Will President Trump Impose New Tariffs on Imported Vehicles?

Under the direction of President Trump, U.S. Secretary of Commerce, Wilbur Ross has initiated an investigation under Section 232 of the Trade Expansion Act of 1962, as amended. “The investigation will determine whether imports of automobiles, including SUVs, vans and light trucks, and automotive parts into the United States threaten to impair the national security as defined in Section 232.”

What are the Section 232 Investigations?

FDA Issues New Guidance to Help Food Facilities Meet Registration Requirements

On May 25, 2018, the U.S. Food and Drug Administration issued a Small Entity Compliance Guide (SECG) to help food facilities meet their registration requirements under the Federal Food, Drug, and Cosmetic Act (FD&C Act).

The FD&C Act requires food facilities engaged in manufacturing/processing, packing, or holding of food for human or animal consumption in the United States to register with the FDA. The Food Safety Modernization Act (FSMA) added new registration provisions to the FD&C Act. In 2016, FDA issued a final rule to reflect these changes, which include the following:

• Facilities are required to provide FDA with assurance that they will be permitted to inspect their facility (in accordance with the FD&C Act).
• Facilities are required to renew their registration every other year.
• FDA now has the authority to suspend a facility’s registration.

Under the 2016 final rule, additional information is also required that supports FDA’s ability to respond quickly to food-related emergencies and that will also help the agency more efficiently use the resources it has for inspections.

The SECG explains which types of facilities are required to register, and when and how to do that. The guide also explains the consequences for facilities that fail to register or to renew their registration as required. In addition, the guide explains when FDA can suspend a facility’s registration and the effect of a suspension order. To further assist small facilities, the SECG includes an “At-a-Glance” that summarizes all of the key information in the document.

Diaz Trade Consulting provides both registration and U.S. Agent services to food facilities. To register or find more information about registration, owners and operators of facilities should visit www.FDA-USA.com. For More Information check out the Draft Guidance for Industry: Questions and Answers Regarding Food Facility Registration (7th Edition)-Revised.

Top International Law Blogs To Follow in 2018

We're ecstatic to announce Diaz Trade Law's Customs and International Trade Law blog was included in TOP 30 International Law Blogs! We were chosen from thousands of International Law blogs on the web using search and social metrics because we actively work to educate, inspire, and empower our readers with frequent updates and high-quality information.

REGISTRATION OPEN - 2018 CBP Trade Symposium

U.S. Customs and Border Protection announced that the 2018 Trade Symposium will be held on August 14-15,  2018 at the Marriott Marquis in Atlanta, GA. Registration opened today Tuesday, May 29^th at 12:00 p.m. EST.  This year's symposium will include discussions on:

International Trade Day - May 23, 2018 - Port Miami

Miami World Trade Week is all about showcasing the importance of international trade, logistics, services and port operations to the South Florida economy and promotes Miami as the “Trade & Logistics Hub of the Americas”. World Trade Week includes a full of International Trade information at International Trade Day hosted by the World Trade Center Miami and U.S. Customs and Border Protection (CBP).

Over 300 international executives representing more than 150 companies have registered to attend. Top officials from CBP and other participating government agencies (e.g.  FDA, USDA, APHIS, PPQ, USFWS, CPSC, etc.) will be present and respond to your questions.

ZTE Barred by U.S. Government & ZTE Fights Back!

Background

China-based Zhongxing Telecommunications Equipment Corporation and ZTE Kangxun Telecommunications Ltd (collectively “ZTE”) entered a guilty plea and agreed to pay a combined penalty up to $1.19 billion to settle criminal and civil allegations that ZTE violated U.S. export control laws and U.S. sanctions by illegally shipping U.S.-origin items to Iran.

The record-breaking settlement agreement was with the U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”), the U.S. Department of Justice (“DOJ”), and the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”). The penalty assessed against ZTE included a $100,871,266 civil monetary penalty imposed by OFAC; a $430,488,798 in combined criminal fines and forfeitures; and a $661,000,000 penalty payable to BIS, of which $300,000,000 were suspended for a seven-year probationary period.

CBP Now Issuing Penalties for Wood Packaging Material Violations

Due to the increase in penalties for wood packaging material (WPM) violations – we thought it important to remind the importing community that CBP is issuing WPM penalties and the background as to why.

On September 25, 2017, CBP issued Cargo Systems Messaging Service (CSMS) #17-000609 informing importers of CBP’s intent to issue penalties for wood packaging material violations. In the message, CBP states all wood packaging material (WPM) imported into the United States must have been treated at the place of origin, and contain the appropriate marking upon importation.  CBP is trying to “prevent the introduction of exotic timber pests,” and is encouraging the importing community to look towards alternatives to WPM and to educate your supply chains about ISPM 15 requirements.

Right to Make Entry: Are You Entitled to Import Goods?

Prior to importing goods into the U.S. -it is essential to confirm that the Importer of Record listed on the entry actually has the "Right to Make Entry".

Who is entitled to make entry of goods?

Under U.S. law, the right to make entry for goods is held only by the importer of record.

The term importer of record, provided under Section 484 of the United States Code, was amended by Public Law 97-446.  Under those provisions, the importer of record is defined as

On the Brink of a Trade War: Trump’s New Tariff Plan on Chinese Imports

The Trump administration has engaged in a trade showdown with China, targeting more than $50 billion worth of products.  The administration’s actions are the result of investigations under Section 301 of the Trade Act of 1974 (“Section 301”) and Section 232 of the Trade Expansion Act of 1962 (“Section 232”). 

Section 301 

OFAC Increases Civil Monetary Penalties

On March 19, 2018, the Office of Foreign Assets Control (OFAC) adjusted its maximum civil monetary penalties for inflation (per the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015). The rationale for this increase is to maintain and improve the effectiveness and deterrent effect of civil monetary penalties. Any increase applies to penalties assessed after the effective date regardless of whether the violation occurred prior to such date. 

How much did civil monetary penalties increase?

Increases to penalties were assessed as follows:

• Violations of the Terrorism Risk Insurance Program will be assessed a maximum penalty of $1,360,525 up from $1,333,312.
• As codified at 31 C.F.R. § 598.701, any violation of the Foreign Narcotics Kingpin Designation Act and the Foreign Narcotics Kingpin Sanctions Regulations will be assessed a maximum penalty of $1,466,485 – increasing from its previous maximum penalty of $1,437,153.

• A penalty amounting to the greater of $295,141 or twice the amount of the underlying transaction will be assessed for a violation of the International Emergency Economic Powers Act and any of the following:
  • Iranian Assets Control Regulations
  • Narcotics Trafficking Sanctions Regulations
  • Sudanese Sanctions Regulations
  • Weapons of Mass Destruction Trade Control Regulations
  • Zimbabwe Sanctions Regulations
  • Syrian Sanctions Regulations
  • Cote d’Ivoire Sanctions Regulations
  • Weapons of Mass Destruction Proliferators Sanctions Regulations
  • Darfur Sanctions Regulations
  • Democratic Republic of the Congo Sanctions Regulations
  • Belarus Sanctions Regulations
  • Lebanon Sanctions Regulations
  • Hizballah Financial Sanctions Regulations
  • Iraq Stabilization and insurgency Sanctions Regulations
  • Magnitsky Act Sanctions Regulations
  • Western Balkans Stabilization Regulations
  • Global Terrorism Sanctions Regulations
  • Terrorism Sanctions Regulations.

• Violations of the Foreign Terrorist Organizations Sanctions Regulations will be assessed a penalty amounting to the greater of $77,909 or twice the amount of which a financial institution was required to retain possession or control pursuant to 31 C.F.R. § 597.701(b).
• A penalty of $86,976 per violation on any person violating any license, order, or regulation issued under the Trading with the Enemy Act (TWEA), as codified at 31 C.F.R. § 501.701.
• Finally, any violation of the Clean Diamond Trade Act and the Rough Diamonds Control Regulations will be assessed a penalty of $13,333, up from $13,066.

To read the final rule, click here: OFAC Final Rule on Inflation Adjustment of Civil Monetary Penalties.  For more information about this announcement please contact us at 305-456-3830 or via email at info@diaztradelaw.com.

Making E-Commerce Safer: CBP Releases New E-Commerce Strategy

On December 1, 2016, we wrote about U.S. Customs and Border Protection’s (CBP) new E-Commerce and Small Business Branch, which was created to help consumers and merchants safely navigate the complexities associated with the steady rise of global e-commerce. CBP defines e-commerce as high-volume, low-value shipments purchased via electronic means. E-commerce shipments pose the same health, safety, and economic security risks as containerized shipments, but the volume is higher and growing. Additionally, transnational criminal organizations are shipping illicit goods to the U.S. via small packages due to a perceived lower interdiction risk and less severe consequences if the package is interdicted. 

In an effort to combat those risks and have a stronger trade posture in the e-commerce environment, the CBP released its e-commerce strategy. The new e-commerce strategy addresses the growing volume of imported small packages and the challenges it presents for the U.S. economy and security. 

 The strategy includes efforts to educate the public and trade community to ensure they understand their responsibilities as importers to comply with customs regulations. 

What New Challenges Does E-Commerce Pose to the U.S.