News Articles

Section 301 Exclusions

Another China Competition Bill: The Future of Section 301 Exclusions

The Trade Act of 1974 grants the President broad powers to manage trade relationships with foreign countries. Section 301 of the act allows the President, acting through the United States Trade Representative (“USTR”), to impose retaliatory tariffs on imports from a country if the USTR determines that country’s economic conduct “is unreasonable or discriminatory and burdens or restricts United States commerce.”

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US and Canada Investment in Mexico

Legal Framework Governing Foreign Direct Investment from the United States and Canada in Mexico

A large number of companies considering relocating their business abroad have turned their eyes to Mexico, which has become an attractive place for investors to relocate their business, mainly because it is close to the United States and Canada (nearshoring), the labor costs are relatively low, the availability of IMMEX (maquiladora) program, and because there is a preferential treatment to originating goods and foreign investments from the United States and Canada that are protected under the USMCA, among other factors.

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Prior-disclosure

Should You File a Prior Disclosure in 2023?

2023 is more than a brand-new year – it is an opportunity for your company to prioritize supply chain and customs compliance. For some companies, this means filing a prior disclosure with U.S. Customs and Border Protection (CBP). Companies that are frequent importers are seriously considering disclosing entry violations under the condition that Customs will not issue civil penalties against them.

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The U.S. and China are in a trade war

Doing Business with China Continues to Get More Difficult for U.S. Companies

The year 2022 saw a substantial increase in export restrictions applicable to China. The U.S. and China are not only in a trade war but there is also an effort by the U.S. to (1) prevent development of supercomputers, semiconductors and related products and technologies, and (2) prevent use of forced labor – especially involving the Uyghur minority in the Xinjiang region.

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China and India trade with Russia at record levels

China and India, A Year Later, Post Invasion, Still Walking the Tightrope With the U.S. as They Continue to Set Records in Trade with Russia

China’s trade with Russia hit a record $190 billion U.S. in 2022, key operative word “record.” China is setting a course to become Russia’s top trade partner and prove to the world just what the “no limits” partnership can produce. An additional “maybe some limits” friend to Russia among the world’s larger economies is India.

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Exporting to Mexico legal requirements

Exporting to Mexico

If you are relocating to Mexico, or you are a producer, distributor, seller, etc., and the recipient of your goods is in Mexico because your client, final consumer, manufacturer, distributor, service provider, etc. is there, then, it is more than likely that you will be the exporter or the party responsible for reviewing and preparing some or all of the records needed to ship the goods to Mexico.

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Revisions and updates to the International Traffic in Arms Regulations (ITAR)

Hot (or at least warm) Off the Press: Updates & Revisions to the ITAR

The Directorate of Defense Trade Controls (DDTC) is continuing its project to revise and update the International Traffic in Arms Regulations (ITAR). Some of the changes are editorial and some are substantive. If you are affected by the ITAR or think you might be, you will need to stay on top of the changes because some (or all) may affect you.

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Regenerative Finance (ReFi) is a growing Web3 field

Regenerative Finance (ReFi): Tokenizing Carbon Offsets and Incentives

Regenerative Finance (ReFi) is a growing Web3 field that offers an opportunity to rethink how we approach finance, investing, and sustainable economic development. ReFi takes a holistic approach to finance and development, considering the environmental, social, and economic impacts of financial decisions, and aims to create a regenerative economic ecosystem rather than following a primarily extractive approach.

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Harmonized Tariff Schedule

The Multi-Purpose Role of the U.S. Harmonized Tariff Schedule

When goods are imported into the United States, the importer-of-record (IOR) must, with reasonable care, file an entry (CBP Form 3461) and entry summary (CBP Form 7501), or the electronic equivalents, with U.S. Customs and Border Protection (CBP). These documents are the IOR’s preliminary and final declarations about the nature and circumstances of the import transaction, and they tell the story of the transaction through more than forty data elements.

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Sonora Lithium

Sonora Lithium

In November 2022, Mexican Foreign Secretary Marcelo Ebrard and U.S. Special Presidential Envoy John Kerry announced at COP27[1] in Sharm el-Sheikh important steps forward to address the

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CTPAT

CTPAT

Customs Trade Partnership Against Terrorism is about building supply chain security and mitigating risk. CTPAT is an ever-evolving security program that was inaugurated by Customs and Border Protection in 2001 under the newly establish Department of Homeland Security. Today is is a multi-layer cargo strategy that works with the trade community to support and strengthen international supply chains. There are at least a dozen benefits to the program including reduced number of CBP examinations, front of the line inspections, shorter wait times at the border, possibility of enjoying additional benefits by being recognized as a trusted trading partner by foreign customs administrations that have signed a Mutual Recognition Agreement with the United States, eligibility for other U.S. government pilot programs such as the FDA’s secure supply chain program, priority consideration at CBP’s industry focused Centers of Excellence and Expertise, the best approach is to have a guide assist int he process of applying for entrance into the program and we just happen to have a CTPAT expert on campus.

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Bananas

Bananas

WIth regard to import and export, bananas are botanical berries not fruit. The HTS code for berries is different from that of bananas which is different from the HTS code for edible fruit in general. If you need help with classification BLG can assist.

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Voluntary Self-Disclosures

BIS Unveils Enhanced Voluntary Self Disclosure Protocols

On January 16, 2024, the Bureau of Industry and Security (BIS) under Assistant Secretary for Export Enforcement, Matthew Axelrod, disclosed significant enhancements to the process for Voluntary Self-Disclosures (VSDs) related to the Export Administration Regulations (EAR). These adjustments are strategically designed to streamline export control compliance for U.S. governmental bodies, the commercial sector, and academic entities.

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Importer Registration

Suspensión del Padron de Importadores

Uno de los requisitos más importantes para importar mercancías a México es estar registrado como importador en el registro de importadores mexicanos. Hay 2 tipos de registros para importadores, uno es para importadores generales (Padrón de Importadores) y el otro es para importadores de sectores industriales específicos (Padrón de Importadores de Sectores Específicos) que pueden importar mercancías identificadas por el código arancelario MX (es decir, productos químicos, armas de fuego, puros, calzado, textiles, alcohol, hidrocarburos, siderurgia, automoción, etc.). Generalmente, estos 2 registros son listados con información de personas y entidades autorizadas para importar mercancías a México.

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Importer Registration

Suspension of Mexican Importer Registration (Padron de Importadores)

One of the most important requirements for importing goods into Mexico is to be registered as an importer under the Mexican importer’s registry. There are 2 types of registries for importers, one is for general importers (Padron de Importadores), and the other is for importers of specific industry sectors (Padron the Importadores de Sectores Especificos) which may import goods identified by the MX tariff code (i.e. chemical products, firearms, cigars, footwear, textiles, alcohol, hydrocarbons, steel, automotive, etc.). Generally, these 2 registries are lists with information of individuals and entities authorized to bring goods into Mexico.

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free trade zone

Maximizing Duty Savings Series Leveraging Bonded Warehouse and Foreign Trade Zones

Consider this scenario: a client faced the challenge of deferring duty payments while managing a significant volume of imports destined for re-exportation from the U.S. Initially considering duty drawbacks, which proved unsuitable for their specific needs, we turned our attention to bonded warehouses and free trade zones. This scenario is not uncommon in the trade world and highlights a critical decision point for many businesses: choosing between a bonded warehouse and a Foreign Trade Zone (FTZ).

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first sale

What is the “First Sale” Rule and How Does it Affect Me?

The First Sale Rule applies in circumstances such as the example above. A US company places an order with a middleman in the US. The middleman in turn subcontracts to a foreign supplier. The supplier then ships the product either to the middleman or to the original US company that placed the order, meaning either could be the importer of record. The entered value could be the amount on the original purchase order or the price paid by the middleman to the foreign supplier.

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tolkenizing

Assessing the Benefits and Challenges of Tokenizing Real World Assets

The world of cryptocurrencies on blockchains and the world of traditional assets in markets have often stood in stark contrast to one another since Bitcoin’s creation in 2008. The lack of a reliable bridge between these two worlds has limited the impact of cryptocurrencies on assets in the real-world outside of on-chain speculation and prevented adoption of the benefits that blockchain technologies can bring to real world processes.

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