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2024

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ICYMI: State Department Reaches $200M Settlement with RTX Corporation for Export Violations

The U.S. Department of State has reached a settlement with RTX Corporation to resolve 750 violations of the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR).

The settlement resolved multiple violations including:

  • Unauthorized exports of defense articles resulting from the failure to establish proper jurisdiction and classification
  • Unauthorized exports of defense articles, including classified defense articles
  • Unauthorized exports of defense articles by employees via hand-carry to proscribed destinations listed in 22 C.F.R. 126.1; and
  • Violations of terms, conditions, and provisos of Directorate of Defense Trade Controls (DDTC) authorizations

RTX disclosed the violations voluntarily and cooperated with the State Department’s review.

Under the terms of the agreement, RTX will pay a penalty of $200M. $100 million will be suspended and used for remedial compliance measures to improve RTX’s compliance program. RTX must also engage an external Special Compliance Officer to ensure compliance with the agreement for at least 24 months.

This settlement demonstrates the State Department’s priorities in enforcing export controls and the importance of prioritizing compliance programs.

Diaz Trade Law can help create a new export compliance plan for your business or review and update an existing one. To learn more about how we can help, contact us at info@diaztradelaw.com or call us at 305-456-3830.

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By |2024-09-10T15:39:03-04:00September 10, 2024|Export, ITAR, U.S. Department of State (DOS), U.S. Directorate of Defense Trade Controls (DDTC)|0 Comments
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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 guidance on Section 232 additional duties on certain aluminum imports from Mexico. The guidance provides specific HTSUS headings importers should declare and when filers may report “N/A” for the primary and secondary country of smelt. 
  • CBP has delayed the deployment of functionality related to ACE automation of the de minimis $800 threshold until Jan 11.  
  • CBP implements Air Cargo Advance Screening (ACAS) vague and unacceptable description rejection. 
  • Delaware CBP officers seize over $100k in unmanifested Apple products destined to China. 
  • CBP hosted a Virtual Career Expo on September 5. The expo highlighted law enforcement and mission support opportunities across the nation. 
  • The EPA Supplemental Guidelines document has been updated to version 17. The changes reflect language and text updates including Hydrofluorocarbons (HFCs) reporting requirements. 
  • The ACE Customer Satisfaction Survey is now open. The survey is voluntary and anonymous and closes on September 11, 2024. 
By |2024-09-06T13:14:00-04:00September 6, 2024|Snapshot|0 Comments
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Reminder: New Section 232 Duties on Certain Steel and Aluminum Products from Mexico

On July 10, 2024, President Biden issued two proclamations on adjusting imports of steel and aluminum into the United States. The proclamations increase the section 232 duty rate for both products and adjust the requirements for avoiding section 232 duties.

Steel Proclamation

The steel proclamation implements a melt and pour requirement for imports of steel articles that are products of Mexico. It also increases the section 232 duty rate for imports of steel articles and derivative steel articles that are products of Mexico that are melted and poured in a country other than Mexico, Canada, or the United States. If the country of melt and pour is any country other than the U.S., Mexico, or Canada, then the steel articles are subject to an additional 25% duty.

In making this adjustment, the Administration stated that domestic steel producers’ capacity utilization remains below the target 80 percent capacity utilization recommended in the Secretary of Commerce’s report of January 11, 2018. Additionally, imports of steel articles from Mexico have increased significantly. In the opinion of the Administration and the Secretary of Commerce, these developments indicate the need for further action under section 232.

Aluminum Proclamation

The aluminum proclamation implemented a country of smelt and country of most recent cast requirement for imports of aluminum articles that are products of Mexico. It also increased the section 232 duty rate for imports of aluminum articles and derivative aluminum articles that are products of Mexico containing aluminum for which the reported […]

By |2024-09-06T12:48:40-04:00September 6, 2024|China, Countries, Iran, Mexico, U.S. Department of Commerce|0 Comments
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Trade News: New AD/CVD Petition Filed Against Certain Corrosion Resistant Steel Products from Australia, Brazil, Canada, Mexico, Netherlands, South Africa, Taiwan, Turkey, the United Arab Emirates, and Vietnam

A group of steel companies and stakeholders filed a petition for the imposition of antidumping and countervailing (AD/CVD) duties on the imports of certain corrosion resistant steel products (“CORE”) from Australia, Brazil, Canada, Mexico, Netherlands, South Africa, Taiwan, Turkey, the United Arab Emirates, and Vietnam. 

Petitioners include: Steel Dynamics, Inc.; Nucor Corporation; United States Steel Corporation; Wheeling-Nippon Steel, Inc.; and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.

Petitioners allege that these unfairly traded imports have materially injured the U.S. domestic industry and threaten to cause further material injury if remedial action is not taken

Full list of exporters. Full list of importers.

Background on AD/CVD Investigations

Antidumping duty (“AD”) and countervailing duty (“CVD”) investigations are 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. Meanwhile, CVD investigations are triggered when a domestic industry alleges that it has been injured by competing imports that are being unfairly subsidized by their governments. 

Scope of the Investigation

This investigation pertains to certain corrosion resistant steel products. The products covered include certain flat-rolled steel products, either clad, […]

By |2024-09-06T11:28:18-04:00September 6, 2024|AD/CVD, U.S. Department of Commerce (DOC)|0 Comments
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Customs and Trade News Weekly Snapshot

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

 Customs and Border Protection (CBP) 

  • Solar panels from India continue to face US scrutiny for links to China forced labor. Nearly a third of the detained Indian electronics shipments were denied since October 2022. 
  • The Commercial Customs Operations Advisory Committee (COAC) will hold its quarterly meeting on Wednesday, September 18, 2024, in Washington, DC. 
  • CBP announced a solicitation for applications to set up a Centralized Examination Station (CES) for Miami International Airport. The solicitation period started Aug. 20 and will expire on Oct. 19. 
  • CBP to host virtual forced labor seminar for Puerto Rico and US Virgin Islands importers. 
  • On Sept. 28, CBP will deploy enhancements to the Document Image System (DIS) to facilitate export vehicle-related document submission via Electronic Data Interchange (EDI). 
  • On Sept. 23, CBP will deploy a change in the ACE production environment (PROD) to electronically prevent filers from changing an entry via Post Summary Correction (PSC) from a non-quota entry type to a quota entry type (02). 
By |2024-08-30T10:16:06-04:00August 30, 2024|Snapshot|0 Comments
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