I know the title of this blog is Export Compliance Matters, but I feel compelled to provide evidence that import compliance is also becoming a serious compliance risk. Customs and Border Protection (CBP) just announced Friday that the US government is owed 2.3 billion dollars in antidumping and countervailing duties alone. Moreover, CBP has issued several “informed compliance” letters encouraging prior disclosure of customs violations by warning the trade community that the CBP and Immigrations and Customs Enforcement are enforcing trade violations. The issuance of the letters comes in tandem with more sophisticated auditing techniques that CBP has developed to catch violations, including using customs data provided by CBP’s Automated Commercial Environment (ACE). (more…)
Further weakening secondary sanctions, the Department of Treasury’s Office of Foreign Assets Control has issued a new license to allow non-U.S. persons to fly some U.S. aircraft to Iran for temporary sojourn. While General License J only applies to fixed-wing airplanes and imposes a number of conditions that must be met in order for non U.S.-persons to fly to Iran, the new license may mark the start of new opportunities for the civil aviation industry in Iran. (more…)
The Commerce Department this week announced the establishment of the Trade Finance Advisory Council (TFAC), the mission of which will be to advise the Secretary on how the U.S. may support small and medium-sized U.S. business secure financing so that they may export their products to overseas customers. (more…)
What are secondary sanctions?
Secondary sanctions apply to non-U.S. persons for wholly non-U.S. conduct that occurs entirely outside U.S. jurisdiction. Compare this to primary sanctions, which prohibit U.S. persons from engaging in specified activities with certain countries, entities, and persons. (more…)
The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has issued a voluntary disclosure guidance for export violations. The guidance takes effect July 22 and its intent is to make Commerce’s enforcement more in line with that of the Office of Foreign Assets Control (OFAC). Specifically, the new guidance introduces the OFAC concept of a “base penalty amount.” Like OFAC base penalties, the BIS base penalties will be determined by whether the violation was egregious and whether it was voluntarily disclosed. Once a base penalty amount is determined, the amount can move downward or upward based on mitigating and aggravating factors. (more…)
This attachment is from my TerraLex colleagues in London regarding the Brexit. I don’t believe we can have a better analysis at this time. The global trading system is very volatile. And our election will further affect both TPP and TTIP. (more…)
Sri Lanka may not be the first market that comes to mind when thinking of opportunities to export goods and services or invest, but there is reason to at least keep the country in mind. While the Administration has been busy in its efforts to ratify the Trans-Pacific Partnership (TPP) and prepare for its implementation, it has also aimed to strengthen trade with other Asian countries. (more…)
Last week the Commerce Department’s International Trade Administration (ITA) released the second installment of its Top Markets Reports. The reports–nineteen different industries are highlighted in total–do an excellent job highlighting growing export markets for American businesses and provide a lot of useful insight into the United States’ position in the global economy. Top export industries include auto parts ($81 billion), aircraft parts ($56.2 billion), pharmaceuticals ($47 billion), medical devices ($43 billion), building products and sustainable construction ($35.2 billion), construction equipment ($32.6 billion), and smart grid technology ($30 billion). (more…)
U.S. importers should reevaluate their compliance program as U.S. Customs and Border Protection (CBP)’s steps up its efforts to enforce payment of antidumping and countervailing duties. The efforts come at the heel of this February’s passage of the Trade Facilitation and Enforcement Act, which gave CBP new investigatory authority over claims that certain importers are not paying duties. A new interim final rule is expected by Aug. 22. Importers of steel and other goods from China should be especially cautious. (more…)
The Department of Treasury and Department of Commerce have made several changes to the Cuban Assets Control Regulations (CACR) and the Export Administration Regulations (EAR) since the Administration announced its new direction toward Cuba in December 2014. Since the amendments have occurred in multiple sets of rule changes over the past seventeen months, here is an attempt to summarize where we are in terms of what is now allowed.