Omaha-based partner Grant Leach appeared last week on an episode of The Justice Insiders podcast to discuss the ever-expanding set of requirements and restrictions placed on U.S. businesses in connection with trade law, including a key change in the statute of limitations—from five years to ten—in connection with the Office of Foreign Assets Control (OFAC)
Biden Administration Increases Tariffs on Imports of Aluminum and Steel
On July 10, 2024, the Biden Administration announced tariff increases on imports of aluminum and steel products. The tariff increases are the latest measure to combat the circumvention of Section 301 duties imposed against Chinese origin products by shipping the products through third countries.
The modifications apply to goods entered or withdrawn for consumption
Dockworkers Up Ante as Freight Rates Soar
Earlier this week, 159 trade associations representing key supply chain stakeholders sent a letter to the Biden administration and relevant congressional committees calling on the U.S. government to intervene in the stalled labor contract negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX). On June 10, the ILA issued a press release announcing its refusal to continue negotiations due to an outstanding dispute with a terminal operator involving one Gulf Coast port. The ILA has signaled its willingness to call for a coastwide strike if a new contract agreement is not reached prior to the expiration of the current contract, which covers roughly 45,000 dockworkers at seaports on the U.S. East and Gulf Coasts.
Petition Summary: Section 201 Global Safeguard Investigation on Fine Denier Polyester Staple Fiber
On February 28, 2024, Fiber Industries LLC d/b/a Darling Fibers, Nan Ya Plastics Corporation, America, and Sun Fiber LLC (“Petitioners”) filed a Petition for Global Safeguard Relief Pursuant to Sections 201-202 of the Trade Act of 1974 on imports of Fine Denier Polyester Staple Fiber.
SCOPE OF INVESTIGATION
The imported article covered by this petition
What Do Importers and Shippers Need to Know about the FMC’s New Rule on D&D Invoices?
On February 23, 2024, the Federal Maritime Commission (FMC) issued a Final Rule intended to add clarity to invoicing requirements outlined in the Ocean Shipping Reform Act of 2022 (OSRA 2022). In particular, the Final Rule provides minimum information for demurrage and detention (D&D) invoices and procedures for disputing charges. D&D invoices have created a host of issues for importers and shippers throughout the economy, especially as they relate to the lack of information provided on the invoices.
FMC Allows Rate Hikes for Carriers in Response to Red Sea Hostilities
- Many of the rate hikes represent almost a 100% increase in shipping rates
- The special permission is not only to increase the rates and charges, but these increases are effective immediately as they also waive the FMC’s required 30-day notice period for increasing rates
- Absent significant military or diplomatic action, our expectation is that these circumstances will not disappear quickly
The Federal Maritime Commission (FMC) has granted special permission to ocean carriers to immediately increase the rates on containers that are being rerouted around the Cape of Good Hope in Africa or are retaining feeder vessels for pickup of cargo at high-risk ports in the Red Sea due to increased hostilities. Since mid-November 2023, Houthi rebels based in Yemen have attacked Red Sea shipping bound for Israel or linked to Israeli ports. Reported security incidents have ranged from outright attacks, approaches, and business interruptions to mere sightings.
The Application of Force Majeure Provisions to Shipping Disputes
Force majeure contract provisions are potentially coming into play as Maersk, Hapag-Lloyd, and other ocean carriers divert ships around geopolitical trouble spots in the Red Sea.
Section 301 Exclusion Update
On December 26, 2023, the United States Trade Representative (“USTR”) announced that it will further extend 352 reinstated exclusions and 77 COVID-related exclusions to duties imposed on goods from China pursuant to Section 301 of the Trade Act of 1974 until May 31, 2024. USTR imposed Section 301 duties in four tranches or “lists,” and
Commerce Issues Final Determination on Circumvention of Solar Cells and Modules from Cambodia, Malaysia, Thailand, and Vietnam
On August 18, 2023, the Department of Commerce (“Commerce”) announced its final determination that certain solar cells and modules exported from Cambodia, Malaysia, Thailand, and Vietnam are circumventing the antidumping (“AD”) and countervailing (“CVD”) orders on imports from China after conducting its investigation for over 18 months. Any duties will only go into effect in
DHS Adds More Companies to the UFLPA Entity List
The Department of Homeland Security announced on August 1, 2023, that it is adding three entities to the Uyghur Forced Labor Prevention Act (“UFLPA”) Entity List, the consolidated register of four lists required by section 2(d)(2)(B) of the UFLPA.