DHS Adds PRC-Based Seafood, Aluminum, and Footwear Entities To UYGHUR Forced Labor Prevention Act Enforcement List

6/27/2024

The U.S. Department of Homeland Security (DHS) is taking a stronger stance against forced labor in supply chains. They've added three companies to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, targeting the seafood, aluminum, and footwear industries – all significant sectors in Xinjiang's economy.

What it means for your business:

• Effective June 12, 2024, U.S. Customs and Border Protection (CBP) will presume goods from these companies are made with forced labor and could be blocked from entering the U.S.
• This is a reminder to conduct thorough due diligence on your supply chain to ensure ethical sourcing.

The expanded Entity List:

• Includes Dongguan Oasis Shoes (footwear), Shandong Meijia Group (seafood), and Xinjiang Shenhuo Coal and Electricity (aluminum).
• Now has 68 entities, reflecting a significant increase in enforcement efforts

.

The UFLPA

• Prohibits goods made with forced labor in China's Xinjiang Uyghur Autonomous Region (XUAR) from entering the U.S.
• Requires companies to provide clear and convincing evidence that their goods were not produced with forced labor.

Our commitment to ethical sourcing:

• We encourage you to stay informed about the UFLPA and the Entity List.
• We recommend collaborating with us to ensure your supply chain is compliant.

For more information:

• Visit the DHS UFLPA webpage

Source: DHS

ACE Portal Modernization: Maintaining Importer Email Address Information For CBP From Notifications

6/27/2024

CBP put out a notice of the importance of keeping your email address up-to-date in the Automated Commercial Environment (ACE) portal. U.S. Customs and Border Protection (CBP) uses this email address to send electronic notifications about CBP forms issued through the ACE Forms tool.

Here's what you need to know:

• How to find your current email address: Log in to your ACE portal account and navigate to the "Details" tab under the "Importer" section. Your email address will be listed in the "Additional Information" section.

• How to update your email address: Go to the "Addresses" tab and locate the "Street (Physical) Address" information. Within this section, you can edit the email address listed in the "Contact Information" section.

Keeping your email address updated ensures you receive timely notifications about important CBP forms.

For more information on using the ACE Forms tool, please refer to the ACE Forms Quick Reference Guide. Additionally, you can find updates on ACE Portal modernization on the dedicated webpage.

Source: CBP

USTR Extends Certain Exclusions From China 301 Tariffs

5/31/2024

The United States Trade Representative (USTR) announced an extension for specific exclusions related to China in the Section 301 investigation. These exclusions, originally set to expire on May 31, 2024, will now have varying expiry dates. Some exclusions are extended until May 31, 2025, while others will receive a shorter extension to June 14, 2024, to provide a smooth transition period.

The full Federal Register notice can be found here.

Source: USTR

U.S. Trade Representative to Take Further Action on China Tariffs 

5/21/2024

The United States Trade Representative (USTR) announced plans to modify tariffs on Chinese goods in response to unfair trade practices. This follows a four-year review of the tariffs initially imposed under Section 301.

Why the Change?

The USTR concluded that while the original tariffs prompted China to make some changes, these practices still harm American businesses and workers. The modifications aim to further pressure China to eliminate these unfair policies.

What's Changing?

• Existing tariffs will remain. Products currently subject to tariffs will continue to face those charges.
• Increased tariffs on specific goods. The USTR proposes raising tariffs on certain items critical to American manufacturing and national security. These include:
• Battery parts (non-lithium ion)
• Electric vehicles
• Facemasks
• Lithium-ion batteries (for both electric and non-electric vehicles)
• Medical gloves
• Natural graphite
• Other critical minerals
• Permanent magnets
• Semiconductors
• Ship to shore cranes
• Solar cells
• Steel and aluminum products
• Syringes and needles
• Exclusion process for specific machinery. The USTR will establish a system for companies to apply for exemptions on tariffs for machinery used in domestic manufacturing, particularly for solar equipment.

For the full USTR announcement, click here

Additionally, USTR’s announcement did not include any information on the May 31 expiration of hundreds of tariff exclusions.

Source: USTR

Preliminary Affirmative Determinations in the Antidumping Duty (AD) Investigations of Aluminum Extrusions

5/21/2024

The U.S. Department of Commerce (Commerce) has issued preliminary determinations in the antidumping duty (AD) investigations of aluminum extrusions from multiple countries. This is an important update for our customers who may be purchasing aluminum extrusions.

Key Findings:

• Commerce has found that certain aluminum extrusions from several countries are being sold in the United States at less than fair value. These countries include China, Colombia, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, Korea, Taiwan, Thailand, Turkey, United Arab Emirates, and Vietnam.
• Specific companies from these countries have been assigned dumping margins, which range from de minimis (very small) to over 600%. You can find the complete list of companies and their assigned dumping margins here.

What it Means for You:

• Depending on the country of origin and the specific company you purchase from, there may be additional duties imposed on aluminum extrusions. These duties are intended to offset the unfair pricing advantage enjoyed by foreign producers.
• We recommend that you contact your suppliers to determine if their products are subject to these duties and how they plan to address them.

Next Steps:

• Commerce will issue final determinations on July 15, 2024.
• The International Trade Commission (ITC) will determine whether the dumped imports are injuring the U.S. industry. Their final determination is due on August 29, 2024.
• If both Commerce and the ITC make affirmative final determinations, orders will be issued to collect duties on the subject imports.

Source: International Trade Administration

Twenty-Six New Companies On The UFLPA Entity List

5/17/2024

The Department of Homeland Security (DHS) has added 26 Chinese companies to the Uyghur Forced Labor Prevention Act (UFLPA) entity list.

These companies are alleged to have sourced cotton from the Xinjiang region in China, which has been linked to human rights abuses.

For more information:

• DHS Notice: This notice details the update to the UFLPA entity list, including the rationale behind adding these companies. DHS Notice
• UFLPA Entity List: This is the official list maintained by DHS of entities identified as potentially engaging in forced labor. Entity List
• Federal Register Notice (89 FR 43417): This is the official publication in the Federal Register announcing the updated list. Appendix 1 of this notice details the specific companies added. Federal Register Notice

Please note: While the specific companies are listed in Appendix 1 of the Federal Register Notice, the DHS Notice provides a more comprehensive overview of the update.

Source: Federal Register

CARM: Launch to External Clients Rescheduled to October 2024

4/17/2024

The Canadian Border Services Agency (CBSA) has announced that the rollout of its new Customs Assessment and Revenue Management (CARM) system will be delayed. Originally scheduled for an external launch on May 13, 2024, the system will now go live in October 2024.

The CBSA says the delay is due to uncertainty in the labour environment. To avoid any disruptions to trade, they've decided to postpone the rollout for businesses.

What this means for businesses:

• Businesses will continue using the existing system (CCS) to account for imported goods and pay duties and taxes until October 2024.
• The previously announced cutover period from April 26 to May 13 will not occur.
• The CBSA will communicate the new cutover period closer to the October launch date.
• 
  

What you can do now:

• Businesses can continue registering for CARM through the CARM Client Portal (CCP).
• The CBSA will provide more details on the transition measures to be introduced in October at a later date.
• In the meantime, businesses can continue using current processes for activities like:
• Submitting Single and Blanket B2 Adjustments or Voluntary Disclosure requests
• Applying for Duties Relief Programs (DRP) and Drawback claims
• Submitting commercial temporary importations under Tariff Item No. 9993.00.00

For more information, contact the CBSA at [email protected].

U.S. Probes China's Practices in Maritime Industries

4/17/2024

The U.S. Trade Representative (USTR) launched an investigation in April 2024 into China's policies in shipbuilding, shipping, and logistics. This follows a petition by American labor unions alleging unfair practices by China that hurt U.S. businesses.

The USTR is inviting public comments on the issue until May 22nd, 2024. Following the investigation, the USTR may take action if China's practices are found to be unreasonable and harm U.S. trade. Potential actions include import restrictions or fees.

Union Concerns:

• China's government policies give its domestic maritime companies an unfair advantage.
• This hurts U.S. shipbuilding capacity, jobs, and investment.
• China may also be manipulating shipping rates and intellectual property.

Possible Remedies Proposed:

• Fees on Chinese-built ships using U.S. ports.
• A fund to revitalize the U.S. shipbuilding industry.
• Increased demand for U.S. vessels.
• Addressing China's port infrastructure and equipment in the U.S.
• Collaboration with other countries to counter China's practices.

Key Dates:

• April 17, 2024: Investigation begins.
• May 22, 2024: Deadline for public comments.
• May 29-31, 2024 (possible): Public hearing.

Source: TorresTradeLaw

Cybersecurity Alert- Scammers Impersonate CBP Employees

4/5/2024

Recent reports indicate an increase in scams where individuals impersonate employees from government agencies, like U.S. Customs and Border Protection (CBP). These scammers attempt to extort money or steal sensitive information.

Here's how to protect yourself and your business:

• Be Wary of Unsolicited Calls: Legitimate government agencies typically wouldn't initiate contact via phone regarding urgent matters like intercepted packages or legal issues.
• Recognize Red Flags: Scammers often create urgency, threaten consequences, and request personal information or payment over the phone.
• Verify Communication: Don't trust caller ID information. If unsure about a call, hang up and contact the agency directly using a verified phone number found on their official website.
• Minimize Your Digital Footprint: Limit the amount of personal and business information publicly available online. Scammers can exploit this for social engineering.
• Utilize Privacy Settings: Regularly review your social media profiles and online accounts to ensure strong privacy settings and remove any suspicious connections.
• Trust Your Intuition: If a call feels suspicious, even after the scammer provides seemingly legitimate details, end the communication.
• Spread Awareness: Educate your employees and colleagues about these scams to prevent future attempts.
• Report Suspicious Activity: Report scam calls to the Federal Trade Commission at https://reportfraud.ftc.gov/.

By following these steps, you and your business can stay vigilant against impersonation scam!

Source: CBP

BIS Announcement

4/5/2024

At the Bureau of Industry and Security's (BIS) annual Update Conference, officials announced a crackdown on keeping sensitive U.S. technology out of the wrong hands. They emphasized that standard verification procedures are no longer enough. Companies must use all BIS compliance tools, including new resources unveiled at the conference:

• Forwarder Guidance and Best Practices: This guide outlines a freight forwarder's role, red flags for both forwarders and exporters, and best practices for collaboration.
• Don't Let This Happen To You (updated): This resource features recent BIS criminal and administrative investigations to serve as cautionary tales.
• Boycott Request List: BIS launched the first-of-its-kind list of companies known to make boycott requests. This serves as a warning to U.S. businesses.
• "Red Flag" Letters: BIS is sending letters to U.S. companies identifying customers still exporting to Russia, requiring increased scrutiny.

For a full breakdown of these initiatives, including Assistant Secretary Matt Axelrod's speech, visit here.

Source: BIS

New Organics Rule Begins March 19

3/19/2024

Starting today, March 19th, all organic products shipped to the US must be certified under the USDA National Organic Program (NOP). This applies to any shipment departing on or after this date.

Here's what you need to know:

• Importers: You need an NOP Import Certificate for your organic shipment. This certificate is generated in a USDA database by a USDA-approved certifier.
• Foreign handlers: You're responsible for requesting the NOP Import Certificate from the certifier and giving it to the importer.
• Customs brokers: You need to enter the 21-digit NOP Import Certificate number (including dashes) into the customs system using a specific format.
• 
  

Please refer to the NCBFAA RAC Organics Toolkit for the most up-to-date information and FAQs to help you navigate implementation of the new rule.

Source: NCBFFA

DHS Secretary Mayorkas Applauds EU’s Adoption of Forced Labor Regulation

3/19/2024

The EU took a major step against forced labor by banning products made with it from their market. This was praised by the US who see it as a positive step for both worker rights and a more reliable supply chain. The EU will enforce this with investigations, technology, and collaboration with other countries.

 Learn more about the EU’s forced labor regulation here.

Source: NCBFFA

U.S. Applies Additional Restrictions on Exports to Nicaragua

3/19/2024

The Commerce Department’s Bureau of Industry and Security (BIS) increased export and reexport controls to Nicaragua on March 15 by removing the country from BIS Country Group B and adding it to Country Group D:1, National Security, and D:5, U.S. Arms Embargoed Countries. This change is sync with the State Department’s Directorate of Defense Trade Controls (DDTC) addition of Nicaragua to the list of countries under Section 126.1, Prohibited exports, imports, and sales to or from certain countries, of the International Traffic in Arms Regulations (ITAR).

BIS stated that their more restrictive licensing policy against Nicaragua were intended to “address concerns regarding the Nicaraguan Government’s human rights abuses against citizens and civil society groups, as well as the government’s continuing military and security cooperation with Russia.” 

The full BIS final rule can be read here and the full DDTC final rule can be read here.

*M-PACT Solutions, Mallory’s consulting division, can assist your company with export control compliance solutions. Contact M-PACT for more information on a solution tailored specifically to your needs:

[email protected]

Source: BIS

U.S. Tells Foreign Entities of Sanction & Export Control Compliance Risks

3/19/2024

Department of Justice, Department of Commerce, and Department of Treasury released a new Tri-Seal Compliance Note [https://ofac.treasury.gov/media/932746/download?inline] cautioning non-U.S. companies and persons about risks for poor compliance with U.S. sanctions and export controls. This Note builds on the agencies previous Tri-Seal Compliance Notes issued March 2, 2023 Note [https://www.justice.gov/nsd/file/1277536/dl?inline=] and July 26, 2023 Note [https://www.justice.gov/opa/file/1307601/dl?inline=].      

Treasury’s Office of Foreign Assets Control (OFAC) outlines the applicability of their sanction programs’ regulations, including U.S. persons wherever located, U.S.-incorporated entities and their foreign branches, and, in certain instances, foreign entities owned or controlled by U.S. persons and foreign persons in possession of U.S.-origin goods. As an example of a scenario that warrants enforcement action, OFAC states they have and will take enforcement action against foreign persons who caused a U.S. person to violate U.S. sanctions or conspired to do so. 

Commerce’s Bureau of Industry and Security (BIS) explains when their regulations, the Export Administration Regulations (EAR), extend to items located abroad and non-persons who deal with them. “To put it simply, the law follows the goods,” according to the Note which briefly describes examples of when this may occur, such as, re-exports, in-country transfers, de minimis thresholds, and the foreign direct product rule. BIS continues their explanation, stating, in no uncertain terms, that export controls may not be circumvented by transshipping goods through third countries, and they enforce their export control regulations regardless of where the violating party is located.     

Additionally, Justice, OFAC, and BIS each provide recent enforcement examples to illustrate their points that foreign companies and individuals are subject to civil and criminal enforcement under their authorities. To mitigate those risks, the last page of the Note lists steps in the section titled “Compliance Considerations for Foreign-Based Persons,” that companies should employ. M-PACT Solutions, Mallory’s consulting division, can assist your company with export control and sanction compliance solutions. Contact them for more information, [email protected]

Source: BIS

U.S. Issued Sanction Package Targeting Russia

2/29/2024

The U.S. released a new round of Russia-related sanctions and controls on Feb. 23, effective same day, which Bureau of Industry and Security (BIS) summarizes in this press release: https://www.bis.doc.gov/index.php/documents/about-bis/newsroom/press-releases/3452-2024-02-23-bis-press-release-russia-two-year-actions/file

The sanctions include 95 new entries to BIS Entity List [https://www.federalregister.gov/public-inspection/2024-03969/additions-of-entities-to-the-entity-list] and more than 500 additions to Department of Treasury’s Office of Foreign Assets Control’s (OFAC)

[https://ofac.treasury.gov/recent-actions/20240223] and Department of State’s [Responding to Two Years of Russia’s Full-Scale War On Ukraine and Navalny’s Death - United States Department of State] blocked and restricted party lists. The parties added to these lists are located globally and in Russia, and the agencies cited various reasons for their additions, including supporting Russia’s defense and military industrial base. This is the largest sanction package issued by the U.S. since Russia’s invasion of Ukraine in 2022. 

Additionally, The U.S. warns businesses of risks when doing business in Russia and the Russia-occupied territories in an advisory [https://www.state.gov/russia-business-advisory/] on State’s website.

Lastly, BIS worked with the European Union, Japan, and the United Kingdom to update the list of “common high priority items” [https://www.bis.doc.gov/index.php/2011-09-14-14-10-06/russia-export-controls] that Russia seeks to obtain for its weapons programs. The list of items identified by six-digit HS codes, previously published in Sept. 2023 Export Enforcement 5 (E5) Guidance [https://www.bis.doc.gov/index.php/documents/about-%20bis/newsroom/press-releases/3336-2023-09-26-export-enforcement-five-guidance-for-industry-and-academia-priority-hs-codes/file], was expanded to include certain “computer numerically controlled” machine tools in Tier 4 and re-sorted the HS codes into new A and B sub-Tiers.

M-PACT Solutions can help your company with export control and sanction compliance. Reach out for more information, [email protected].

Source: BIS

CTPAT And TC Portals Now Live

2/15/2024

As of Jan. 26, the Customs and Border Protection (CBP) has launched the Customs Trade Partnership Against Terrorism (CTPAT) and Trade Compliance (TC) Portals.

CTPAT and TC members are advised to visit the CTPAT page to ensure a smooth transition of all account history, information, data, reports, and documents. If any issues are encountered, please follow these steps:

1. Click on the new link.
2. Create a new login.gov account for each user (instructions provided).
3. Report any issues, bugs, or data fixes needed to CBP Technology Service Desk via email at [email protected] or phone at (800) 927-8729.

Key points to note:

• All current company data in CTPAT and TC Portals will be automatically transferred to the new portals.
• The format of validation reports is changing, but all previous reports will be stored as PDF files in your account library.
• Accounts with multiple security models under a single trade organization will be separated, reverting to single CTPAT accounts (affecting account information only).
• Training videos for the new 3.0 Portal will be available in the Public Library section of the Portal.

Source: NCBFFA

BIS Updates Voluntary Self Disclosure Policy

1/22/2024

On Jan. 16, Bureau of Industry and Security’s Assistant Secretary for Export Enforcement Matthew Axelrod issued a memo to enforcement employees regarding enhancements to their voluntary self disclosure (VSD) policy for violations of the Export Administration Regulations (EAR). These most recent updates build upon the previous VSD policy enhancements announced in June 2022 and April 2023.

The Jan. 16 memo announces VSD policy changes regarding the manner of submission and the content contained in the submission. BIS is “strongly encouraging” the submission of VSDs via email, explaining that VSDs received by email can be processed and tracked more efficiently and effectively. Additionally, the memo indicates that VSDs for violations without aggravating factors may be submitted with an “abbreviated narrative account” and parties submitting those VSDs do not need to complete a review of the past five years required by 15 CFR 764.5(c)(3).   

Notably the memo clarifies that a significant violation of the EAR is one with aggravating factors. (see Supplement 1 to Part 766-https://www.ecfr.gov/current/title-15/part-766/appendix-Supplement )

You can view more from the VSD policy here: Voluntary Self-Disclosure (doc.gov)

Source: BIS

Foreign Extortion Prevention Act: How The New Law Creates Legal Risks And Opportunities For International Business

1/4/2024

On the 22nd of December, 2023, President Biden enacted the 2024 National Defense Authorization Act (NDAA), providing the U.S. Department of Justice (DOJ) with enhanced mechanisms to address foreign bribery. The Foreign Extortion Prevention Act (FEPA) is set to modify the existing domestic bribery statute (18 U.S.C. § 201), criminalizing the solicitation or receipt of bribes by foreign government officials from individuals in the United States, issuers, or domestic entities.

To read more on the new law and how it will effect foreign affairs and anti-bribery and anti-corruption investigation, click the link source below.

Source: King&Spalding

China Extends Section 301 Tariff Exclusions

1/4/2024

The United States Trade Representative's office has declared an extension of the reinstated and COVID-related exclusions in the China Section 301 Investigation until May 31, 2024. Originally set to expire on December 31, 2023, this extension allows for a systematic phasing out of the exclusions. A public comment docket was opened on January 22, 2024, seeking input on existing exclusions. The purpose of the extension is to ensure a smooth conclusion of the exclusions, unless there is evidence indicating that additional time could promote shifts in sourcing to the United States or other countries. This move also aims to align decisions regarding these exclusions with the ongoing four-year review process.

Additional Information can be found by clicking the source link below.

Source: USTR

China Extends Section 301 Tariff Exclusions On 12 Agricultural Products

1/2/2024

On December 22, 2023, the State Council Tariff Commission (SCTC) made an announcement regarding the extension of Section 301 retaliatory tariff exclusions for 12 agricultural products. These products include cultivated shrimp, feed-grade whey, fishmeal for feed, alfalfa, and seven hardwood products. The extension is effective until July 31, 2024. Notably, these 12 agricultural tariff lines are part of a larger list of 95 commodities that were initially set to have their Section 301 tariff exclusions conclude on December 31, 2023, as detailed in GAIN report CH2023-0095. China has granted a total of thirteen extensions for tariff exclusions, covering different lists of commodities with varying exclusion periods. The report includes an unofficial translation of the SCTC announcement and provides a list of agricultural products that fall under the tariff exclusion.

For a full list of products, click the source link to be taken to the full page.

Source: USDA Foreign Agricultural Service

CBP Releases Periodic Monthly Statement (PMS) Dates for 2024

1/2/2024

Customs and Border Protection released the Periodic Monthly Statement (PMS) dates for 2024 during which customs brokers can pay duties for shipments entered or released during the previous calendar month. For 2024, those dates are available here. 

For more information about PMS, download a copy of the Periodic Monthly Statement User guide.

Source: CBP

FDA Issues Final Guidance on Registration and Listing of Cosmetic Product Facilities and Products

12/19/2023

The U.S. Food and Drug Administration (FDA) has released a final guidance for the cosmetic industry regarding facility registrations and product listings, in accordance with the Modernization of Cosmetics Regulation Act of 2022 (MoCRA). This guidance outlines details on who is responsible for submitting registrations and listings, what information is required, how and when to submit, and specifies exemptions to these requirements. The FDA has introduced a new electronic submission portal, Cosmetics Direct, for this purpose. The guidance utilizes the FDA Establishment Identifier (FEI) as the facility registration number, and stakeholders must obtain an FEI number before submitting registrations. Small businesses are exempt from registration and listing, except for specific cosmetic products such as those in contact with the eye's mucus membrane, injected products, internally used products, and products altering appearance for over 24 hours.

A new draft guidance section, Appendix B, provides frequently asked questions and answers for comment purposes. Certain small businesses are exempt from registration and listing, with exceptions for specific products and facilities subject to drug and device requirements. The FDA plans to delay enforcement of these requirements for six months after the December 29, 2023, statutory deadline, extending until July 1, 2024, to provide the industry with sufficient time for compliance. This delay applies to facilities engaged in manufacturing after December 29, 2022, and cosmetic products first marketed after the same date.

For Additional Information: click below to the FDA Website

White House Unveils Raft Of Measures To Prioritize Supply Chain Resilience

12/12/2023

The Biden administration has prioritized supply chain resilience as a strategic concern, implementing a series of measures to address the issue. The White House Council on Supply Chain Resilience, co-chaired by national security and economic advisors, involves key cabinet members and aims to enhance robust supply chains for economic strength and inflation reduction.

The administration introduced nearly 30 measures, including the creation of a Multimodal Freight Office, a Supply Chain Resilience Centre, and steps to secure critical medicines. The initiatives have received mixed reactions, with some viewing them as necessary for building strategic resilience, while others see government interference. The Multimodal Freight Office, with a budget of $2m for 2023 and $7.3m for 2024, oversees the expansion of the FLOW program to improve supply chain visibility. Concerns about data security, trust, and technology must be addressed for FLOW's widespread adoption. The Department of Commerce's Supply Chain Centre focuses on risk assessment tools, while the Department of Homeland Security's Supply Chain Resilience Centre collaborates with the private sector to report on vulnerabilities and conduct scenario planning. Despite a focus on critical materials and joint initiatives with other countries, there is limited mention of sustainability in the government's measures. The approach emphasizes partnerships and alliances rather than pursuing isolationist strategies.

Source: The Loadstar

U.S. EPA Issues A Fact Sheet On Use Of Certain Hydrofluorocarbons

11/2/2023

The Environmental Protection Agency (EPA) has released an informative document addressing the regulatory limitations and potential bans on specific items and components that make use of hydrofluorocarbons (HFCs) or HFC blends.

On October 5, 2023, the final rule was signed, which places restrictions on the utilization of higher-global warming potential (GWP) HFCs in new products and equipment related to aerosols, foam, refrigeration, air conditioning, and heat pumps (RACHP). The implementation of these restrictions will vary depending on the specific product and is set to occur between 2025 and 2028.

This rule impacts entities involved in the manufacturing, importing, exporting, selling, distribution, or installation of systems or products that rely on HFCs within refrigeration and air conditioning equipment systems, heat pumps, foams, and aerosols. The rule applies to original equipment manufacturers, product distributors, retailers, and companies responsible for installing new systems. The document encompasses a wide range of products, including vending machines, chillers, and ice machines. It's worth noting that the rule distinguishes between individual products and entire systems.

The rule also establishes requirements related to labeling and reporting. It operates by:

• Prohibiting the production and importation of products using higher-GWP HFCs.
• Prohibiting the sale, distribution, and export of these products three years after the manufacturing and importation restrictions have taken effect.
• Prohibiting the installation of new RACHP systems that utilize higher-GWP HFCs

The full fact sheet can be found below.

FDA Publishes YouTube Video "Importing FDA-Regulated Products: Human Foods"

10/19/2023

The U.S. Food and Drug Administration (FDA) has released a new video on their YouTube channel titled "Importing FDA-Regulated Products: Human Foods."

This video is aimed at assisting those involved in importing food products into the United States, as most food items are subject to FDA regulations. The FDA's role in regulating food items extends to all foods and food ingredients sold in interstate commerce, with the exception of meat, poultry, specific egg products, and catfish, which are overseen by the U.S. Department of Agriculture. The specific regulatory requirements can vary based on the nature of the product.

This video is part of the FDA's efforts to ensure the safety of the nation's food supply and will serve as a valuable resource for businesses, individuals, and government agencies involved in food imports. They encourage viewers to share the video within their networks to raise awareness of this resource.

It covers essential aspects of the FDA import process for food, including researching requirements related to food facility registration, food safety standards, labeling, nutrition, prior notice, and additional requirements. It also covers the process of declaring shipments and understanding FDA admissibility decisions.

This video is the second in the "Importing FDA-Regulated Products" series, with an introductory video released in March 2022. Link to 1st video is below.

For more information and additional resources, you can visit the FDA's Import Program website, which includes information on:

• Importing human foods
• prior notice
• food facility registration
• labeling and nutrition
• food safety standards

There are also resources available for Starting a Food Business and information on the Voluntary Qualified Importer Program (VQIP).

To monitor the real-time status of a shipment, submit entry documents, request examination locations, and obtain Notices of FDA Action, you can visit the website https://itacs.fda.gov.

If you have general questions about import operations or policies, you can contact the Division of Import Operations (DIO) at [email protected].

For regulatory questions or inquiries about specific food products, you can reach out to the FDA's Center for Food Safety and Applied Nutrition (CFSAN).

Source: USCBP

EU's 11th Sanction Package: Steel and Iron

10/19/2023

The European Union has recently introduced its 11th sanction package, which became effective on September 30, 2023. These measures pertain to the use of steel in imported products from third countries and impose an obligation on importers to verify that the iron and steel materials in their products do not come from banned sources in Russia.



The ban on acquiring and importing specific steel and iron products from Russia initially began with the EU's fourth sanctions package and has now been expanded in the 11th package. Importers are now required to provide evidence confirming the origin of the iron and steel materials used in their imported goods, with the objective of ensuring they have no connection to Russia.

An example of evidence may include, but is not limited to, a Mill Test Certificate (MTC), or Mill Test Certificates (MTCs) where the relevant information cannot be summarized in a single document.



For further information and answers to any additional questions, you can refer to the EU's official website linked below.

Source: European Commission

Expert Control Guidance From BIS And The ES

9/29/2023

Bureau of Industry and Security (BIS) and the Export Enforcement 5 (E5) countries published a quint seal export control guidance document to industry and academia. This guidance follows the June 2023 announcement of the E5 establishment where member countries Australia, Canada, New Zealand, the United Kingdom, and the United States partner to coordinate on export enforcement issues.

The guidance document lists items that are critical to Russian weapons systems and at risk for diversion to Russia through third countries. The forty-five (45) six-digit HS codes, all of which are already subject to license requirements under the Export Administration Regulations (EAR), are broken up into the following four tiers. 

• Tier 1: Integrated circuits (also referred to as microelectronics).
• Tier 2: Electronics items related to wireless communication, satellite-based radio navigation, and passive electronic components.
• Tier 3: This tier is divided into electronic and non-electronic items to provide greater clarity to the different industries that may work with these items.
• Tier 4: Manufacturing, production and quality testing equipment of electric components and circuits.

Also included in the guidance are themes the E5 identified as raising diversion concerns, transactional and behavioral red flags, and links to export control related resources from each of the E5 countries.

Additional information related to Bureau of Industry and Security’s response to Russia’s invasion of Ukraine can be found on their website