November 2024

Customs and Trade News Weekly Snapshot

Here is a recap of the latest customs and international trade news:      

Customs and Border Protection (CBP) 

  • CBP released the October 2024 monthly update. Highlights: 
    • Stopped 557 shipments for further examination based on the suspected use of forced labor 
    • Seized 1677 shipments that contained counterfeit goods 
    • Identified $3.6M in duties and fees owed to the U.S. government 
  • CBP issued updated guidance for importer obligations and requirements in completing origin documents – declarations, statements, and certifications of origin.  
  • Reminder: The Customs Broker Permit User Fee amount changed from $174.80 to $180.57. All broker permits issued on or after October 1, 2024, are subject to the new user fee. 
  • CBP issued guidance implementing USTR’s amendment to Section 301 China duties and product exclusions. 
  • CBP agriculture specialists intercepted live larvae from a rare and potentially destructive fruit fly at Detroit Metropolitan Airport. 
  • CBP and Laboratories and Scientific Services (LSS) opened a Forward […]
By |2024-11-22T12:13:02-05:00November 22, 2024|Snapshot|0 Comments

CPSC Issues New Safety Standards for Aquatic Toys

The Consumer Product Safety Commission (CPSC) published a Notice of Proposed Rulemaking to make the safety standard for aquatic toys more stringent. The primary product targeted in the rule is neck floats which have been reported to pose a serious drowning risk to young children. The rule establishes several testing and performance requirements for these products to ensure the highest level of safety.

Conditioning

The rule would require producers of these products to subject them to conditioning procedures to ensure their durability. These include exposing the products to various temperatures, chlorine and salt water environments, and ultraviolet light.

Minimum standards

To safeguard against unintentional submergence and restraint system failure, the rule proposes additional minimum standards.

Buoyancy Requirements

The Commission is proposing to require that all neck floats demonstrate a minimum upward buoyancy equal to or greater than 30 percent of the expected weight capacity. Additionally, the rule would require that inherently buoyant neck floats to not lose more than 5 percent of their initial buoyancy after being submerged for a 24-hour period.

Restraint Systems

To reduce the likelihood of a restraint system failure on a neck float, which can result in a child slipping through the product, the new rule Commission proposes requirements for the release mode of the fastening mechanism, and overall mechanical integrity of restraint systems.

Marking, Labeling, and Instructional Requirements

In the notice, the CPSC noted that the existing safety messaging for neck floats has  limited effectiveness for preventing the submersion hazard. The rule requires new on-product warnings that include:

  • A description of the hazard;
  • […]

BIS Releases New Edition of “Don’t Let This Happen to You”

The Department of Commerce’s Bureau of Industry and Security (BIS) published an updated version of Don’t Let This Happen to You!, a list of case examples highlighting BIS enforcement efforts including criminal cases.

Case highlights:

The publication highlights over 100 cases covering various violations of export control laws.

Military Controls

The owner of BQ Tree Consulting in Jacksonville, Florida, along with the President and Manager of the company were indicted for conspiring to illegally export military-grade combat rubber raiding craft (CCRC) to China.

The scheme involved providing a U.S. company with false end-use and end-user information for a front company in Hong Kong, which was used to complete the transaction ultimately destined for China. The intention was to reverse engineer the CRRC and engines to mass produce them for the Chinese People’s Liberation Army (PLA) Navy.

The company owner was sentenced to 16 months in prison, two years of supervised release, mandatory mental health screening, and a $200 special assessment. The company President was sentenced to 42 months confinement, three years of probation, a $50,000 criminal fine, and a $200 special assessment. The company manager was sentenced to 17 months in prison, one year of supervised release pending deportation, a prohibition on employment with any company that deals with the military, and a $100 special assessment.

National Security Controls

GlobalFoundries U.S. Inc., a semiconductor wafer manufacturing company headquartered in Malta New York violated the Export Administration Regulations (EAR) by sending 74 shipments of semiconductor wafers, valued at approximately $17.1 million, to SJ Semiconductor (SJS), a company […]

By |2024-11-22T07:13:34-05:00November 22, 2024|EAR, Export, U.S. Department of Commerce|0 Comments

Navigating Tariff Increases: Strategies to Minimize Tariff Costs Under the Trump Administration

Donald Trump favors tariffs. Leading up to the 2024 election, he called himself the “tariff man” and stated that tariffs are “the greatest thing ever invented”  and  “the most beautiful word in the dictionary.”

Although the specifics of Donald Trump’s tariff plan have yet to be revealed, he has made numerous public statements about the tariffs he has in mind.  At a rally in North Carolina, he suggested imposing a 10-20% tariff on all imported goods. He also said that he would impose a 25% tariff on imports from Mexico if the country does not help curb the flow of immigrants and drugs over the border. He has also suggested a massive  60% to 100% tariff on Chinese origin goods.

So, what can importers do to prepare?  A lot!

First, What is a Tariff?

A tariff (also known as a duty) is a tax levied by governments on the value of imported products. Tariffs differ greatly by country and by individual product. In the United States, tariffs are collected by U.S. Customs and Border Protection (CBP) and the money goes to the U.S. Treasury.

The importer of record is responsible for correctly classifying their goods and paying the appropriate duty rate. Tariffs are not paid by the foreign seller or the country from which the goods are imported, thus the costs are generally passed along to the U.S. consumer.

Learn more about how tariffs work here.

Strategies to Minimize Tariff Costs

An increase in tariffs can undoubtedly have a significant impact […]

By |2024-11-18T13:51:59-05:00November 15, 2024|Import|0 Comments

Customs and Trade News Weekly Snapshot

Here is a recap of the latest customs and international trade news:     

Customs and Border Protection (CBP)

  • CBP issued a withhold release order (WRO) against a frankincense supplier based in Somaliland, based on the alleged use of forced labor in the production of merchandise.
  • CBP, in collaboration with the Department of Homeland Security announced the three-part webinar series, UFLPA 101 for the Seafood Sector, on Nov. 12-14.
  • The Miami Tampa Field Office announced the passing of CBP Operations Specialist Monica “Lisi” Guerrier on October 28, 2024.
  • CBP published a bulletin proposing to modify and revoke rulings on plastic recycling plants, and wood chipping machines.
  • CBP announced its FY2025 quarterly webinar series on the Enforce and Protect Act (EAPA) program, the first session will be held on November 21, 2024. 
  • CBP agriculture specialists at the Louisville Port of Entry intercepted a shipment containing 41 dead bats and 41 dead birds.
  • Reminder: CBP will implement rejections for vague cargo descriptions in ACAS effective 12:00 pm EST on November 12, 2024.
  • CBP issued a notice of initiation of investigation […]
By |2024-11-08T15:20:34-05:00November 8, 2024|Snapshot|0 Comments
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