Congress Doubles CBP Forced Labor Enforcement (From Meeks, Shepard, Leo, and Pillsbury)
Congress doubled the 2023 forced labor enforcement budgets of the Department of Homeland Security (DHS) and Customs and Border Protection (CBP), to at least $101 million dollars. This increase was contained in the budget passed by Congress in December. The increase in funds, coupled with increased CBP and DHS staffing for forced labor enforcement, will undoubtedly lead to increased detentions and seizures in 2023.
It is critical for those importing China products to proactively implement measures to make it certain that imports, and the materials used to make them, are not made with forced labor. It is also important to note that products from any country, not just China, are subject to U.S. forced labor laws. The big increase in budgets includes funds for an “advanced trade analytics platform” and “DNA traceability tools” to help identify goods made with forced labor.
Lufthansa Cargo decreases Airfreight Surcharge to 0.65 USD per kg
The sum of cost components in our airfreight surcharge has decreased in the past weeks. Consequently, Lufthansa Cargo is decreasing its Airfreight Surcharge, effective February 27, 2023, from 0.70 to 0.65 USD per kg chargeable freight weight. Please note, the AWB issue date, not the flight date, determines the applicable Airfreight Surcharge.
Compliance Shortcuts Can be Costly for Importers (From Sandler Travis and Rosenberg)
U.S. Customs and Border Protection’s efforts to enforce trade laws and regulations have always included a focus on what it calls its priority trade initiatives. These include AD/CV duties, trade agreements, intellectual property rights, import safety, agriculture, textiles and apparel, and revenue, including the collection of billions of dollars’ worth of Section 201, Section 232, and Section 301 tariffs. Today, CBP’s enforcement efforts also extend to the prohibition on imports of goods made with forced labor, sanctions against Russia and Belarus, and other measures.
These efforts are having a noticeable impact on importers. Between 2018 and 2021 trade-related penalties and liquidated damages imposed by CBP were up 40 percent, and from 2019 to 2021 the number of CBP audits increased by 13 percent and the amount collected as a result of those audits jumped 207 percent. Penalties, seizures, and cargo detentions have also accelerated in recent months. For more information, please go to
Ed. Note: We are pleased to provide a review of your import program to validate its compliance. Please contact us if you are interested.
Resourcing from China
Many of our customers have already resourced their products from China. While many went to Vietnam and Mexico, you may want to consider Eastern Europe. Many of these countries are hungry for business with the US, and opportunities abound.
www.trade.gov/country-commercial-guides/hungary-market-opportunities