• 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.