U.S. Department of Commerce

ICYMI: Commerce, Treasury, and Justice Issue Compliance Note on Obligations of Foreign-Based Persons to Comply with U.S. Export Laws

On March 6, 2024, the Department of Commerce, Department of the Treasury, and Department of Justice issued a tri-seal compliance note titled: “Obligations of foreign-based persons to comply with U.S. sanctions and export control laws.”

The note:

  1. Highlights the applicability of U.S. sanctions and export control laws to persons and entities located abroad;
  2. Outlines the enforcement mechanisms that are available for the U.S. government to hold non-U.S. persons accountable for violations of such laws; and
  3. Provides an overview of compliance considerations for non-U.S. companies and compliance measures to help mitigate their risk

Applicability of U.S. Sanctions and Export Control Laws to Foreign-Based Persons

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) administers and enforces economic and trade sanctions, primarily against foreign jurisdictions but also against individuals and entities such as traffickers and terrorists.

The following persons/entities must comply with OFAC regulations:

  • U.S. citizens and permanent resident aliens
  • All persons within the United States
  • All U.S.-incorporated entities and their foreign branches

In certain sanctions programs, foreign entities owned or controlled by U.S. persons also must comply with applicable restrictions – such as engaging in a transaction with the government of Iran. Certain sanctions programs also require foreign persons in possession of U.S.-origin goods to comply.

Non-U.S. persons are also subject to certain OFAC prohibitions. For example, non-U.S. persons are prohibited from causing or conspiring to cause U.S. persons to wittingly or unwittingly violate U.S. sanctions, as well as engaging in conduct that evades U.S. sanctions.

Applicability of U.S. Export Control Laws

The compliance […]

Trade News: New Petition Filed on Glass Wine Bottles from China, Mexico and Chile

On December 29, 2023, the last working day of the year, the U.S. Glass Producers Coalition filed a petition for the imposition of antidumping duties on certain glass wine bottles from China, Mexico, and Chile and countervailing duties on imports of certain glass wine bottles from China.

The Coalition is comprised of U.S. producer Ardagh Glass Inc. and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (“USW”). The petitions allege that the Chinese, Chilean, and Mexican industries have been dumping wine bottles in the U.S., harming the U.S. market and destroying American jobs.

Full list of producers here. Full list of U.S. importers here.

The petition alleges dumping margins of:

  • China: 280.10% and 620.03%
  • Mexico: 78.55% and 102.09%
  • Chile: 615.68%

The scope of merchandise covered includes a wide array of products including both clear and colored bottles in the Bordeaux, Burgundy, Champagne, or Sparkling shapes. Full scope here.

The Commerce Department will determine whether to initiate the investigations within 20 days. The 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 glass wine bottles to pay close attention to this case and 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 […]

DOC, Treasury, DOJ, State, and DHS Issue Joint Compliance Note: Know Your Cargo

On December 11, 2023, the U.S. Departments of Commerce, State, Justice, Treasury and Homeland Security published a joint Quint-Seal Compliance Note, “Know Your Cargo: Reinforcing Best Practices to Ensure the Safe and Compliant Transport of Goods in Maritime and Other Forms of Transportation.”

The agencies highlight the increasingly complex nature of global supply chains and opportunities for nefarious actors to evade export control laws and U.S. sanctions. The note also highlights the responsibility of individuals and entities participating in the global transport of goods to assess their risk profile and implement compliance programs.

Potential Indicators of Efforts to Evade Sanctions and Export Controls

The note directs companies involved in funding and facilitating the transport of cargo to be aware of these practices that may suggest export control or sanctions evasion: 

  • Manipulating location or identification data
  • Falsifying cargo and vessel documents
  • Ship-to-ship transfers
  • Voyage irregularities and use of abnormal shipping routes
  • Frequent registration changes” that evade national provisions; and
  • Complex ownership or management

Recommended Compliance Practices

The note recommends that individuals and entities who participate in maritime and other transportation industries should implement and strengthen compliance controls as necessary, especially when operating in high-risk areas or when dealing with entities who demonstrate suspicious behavior. A non-exhaustive list of compliance practices includes:

  • Institutionalizing sanctions and export control programs
  • Establish location monitoring best practices and contractual requirements
  • Know your customer
  • Exercise supply chain due diligence
  • Industry information sharing

The note also encourages individuals and companies to report suspicious behavior to the relevant U.S. authorities.

Recent Activity to Combat the […]

Significant Updates to BIS Enforcement Policies in 2022

Diaz Trade Law is enthusiastic to announce Bloomberg Law published another one of our articles, “Significant Updates to BIS Enforcement Policies in 2022“! Below is the article reproduced with permission for your reading pleasure. You can read the article here (where you’ll have the ability to access all of the great hyperlinks). Please note you cannot click on the hyperlinks below.

We’d love to hear your feedback!

[…]

Customs Bulletin Weekly, Vol. 56, November 2, 2022, No. 43

Below is a recap for this week’s Custom’s Bulletin.

  • Elimination of Customs Broker District Permit Fee
    • Section 641 of the Tariff Act of 1930, as amended (19 U.S.C. 1641), provides that individuals and business entities must hold a valid customs broker’s license and permit to transact customs business on behalf of others. The statute also sets forth standards for the issuance of broker licenses and permits; provides for disciplinary action against brokers in the form of suspension or revocation of such licenses and permits or assessment of monetary penalties; and, provides for the assessment of monetary penalties against other persons for conducting customs business without the required broker’s license.
    • On June 5, 2020, U.S. Customs and Border Protection (CBP) published a notice of proposed rulemaking (NPRM) in the Federal Register (85 FR 34549), proposing the elimination of customs broker district permit fees in parts 24 and 111.
    • Consistent with the June 5, 2020, notice, CBP is publishing a final rule to, among other things, eliminate customs broker districts (see ‘‘Modernization of the Customs Broker Regulations’’ RIN 1651–AB16). Specifically, CBP is transitioning all brokers to national permits and expanding the scope of the national permit authority to allow national permit holders to conduct any type of customs business throughout the customs territory of the United States. As a result of the elimination of customs broker districts, CBP is amending in this document the regulations to eliminate customs broker district permit fees.
  • Modernization of the Customs Broker Regulations
    • This document adopts […]
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