U.S. Department of Treasury Publishes New Website Clarifying CFIUS Penalties and Other Enforcement Actions

The Committee on Foreign Investment in the United States (CFIUS) is an interagency committee charged with reviewing certain transactions involving foreign investment in the United States to determine whether the transactions will impact the national security of the United States. The Treasury Department chairs CFIUS and the committee includes representatives from 16 federal executive departments and agencies.

In recent years, CFIUS has increased its focus on enforcement and in 2023 and to date in 2024 has issued three times more penalties than it had since its establishment nearly 50 years ago.

Treasury unveiled a new website which includes detailed information about all of the civil monetary penalties imposed by CFIUS over the last few years. The new website describes the nature of the conduct that gave rise to the penalty as well as aggravating and mitigating factors and includes three new sections: CFIUS enforcement, CFIUS mitigation, and CFIUS non-notified transactions

CFIUS Enforcement

The CFIUS enforcement section provides information on the latest CFIUS priorities and details what actions the Committee is taking to strengthen compliance and enforcement. The page also lists several enforcement actions that involved monetary penalties and outlines the details of the violation, the penalty, and any mitigating factors. For example, in 2024, CFIUS imposed a 60-million-dollar penalty against T-Mobile.

CFIUS Mitigation

The new CFIUS mitigation section provides details on CFIUS staffing and resources. The page details how staff is designated to negotiate, monitor, and enforce active mitigation agreements, conditions, and orders. The page also details how designated compliance personnel may be utilized […]

By |2024-08-16T09:43:00-04:00August 16, 2024|news|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 delayed the deployment of enhancements to the Document Image System (DIS) that will facilitate vehicle-related document submission for exports via Electronic Data Interchange (EDI) until further notice. 
  • CBP announced the agency will open a new Customs Trade Partnership Against Terrorism (CTPAT) office in Laredo, Texas, by the beginning of next year. 
  • CBP held a resume and application workshop on Aug. 1. where recruiters provided information on CBP’s hiring process. 

United States Trade Representative 

  • USTR delays start to Section 301 China tariff modifications while they continue to review comments. The final determination is expected in August 2024. 

Office of Foreign Asset Control (OFAC) 

  • OFAC updated its Compliance Hotline by transitioning to a single, user-friendly online platform to receive questions from the public.  Users can now submit queries—and provide all necessary details—directly through OFAC’s new OFAC Compliance Hotline page.  
  • Global Magnitsky designation update. 

United States International Trade Commission (USITC) 

By |2024-08-09T11:43:30-04:00August 9, 2024|Snapshot|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 updated the Xinjiang Uyghur Autonomous Region WRO Frequently Asked Questions. View the updated page here.
  • CBP issued a final rule imposing import restrictions on archaeological materials from Tunisia. The restrictions are effective July 22, 2024, through February 6, 2029, unless extended. Importation of these materials is restricted unless they are accompanied by documentation certifying that they left Tunisia legally and are not in violation of that country’s export laws. 
  • CBP published a notice in the Federal Register announcing the adjustment of customs user fees for fiscal year 2025. The adjusted user fees will take effect October 1. 
  • CBP officers at the Area Port of Norfolk-Newport News, VA seized a shipment of 60 counterfeit and dangerous hair dryers from China. 
  • Norfolk CBP and NHTSA seized tuk tuks, food buggies, golf carts, and campers for not conforming to Federal Motor Vehicle Safety Standards.  
  • On July 25, CBP began requiring the estimated date of arrival for all entry type 86 […]
By |2024-07-26T16:32:04-04:00July 26, 2024|Snapshot|0 Comments

The Fine Line Between Transshipment and Substantial Transformation

Zero dollars or millions of dollars, that can be the difference in duties assessed depending on a country of origin determination.

Country of origin sounds simple – where did the product you are importing come from? However, in today’s global manufacturing market, this determination isn’t always straightforward.

Country of Origin & Substantial Transformation

Sometimes determining the country of origin is straightforward. If the entire product is born and bred in a single country, then that’s the country of origin. But what about when inputs from various countries are shipped to another country where they are then manufactured together into a finished product? This is when things can get a bit more complicated.

Many US Free Trade Agreements (FTAs) stipulate the precise amount of inputs that must be from the country in question in order to qualify for a special, lower (usually zero percent) duty rate. Other times, what happens to those inputs and in what country, regardless of where said inputs were originally from, is what matters. So, if you are sourcing inputs from China, and transforming them into a finished product in a Mexico, then Mexico will likely be the country of origin for the product.

But there’s a fine line here. Would snapping some Mexican door handles onto a car that is otherwise made in China, in Mexico, make it a car from Mexico? What if we painted the exterior? Put in the engine? Pursuant to 19 C.F.R. § 134.1(b), Customs will generally consider the 2nd country to be the […]

By |2024-07-26T12:11:40-04:00July 26, 2024|Import|0 Comments

Jennifer Diaz Elected to Board of “Let’s Do Something”

Jen Diaz is proud to be elected as a board member of “Let’s Do Something” – a non-profit whose mission is to create a brighter and safer future for Israel through advocacy, engagement, training, and rehabilitation.

“As a Jewish woman, Israel is my homeland and holds a huge chunk of my heart. The horrific attack on Israel by Hamas, a terrorist organization that brutally murdered 1,200 Jews on October 7, 2023 shattered me. Feeling powerless and devastated, I knew I had to do something but was uncertain of what I could do to make an impact. My volunteer mission to Israel in December, 60 days into the war—my fifth trip—wasn’t enough. I relentlessly searched for organizations that profoundly support the army and people of Israel, and I found my calling with Let’s Do Something. This extraordinary organization, driven by 20-year-olds whose passion could fill a state, makes an immense impact by providing necessities to the army and people of Israel while educating the world about the atrocities of October 7. If you are seeking to champion a cause that genuinely strengthens the state of Israel, look no further.” -Jennifer Diaz

To date, Let’s Do Something has distributed over $20M in humanitarian aid, medical […]

By |2024-10-01T09:55:49-04:00July 22, 2024|news|0 Comments
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