USTR Increases Tariffs on Tungsten Products, Wafers, and Polysilicon, Concluding its Statutory China 301 Four-Year Review - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

On December 11, 2024, further to its September 19th solicitation of comments, the USTR, has announced increases to 3 subheadings covering certain tungsten products and 2 subheadings covering wafers and polysilicon. The details of these increases, which take effect with respect to goods entered on or after January 1, 2025, are as follows:

Tungsten (Increase to 25%)

• •8101.94.00 (Tungsten, unwrought (including bars and rods obtained simply by sintering)).
• 8101.99.10 (Tungsten bars and rods (o/than those obtained simply by sintering), profiles, plates, sheets, strip and foil).
• 8101.99.80 (Tungsten, articles nesoi).

Wafers / Polysilicon (Increase to 50%)

• 2804.61.00 (Silicon containing by weight not less than 99.99 percent of silicon).
• 3818.00.00 (Chemical elements doped for use in electronics, in the form of discs, wafers etc., chemical compounds doped for electronic use).

This action is the final action taken by the USTR pursuant to its statutory four-year review of existing China 301 duties. It does not impact any future potential tariff actions under the incoming administration.

Please do not hesitate to contact any of our attorneys if we can be of assistance in connection with the above or to consult on potential strategies that companies may wish to consider in order to mitigate the impact of future tariff increases.
 

USTR Initiates Section 301 Investigation on Nicaragua’s Acts, Policies, and Practices Related to Labor Rights, Human Rights, and the Rule of Law- USTR

WASHINGTON – United States Trade Representative Katherine Tai announced today the initiation of an investigation regarding Nicaragua’s acts, policies, and practices related to labor rights, human rights, and the rule of law. The investigation will be conducted under Section 301 of the Trade Act of 1974, as amended. The United States is concerned that Nicaragua is engaging in repressive and persistent attacks on labor rights, human rights, and the rule of law. The investigation initiated today is the first under Section 301 to investigate acts, policies, and practices that may violate labor rights, human rights, and dismantle the rule of law that may burden U.S. commerce and complements a range of actions the United States is taking to mark International Human Rights Day today.
 
“The Biden-Harris Administration is firmly committed to a worker-centered trade policy to ensure our trade partnerships drive a race to the top for all workers and people,” said Ambassador Katherine Tai. “Unfortunately, numerous reports suggest the Government of Nicaragua is engaging in repressive acts that harm Nicaragua’s own workers and people, undermine fair competition, and destabilize our region. USTR will thoroughly investigate the alleged violations of labor rights and human rights, and dismantling of the rule of law.”
 
Numerous credible reports by the U.S. Government, as well as the United Nations Office of the High Commissioner for Human Rights, the Inter-American Commission on Human Rights, the International Labor Organization and the UN Group of Human Rights Experts on Nicaragua, document that the Ortega-Murillo regime in Nicaragua engages in labor rights and human rights violations and dismantling of the rule of law. These actions include: politically-motivated arrests and imprisonments, repression of members of religious groups and non-governmental organizations, extrajudicial killings, cruel, inhuman or degrading treatment, restrictions on freedom of expression and movement, violence against members of marginalized groups, repression of freedom of association and collective bargaining, forced labor, human trafficking, eliminating legislative and judicial independence, spurious seizures of property, arbitrary fines and rulings, and other harmful acts. Such actions exacerbate worker exploitation and diminish economic growth and trade opportunities.
 
The United States has a deep commitment to shared prosperity in the Central American region.  Despite continued U.S. engagement, the Government of Nicaragua has not responded to concerns raised by the United States or others to serious allegations of labor and human rights abuses and the dismantling of the rule of law. Through this investigation, the United States will seek to address and resolve those long-standing and deep-rooted concerns to ensure U.S. companies and workers are treated fairly and with equal respect under a rule of law system.

As explained in a formal notice, USTR is seeking public comments and will hold a public hearing in connection with this investigation.
 
Background 

Section 301 of the Trade Act of 1974, as amended, (Trade Act) is designed to address unfair foreign practices affecting U.S. commerce. Section 301(b) may be used to respond to unreasonable or discriminatory foreign government practices that burden or restrict U.S. commerce. Under Section 302(b) of the Trade Act, the Trade Representative may self-initiate an investigation under Section 301. 
 
The U.S. Trade Representative must seek consultations with the foreign government whose acts, policies, or practices are under investigation. USTR has requested consultations with Nicaragua in connection with the investigation. 

A docket for comments regarding the investigation is available here.

A docket for requests to appear at the public hearing to be held in connection with this investigation is available here.
 

Federal Register Notices:

• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Melamine From Germany: Final Affirmative Countervailing Duty Determination
• Citric Acid and Certain Citrate Salts From the People's Republic of China: Final Results of Antidumping Duty Administrative Review; 2022-2023
• Organic Soybean Meal From India: Final Results and Partial Rescission of Antidumping Duty Administrative Review; 2021-2023
• Melamine From Qatar: Final Affirmative Countervailing Duty Determination and Final Negative Critical Circumstances Determination
• Oil Country Tubular Goods From Argentina: Preliminary Results of Antidumping Duty Administrative Review; 2022-2023
• Melamine From Trinidad and Tobago: Final Affirmative Determination in the Countervailing Duty Investigation
• Sales at Less Than Fair Value; Determinations, Investigations, etc.: Melamine From Germany: Final Affirmative Determination of Sales at Less Than Fair Value
• Melamine From the Netherlands: Final Affirmative Determination of Sales at Less Than Fair Value
• Melamine From Qatar: Final Negative Determination of Sales at Less Than Fair Value and Final Negative Determination of Critical Circumstances
• Melamine From Trinidad and Tobago: Final Affirmative Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances, in Part
• Melamine From Japan: Final Affirmative Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances, In Part
• Investigations; Determinations, Modifications, and Rulings, etc.: Quartz Surface Products From China; Scheduling of Expedited Five-Year Reviews
• Certain TOPcon Solar Cells, Modules, Panels, Components Thereof, and Products Containing Same (II); Notice of Institution of Investigation
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Forged Steel Fittings From the People's Republic of China: Final Results of the Antidumping Duty Administrative Review; 2022-2023
• Organic Soybean Meal From India: Final Results of Countervailing Duty Administrative Review; 2021-2022
• Certain Carbon and Alloy Steel Cut-to-Length Plate From the Republic of Korea: Final Results of Countervailing Duty Administrative Review; 2022
• Refillable Stainless Steel Kegs From the People's Republic of China: Notice of Court Decision Not in Harmony With the Final Determination of Antidumping Investigation; Notice of Amended Final Determination; and Notice of Amended Antidumping Duty Order
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Networking Equipment Supporting NETCONF; Notice of the Commission's Determination To Review and Affirm Order No. 19 Granting Summary Determination Finding No Infringement, Review and Vacate Order No. 23, and Grant in Part Third Party Xenogenic Development, LLC's Motion To Intervene; Termination of the Investigation
• Certain Power Converter Modules and Computing Systems Containing the Same; Notice of a Commission Determination To Review in Part a Final Initial Determination Finding a Violation of Section 337; Request for Written Submissions on the Issues Under Review and on Remedy, the Public Interest, and Bonding
• Silicomanganese From India, Kazakhstan, and Venezuela Determinations
• Paper File Folders From Cambodia and Sri Lanka
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Steel Wire Garment Hangers From the People's Republic of China: Final Results of the Expedited Third Sunset Review of the Antidumping Duty Order
• Polyethylene Terephthalate Resin From the Sultanate of Oman: Final Results of Antidumping Duty Administrative Review; 2022-2023
• Laminated Woven Sacks From the Socialist Republic of Vietnam: Final Results of the Expedited First Sunset Review of the Countervailing Duty Order
• Laminated Woven Sacks From the Socialist Republic of Vietnam: Final Results of Expedited First Sunset Review of the Antidumping Duty Order
• Carbon and Alloy Steel Wire Rod From Ukraine: Rescission of Antidumping Duty Administrative Review; 2023-2024
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Welded Stainless Pressure Pipe From India: Preliminary Results and Partial Rescission of Antidumping Duty Administrative Review; 2022-2023
• Steel Concrete Reinforcing Bar From the Republic of Türkiye: Preliminary Results and Partial Rescission of Countervailing Duty Administrative Review; 2022
• Certain Aluminum Foil From the Republic of Türkiye: Preliminary Results and Partial Rescission of Countervailing Duty Administrative Review; 2022
• Circular Welded Non-Alloy Steel Pipe From the Republic of Korea: Preliminary Results of Antidumping Duty Administrative Review; 2022-2023
• Certain Aluminum Foil From Brazil: Preliminary Results of Antidumping Duty Administrative Review; 2022-2023
• Pure Magnesium From the People's Republic of China: Final Results of Antidumping Duty Administrative Review; 2022-2023
• Oil Country Tubular Goods From the Republic of Korea: Preliminary Results and Rescission, In Part, of Countervailing Duty Administrative Review; 2022
• Certain Aluminum Foil From the Sultanate of Oman: Preliminary Results of Countervailing Duty Administrative Review; 2022
• Chlorinated Isocyanurates From the People's Republic of China: Preliminary Results of the Countervailing Duty Administrative Review and Partial Rescission; 2022
• Certain Aluminum Foil From the Sultanate of Oman: Preliminary Results of Antidumping Duty Administrative Review; 2022-2023
• Certain Aluminum Foil From the Republic of Türkiye: Preliminary Results and Rescission, in Part, of Antidumping Duty Administrative Review; 2022-2023
• Large Diameter Welded Pipe From the Republic of Korea: Final Results of Antidumping Duty Administrative Review; 2022-2023
• Investigations; Determinations, Modifications, and Rulings, etc.: Hard Empty Capsules From Brazil, China, India, and Vietnam
• Certain Products Containing Tirzepatide and Products Purporting To Contain Tirzepatide; Notice of Request for Submissions on the Public Interest
• Certain Electronic Devices, Including Smartphones, Computers, Tablet Computers, and Components Thereof; Notice of a Commission Determination Not To Review an Initial Determination Granting Joint Motion To Terminate the Investigation Based on Arbitration; Termination of Investigation
• Steel Concrete Reinforcing Bar (Rebar) From Belarus, China, Indonesia, Latvia, Moldova, Poland, and Ukraine
   

CBP, U.S. Chamber Urge Holiday Shoppers to Beware of Counterfeits - U.S. Customs & Border Protection

Shop Smart campaign educates consumers to keep Americans and their families safe from fakes.

WASHINGTON – As consumers prepare for holiday shopping, U.S. Customs and Border Protection (CBP) and the U.S. Chamber of Commerce are hitting the airwaves and television networks nationwide to brief consumers on the counterfeit goods industry, equipping shoppers to ‘shop smart’ with the tools needed to spot, avoid, and take action against fakes.

“There are significant health and safety hazards associated with counterfeit products,” said AnnMarie R. Highsmith, Executive Assistant Commissioner for CBP’s Office of Trade. “We’ve seen it all – toys with elevated lead content to cosmetics with nasty ingredients you wouldn’t want on your skin. These aren’t the gifts you want to give to your family.”

Illegal actors exploit the holiday shopping surge to push counterfeits to unsuspecting consumers looking for deals. They often use the proceeds of these goods to support terrorism and other violent and illegal activities that put consumers at risk. The following tips can help keep families safe while ensuring their hard-earned money does not help fund criminal activity:

• Trust your instincts: If a deal seems too good to be true or an online advertisement links to a suspicious-looking website, it is best to use caution.
   
• Prioritize secure payments: When shopping online, only buy from sites that begin with https:// — the 's' stands for secure. Also, check for a lock symbol in your browser to confirm the site's safety.
   
• Examine every detail: When you receive products purchased online, pay close attention to labels, packaging, and contents. Watch out for broken or missing safety seals and unusual packaging, as these could all be signs of fake goods.
   
• Protect your data: Keep all your devices, including computers and smartphones, updated with the latest cybersecurity protections to fend off any potential cyber threats. Stay alert to suspicious websites that may conceal malware.
   
• Say something: Spread awareness among friends, family, and coworkers about counterfeit goods sold on illicit websites. Fake goods should be reported through CBP’s Trade Violations Reporting platform or the National Intellectual Property Rights (IPR) Center. Your actions can make online shopping safer and smarter for all.

“We’re always proud to team up with our colleagues at CBP to provide consumers with tips for safe shopping,” said Tom Quaadman, Senior Vice President for Economic Policy at the U.S. Chamber of Commerce. “Together, business and law enforcement are empowering consumers and families to stay safe this holiday season.”

Counterfeit goods are often made with inferior quality, which leads consumers to purchase and re-purchase the same items, generating excessive waste in U.S. landfills. Consumers are better off buying genuine goods from legitimate businesses, as they are more likely to last longer and to be made with safe materials.

In Fiscal Year 2024, CBP seized more than 32 million counterfeit items. Had these items been genuine, they would have been worth more than $5.4 billion - money that could be supporting law-abiding businesses and entrepreneurs who create jobs and contribute to U.S. economic stability.

For more information on how to shop smart, visit the U.S. Chamber of Commerce’s “Shop Smart” resources, as well as CBP’s Truth Behind Counterfeits website.
 

Dulles Agriculture Specialists Catch Two Dangerous Insect Pests of Distinction – One First-in-Port, One Not Seen in 40 Years - U.S. Customs & Border Protection

STERLING, Va. – U.S. Department of Agriculture entomologists recently confirmed that U.S. Customs and Border Protection agriculture specialists at Washington Dulles International Airport intercepted two insect pests that hold interesting distinction – a first-in-port discovery and one that hasn’t been observed here in 40 years.

CBP agriculture discovered the two insect pests while inspecting a shipment of 188 protea and chamelaucium cut-stem flowers imported from South Africa on October 7. The flowers were destined to an address in King George County, Va. CBP agriculture specialists routinely inspect flower imports to ensure that they are free of pests that pose serious threats to our nation’s agricultural and environmental resources.

Agriculture specialists safeguarded the specimens and sent them to the U.S. Department of Agriculture (USDA) entomologist. The entomologist identified the specimens as Caprhiobia sp. (Lygaeidae), and Oxycarenus maculatus (Protea seed bug). Both pests are known to occur in Africa.

Caprhiobia sp. (Lygaeidae) is a plant bug known to occur in South Africa that that has a voracious appetite and causes extensive damage to vegetation. The USDA entomologist consulted the national pest identifier database and confirmed this as a first-in-port discovery, meaning there has been no previous reported discovery of Caprhiobia sp. (Lygaeidae) in this region.

Oxycarenus maculatus is also known as the Protea seed bug. Seed bugs are a crop pest and poses a serious threat to our nation’s crop industries, such as corn, grains, wheat, cotton, fruit, tree nuts, and vegetables. The USDA entomologist consulted the national pest identifier database and confirmed that this insect pest has not been observed locally since November 1984.

“Invasive insect pests pose a severe threat to our agricultural industries and to our nation’s economic security,” said Marc Calixte, CBP’s Area Port Director for the Area Port of Washington, D.C. “Customs and Border Protection agriculture specialists remain steadfast on our nation’s frontline protecting our natural and agricultural resources from invasive pests and plants, and from animal and plant diseases that could cripple our nation’s economy.”

CBP agriculture specialists have extensive training and experience in the biological sciences and agricultural inspection, and they inspect tens of thousands of international air passengers, and air and sea cargoes being imported to the United States. They are on our nation’s frontlines to ensure our nation’s economic resilience by protecting our critical agricultural resources.

During a typical day last year, CBP agriculture specialists across the nation seized 3,287 prohibited plant, meat, animal byproducts, and soil, and intercepted 231 insect pests at U.S. ports of entry.

CBP's border security mission is led at our nation’s Ports of Entry by CBP officers and agriculture specialists from the Office of Field Operations. CBP screens international travelers and cargo and searches for illicit narcotics, unreported currency, weapons, counterfeit consumer goods, prohibited agriculture, invasive weeds and pests, and other illicit products that could potentially harm the American public, U.S. businesses, and our nation’s safety and economic vitality.
 

DOT Launches Rulemaking to Protect Passengers Stranded by Airline Disruptions - Department of Transportation

Rulemaking builds on Biden-Harris Administration’s enforceable flightrights.gov commitments and automatic refund rule, and would give passengers greater protections during disrupted travel

WASHINGTON – The U.S. Department of Transportation (DOT) today launched a rulemaking to protect passengers stranded by airlines canceling or significantly changing their flights. The Advance Notice of Proposed Rulemaking (ANPRM) seeks public comment on requiring airlines to pay passengers cash compensation, rebook them for free on the next available flight, and cover meals, overnight lodging, and related transportation expenses when a disruption is airline-caused, such as a mechanical issue or an IT airline system breakdown.

“Americans know the importance of a robust airline industry, which is why this country—and U.S. taxpayers — kept U.S. airlines afloat when the COVID pandemic threatened their very existence,” said U.S. Transportation Secretary Pete Buttigieg. “Now that we are on the other side of the pandemic and air travel is breaking records, we must continue to advance passenger protections. This action we’re announcing is another step forward into a better era for commercial air travel—where the flying public is better protected and passengers aren’t expected to bear the cost of disruptions caused by airlines.”

Cancellations and lengthy flight delays can pose significant hardship, stress, and financial cost to travelers. The Government Accountability Office (GAO) found that flight cancellations from July 2021 through April 2022 potentially affected over 15 million passengers and flight delays potentially affected over 116 million passengers. According to data from U.S. airlines submitted to DOT, in both 2022 and 2023, over 60% of three-hour or longer domestic flight delays were airline-caused.

Canada, Brazil, the European Union, the United Kingdom, and other countries have adopted consumer protections that compensate passengers and provide services when an airline causes a significant delay. One study found that the European Union’s compensation and service requirements reduced the likelihood and duration of flight delays.

U.S. airlines received $54 billion in taxpayer bailouts during the COVID-19 pandemic, helping the industry recover and enjoy record travel demand. While no U.S. airline provides cash compensation to passengers for airline-caused disruptions, following DOT actions, several airlines must provide at least $50 in credits or vouchers. Thanks to DOT pressure on airlines, the ten largest U.S. airlines have committed to rebook stranded passengers at no additional cost and cover meals during an airline-caused disruption, and nine have committed to providing lodging and related transportation expenses. However, airlines can change course on their customer service commitments at their discretion, and it is often up to the airlines to determine when they are responsible for a flight delay or cancellation.

Passengers currently face many challenges in holding airlines to their promises because there is no legal obligation for airlines to notify passengers when they are entitled to services promised in the customer service plan, and their policies are generally vague on the details of delivery. Passengers must also typically request these services at the airport in person, and frontline staff may not know if a flight disruption is airline-caused or may not have enough vouchers to provide upfront services to everyone. Airlines generally do not clearly disclose when, what, and how much they will reimburse passengers who pay out of pocket.

The Department’s rulemaking is aimed at addressing these gaps by establishing baseline standards on what airlines are obligated to deliver to stranded passengers during disruptions. The Department is considering the following requirements for airlines when there is a cancellation or lengthy delay due, in whole or in part, to any circumstance within the control of the airline:

• Pay at least $200 in cash compensation: DOT is considering requiring airlines to automatically pay cash compensation to passengers whose trip disruption is caused by an airline. DOT is considering a tiered approach where compensation could range from $200-$300 for domestic delays of at least three hours but less than six, $375-$525 for delays of at least six hours but less than nine, and $750-$775 for delays of nine hours or more. DOT is also considering whether small airlines should pay less than large airlines and whether or not compensation should be required when a passenger is notified a week or two in advance of the cancellation or significant delay.  
   
• Rebook at no additional cost on the next available flight: The Department is considering requiring airlines to offer free rebooking when the passenger’s flight is cancelled, their departure is delayed three hours or more domestically or six hours or more internationally, or if a delay results in a missed connection. DOT is considering requiring rebooking on the next available flight operated by the airline or its branded codeshare partners, and if flights on those airlines are not available within 24 hours, then any carrier that the airline has a commercial agreement to transport the airline’s passengers.  
   
• Cover meals, overnight lodging, and related transportation expenses: DOT is considering requiring airlines to provide meals, overnight lodging, and transportation to and from lodging for stranded passengers and establishing standards regarding what must be covered as part of each service, including how often it must be provided during lengthy disruptions. DOT is considering requiring airlines to automatically pay a minimum reimbursement for each service an affected passenger is entitled to receive when airlines do not provide these services upfront, and passengers do not submit receipts for costs up to a maximum reimbursement threshold per service.

The rulemaking also solicits comment on when to consider a cancellation or delay within an airline’s control; whether airlines should provide free rebooking and certain services, like meals, during significant delays or cancellations regardless of cause, like during extreme weather events; how to incentivize large airlines to provide rebooking reciprocity to small airlines or disincentivize large airline practices that prevent rebooking reciprocity; what notifications should be required to ensure that passengers receive the correct information from the airline in a timely manner; and what customer service standards might be necessary to minimize wait times for passengers affected by a cancellation or delay.

The ANPRM on Airline Passenger Rights is available HERE and provides the public with 60 days to offer comments.

DOT’s Historic Record of Consumer Protection Under the Biden-Harris Administration 

Under Secretary Buttigieg, DOT has advanced the largest expansion of airline passenger rights, issued the biggest fines against airlines for failing consumers, and secured returns of more money to passengers in refunds and reimbursements than ever before in the Department’s history. 

• Automatic Refund Rule: DOT issued a final rule that requires airlines to provide automatic cash refunds to passengers when owed. The rule makes clear that airline passengers are entitled to a refund when their flight is canceled or significantly changed and they no longer wish to take that flight or be rebooked, when their checked baggage is significantly delayed, or when extra services they paid for – like Wi-Fi – are not provided. The rule also requires refunds to be automatic, prompt, in the original form of payment, and in the full amount paid. Key automatic refund requirements for airlines went into effect on May 16, 2024, when President Biden signed the FAA Reauthorization Act of 2024 into law, and the remaining airline refund protections under DOT's rule are effective as of October 28, 2024.
• Passengers can better understand their rights under this new rule by reading this explainer. 
   
• Surprise Airline Junk Fee Rule: DOT issued a final rule to protect consumers from costly surprise airline junk fees. The rule fosters a more competitive airline market by requiring airlines to disclose critical extra fees upfront – like change fees and baggage fees – to ensure consumers can better understand the true cost of their travel. The rule also bans “bait-and-switch” advertising tactics and requires airlines to clearly tell passengers upfront that a seat is included with the cost of their ticket and they do not need to pay extra for one. Airlines have challenged this rule in court, and the court has put a temporary hold on implementation of the rule. The Department will continue to defend this rule and notes that nothing in the Court’s decision prevents airlines from voluntarily complying with this common-sense rule. If the rule were to go into effect, it would save consumers over half a billion dollars every year.
   
• Billions of Dollars Returned to Passengers: Since President Biden took office, DOT has helped oversee the return of almost $4 billion in refunds and reimbursements owed to airline passengers – including more than $600 million to passengers affected by the Southwest Airlines holiday meltdown in 2022 – through enforcement actions.
   
• Stronger Airline Oversight: Under Secretary Buttigieg, DOT has issued nearly $225 million in penalties against airlines for consumer protection violations. Between 1996 and 2020, DOT collectively issued $70 million in penalties against airlines for consumer protection violations. 
   
• Expanded Enforcement Capacity: DOT launched a new partnership with a bipartisan group of state attorneys general to fast-track the review of consumer complaints, hold airlines accountable, and protect the rights of the traveling public. 
   
• Lowest Flight Cancellations in 10+ Years: In 2023, the flight cancellation rate in the U.S. was a record low at under 1.2 percent – the lowest rate of flight cancellations in over 10 years despite a record amount of air travel.
   
•  Inquiries on Privacy Practices and Rewards Programs: DOT is undertaking its first ever industry-wide review of airline privacy practices and its first inquiry into airline rewards programs. 

In addition to finalizing the rules to require automatic refunds and protect consumers from surprise fees, DOT has proposed:

• Banning Family Seating Junk Fees: DOT has proposed to ban family seating junk fees and guarantee that parents can sit with their children for no extra charge when they fly. Before President Biden and Secretary Buttigieg pressed airlines last year, no airline committed to guaranteeing fee-free family seating. Now, four airlines guarantee fee-free family seating, as the Department is working on its family seating junk fee ban proposal. 
   
• Protecting Passengers Who Use Wheelchairs: DOT has proposed to expand the rights for passengers who use wheelchairs and ensure that they can travel safely and with dignity. The Department is actively working on a final rule now. 

For information about airline passenger rights, as well as DOT’s rules, guidance, and orders, visit the Department’s aviation consumer website: https://www.transportation.gov/airconsumer.

Major Changes in Steel and Aluminum Tariffs - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

The Trump Administration issued Presidential Proclamations on February 10, 2025, under Section 232 of the Trade Expansion Act of 1962, making major changes to U.S. tariff policy on steel and aluminum imports.

Effective March 12, 2025, all steel and aluminum imports covered by the prior Section 232 actions — regardless of origin — will be subject to an additional 25% tariff. Countries that once benefitted from alternative tariff agreements — Australia, Canada, Mexico, South Korea, Brazil, Argentina, the EU, Japan, and the UK — will now face the same treatment as all other exporting countries.

The product exclusion process is being eliminated effective February 11, 2025. As with previous Section 232 tariffs, Foreign Trade Zone (FTZ) processing will not provide a duty advantage, and the section 232 duties will not be eligible for duty drawback. In addition, CBP is directed to strictly enforce perceived misclassifications that avoid the steel and aluminum tariffs.

Below is a breakdown of the key changes.

Tariff Reinstatement and Adjustments

The proclamation reinstates and modifies tariffs on aluminum and steel imports from Argentina, Australia, Brazil, Canada, Mexico, South Korea, the EU, Japan, and the UK. Starting March 12, 2025, steel and aluminum imports from these countries, including the derivatives currently listed in Chapter 99 Notes 16 and 19, will be subject to an additional 25% ad valorem tariff. Previous proclamations that exempted or reduced tariffs for these countries are revoked, meaning all imports of steel and aluminum from every country (except Russia) will now face the same tariff treatment.

Elimination of Product Exclusions

Effective February 11, 2025, the product exclusion process will be terminated, meaning no new exclusions will be granted and any pending applications will be denied.  Previously granted exclusions will remain in effect until their expiration date or until the allotted volume is imported — whichever happens first. General Approved Exclusions (GAEs) will continue to be valid until March 12, 2025.

Companies currently importing from exempt countries, or utilizing GAEs, should pay particular attention to ensure that imports arriving close to March 12 obtain a “date of entry for consumption” no later than March 11 in order to avoid liability for the additional 25% duties.

Derivative Aluminum and Derivative Steel

In addition to the “derivative” steel and aluminum articles previously enumerated in Presidential Proclamation 9980 (January 24, 2020), and that are currently identified in HTSUS Chapter 99 Notes 16 and 19 (e.g., steel bumpers), Commerce will identify additional derivative steel and aluminum products that will also become subject to the additional 25% tariffs in a yet to be published Annex. Tariffs on these new derivative products will not become effective until a later date, when the Secretary of Commerce certifies that adequate systems are in place to collect tariff revenues for such products.

The proclamations require Commerce, within 90 days, to establish a process to identify additional derivative products that may become subject to the additional 25% tariffs. This process will also allow U.S. domestic producers to request that Commerce add additional derivative products to the list of products  subject to the additional 25% tariffs.

Derivatives produced outside of the United States from steel melted and poured in the U.S., or aluminum smelted and cast in the U.S., will be exempt from the additional 25% duties.

For derivatives classified outside of Chapter 73 or 76, the additional 25% tariff will only apply to the value of the steel or aluminum, not the entire product.

Russian Aluminum and Derivative Aluminum

Imports of derivative aluminum articles containing any primary aluminum smelted or cast in Russia will face an even higher 200% tariff.

Restrictions on FTZ Use

Steel products subject to the additional 25% tariffs admitted into a Foreign Trade Zone (FTZ) on or after March 12, 2025, must be admitted under “privileged foreign status” (19 CFR 146.41) (except articles eligible for admission under “domestic status” as defined by 19 CFR 136.43). The status of products currently in an FTZ under privileged status that are entered for consumption prior to March 12 is unclear.

For aluminum products, the requirement to declare privileged status will not take effect until after the Commerce certification date noted above.

Prohibition of Duty Drawback

As with the existing Section 232 duties on steel and aluminum, drawback will not be available for duties imposed under this proclamation. This means that importers cannot claim refunds on these duties even if the imported aluminum or steel is later exported.

Misclassification Penalties

The proclamations direct CBP to impose maximum monetary penalties for misclassification of steel and aluminum articles and even suggest that CBP is not permitted to mitigate such penalties.

CBP is also required to notify Commerce if CBP believes that steel and aluminum products are being processed in third countries in an improper manner to fall outside the tariff classifications covered by the Section 232 tariffs. Commerce can then consider whether to add such products to the list of covered derivatives. In light of the strong enforcement language, importers and their customs brokers are cautioned to exercise reasonable care before declaring steel or aluminum products under tariff provisions not covered by the Section 232 tariffs. Under this heightened enforcement directive, reasonable care may necessitate obtaining a classification opinion from experienced customs counsel or a CBP binding ruling.

The implementation details under these new proclamations will be set forth in a future Federal Register notice, which will include the Annexes listing new derivative products.  Also note that such Federal Register notices may modify the terms of the Proclamations discussed above. These future notices should also provide guidance as to whether duty exemptions under Chapter 98 of the HTSUS will be available.

If your company has questions about the impact of the new tariff regime, including the classification or valuation of products, how to identify potential “derivatives,” or strategies to mitigate the tariffs, please contact one of our attorneys.
 

Federal Register Notices:

• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Raw Honey From Brazil: Notice of Court Decision Not in Harmony With the Final Determination of Antidumping Duty Investigation; Notice of Amended Final Determination; Notice of Amended Antidumping Duty Order
• Certain Corrosion-Resistant Steel Products From Mexico: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Final Antidumping Duty Determination
• Certain Corrosion-Resistant Steel Products From Brazil: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Final Antidumping Duty Determination
• Certain Corrosion-Resistant Steel Products From Canada: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination
• Certain Corrosion-Resistant Steel Products From the Socialist Republic of Vietnam: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Antidumping Duty Determination
• Certain New Pneumatic Off-the-Road Tires From India: Amended Final Results of Countervailing Duty Administrative Review; 2022
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Frozen Fish Fillets From the Socialist Republic of Vietnam Administrative Review: Notice of Partial Rescission; 2023-2024
• Steel Wire Garment Hangers From the People's Republic of China: Continuation of Antidumping Duty Order
• Temporary Steel Fencing From the People's Republic of China: Initiation of Countervailing Duty Investigation
• Glycine From Japan: Notice of Amended Final Results of Antidumping Duty Administrative Review Pursuant to Settlement; 2018-2020
• Sales at Less Than Fair Value; Determinations, Investigations, etc.: Utility Scale Wind Towers From Spain: Notice of Court Decision Not in Harmony With the Final Determination of Less-Than-Fair-Value Investigation; Notice of Amended Final Determination; and Notice of Amended Antidumping Duty Order
• Temporary Steel Fencing From the People's Republic of China: Initiation of Less-Than-Fair-Value Investigation
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Low Speed Personal Transportation Vehicles (LSPTVs) From China; Scheduling of the Final Phase of Countervailing Duty and Antidumping Duty Investigations
• Large Top-Mount Combination Refrigerator-Freezers From Thailand; Scheduling of the Final Phase of an Antidumping Duty Investigation
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Agreement Suspending the Antidumping Duty Investigation on Lemon Juice From Argentina: Rescission of 2022-2023 and 2023-2024 Administrative Reviews
• Sodium Nitrite From the Federal Republic of Germany and the People's Republic of China: Continuation of Antidumping Duty Orders
• Mattresses From Serbia: Rescission of Antidumping Duty Administrative Review; 2023-2024
• Melamine From India: Final Affirmative Countervailing Duty Determination and Critical Circumstances Determination
• Investigations; Determinations, Modifications, and Rulings, etc.: Hot-Rolled Steel Products From China, India, Indonesia, Taiwan, Thailand, and Ukraine; Scheduling of Full Five-Year Reviews
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Corrosion-Resistant Steel Products From the Republic of Korea: Notice of Court Decision Not in Harmony With the Results of Countervailing Duty Review; Notice of Amended Final Results
• Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Advance Notification of Sunset Review; Correction
   

Cincinnati CBP Stops Deadly Chemical Compound - U.S. Customs & Border Protection

CINCINNATI – U.S. Customs and Border Protection (CBP) officers at the port of Cincinnati seized two shipments on February 7 containing the deadly, addictive, and illegal substance tianeptine. Officers seized the 9 pounds for violation of the Federal Food, Drug, and Cosmetic Act (FD&C Act).

Tianeptine is an unapproved drug in the U.S. Although other countries have approved tianeptine, corporations are making dangerous and unproven claims that tianeptine can improve brain function and treat anxiety, depression, pain, opioid use disorder, and other conditions.

Additionally, the Food and Drug Administration (FDA) has identified cases in which people experienced other serious harmful effects from abusing or misusing tianeptine by itself or with other drugs, including antidepressants and anti-anxiety medicines. These effects included agitation, drowsiness, confusion, sweating, rapid heartbeat, high blood pressure, nausea, vomiting, slowed or stopped breathing, coma, and death.

Although the FDA has warned consumers about tianeptine, vendors continue to market and sell this drug. The FDA is aware tianeptine has been sold online, typically in tablet or powder form.

Both shipments originated from the same manufacturer in Hong Kong and were both headed to the same residence in Lubbock, Texas. The domestic value of this drug is over $209,000 and is part of an ongoing investigation.

“Our officers are exceptional at what they do and are part of the best frontline defense in the world,” said LaFonda D. Sutton-Burke, Director, Field Operations-Chicago Field Office. “The interception of this chemical compound is definitely significant as it prevented dangerous drugs from entering our communities and possibly causing harm to innocent people.”

CBP conducts operations at ports of entry throughout the United States, and regularly screens arriving international passengers and cargo for narcotics, weapons, and other restricted or prohibited products. CBP strives to serve as the premier law enforcement agency enhancing the Nation’s safety, security, and prosperity through collaboration, innovation, and integration.
 

How To Organize Your Important Papers Before a Disaster Strikes - Federal Trade Commission - Consumers

When it comes to preparing for weather emergencies or other disasters, financial readiness is as important as a flashlight with fully charged batteries. Leaving your home can be stressful but knowing that your personal and financial documents are up to date, in one place, and easy to find can make a big difference. Here’s how to organize important papers before a disaster strikes.

Do a Household Inventory

Make a list and take pictures or videos of what you own. This can help if you have to file insurance claims. Even if you save your list and pictures on a device, print out copies, too. Also gather important documents and information, like

• Social Security cards, health insurance cards, and a list of current prescriptions
• insurance policy numbers and contact information at those companies
• copies of important financial and family records, including deeds, titles, wills, birth and adoption certificates, marriage certificates, passports, military records, and employee benefit and retirement documents. NOTE: Except for wills, keep original records in a safe deposit box or at some other secure location. If you have a will, ask your attorney to keep the original.
• ownership records for your home, cars, RVs, or boats
• a list of bank, loan, credit card, mortgage, debit, and investment account numbers, and contact information for each institution
• backups of the financial information you keep on your computer
• information on your pets, like medical, prescription, and vaccination records, along with current photos and ID chip numbers, in case you’re separated

Keep It in a Safe and Convenient Place

Keep your information safe. Here are some options:

• Use a lockable, fireproof file box. Put important documents in the box, and keep it in a secure, handy place in your home so you can “grab it and go.” Include some cash, since ATMs or banks may be closed, an extra set of keys for your house and car, and the key to your safe deposit box, if you have one.
• Rent a safe deposit box. A safe deposit box can protect documents that are hard to replace, but that you don’t need to use very often.
• Take advantage of technology. It can protect important documents while making it easier to get access in an emergency or when you need to update them.
• Online bill-pay. Paying your bills online lets you stay current, even if you can’t get mail and don’t have your checkbook. Contact your bank for more information.
• Personal cloud storage. Online storage is available for free with many email accounts. Use your space to upload PDFs of important documents you’ve scanned. Make sure access requires a strong password and multifactor authentication.
• Virtual safe deposit boxes. Some banks offer this online service to protect documents, photos, and videos. Make sure the data is protected with a strong password and/or multifactor authentication.
• USB flash drives. Also known as a thumb drive, these portable hard drives offer a lot of storage space in a small package. Copy your important computer files onto the flash drive and keep it with you. You might also want to keep a copy in your safe deposit box or with a friend or relative. Be sure to password protect your flash drive, in case you lose it.
• Online password manager. Websites and software let you store your usernames and passwords. You have to remember only one master password to access the list.

Update Your Information
Review the contents of your household inventory, fireproof box, and safe deposit boxes, as well as your online and digital storage, at least once a year. Make sure everything is up to date..

United States, Australia, and the United Kingdom Jointly Sanction Key Infrastructure that Enables Ransomware Attacks - Department of Treasury

WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC), Australia’s Department of Foreign Affairs and Trade, and the United Kingdom’s Foreign Commonwealth and Development Office are jointly designating Zservers, a Russia-based bulletproof hosting (BPH) services provider, for its role in supporting LockBit ransomware attacks. LockBit, a Russia-based ransomware group best known for its ransomware variant of the same name, is one of the most deployed ransomware variants and was responsible for the November 2023 attack against the Industrial Commercial Bank of China U.S. broker-dealer. BPH service providers sell access to specialized servers and other computer infrastructure designed to evade detection and defy law enforcement attempts to disrupt these malicious activities. OFAC is also designating two Russian nationals who are key administrators of Zservers and have enabled ransomware attacks and other criminal activity. 

“Ransomware actors and other cybercriminals rely on third-party network service providers like Zservers to enable their attacks on U.S. and international critical infrastructure,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith. “Today’s trilateral action with Australia and the United Kingdom underscores our collective resolve to disrupt all aspects of this criminal ecosystem, wherever located, to protect our national security.”

This action builds on last year’s trilateral cyber sanctions with Australia and the United Kingdom against Russian ransomware actor Alexander Ermakov and members of the Evil Corp ransomware group. It also reflects a shared commitment to combatting cybercrime and degrading the support networks that enable bad actors to target victims in the United States and in allied countries. This action was developed with the support of the Department of Justice and the Federal Bureau of Investigation.

ZSERVERS: A RUSSIAN BULLETPROOF HOSTING SERVICES PROVIDER SUPPORTING RANSOMWARE AND CYBERCRIME

Zservers, headquartered in Barnaul, Russia, has advertised BPH services on known cybercriminal forums to evade law enforcement investigations and takedowns, as well as scrutiny from cybersecurity firms. Zservers has provided BPH services, including leasing numerous IP addresses, to LockBit affiliates, who have used the hosting services to coordinate and launch ransomware attacks. During a 2022 search of a known LockBit affiliate, Canadian law enforcement uncovered a laptop operating a virtual machine that was connected to a Zservers’ subleased IP address and running a programming interface used to operate LockBit malware. In 2022, a Russian cybercriminal purchased IP addresses from Zservers, almost certainly for use as Lockbit chat servers to discuss ransomware operations. In 2023, Zservers leased infrastructure, including a Russian IP address, to a Lockbit affiliate.

OFAC is designating Zservers pursuant to Executive Order (E.O.) 13694, as further amended by E.O. 14144, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, LockBit ransomware, a cyber-enabled activity originating from, or directed by persons located, in whole or substantial part, outside the United States that is reasonably likely to result in, or has materially contributed to, a threat to the national security, foreign policy, or economic health or financial stability of the United States and that has the purpose of or involves causing a misappropriation of funds or economic resources, intellectual property, proprietary or business confidential information, personal identifiers, or financial information for commercial or competitive advantage or private financial gain. 

KEY ZSERVERS PERSONNEL

Alexander Igorevich Mishin (Mishin) is a Russian national and administrator of Zservers. Mishin has marketed Zservers’ BPH services to cybercriminals, including LockBit affiliates and other ransomware groups, with the understanding that they would use those services in their cybercriminal activities. He has also directed virtual currency transactions to be made in support of those activities. 

Aleksandr Sergeyevich Bolshakov (Bolshakov) is a Russian national and administrator of Zservers. In 2023, Bolshakov and Mishin shut down an IP address in response to a complaint from a Lebanese company alleging that a Zservers-associated IP address had implemented Lockbit in a ransomware attack. Zservers likely enabled ransomware attacks to continue by assigning a new IP address to the malicious Lockbit user. Mishin instructed Bolshakov to change the IP address of the malicious user and then told the Lebanese company that the original IP address was cut off. 

OFAC is designating Mishin and Bolshakov pursuant to E.O. 13694, as further amended by E.O. 14144, for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, Zservers, a person whose property and interests in property are blocked pursuant to E.O. 13694, as further amended by E.O. 14144.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the blocked persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. 

In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person. 

Violations of OFAC regulations may result in civil or criminal penalties. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. sanctions, including the factors that OFAC generally considers when determining an appropriate response to an apparent violation.

The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.

Click here for more information on the individuals and entities designated or otherwise blocked today.