporting activity. If your organization needs guidance navigating BSA/AML obligations, whistleblower‑related risks, or comment submission strategies, Diaz Trade Law is ready to assist with FinCEN compliance. 

Learn more: 

• DOJ Targets Trade Fraud: Importers Now on Notice as Criminal Division Ramps Up Enforcement 
• Bloomberg Law: Voluntary Self-Disclosures: Recent Guidance From BIS, OFAC & DOJ 
• BIS Issues Guidance to Financial Institutions on Best Practices for Compliance with the Export Administration Regulations 

Jennifer Diaz, President, Diaz Trade Law
Amber Pirson, Attorney, Diaz Trade Law

On April 2, 2026, the President issued a proclamation strengthening Section 232 actions to adjust imports of aluminum, steel, and copper, continuing to cite national security concerns and the need to reinforce domestic metals industries. 

Key elements include: a tiered tariff structure and some products exempt from Sec. 232 tariffs, effective at 12:01 am on April 6, 2026; and manufacturing drawback claims.  

Generally, tariffs will be assessed to the full value of imported products, “regardless of their metal content,” with reduced rates for certain products from the United Kingdom (UK) and the same 200% ad valorem duty for subject metal articles from Russia. 

• Aluminum and steel articles, most copper articles, and certain derivative articles of aluminum and steel…  
  • 50%, unless either the 25% or 10% rates listed below can apply. 
    • 25% for UK products, the aluminum content of which is composed entirely of aluminum that was smelted or most recently cast in the UK, or the steel content of which is composed entirely of steel that was melted and poured in the UK. 
    • 10% for derivative articles, steel or copper content, when the metal content was smelted and cast in the U.S. 
• For certain copper and aluminum or steel derivative articles (Annex I-B)…  
  • 25%, unless either the 15% or 10% rates listed below can apply. 
    • 15% for aluminum or steel products of the UK, if smelted and cast or melted and poured in the UK. 
    • 10% for steel or copper content, when the metal content was smelted and cast in the U.S. 
• For imports listed in Annex III to this proclamation, and entered between April 6, 2026, and December 31, 2027… 
  • Rate determined by the product’s current ad valorem duty under Column 1, unless the 10% or 25% rate listed below can apply. For Column 1 duties < 15%, the additional Sec. 232 duty must be such that the sum of both is 15%. For Column 1 duties ≥ 15%, the additional Sec. 232 duty is 0%.  
    • 10% for derivative articles or steel content, when the former was smelted and cast in the US or when the latter was melted and poured in the US. \
    • 25% for imports from trading partners without normal trading relations with the U.S. (i.e., Cuba, North Korea, Russia, Belarus).  
• For imports listed in Annex III to this proclamation, and entered on or after January 1, 2028… 
  • The rate schedule applied to products listed in Annex I-B 
• Additional product-specific rules for articles or derivatives of more than one metal.  

Products Exempt from Sec. 232 Steel and Aluminum Derivatives 

• Certain items under the following chapter headings, including certain motorcycle parts: 2, 21, 27, 28, 29, 30, 32, 33, 34, 35, 38, 39, 73, 84, 85, 87, 94, and 95. (Annex II) 

Manufacturing drawback claims are available for articles that meet the following four criteria: 

• Those classifiable in an HTS listed in Annex I-B or Annex III, or later determined by the Secretary and the Trade Representative; 
• Not subject to an antidumping or countervailing duty order; 
• A product of Trade Agreement Partners (TAP), which is composed of the United Kingdom, the European Union, Japan, the Republic of Korea, Mexico, Canada, and any trading partner with which the United States concludes a final Agreement on Reciprocal Trade; and 
• The aluminum and copper were smelted and cast, and the steel was melted and poured in a TAP country.  

On April 3, 2026, CBP issued guidance providing instructions for submitting entries to CBP on certain steel, aluminum, and copper articles and their derivatives. See here.

See annexes here. 

View the guide for navigating new Chapter 99 Headings here. 

Learn more: 

• Section 232 Valuation in a Gray Area: What Importers Need to Know 
• ICYMI: BIS Initiates 232 Investigations of UAS and Polysilicon Imports 
• Reminder: New Section 232 Duties on Certain Steel and Aluminum Products from Mexico 
• Tariffs and Trade Deals – Comprehensive Resource 

• Claim Portal – 85% 
• Mass Processing – 60% 
• Review and Liquidation / Reliquidation – 80% 
• Refunds – 75%  

 CAPE Phase 1 WILL Accept: 

1) Entries With Specific Liquidation Statuses 

• Entries showing Suspended, Extended, or Under Review status are eligible (including unliquidated entries and entries within the 90-day voluntary reliquidation period). 

• CBP will strip the IEEPA HTS code and recalculate duties excluding IEEPA. These entries won’t be liquidated through CAPE—they’ll liquidate normally, and IEEPA refunds will be issued at liquidation. 

2) AD/CVD-Suspended Entries  

• AD/CVD entries can be included if liquidation is suspended pending DOC instructions. 

3) Warehouse Entries 

• CAPE will remove IEEPA HTS codes for warehouse entries and withdrawals. 

• Refunds won’t be processed through CAPE—they’ll be issued when the warehouse entry liquidates in the normal cycle. 

 CAPE Phase 1 Will NOT Accept 

1) Reconciliation Entries (or Flagged Underlying Entries)

2) Entries Tied to Drawback Claims

3) Entries With an Open Protest

4) Entries NOT in ACE and… Entries Filed in ACE That Lack a Liquidation Status

5) AD/CVD Entries with DOC Liquidation Instructions Already Issued

Timing! 

• CBP may take up to 45 days after accepting a CAPE Declaration to review and liquidate eligible entries—longer if compliance concerns arise. 

• CBP will accept CAPE Declarations containing entries liquidated within the preceding 80 days. 

• Therefore, if you’re past 90 days, file a protest—but avoid filing within the first 90 days unless necessary. 

Our office will continue to closely monitor to keep you informed.

We encourage all importers impacted by the IEEPA tariffs to file a court challenge in the CIT. We believe that doing so preserves the right to receive refunds for IEEPA tariffs paid without having to pursue a long additional post-decision process.

Follow our tariffs & trade deals page to keep up with the latest trade news.

Read more:

• Supreme Court Rules IEEPA Tariffs Are Unlawful
• High Tariffs, High Stakes: The Rise in Customs Fraud and Enforcement Risk
• Courts Say Trump Tariffs are Unlawful, Now What?
• Bloomberg Law: Tariff Classification Basics
• Navigating Tariff Increases: Strategies to Minimize Tariff Costs Under the Trump Administration
• Webinar: Navigating Tariff Challenges: Mitigation Tools & Tactics

On February 6, 2026, the U.S. Department of the Treasury formally issued a Request for Information (RFI) that outlines how a “Known Investor Program” could streamline aspects of CFIUS review for trusted, lower‑risk repeat investors while maintaining rigorous national‑security analysis. The RFI was published in the Federal Register on February 9, 2026, and opened for public comment through March 18, 2026. This RFI follows Treasury’s May 8, 2025 announcement of a fast‑track pilot and “Known Investor” portal under CFIUS to collect investor information in advance of a filing—the core mechanism Treasury says will drive efficiency gains. In parallel, Treasury’s CFIUS overview reiterates the standard timelines, underscoring that any new efficiency program must still fit within the existing statutory framework. 

What is the Fast Track program?  

According to Treasury’s RFI, the KIP is a process by which CFIUS would pre‑collect a standardized set of information from eligible foreign investors (via a questionnaire and certification) before any specific transaction filing, with the goal of more efficient subsequent reviews. Importantly, Treasury stresses that participation does not guarantee a particular outcome and does not alter CFIUS jurisdiction or statutory procedures. 

Who is eligible to participate?  

Treasury’s RFI proposes objective eligibility criteria. Highlights include: 

• Repeat‑filer threshold: The foreign investor (inclusive of subsidiaries) must have filed ≥3 covered transactions or covered real‑estate transactions with CFIUS in the past 3 years, with at least one concluded via notice or declaration; and expects ≥1 filing in the next 12 months. 
• Clean CFIUS compliance history (5‑year lookback): No written notices from CFIUS of material misstatements/omissions, false certifications, or violations of mitigation agreements/conditions. 
• Sanctions/restricted‑party screens: No listing of the entity or parent on BIS Entity List, BIS Military End‑User List, OFAC SDN, NS‑CMIC, SSI, or the 1260H Chinese military companies list.  
• “Verifiable distance” from adversary countries: No headquarters or principal place of business in an Adversary Country or greater than 25% ownership by a national of an adversary country (as defined in the America First Investment Policy list), and no specified ownership, board‑appointment rights, employee location, or facility footprint ties that breach the thresholds Treasury lays out. 

Documents Required to Demonstrate Eligibility 

Treasury’s RFI includes a draft questionnaire for “Known Investors” that any applicants should be ready to complete. While not exhaustive, foreign investors hoping to qualify for KIP should be prepared to list and certify the following details with the utmost transparency: 

• Entity identification & scope – list of all entities under common ownership/control to be covered in KIP. (Think: legal names, jurisdictions, relationships.)  
• Ownership & control – cap table/beneficial ownership (direct and indirect), parent information, any third‑party holdings meeting the RFI’s >10% or >25% tests, and any board‑appointment rights held by restricted parties; org charts and voting/control rights maps.  
• Governance & key personnel – board/officer nationalities and principal locations to test adversary‑country criteria. 
• Geographic footprint – headquarters/principal place of business, and location of employees, R&D, and manufacturing facilities to address “all‑in adversary location” disqualifiers or the >50%/exclusivity tests.  
• Compliance history – any past CFIUS misstatement/omission notices, false certification allegations, or mitigation violations (5‑year lookback).  
• Sanctions/restrictions screening – documentation showing the entity/parent is not on BIS/OFAC/1260H lists referenced in the RFI. 

Program Benefits and Limitations 

The proposed KIP would offer greater predictability for repeat, lower‑risk investors, possibly reduce duplicative questions during any pre-notice CFIUS engagement, and may lower the chances of CFIUS demands for a notice on a non-notified transaction. However, the KIP will not obfuscate a known investor’s need to participate in a mandatory declaration if a mandatory filing is triggered.  

Diaz Trade Law can help you navigate CFIUS filing requirements, reduce risk, and avoid costly surprises. Contact us at info@diaztradelaw.com or 305-456-3830. 

Learn more: 

• U.S. Department of the Treasury Publishes New Website Clarifying CFIUS Penalties and Other Enforcement Actions 
• Non-notified Transactions Raising Red Flags for CFIUS 
• Mandatory vs. Voluntary CFIUS Filings: Triggers, Timing, and How to Report a Mandatory Transaction 

Even when a transaction does not trigger a mandatory filing, Committee on Foreign Investment in the United States (CFIUS) risk does not disappear. While the regime remains technically “voluntary” in many cases, Treasury’s increasingly active non-notified program means that deals can still be reviewed, and potentially unwound, long after closing. As a result, parties must weigh the benefits of filing against the risk of future scrutiny, particularly in sensitive sectors or with higher-risk investors.  

What counts as “voluntary”  

Given the breadth of CFIUS’ jurisdiction to review transactions between US and non-US entities where the latter’s investment implicates U.S. national security, if a deal is not a “covered transaction” (no foreign‑government substantial interest in a TID U.S. business; no critical technology), the filing decision is voluntary, but not risk‑free. CFIUS runs a vigorous non‑notified program that screens thousands of transactions annually and can request (or require) a filing post‑closing. 

Why file voluntarily anyway?

A voluntary filing can deliver “safe harbor” (limiting CFIUS’ ability to initiate a review of the transaction in the future), reduce the risk of a disruptive post‑closing inquiry, and preserve options if a customer or government counterparties expect CFIUS clearance in sensitive sectors (e.g., defense supply chain, advanced computing and AI, biosecurity, or large‑scale personal‑data platforms). 

A practical playbook to reduce CFIUS risk and avoid being flagged 

1) Review the risks of your investor profile and structure. 

Confirm “excepted investor/state” status where applicable, and consider governance that removes control and covered‑investment rights where such restrictions can truly be enforced by both parties (no board/observer, no material non‑public technical info, no substantive decision‑making).  

Be prepared for full upstream ownership transparency (including limited partners [LPs]); CFIUS expects disclosure and may ask for LP info and governance rights—even where fund documents restrict it.  

2) Minimize data, access, and proximity risks. 

In line with other trade compliance measures, implement U.S.‑person‑only access, data localization, encryption, and segregation measures ex ante; for higher‑risk cases, evaluate a U.S. proxy/Special Security Agreement (SSA) or ring‑fencing sensitive assets.  

For real estate adjacency exposure, re‑check the Part 802 installation lists and updated US Census Bureau data: Treasury expanded covered sites and radii, increasing the odds that a real estate component surfaces on CFIUS radar. 

3) Choose the right filing lane. 

Declarations (30 days) work best for low‑risk fact patterns from trusted investors; outcomes include clearance or a request to file a notice. 

Full notices are advisable for complex facts, sensitive buyers/sectors, or where customers and regulators require the certainty of a formal clearance letter; use pre‑notice Committee engagement and draft submissions to tighten timelines.  

4) Anticipate the non‑notified program. 

Treasury coordinates tips, media, databases, and classified reporting to identify non‑notified deals; outreach may arrive months or years post‑close. Have a response plan and contemporaneous memos showing why no filing was mandatory and why the risk profile was low.  

5) Track the enforcement environment.

Treasury has finalized rules increasing penalty ceilings and speeding mitigation talks; more penalties have been publicly announced (including eight‑figure cases). Treat certifications seriously, build compliance programs, and monitor post‑clearance obligations. 

Conclusion 

TID U.S. businesses in sensitive sub‑sectors (AI/semiconductors/quantum, critical infrastructure operational technology [OT], bulk sensitive personal data) may draw CFIUS interest, even where there is no mandatory trigger. Given the Committee’s growing interest in non-notified transactions, political momentum to continue trade wars with countries of concern, and that the Committee’s jurisdiction to review transactions is not subject to a statute of limitations, companies should be wary of the Committee’s investigation long after closing – especially where the deal has a nexus to the U.S. government or sectors known as important to U.S. national interests.  

Diaz Trade Law can help you navigate CFIUS requirements, reduce risk, and avoid costly post‑closing surprises. Contact us at info@diaztradelaw.com or 305-456-3830. 

Learn more: 

• U.S. Department of Treasury Publishes New Website Clarifying CFIUS Penalties and Other Enforcement Actions 
• CFIUS is Looking to Fast Track Some Transactions… Could this Program Benefit You? 
• Mandatory vs. Voluntary CFIUS Filings: Triggers, Timing, and How to Report a Mandatory Transaction