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

Customs and Border Protection (CBP)  

  • CBP adopted final rules implementing procedures to investigate claims of antidupint and countervailing.
    • This rule makes final interim amendments to regulations that were published in 2016.
    • The rules provide guidance on initiation of investigations, investigation procedures, and administravie review of determinations.
  • CBP launches new EAPA and E-Allegation dashboards for enhanced visibility into trade violations and enforcement efforts 
    • The agency launched two statistics dashboards focusing on the Enforce and Protect Act and e-Allegations programs.  
    • Members of the public and trade community can use the new dashboards to explore updated data and global trends on the trade violations that CBP receives, including information on the possible countries of origin and the volume and types of trade violation allegations CBP processes through the Trade Violations Reporting Tool.  
  • Officers at the Port of Louisville seized a de minimis shipment containing 35 counterfeit designer watches. The items were deemed to be inauthentic by CBP’s Centers of Excellence and Expertise, and if genuine, would have had a combined Manufacturer’s Suggested Retail Price (MSRP) over $11.7 million. 
  • Commercial Customs Advisory Committee held the first public meeting of 2024. 
  • EAPA update: CBP has commenced a formal investigation of M. US A. Inc. d/b/a Kings Marble and Granite, Musa Stone Import, Inc., and KMGK, LLC dba KMG Marble and Granite on quartz surface products from China.
  • ACE Portal updates:
    • FTZ search updates for Facility Operator accounts
    • New columns and filters for searching zones, sub-zone sites, and facilities
    • Carrier account (Air carriers) search/filter/display enhancements
    • Surety account search/filter/display enhancements
    • eCBP link now available in the References tab

Food and Drug Administration (FDA) 

  • FDA has developed draft guidance to propose select updates to the FDA guidance document “Cybersecurity in Medical Devices: Quality System Considerations and Content of Premarket Submissions.”
  • The FDA issued an updated draft guidance Requests for Feedback and Meetings for Medical Device Submissions: The Q-Submission Program.  
  • The FDA published its new paper, “Artificial Intelligence and Medical Products: How CBER, CDER, CDRH, and OCP are Working Together,” which outlines specific focus areas regarding the development and use of AI across the medical product lifecycle. The paper helps further align and streamline the agency’s work in AI. Read more about the agency’s AI initiatives on our website.
  • FDA is proposing to add a section to address new considerations for cyber devices. Comments are due May 13, 2024. 
  • The FDA announced it is requesting $7.2 billion as part of the President’s fiscal year (FY) 2025 proposed budget.  
    • According to the FDA, this funding will allow the agency to enhance food safety and nutrition, advance medical product safety, help support supply chain resiliency, strengthen the agency’s public-health and mission-support capacity, and modernize the FDA’s infrastructure and facilities.  
    • The request includes an increase of $495 million—or 7.4 percent above the FY 2023 funding level.  

 Office of Foreign Asset Control (OFAC) 

  • Designation updates: 

 Federal Maritime Commission (FMC) 

  • The FMC released its FY 2025 budget request justification.  
    • The total budget request for FY 2025 is $48,452,000, an increase of $4,732,000 over the projected FY 2024 authorization of $43,720,000. 
  • Mohammad “Ali” Usman named FMC Chief Information Officer. 

Department of Commerce 

  • The President’s 2025 budget for the Department of Commerce was released. 
    • The Budget requests $11.4 billion in discretionary funding and $4 billion in mandatory funding. The budget includes resources for major initiatives including:  revitalize the domestic semiconductor industry, ensure everyone in America has access to quality, affordable high-speed internet, and bolster climate resilience nationwide through the CHIPS and Science Act, Bipartisan Infrastructure Law and Inflation Reduction Act. 
  • A new AD/CVD case was filed against 2,4-Dichloropphenoxyacetic Acid. The importers are located in India and China. 

Environmental Protection Agency (EPA) 

  • The EPA has issued guidance on “Absence of an Ingredient” claims associated with Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) regulated products.  
    • The guidance attempts to clarify when “absence of an ingredient” claims on the labeling of pesticides and devices are acceptable because both types of products are subject to FIFRA’s “misbranding” requirements. This guidance focuses on pesticide products. 

 United States Trade Representative (USTR) 

  • USTR releases FY 2025 congressional budget justification 
    • The funding request is $76 million. This includes $61 million available directly to USTR and $15 million allocated through the Trade Enforcement Trust Fund (TETF). This request is equal to an FY 2024 annualized continuing resolution (CR). 
  • USTR published a notice in the Federal Register seeking input to inform the development of trade and investment policy initiatives that promote supply chain resilience. 

Federal Trade Commission (FTC) 

  • The FTC issued a Consumer Alert about an Amazon phone call & text scam.  
    • The alert warns consumers about scammers calling or texting posing as Amazon and claiming that someone is using your identity in an effort to get personal and financial details. 
  • FTC submits FY 2025 budget request. 
    • The request includes a program level of $535,000,000 and 1,443 full-time equivalent (FTE) positions. This is an increase of $105,000,000 from the FY 2023 enacted appropriations level. 

U.S. International Trade Commission (USITC) 

  • USITC makes determinations in five-year (sunset) reviews concerning fine denier polyester staple fiber from China, India, South Korea, and Taiwan. 
  • USITC institutes Section 337 investigation of certain vehicle telematics, fleet management, and video-based safety systems, devices, and components thereof. 

 Bureau of Industry and Security 

  • Chinese national arrested for theft of artificial intelligence-related trade secrets from Google. 

Department of Justice (DoJ) 

  • Ford Motor Company agrees to pay $365M to settle Customs civil penalty claims relating to misclassified and under-valued vehicles. 
  • The President submitted to Congress his Budget for Fiscal Year (FY) 2025, which requests a total of $37.8 billion in discretionary resources, an increase of $467 million over an FY 2024 Annualized Continuing Resolution, and a total of $10.5 billion in mandatory funding for the Justice Department. 

Congress 

  • Customs Business Fairness Act passes 
    • The Customs Business Fairness Act (CBFA) passed and will now become codified into law. 
    • The bill made a long-sought technical change in the bankruptcy laws to protect customs brokers who have paid duties to CBP on behalf of importers that subsequently file for bankruptcy. 

Industry News 

  • The Court of Appeals for the Federal Circuit affirmed the CIT’s decision in an HTSUS classification dispute, RKW Klerks Inc. v. United States.   
    • The case involved the classification of net wrap. RKW claimed that the goods were properly classified as parts of baling machinery under 8433.90. The CAFC disagreed with the importer and provided an explanation of what constitutes a “part” for classification purposes. 

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