CBP has issued Notices of Penalty totaling $350M to multiple companies allegedly involved in transportation of Alaskan pollock in violation of the Jones Act (“the Act”). CBP alleges that shipments of U.S. origin Alaskan pollock, sailing on foreign-flagged vessels from Alaska to New Brunswick Canada and then trucked across the border, are in violation of the Act given that the rail line used by the forwarder is only 100 feet in length and not part of a permitted “through route” on an approved Canadian railway. Loaded trucks are placed on a rail car, moved 100 feet down and back along the rail, then driven off to proceed over-the-road the approximately 15 miles to the U.S. border., click here.
Ransomware or cyber-attack payments could be in violation of U.S. Office of Foreign Asset Controls (“OFAC”) sanctions if the recipient of the funds is prohibited from being involved, directly or indirectly, in a financial transaction. OFAC has issued an updated export compliance advisory regarding dealing with ransomware and cyber-attack demands and what steps would be considered mitigating factors with any enforcement or penalty action., click here.
The Department of Commerce has issued a final rule to update regulations covering the administration and enforcement of antidumping and countervailing duty (“ADD/CVD”) laws. The changes impact many aspects of current ADD/CVD processes by the Department of Commerce including investigations, preliminary and final determinations of injury, and scope inquiries and rulings. Updates to the regulations also impact information to be provided by importers, including reimbursement certifications., click here.
A U.S. company and one of its foreign subsidiaries reached separate settlement agreements with the Office of Foreign Assets Control regarding illegal exports to Iran. The U.S. company ignored several red-flags regarding the shipments and the subsidiary listed the end-user as being in Dubai despite knowing the goods would be reexported from Dubai to Iran in violation of U.S. law., click here.
The Court of International Trade ("CIT") granted a preliminary injunction for the plaintiffs on the Section 301 cases currently being argued before the Court. The decision grants the plaintiffs a preliminary injunction requiring U.S. Customs and Border Protection to suspend the liquidation of unliquidated import entries subject to the Section 301 litigation. The decision orders that “…the court will temporarily restrain liquidation of any unliquidated entries of merchandise imported from China by any plaintiffs in the Section 301 cases which are subject to List 3 or List 4A duties"., click here.