GSP Currently Set to Expire Next Month
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP / http://www.gdlsk.com/firm-news/280-gsp-currently-set-to-expire-next-month.html / Joseph M. Spraragen
The Generalized System of Preferences (GSP) trade program is scheduled to expire on July 31, 2013. Under GSP, thousands of products originating in over 100 developing countries are eligible for duty-free entry into the United States.
Since its inception in 1976, GSP has been renewed periodically by Congress. However, there have been a number of instances in which the program has been allowed to lapse, meaning that Congress failed to renew the program prior to the expiration date. Most recently, this occurred at the end of 2010 when Congress allowed GSP to expire. In that case, GSP was not renewed for ten months. The GSP renewal bill passed in October 2011 extended the program through July 2013.
In prior instances where GSP has been allowed to expire, Congress has subsequently passed renewals that have been effective retroactively, meaning that importers were entitled to duty refunds for entries made during the period that GSP was not in effect. However, Congress is under no obligation to include a retroactivity provision. In the event that GSP is allowed to expire, U.S. Customs will likely issue guidelines for importers on how to flag otherwise-eligible goods to enable Customs to liquidate such preference claims with a refund should the GSP program be reauthorized retroactively.
Unless Congress renews GSP prior to July 31, customs duties will be required on merchandise that was previously eligible for duty-free entry under GSP, beginning on August 1. Since Congress will be in recess for five weeks beginning August 5, a lapse in GSP would likely run for at least six weeks.
NOTICE TO THE WILDLIFE IMPORT/EXPORT COMMUNITY
Import and Export of Wildlife at U.S. Customs Ports of Entry in Minnesota
U.S. Fish & Wildlife Service / http://www.fws.gov/le/publicbulletin/5-30-13-Import-and-Export-of-Wildlife-a-Customs-Ports-in-Minnesota.pdf
Background: As a service to the wildlife trade, the U.S. Fish and Wildlife Service has traditionally provided wildlife import/export inspections at the non-designated port of Minneapolis/St. Paul in Minnesota. The wildlife inspector stationed at this port has also processed cross-border shipments for importers and exporters utilizing the two other ports in this State (Grand Portage and International Falls). This officer will retire as of June 1, 2013.
The Service implemented a nationwide hiring freeze in March 2013 in response to budget sequestration. This hiring freeze remains in effect. Vacancies in the wildlife inspection program thus cannot be filled at this time.
We recognize that this situation could adversely affect wildlife importers and exporters that routinely utilize ports in Minnesota. To minimize such impacts, we are implementing the special procedures outlined below.
Action: Effective immediately, importers or exporters of wildlife that want to use any port located in Minnesota (Grand Portage, International Falls or Minneapolis/St. Paul) will be required to request authorization to use these ports by contacting the Service wildlife inspector at Port Huron, Michigan. Importers and exporters must provide prior notification of shipments and obtain clearance from this office:
U.S. Fish and Wildlife Service
Office of Law Enforcement
2321 Pine Grove Avenue, Suite 2201 Port Huron, MI 48060 Phone: (810) 985-9160 Fax: (810) 985-9163
Office Hours: Monday-Friday, 8 a.m. to 4:30 p.m.
This procedure will remain in place until further notice.
CBP Publishes Notice in Federal Register Regarding July 30 Filing Deadline for 2013 Continued Dumping and Subsidy Offset Act of 2000 Claims
U.S. Customs & Border Protection / http://www.cbp.gov/xp/cgov/newsroom/news_releases/national/05312013.xml
Washington - U.S. Customs and Border Protection (CBP) published in the May 31, 2013 Federal Register a notice that any domestic producer who is entitled to file a claim under the Continued Dumping and Subsidy Offset Act of 2000 (CDSOA) needs to file their claim no later than July 30, 2013. The notice gives detailed instructions and requirements to be followed to ensure timely filing of claims.
The purpose of this law is to disburse anti-dumping and countervailing duties collected by CBP to domestic producers injured by foreign dumping and subsidies.
The harmed domestic producer is any manufacturer, producer, farmer, rancher, or worker representative who was a petitioner or interested party in support of a petition with respect to which an anti-dumping or countervailing duty order that has been entered. The notice lists all harmed domestic producers who are entitled to file a claim under the CDSOA.
In order to be considered timely filed, the CBP Revenue Division must receive all fiscal year 2013 certifications no later than July 30, 2013. Any certifications received after July 30th will not be eligible to receive a distribution.
Continued Dumping and Subsidy Offset Act of 2000 Certification, CBP Form 7401, may be used to apply for CDSOA distribution. This form is available on the Pay Gov website. This certification can be submitted electronically through Pay Gov or by mail. ( Pay Gov )
Written certifications and other correspondence should be addressed to the Assistant Commissioner, Office of Administration, U.S. Customs and Border Protection, Revenue Division, Attention: Kim Cochenour, 6650 Telecom Drive, Suite 100, Indianapolis, IN, 46278.
The CDSOA program took effect on October 20, 2000 and is referred to as the Byrd Amendment, reference to its author, Senator Byrd.
U.S. Customs and Border Protection to Open the Final Three Centers of Excellence and Expertise
Ten Centers Cover Full Range of Commodities
U.S. Customs & Border Protection / http://www.cbp.gov/xp/cgov/newsroom/news_releases/national/06032013.xml
Washington — U.S. Customs and Border Protection announced today an important milestone in our trade transformation efforts with the opening of the final three Centers of Excellence and Expertise (CEE) - Agriculture & Prepared Products in Miami, Apparel, Footwear & Textiles in San Francisco, and Consumer Products & Mass Merchandising in Atlanta. These final CEEs, created through extensive collaboration between industry stakeholders and CBP, will bring the total number to ten.
“The Centers of Excellence and Expertise represent a significant step in transforming how CBP processes trade,” said Acting Commissioner Thomas S. Winkowski. “Industry focused and account-based CEEs allow CBP to segment risk within an industry, while enhancing our overall facilitation and enforcement efforts. With ten fully operational CEEs, we now cover a wide range of imported commodities.”
The CEEs virtually connect CBP personnel around the country by leveraging new technologies and develop comprehensive strategies to better facilitate trade and improve coordination with partner government agencies.
The other seven Centers are Automotive & Aerospace in Detroit; Base Metals in Chicago; Electronics in Los Angeles; Industrial & Manufacturing Materials in Buffalo; Machinery in Laredo; Petroleum, Natural Gas & Minerals in Houston; and Pharmaceuticals, Health & Chemicals in New York.
The Centers of Excellence and Expertise are available to the entire trade community as a resource—importers are encouraged to apply under the test notice published in the Federal Register. ( Federal Register )
Treasury Announces New Sanctions Against Iran
U.S. Department of the Treasury /
http://www.treasury.gov/press-center/press-releases/Pages/jl1965.aspx
Actions Target the Iranian Petrochemical Industry as well as the Iranian Regime’s Attempts to Evade Sanctions and Support Terrorism
WASHINGTON – As part of its ongoing efforts to intensify sanctions pressure on Iran, today the Department of the Treasury took a series of related actions to disrupt efforts to evade sanctions on the Iranian regime.
The Treasury Department today sanctioned a company that has aided Iran’s efforts to evade sanctions by attempting to conceal oil transactions with the Government of Iran and an aircraft procurement network supporting Iran’s airlines that previously have been sanctioned for involvement in Iran’s support for terrorism around the world. These actions, which were taken under a number of different authorities, apply sanctions to companies operating in several countries that are aiding Iran’s support for terrorism and the violence being perpetrated by the Assad regime in Syria, as well as schemes that seek to bolster Iran’s dwindling oil sales by deceptively introducing its crude onto the international market.
Additionally, the Treasury Department, acting in concert with the Department of State, took action today to target Iran’s petrochemical industry. As Iran’s oil revenues continue to fall due to international sanctions, the Iranian government has increasingly turned to other industries to make up for lost profits. One of these sectors is the petrochemical industry, which is now the second largest source of revenue for the Iranian Government. The Administration is taking action today to target this revenue stream by both designating companies involved in transactions with the sector and identifying several petrochemical companies as subject to sanctions because they are controlled by the Iranian government.
“We are committed to intensifying the pressure against Iran, not only by adopting new sanctions, but also by actively enforcing our sanctions and preventing sanctions evasion. Today’s actions take aim at revenues from Iran’s petrochemical sector, as well as deceptive schemes Iran has employed in an effort to evade sanctions on its oil sales and its airlines,” said Treasury Under Secretary for Terrorism and Financial Intelligence David S. Cohen. “We will continue to work with our partners around the world to ensure that the sanctions pressure on Iran builds so long as Iran continues to defy its obligation to comply with its international obligations.”
Targeting Sanctions Evaders
Treasury imposed sanctions on Cyprus and Ukraine-based Ferland Company Limited (Ferland) because it has facilitated deceptive transactions for or on behalf of the National Iranian Tanker Company (NITC), which was identified by Treasury as a Government of Iran entity in July 2012. This Treasury action is the first use of sanctions pursuant to Executive Order (E.O.) 13608, which targets Foreign Sanctions Evaders, including those that facilitate deceptive transactions for or on behalf of persons sanctioned in connection with Iran or Syria. As a result of Treasury’s action, transactions with Ferland that are subject to U.S. jurisdiction are generally prohibited, including transactions by U.S. persons, wherever located.
In March 2013, Ferland and NITC cooperated in a scheme to sell Iranian crude oil deceptively in order to help Iran evade international sanctions which also involved a vessel owned by Dimitris Cambis. The scheme involved ship-to-ship transfers of oil between three oil tankers: Blackstone, a NITC vessel, Zap, a vessel controlled by Dimitris Cambis, and Aldawha, which was chartered by Ferland. Treasury identified Cambis and his business network, which includes the Zap and other vessels, as working on behalf of Iran in March 2013. For details on that action click here. The Blackstone conducted a ship-to-ship transfer of oil with the Zap on March 12. The Zap then conducted a ship-to-ship transfer of oil, between March 15 and 17, with the Aldawha off Khor Fakkan, United Arab Emirates (U.A.E.). The details of the ship-to-ship operations were arranged by a NITC manager and a representative of Ferland. Ferland later furnished a falsified certificate of origin as part of its cargo documentation, claiming that the crude oil loaded onto the Aldawha was a “product of Iraq.”
The Department of State is taking concurrent action today by imposing sanctions on Ferland under the Iran Sanctions Act (ISA), as amended by the Iran Threat Reduction and Syria Human Rights Act of 2012 (TRA). The ISA sanctions selected by the State Department for Ferland prohibit visas for corporate officers, loans from U.S. financial institutions, financial transactions subject to U.S. jurisdiction, transactions with respect to property and interests in property under U.S. jurisdiction, and foreign exchange transactions subject to U.S. jurisdiction.
Petrochemical Companies
The Treasury Department is also identifying eight Iranian petrochemical companies that are owned or controlled by the Government of Iran, including Bandar Imam Petrochemical Company, Bou Ali Sina Petrochemical Company, Mobin Petrochemical Company, Nouri Petrochemical Company, Pars Petrochemical Company, Shahid Tondgooyan Petrochemical Company, Shazand Petrochemical Company, and Tabriz Petrochemical Company. These identifications made pursuant to E.O. 13599, which targets the government of Iran.
The Department of State also sanctioned two companies for knowingly engaging in a significant transaction for the purchase or acquisition of petrochemical products from Iran.
Aircraft Procurement and Support Network
Today, the Department of the Treasury also designated key companies and individuals located in Kyrgyzstan, Ukraine and the U.A.E. that are leasing and selling aircraft to Mahan Air and Iran Air as they attempt to circumvent sanctions and support Iran’s worldwide illicit activities. Mahan Air was designated in October, 2011 pursuant to E.O. 13224 for providing financial, material and technological support to Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and has transported personnel, weapons and goods on behalf of Lebanese Hizballah. Iran Air was designated pursuant to E.O. 13382 in June 2011 for providing support and services to Iran’s IRGC, Ministry of Defense and Armed Forces (MODAFL), and Iran’s Aerospace Industries Organization (AIO).
Kyrgyzstan-based Kyrgyz Trans Avia (KTA), Ukraine-based Ukrainian-Mediterranean Airlines (Um Air) and Bukovyna Airlines and UAE-based Sirjanco Trading L.L.C. have served as intermediaries for the acquisition of aircraft by Mahan Air and Iran Air as Iran continues to move illicit cargo to Syria for the Assad regime’s violent crackdown against its own citizens. Some of the aircraft supplied by this network are used, interchangeably, to move suspected illicit cargo to the Syrian regime and provide civilian passenger flights to Europe and Asia. As noted previously by the Treasury Department, the IRGC-QF and Hizballah are both heavily involved in these types of cargo shipments to Syria. Also designated today are officials from Um Air and KTA as well as Mahan Air Managing Director Hamid Arabnejad who oversees Mahan Air’s sanctions evasion efforts and provision of support and services to Iran’s IRGC-QF.
Today, the Treasury Department is also identifying additional aircraft operated by Mahan Air and Iran Air that have been provided by Um Air and Bukovyna as blocked pursuant to E.O. 13224 and 13382, respectively.
Um Air
Um Air was designated pursuant to E.O. 13224 for providing financial, material, or technological support for, or financial or other services to Mahan Air, by leasing BAe-146 Avro RJ100 aircraft to Mahan Air. In October 2012 and again in January 2013, Um Air delivered additional Bae-146 Avro RJ 100 aircraft to Mahan Air. As of October 2012, Um Air was also actively assisting Mahan Air by helping to train and certify Mahan Air pilots and engineers on BAe-146 aircraft.
Rodrigue Elias Merhej
Rodrigue Elias Merhej was designated pursuant to E.O. 13224 as otherwise associated with Um Air because he owns or controls the airline. Merhej is the company's owner and chairman.
Bukovyna AE
Bukovyna AE was designated pursuant to E.O. 13382 for providing financial, material and technological support to Iran Air by leasing aircraft to Iran Air. Combined, Bukovyna AE and Um Air have exported dozens of aircraft into Iran since 2010. Bukovyna and Um Air have upwards of twenty five aircraft in Iran now that are registered in their names. Aircraft provided by Bukovyna have been used by Mahan Air to fly to Syria on numerous occasions.
Kyrgyz Trans Avia
KTA was designated pursuant to E.O. 13224 for providing financial, material, or technological support for, or financial or other services to Mahan Air, by leasing aircraft to Mahan Air. KTA has been publicly identified as an umbrella company purposely established for importing aircraft to Iran. In this regard, between 2009 and 2010, KTA acted as an intermediary for Mahan Air's acquisition of eight aircraft, all of which are now identified by Treasury as blocked property operated by Mahan Air. Some of the aircraft supplied by KTA to Mahan Air are used, interchangeably, to move suspected illicit cargo to the Syrian regime and provide civilian passenger flights to Europe and Asia.
Lidia Kim
Lidia Kim was designated pursuant to E.O. 13224 for acting for or on behalf of KTA by serving as the director of the company. Kim has received funds from a Mahan Air front company for equipment provided to the airline.
Sirjanco Trading L.L.C.
Sirjanco is a United Arab Emirates-based company designated pursuant to E.O. 13224 for acting for or on behalf of Mahan Air. Sirjanco was established specifically to serve as a financial front for Mahan Air. Sirjanco has also served as a front for Mahan Air’s acquisition of aircraft. Additionally, Iran’s IRGC-QF has used Sirjanco to procure sanctioned goods.
Hamid Arabnejad
Hamid Arabnejad was designated pursuant to E.O. 13224 for acting for or on behalf of Mahan Air as the Managing Director of the airline. Arabnejad oversees Mahan Air’s efforts to evade U.S. and international sanctions. Arabnejad has a close working relationship with IRGC-QF personnel and coordinates Mahan Air’s support and services to the paramilitary group. He has also been instrumental in facilitating the shipment of illicit cargo to Syria on Mahan Air aircraft.
Identfiers (read further)
Baucus-Hatch Bill Strengthens U.S. Customs Agencies, Helps Boost Job-Creating Trade
U.S. Senate Committee on Finance / http://www.finance.senate.gov/newsroom/chairman/release/?id=1e049655-4b51-4d9b-a23f-66f1c6dfa553
Finance Leaders’ Bill Reauthorizes CBP, ICE with New Tools to Carry out Trade Efforts
WASHINGTON – Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Orrin Hatch (R-Utah) introduced legislation late Friday to bolster the nation’s job-creating trade agenda by strengthening the trade facilitation and enforcement efforts of U.S. Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE).
The Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 reauthorizes CBP and ICE and directs them to dedicate resources to customs facilitation and trade enforcement. The bill also establishes new tools and high-level trade positions to bolster the agencies’ trade-related efforts.
“Our trade agenda will only deliver the jobs and economic growth we need if the agencies that keep goods moving at our ports have the right tools. In Montana, we’ve worked hard to make sure Main Street businesses can tap into new markets in Canada – one of our top trading partners,” Senator Baucus said. “This bill helps Customs and Border Protection and Immigration and Customs Enforcement improve their trade missions by enforcing U.S. customs and trade laws and guaranteeing that safe and legitimate goods can move across our borders.”
“Enhancing Customs and Border Protection’s commercial operations, as this bill does, will expand trade and ensure compliance with our customs and trade laws. This legislation also goes a long way to stop pirated and counterfeit products from entering our country that threaten our innovation, our consumers, and our security” said Senator Hatch. “This is smart, bipartisan policy that will strengthen America's economy and enhance our global competitiveness. I look forward to working with Senator Baucus and my colleagues to advance this common-sense initiative through Congress.”
The Finance Committee leaders’ bill supports CBP’s trade efforts by devoting a Deputy Commissioner and an Assistant Commissioner of Trade exclusively to trade facilitation and enforcement. It requires CBP and ICE to coordinate with other federal agencies to enforce U.S. trade laws at our borders and prevent unsafe or infringing goods from harming U.S. consumers.
The legislation strengthens trade enforcement by requiring a Joint Strategic Plan to improve CBP and ICE’s coordination and provides new tools and resources to target and ensure effective trade enforcement at U.S. ports. The bill also includes provisions of the ENFORCE Act, which passed out of the Finance Committee in July 2012, to provide CBP and the private sector with the tools to combat the evasion of antidumping and countervailing duties.
The legislation also directs CBP to provide commercially significant and measurable trade benefits to participants in voluntary trade programs. This will promote compliance among importers and expedite the flow of legitimate goods across U.S. borders, while allowing CBP to focus its limited resources on shipments that pose the greatest risk to our economy and consumers.
The Senate Finance Committee has jurisdiction over international trade, including the trade missions of CBP and ICE and committee approval of the nominee for CBP Commissioner.
A full summary of the bill is available here.
President of LM Import-Export Sentenced to 22 Months in Federal Prison, Fined $10,000 for Importing Banned Children’s Products
U.S. Consumer Product Safety Commission / http://www.cpsc.gov/en/Newsroom/News-Releases/2013/President-of-LM-Import-Export-Sentenced-to-22-Months-in-Federal-Prison/
WASHINGTON, D.C. – U.S. District Court Judge for the Southern District of Florida Kathleen M. Williams issued a significant sentence in federal court for violations of U.S. consumer product safety laws. Hung Lam, President of LM Import-Export Inc., of Miami, Fla., was sentenced to 22 months incarceration in federal prison, three years of supervised release and a $10,000 fine for pleading guilty to conspiracy to traffic and smuggle in banned children’s products that contained lead and small parts, in violation of federal laws enforced by the U.S. Consumer Product Safety Commission (CPSC). Mr. Lam was also convicted of one count of trafficking in counterfeit goods.
From about April 2000 through May 2011, defendant Lam and his related corporations LM Import-Export Inc., Lam’s Investment Corp., and LK Toys Corporation, conspired to sell and distribute in commerce banned children’s products imported from China. These actions were in violation of the Consumer Product Safety Act and the Federal Hazardous Substances Act. These products allegedly presented the risk of choking, aspiration, and ingestion, and some contained lead above the federal limits.
“The sentences handed down by the court against these repeat violators are a victory for consumers and the rule of law,” said CPSC Chairman Inez Tenenbaum. “I commend the staff at CPSC, Department of Justice, and Homeland Security for their cooperation and success in bringing the defendants to justice. This result demonstrates how serious we are about protecting American consumers from dangerous products and defending our consumer product safety laws.”
To learn more about this conviction and the related civil penalty and injunction imposed, see the
press release issued by the Department of Justice and the consent decrees in
2011 and
2012