Iran Sanctions Affecting Foreign Subsidiaries, Financial Transactions to be Reinstated (From Sandler Travis)
President Trump announced May 8 his decision to cease the United States’ participation in the Joint Comprehensive Plan of Action and to begin reimposing the U.S. nuclear-related primary and secondary sanctions against Iran that were lifted to effectuate the JCPOA sanctions relief. The Treasury Department’s Office of Foreign Assets Control states that persons engaging in activities undertaken under this relief should take the steps necessary to wind down those activities by Aug. 6 or Nov. 4, as applicable, to avoid exposure to sanctions or enforcement action. For more information, please go to
CBP Now Issuing Penalties for Wood Packaging Material Violations
(From NCBFAA, by Jennifer Diaz, Diaz Trade Law)
On September 25, 2017, CBP sent a message to inform importers of CBP’s intent to issue penalties for wood packaging material violations. In the message, CBP states all wood packaging material (WPM) imported into the United States must have been treated at the place of origin, and contain the appropriate marking upon importation. CBP is trying to “prevent the introduction of exotic timber pests,” and is encouraging the importing community to look towards alternatives to WPM and to educate your supply chains about ISPM 15 requirements. WPM is defined as:
- Hardwood or Softwood packaging
- Created using glue, heat, pressure, or a combination of the three
- Used to support, protect, or carry an item
- Examples Include: Pallets, Skids, Containers, and Crates
For the WPM requirements and more info, please go to
Lee attended the annual conference of the National Customs Brokers and Forwarders Association of America (NCBFAA) earlier this month and learned about a number of issues Customs is addressing that could affect your import program.
Importer ID theft continues to increase
As we reported in January, Customs officials continue to report a rise in importers’ identity being hijacked by criminals and used in unlawful imports. The criminals obtain an importer’s IRS employer identification number (EIN), which is used by Customs as the “importer number”. The criminals then make entry of contraband using that information. When Customs inspects the shipment and finds the contraband, they seize the shipment and notify the legitimate importer. The legitimate importer must then prove it was not their shipment. This has been very difficult and expensive for some importers, and we don’t want that to happen to our good customers. We have long urged importers to keep a spreadsheet with ALL imports identified by at least Customs entry number, P.O. number, bill of lading number, and date. If we write your bond, we can easily furnish you a list of all imports made nationwide under your importer number, which you can compare against your spreadsheet. If we do not write your bond, you should contact that surety and have them furnish you with a similar report. We urge ALL importers to check their imports in this manner at least twice a year.
Intellectual property rights violations are increasing
Because of this, CBP is increasingly requiring the importer to prove at entry that they either own the IPR or have permission from the owner to make entry. CBP reported that in many cases, importer identity theft was involved, so it is important that you check your import spreadsheet against your surety’s list of all imports made with your importer number. Please also note the following article.
TFTEA & EAPA require CBP to increase enforcement of AD/CVD, forced labor, and IPR
In 2015, Congress enacted both the Trade Facilitation and Trade Enforcement Act and the Enforce and Protect Act to require an increased level of enforcement by CBP in regards to AD/CVD evasion, products using forced labor in ANY step of the manufacturing process, and intellectual property rights (IPR) violations. CBP is taking this seriously! It is HIGHLY important that importers of record take positive and proactive steps to insure your imported merchandise does not fall into one of these 3 categories. If you are not 100% percent sure your imported merchandise is compliant, please contact us. The penalties are severe and can even result in shutting down your import program. For more detailed information and a list of manufacturers with active “Withhold Release Orders”, please go to
https://www.cbp.gov/trade/trade-community/programs-outreach/convict-importations
Ed. note: We continue to see the number of AD/CVD investigations by Commerce proliferate. These are in addition to the steel & aluminum tariffs going into place in June (some have already been placed in effect), and tariffs on certain Chinese goods. The responsibility to know if your products are subject to AD/CVD is yours, the importer of record. You can check on the following website:
http://enforcement.trade.gov/stats/inv-initiations-2000-current.html
Alternatively, you can engage a service that monitors AD/CVD cases for you. Their fees vary, but they are pricey. If you prefer to engage a service, please contact us for a referral.
Report suspected trade violations anonymously
e-Allegations provides a means for the public to report to CBP any suspected violations of trade laws or regulations related to the importation of goods into the U.S. These types of violations include misclassification of merchandise, false country of origin markings, health and safety issues, valuation issues, and intellectual property rights. If you think a competitor is violating any trade law or regulation, please go to https://www.cbp.gov/trade/trade-community/e-allegations/e-allegations-faqs for further information.
Contact us with any questions.
Lee Hardeman LeeH@LHCB.com Direct: 404-477-3452
Sandy Cato SandyC@LHCB.com Direct: 404-477-3454
Brittany Albaneso BrittanyA@LHCB.com Cell: 404-401-5950
If you do not wish to continue to receive our newsletter, please email me at leeh@lhcb.com and put “Unsubscribe” in the subject line.