• POLA and POLB Marine Terminal Gates Closed Thursday, November 7, 2024, from 5 p.m.
   
• Tuesday, 11/05, PNCT will be OPEN for Election Day, 6am-5pm

DHS Further Amends the UFLPA Entity List to Reflect Additional Parties - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

On October 31, 2024, the U.S. Department of Homeland Security announced the addition of four companies to the section of the Uyghur Forced Labor Prevention Act (UFLPA) Consolidated Entity List, which identifies facilities and entities that source material from the Xinjiang Uyghur Autonomous Region (XUAR) or from persons working with the XUAR government or the Xinjiang Production and Construction Corps for purposes of the ‘‘poverty alleviation’’ program or the ‘‘pairing-assistance’’ program or any other government labor scheme that uses forced labor.

By statute, goods, mined, produced, or manufactured wholly or in part in the XUAR or produced by an entity on one of the UFLPA lists are subject to a rebuttable presumption that they were made using forced labor and are inadmissible.

The four new additions, effective November 1, 2024, are:

• Changji Esquel Textile Co., Ltd. (also known as Changji Yida Textile Co., Ltd.)*
• Esquel Group (also known as Esquel China Holdings Limited)
• Guangdong Esquel Textile Co., Ltd.
• Turpan Esquel Textile Co., Ltd. 

Since the UFLPA was signed into law, nearly 80 entities have been added to the UFLPA Entity List involving various product sectors. The full list can be found here. Future additions to the list will be considered. A procedure is also available whereby parties may request their removal from the entity list.

Please do not hesitate to contact any of our attorneys for further information on the above or any other aspect of UFLPA compliance.

*The notice also removes this entity from the UFLPA category of entities in the XUAR that mine, produce, or manufacture wholly or in part any goods, wares, articles and merchandise with forced labor. However, as it is nonetheless on the Consolidated Entity List, it remains subject to the UFLPA’s rebuttable presumption.
 

Petitions Filed Requesting the Imposition of Antidumping and Countervailing Duties on Imports of Hard Empty Capsules from Brazil, China, India, and Vietnam - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

On October 24, 2024, a petition was filed for the imposition of antidumping (AD) and countervailing (CVD) duties on the imports of hard empty capsules from Brazil, China, India, and Vietnam. The petition alleges dumping margins of 136.51% to 170.91% for China, 57.50% to 86.34% for India, 78.43% to 98.74% for Brazil, and 65.97% to 89.33% for Vietnam. The petition identifies certain foreign producers/exporters and U.S. importers of the investigated product.

The merchandise subject to this Petition is hard empty capsules, or HECs. HECs are two-piece unfilled cylindrical shells composed primarily (at least 80 percent by weight, as discussed below) of polymer material that is non-toxic, biodegradable, biocompatible, and water soluble. Polymer material used in HECs may be gelatin produced through the hydrolysis of animal collagen, such as animal skins, hides, and/or bones. Cows and pigs are the most common sources of collagen for gelatin-based HECs, but fish-based gelatin is also sometimes used. Polymer material used in HECs may also be plant-based, such as HPMC and pullulan. HPMC is “a semisynthetic, inert, viscoelastic cellulose obtained directly from strains of fibrous plant material and partially etherified with methyl groups.” HPMC also contains “a small degree of hydroxypropyl substitution of methyl and hydroxypropyl celluloses produced from wood pulp.” Pullulan is a natural polysaccharide (polycarbohydrate) that is “commercially produced extracellularly by the non-pathogenic and non-toxic strain” of the fungus “Aureobasidium pullulans, utilizing starch and other food grade components.”

The projected date of International Trade Commission’s Preliminary Conference is November 14, 2024. The earliest theoretical date for retroactive suspension of liquidation for AD is January 2, 2025; CVD is November 13, 2024.

Please feel free to contact one of our attorneys for further information, including a complete scope description, complete projected schedule for the AD and CVD investigations; the volume and value of imports; and list of identified foreign exporters and U.S. importers.
 

Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Paper File Folders from Cambodia and Sri Lanka - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

On October 21, 2024, the Coalition of Domestic Folder Manufacturers (“Coalition”) filed a petition for the imposition of antidumping and countervailing duties on the imports of Paper File Folders from Cambodia and Sri Lanka. The petition alleges dumping margins of 93.15% to 239.64% for Cambodia, and 19.22% to 108.61% for Sri Lanka.  The petition identifies certain foreign producers/exporters and U.S. importers of the investigated product.

The scope of these investigations is identical to the scope of the antidumping and countervailing duty orders that were issued as a result of the prior investigations on folders from China, India, and Vietnam:

The products within the scope of these orders are file folders consisting primarily of paper, paperboard, pressboard, or other cellulose material, whether coated or uncoated, that has been folded (or creased in preparation to be folded), glued, taped, bound, or otherwise assembled to be suitable for holding documents. The scope includes all such folders, regardless of color, whether or not expanding, whether or not laminated, and with or without tabs, fasteners, closures, hooks, rods, hangers, pockets, gussets, or internal dividers. The term “primarily” as used in the first sentence of this scope means 50 percent or more of the total product weight, exclusive of the weight of fasteners, closures, hooks, rods, hangers, removable tabs, and similar accessories, and exclusive of the weight of packaging.

Subject folders have the following dimensions in their folded and closed position: lengths and widths of at least 8 inches and no greater than 17 inches, regardless of depth.

The scope covers all varieties of folders, including but not limited to manila folders, hanging folders, fastener folders, classification folders, expanding folders, pockets, jackets, and wallets.

The projected date of International Trade Commission’s Preliminary Conference is November 11, 2024. The earliest theoretical date for retroactive suspension of liquidation for AD is December 30, 2024; CVD is November 11, 2024.

Please feel free to contact one of our attorneys for further information, including a complete scope description, complete projected schedule for the AD and CVD investigations; the volume and value of imports; and list of identified foreign exporters and U.S. importers.
 

Federal Register Notices:

• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Disposable Aluminum Containers, Pans, Trays, and Lids From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Determination of Critical Circumstances, and Alignment of Final Determination With Final Antidumping Duty Determination
• Sales at Less Than Fair Value; Determinations, Investigations, etc.: Aluminum Extrusions From the Socialist Republic of Vietnam: Amended Final Affirmative Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Prestressed Concrete Steel Wire Strand From Mexico: Final Affirmative Determination of Circumvention of the Antidumping Duty Order; Correction
• Application for Duty-Free Entry of Scientific Instruments: Massachusetts Institute of Technology, et. al; Application(s) for Duty-Free Entry of Scientific Instruments
• Investigations; Determinations, Modifications, and Rulings, etc.: Sodium Nitrite From China and Germany; Scheduling of Expedited Five-Year Reviews
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Utility Scale Wind Towers From the People's Republic of China and the Socialist Republic of Vietnam: Continuation of Antidumping Duty Orders and Countervailing Duty Order
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Hard Empty Capsules From Brazil, China, India, and Vietnam; Institution of Antidumping and Countervailing Duty Investigations and Scheduling of Preliminary Phase Investigations
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Stainless Steel Plate in Coils From Belgium: Final Results of Antidumping Duty Administrative Review; 2022-2023
• Carbazole Violet Pigment 23 From India: Final Results of Countervailing Duty New Shipper Review; 2022
• Large Diameter Welded Pipe From Canada: Final Results of Antidumping Duty Administrative Review; 2022-2023
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Electronic Eyewear Products and Components Thereof; Notice of Commission Decision Not To Review an Initial Determination Terminating the Investigation as to the Remaining Respondent Based on Settlement; Termination of the Investigation
• Certain Computing Devices Utilizing Indexed Search Systems and Components Thereof; Notice of Commission Determination To Review and, on Review, To Affirm an Initial Determination Granting in Part Respondents' Motion for Summary Determination of Noninfringement
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Opportunity To Request Administrative Review and Join Annual Inquiry Service List
• Investigations; Determinations, Modifications, and Rulings, etc.: Acetone From Belgium, Singapore, South Africa, South Korea, and Spain; Institution of Five-Year Reviews
• Aluminum Wire and Cable From China; Institution of Five-Year Reviews
• Mattresses From China; Institution of a Five-Year Review
• Vertical Metal File Cabinets From China; Institution of Five-Year Reviews
• Carbon and Alloy Steel Threaded Rod From China, India, Taiwan, and Thailand; Institution of Five-Year Reviews
• Silicomanganese From China and Ukraine
• Steel Nails From China; Institution of a Five-Year Review
• Welded Stainless Steel Pressure Pipe From China, Malaysia, Thailand, and Vietnam; Institution of Five-Year Reviews
• Malleable Iron Pipe Fittings From China; Institution of a Five-Year Review
   

United States Files Suit for Unpaid Duties and Penalties for Alleged Failure to Pay Duties on Imported Chinese Bedroom Furniture - Department of Justice

The United States has filed a civil lawsuit against Lawrence Bivona, who was the President of LaJobi Inc., a Delaware corporation that imported Chinese-manufactured children’s bedroom furniture into the United States. The lawsuit alleges that Bivona made false statements to customs officials and, as a result, avoided paying antidumping duties owed on the imported furniture.

At the time merchandise is entered into the United States, the importer is responsible for providing all information necessary to enable Customs and Border Protection (CBP) to assess the applicable duties owed on the goods, including any antidumping duties applicable to the merchandise. Antidumping duties are trade remedies that help protect domestic industries from unfair trade practices by foreign businesses and countries, such as government subsidies or below market sales.

The United States’ complaint contends that Bivona caused LaJobi to misrepresent the identity of the manufacturers of the children’s furniture imported from China. In particular, the United States alleges that Bivona falsely represented that the furniture was manufactured by Chinese entities subject to duty rates of approximately 7% or less, and failed to disclose that the furniture was actually manufactured by entities subject to duty rates of 216%.

“Anti-dumping duties play an important role in countering illegal foreign trade practices and protecting U.S. manufacturers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue those who seek to gain an unfair advantage by violating our trade laws.”

“These civil penalties support the seriousness of CBP’s trade mission and protect the U.S. economy, while maintaining fair trade and preserving American jobs from predatory practices,” said Executive Director Susan Thomas of CBP’s Cargo and Conveyance Security, Office of Field Operations. “CBP’s antidumping and countervailing duties enforcement aims to mitigate harm by anti-competitive behavior and supports a level playing field for U.S. companies injured by unfair trade practices.”

“We take very seriously our role in protecting the U.S. economy from illegal and predatory trade practices,” said Assistant Director Ivan J. Arvelo of Homeland Security Investigations (HSI) Global Trade Investigations. “HSI is committed to working alongside CBP and partners to stop those who engage in fraud to circumvent U.S. trade laws.”

The complaint seeks the recovery of over $7 million in import duties and over $15 million in civil penalties.

HSI Newark led the investigation with CBP Trade Regulatory Audit Newark, CBP Associate Chief Counsel New York, CBP Consumer Products and Mass Merchandising (CPMM) Center of Excellence and Expertise. CBP and HSI are the agencies responsible for enforcing U.S. laws related to the importation of merchandise into the United States, including the collection of duties and assessment of penalties.

Trial Counsel Daniel Hoffman of the Civil Division’s Commercial Litigation Branch, National Courts Section, is handling the case.

The case is filed in the Court of International Trade and captioned United States v. Lawrence Bivona No. 24-00196.

To combat trade fraud, including avoidance of import duties, the Justice Department created a Trade Fraud Task Force. The Task Force partners with CBP and other law enforcement agencies to ensure compliance with U.S. trade laws.

The claims in the complaint are allegations only. There has been no determination of liability.
 

Buyer Beware: Bad Actors Exploit De Minimis Shipments - U.S. Customs & Border Protection

Contrary to popular belief, good things do not always come in small packages. In fiscal year 2023, 85% of the shipments U.S. Customs and Border Protection seized for health and safety violations were small packages. The packages contained dangerous materials that could cause serious harm to American consumers and the U.S. economy. Propelled by online shopping, duty-free de minimis shipments—packages with an aggregate value of $800 or less—are skyrocketing and putting consumers at risk.

Currently, de minimis shipments account for 92% of all cargo entering the U.S. and that figure is growing in epic proportions. CBP processes approximately 4 million de minimis shipments a day, up from 2.8 million last year. Bad actors are exploiting this explosion in volume to traffic counterfeits, dangerous narcotics, and other illicit goods including precursor chemicals and materials such as pill presses and die molds used to manufacture fentanyl and other synthetic drugs that are killing Americans.

The majority of the more than 1 billion de minimis shipments CBP processed last year were in the air environment. Roughly 800 million, or 88%, of these shipments arrived through international mail; express courier services such as UPS, DHL, and FedEx; or were transported as cargo on commercial airline flights. At John F. Kennedy International Airport in New York where 25% of all de minimis shipments are processed, the volume is staggering. “On any given day, we could receive and process 750,000 to a million de minimis shipments,” said Andrew Renna, Assistant Port Director for Cargo Operations at JFK Airport. Along with four express courier facilities, the airport houses the country’s largest by volume international mail facility where 60% of international mail arrives in the U.S. “We have limited resources,” said Renna. “We only have X number of staff. There is no physical way if I doubled or even tripled my staffing that I could look at a significant percentage of that. So due to the volume, it’s a very exploitable mode of entry into the U.S.”

Read entire article here
 

China-Based Chemical Manufacturing Companies and Employees Indicted for Alleged Fentanyl Manufacturing and Distribution - Department of Justice

Today, the Justice Department announced the unsealing of indictments against eight China-based chemical companies and eight employees charging federal crimes, including attempted distribution of synthetic opioids and precursor chemicals used in the production of fentanyl, and money laundering. The indictments were filed under seal in the Middle District of Florida over the past year.

“Today, the Justice Department announced charges against eight China-based companies and eight individuals we allege are responsible for trafficking precursor chemicals that cartels use to manufacture lethal fentanyl,” said Attorney General Merrick B. Garland. “The global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies based in China. In order to break this critical link in the fentanyl supply chain, the Justice Department has aggressively investigated and prosecuted these companies. We will continue to target every organization and individual that fuels the deadly drug trade.”

As described in the unsealed indictments, the defendants openly advertised their ability to thwart border officials and deliver the synthetic opioids or the chemicals used to make fentanyl to the Middle District of Florida and elsewhere in the United States. The defendants deliberately engaged in evasive activities, such as mislabeling the contents of shipments to ensure the illicit chemicals and controlled substances went undetected. As a result, these companies were able to sell a stable supply of precursor chemicals to clients in Mexico and the United States for years. One of the companies even represented that every month it sends “more than 20 kilograms to the United States, Africa, Canada, and other countries.” 

“Today’s indictments against eight China-based chemical companies and eight Chinese nationals are further evidence of DEA’s unwavering commitment to disrupt every aspect of the global fentanyl supply chain,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “For the third time in over a year, DEA investigations have resulted in charges against chemical companies and individuals in China who we allege are supplying chemicals to the cartels to make deadly fentanyl. While they may go to great lengths to try to evade our detection, DEA will use every tool and authority we have to save American lives.”

The indictments target the evolving tactics of drug traffickers, who often adapt to tightening restrictions on the production and sale of fentanyl. For example, when China banned the production of fentanyl in 2019, China-based companies began producing and selling fentanyl precursors, the ingredients needed to manufacture the drug. These China-based companies distribute fentanyl precursors throughout the world, including to the United States and to Mexico, where drug cartels such as the Sinaloa Cartel and Cartel Jalisco Nueva Generación combine the chemicals into fentanyl and other synthetic opioids that they then distribute throughout the United States and the rest of the world.

“These indictments are part of our continuing commitment to the protection of our country from the deadly scourge of fentanyl,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Along with our partners at the Drug Enforcement Administration, we will be relentless in our pursuit of China-based chemical companies and their employees who are knowingly manufacturing and exporting fentanyl precursors that cause thousands of deaths every year in the United States.”

The Justice Department acknowledges the efforts of the People’s Republic of China, Ministry of Public Security. The following indicted companies are now out of operation: Jiangsu Jiyi Chemical, Tianjin Furuntongda Tech Co. Ltd, Wuhan Jinshang Import & Export Trading Co. Ltd., Hubei Shanglin Trading Co., and Wuhan Mingyue Information Technology.

In addition, the People’s Republic of China has recently scheduled three key chemicals, which in turn provides additional tools for the People’s Republic of China to regulate the chemicals’ production and distribution. DEA Administrator Milgram said, “I would also like to recognize the work done by the People’s Republic of China’s Ministry of Public Security in taking action to schedule protonitazene, piperidone, and 1-BOC-4-AP, which were not scheduled at the time of these investigations, but have now been scheduled.”

The DEA investigated the cases.

Assistant U.S. Attorneys David Chee, David Pardo, Lauren Stoia, and Adam McCall and Special Assistant U.S. Attorney Ashley Haynes for the Middle District of Florida are prosecuting the cases.

These cases are part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

Case Summaries

In January, Guangzhou Tengyue Chemical Co. Ltd., based in Guangzhou, Guangdong Province, China, was charged with attempted importation of protonitazene, along with Chinese national Xiaojun Huang, who allegedly maintained a Bitcoin wallet for the remittance of payments for illicit synthetic opioids on the company’s behalf.

In January, Hubei Shanglin Trading Co., based in Wuhan, Hubei Province, China, was charged with attempted international money laundering, along with Chinese national Zhihan Wang, who was the alleged registered owner of a Bitcoin wallet associated with the company utilized to complete the sale of fentanyl precursors.

In November 2023, Jiangsu Jiyi Chemical, based in Beijing, Hebei Province, China, was charged with attempted importation of protonitazene, along with Ji Zhaohui, a Chinese national, who was the alleged holder of the Bitcoin wallet associated with the company.

In January, Tianjin Furuntongda Tech Co. Ltd, based in Tianjin, Hebei Province, China, was charged with attempted importation of fentanyl precursors, along with Wenxing Gao, a Chinese national, who was the alleged registered agent of Tianjin Furuntongda and the owner of a cryptocurrency wallet associated with the company.

In November 2023, Wuhan Jinshang Import & Export Trading Co. Ltd., based in Wuhan, Hubei Province, China, was charged with attempted importation of protonitazene, attempted importation of a fentanyl precursor, and attempted international money laundering, along with Wenying Nie, a Chinese national, who was the alleged holder of a Bitcoin wallet associated with the company.

In January, Wuhan Mingyue Information Technology, based in Wuhan, Hubei Province, China, was charged with attempted importation of fentanyl precursors and attempted international money laundering, along with Chinese national Huanhuan Song, who was the alleged recipient of funds via Western Union on the company’s behalf and the alleged holder of a cryptocurrency wallet associated with the company.

In June, Henan Oumeng Trade Co. Ltd., based in Zhengzhou, Henan Province, China, was charged with attempted importation of protonitazene and attempted international money laundering, along with Yinxia Zhao, a Chinese national, who was the alleged holder of the Bitcoin wallet associated with the company.

In June, Shanghai Senria New Materials Co. Ltd., doing business as Shanghai Senria Biotechnology Co. Ltd., based in the Fengxian District of Shanghai, China, was charged with attempted importation of protonitazene and attempted international money laundering, along with Zhenbo Han, a Chinese national, who was the alleged holder of the Bitcoin wallet associated with the company.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
 

TSA Announce Final Rule that Enables the Continued Acceptance of Mobile Driver's Licenses at Airport Security Checkpoints and Federal Buildings - Transportation Security Administration

WASHINGTON — Consistent with the Transportation Security Administration’s (TSA) efforts to enhance the passenger experience, TSA published a final rule in the Federal Register that would allow passengers to continue using mobile driver’s licenses (mDL) for identity verification at TSA airport security checkpoints once REAL ID enforcement begins on May 7, 2025.

The final rule, effective November 25, 2024, allows states to apply to TSA for a temporary waiver of certain REAL ID requirements written in the REAL ID regulations. Once approved, those state mDLs will continue to be accepted at TSA airport security checkpoints. TSA will publish on its website a list of states where mDLs are approved for federal acceptance. After emerging industry standards and federal guidelines are finalized, TSA intends to issue a future rulemaking to set more comprehensive requirements for mDLs that will eventually replace the waiver provisions established by this rule.

An mDL is a digital representation of a state-issued physical driver’s license that is typically installed through an application on the user’s smartphone and stored in a digital wallet, similar to how many users currently store their physical credit cards on their smartphones. The information from the digital wallet is read after the smartphone is either tapped against an mDL reader or scanned under the reader to establish the validity of the mDL and a person’s identity.

TSA currently accepts mDLs issued by 11 states at 27 participating airports and has a goal of accepting mDLs in all airports, by expanding the technology nationwide. These states include Arizona, California, Colorado, Georgia, Hawaii, Iowa, Louisiana, Maryland, New York, Ohio and Utah.

For more information on REAL ID, please visit TSA.gov/real-id. For more information about TSA’s use of digital identification, please visit TSA.gov/digital-id.