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Customs and Trade News Weekly Snapshot
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Customs and Trade News Weekly Snapshot
Snapshot

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 cybersecurity incident procedures guidelines for brokers.
- The guidance explains the process and roles and responsibilities of CBP and the brokerage community on how to facilitate the importation, entry, and entry summary process, in the event of a cybersecurity incident affecting a broker.
CBP easter egg advisory: CBP reminds the traveling public that cascarones (confetti-filled eggshells) are restricted to quantities of 12 per passenger.
- Cascarones are a restricted commodity by CBP in order to prevent further spread of Newcastle Disease and Highly Pathogenic Avian Influenza (HPAI) through contaminated eggshells.
CBP seized 280 toddler travel beds and baby playpens for Consumer Product Safety Act violations. The China-based shipment was appraised at a domestic value of about $11,000.
CBP extended import restrictions on certain archaeological and ecclesiastical ethnological material from Honduras.
CBP released a final rule shifting the […]

By Jennifer Diaz|2024-03-22T11:22:03-04:00March 22, 2024|Snapshot|0 Comments

Breaking Trade News: New AD and CVD Petition Filed on 2,4-Dichlorophenoxyacetic Acid from China and India

On March 14, 2024, Corteva Agriscience LLC filed a petition for the imposition of antidumping and countervailing duties on imports of 2, 4-Dichlorophenoxyacetic (2, 4-D) acid from China and India.

2, 4-D is the active ingredient in many products used in the United States and throughout the world as an herbicide to kill weeds on land and in water.

Identified importers include:

Helena Industries LLC (China)
Nufarm Americas Inc. (China)
PBI-Gordon Corporation (China)
Gharda Chemicals (India)
Atul USA, Inc. (India)

The full list of identified exporters and producers can be viewed here.

The alleged dumping margins are:

China: 143.73%
India: 62.66%

The proposed scope language includes the 2, 4-D component of any derivative products of 2, 4-D including amine salt and ester forms.

The Commerce Department will determine whether to initiate the investigations within 20 days. The United States International Trade Court (USITC) will reach a preliminary determination of material injury or threat of material injury within 45 days. Final determinations will likely occur late 2024.

As with any proceeding, participation is very important to protect your rights. We urge anyone that imports 2, 4-D to pay close attention to this case to ensure that all appropriate steps are taken to mitigate any damage.

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.

By Jennifer Diaz|2024-03-18T09:40:32-04:00March 18, 2024|AD/CVD, China, Import, Investigation, U.S. Department of Commerce (DOC)|0 Comments

Ford Motor Company Settles Claims Relating to Under-Valued Vehicles for $365M
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Ford Motor Company Settles Claims Relating to Under-Valued Vehicles for $365M
Import, penalty

Ford Motor Company Settles Claims Relating to Under-Valued Vehicles for $365M

Ford Motor Company has agreed to pay $365 million for allegedly misclassifying and understating the value of hundreds of thousands of vehicles.

According to the Department of Justice, Ford engaged in a scheme to avoid higher duties by misclassifying cargo vans. Between 2009 and 2013, the company imported Transit Connect cargo vans into the United States but presented them to Customs and Border Protection (CBP) with temporary seats and other features to make them appear to be passenger vehicles. The seats were never intended to carry passengers and Ford removed them as part of post-importation processing. The inclusion of the seats allowed Ford to avoid paying the 25% duty rate for cargo vehicles and instead they paid a duty rate of just 2.5%.

This case dates back to February 2012 when the Port of Baltimore advised Ford it was initiating an investigation into Ford’s classification practices. (Typically, prior to investigating an entity, CBP sends a request for information first. For more information on how this process typically begins read “Now, More than Ever, Be Wary of and Responsive to a CBP Form 28!”).

In 2013 Customs determined that the vans were improperly classified and liquidated the vehicles at the 25% duty rate. Ford protested, and Customs denied the protest. Ford then filed a complaint with the U.S. Court of International Trade (CIT). The CIT agreed with Ford, finding that Ford engaged in legitimate tariff engineering. The government appealed to the United States Court of Appeals for the Federal Circuit where […]

By Jennifer Diaz|2024-03-15T14:49:39-04:00March 15, 2024|Import, penalty|0 Comments

MoCRA Facility and Product Registration Portal Now Open!
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MoCRA Facility and Product Registration Portal Now Open!
Cosmetics, U.S. Food and Drug Administration (FDA)

MoCRA Facility and Product Registration Portal Now Open!

Essential deadlines under the Modernization of Cosmetics Regulation Act of 2022 (MoCRA) come into effect July 1, 2024. MoCRA brings significant changes to the cosmetic industry and will impact your company if you manufacture, distribute, or pack a cosmetic product in the United States.

What is Required Under MoCRA

MoCRA replaces the previous Cosmetic Act, which had not been updated since 1938.

New MoCRA requirements include:

FDA registration for cosmetics facilities
Product listings for each cosmetic product
Adverse event reporting
Safety substantiation
Compliance with Good Manufacturing Practices (GMPs)
Fragrance allergen labeling

MoCRA also gives the FDA new records access and mandatory recall authority. In issuing MoCRA regulations, FDA’s aim is to help ensure the overall safety of cosmetic products, and significantly expand the Agency’s ability to trace and track non-compliant products and facilities.

Registration and Listing Made Easy Through Our Online Portal

Not sure what is required to register a facility or list a cosmetic product? Our online portal will take you through the process step-by-step to ensure you are in compliance.

On our website you can:

Register a facility
Enlist Diaz Trade Consulting as your U.S. Agent
List a cosmetics product
Pay registration fees
Complete annual renewal
Request a UNII code

Get started here. Have questions? Reach out to us at info@diaztradeconsulting.com or call us at 305-400-8458.

Clothing Wholesaler Executive Avoids Paying Millions in Duties – Sentenced to 4 Years in Prison

Mohamed Daoud Ghacham, a 40-year-old executive from California has been sentenced to 48-months in prison for customs fraud. Ghacham, who was at the helm of a Paramount-based clothing wholesale company, engaged in a deceitful scheme that allowed his business to sidestep paying millions in customs duties on imported garments.

United States District Judge Maame Ewusi-Mensah Frimpong handed down the sentence, which also includes a restitution payment of $6,390,781.

The fraudulent operation involved importing clothing from China and presenting U.S. Customs and Border Protection (CBP) with a fraudulent second invoice with a lowered value. At Ghacham’s direction, Chinese suppliers would prepare two invoices for orders – a true invoice with the actual price paid and a fraudulent invoice with an understated price. Ghacham submitted the false invoices to CBP, allowing them to avoid millions of dollars in duties for over a decade.

Ghacham also faced charges related to conspiring to engage in transactions with a known narcotics trafficker.

The sentencing of Ghacham and his company concludes a comprehensive investigation by Homeland Security Investigations and CBP, with assistance from the U.S. Department of Commerce Office of Export Enforcement, the Treasury Department’s Office of Foreign Assets Control, and IRS Criminal Investigation.

This case underscores the U.S. government’s unwavering commitment to enforcing its customs laws and the severe consequences for those who choose to circumvent them.

Interested in learning more about CBP enforcement? Check out our upcoming webinar on the False Claims Act (FCA). We will discuss damages and criminal liability for making false claims to the government, whistleblower […]

By Jennifer Diaz|2024-03-15T14:25:27-04:00March 15, 2024|Import, penalty|0 Comments

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