Parallel Imports into the U.S. – Differing Shades of “Gray”

Often the bane of U.S. trademark holders, parallel imports or “gray market” goods are goods bearing a genuine trademark and sold into a market outside of the US, and then subsequently imported into the US without the authorization of the trademark owner.  The goods might be manufactured in the US and exported, or produced in …

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Export Control Reform: Are You Ready for October 15?

On April 16, 2013, the Department of State and Department of Commerce published a pair of final rules implementing the first major step of the President’s Export Control Reform (ECR) initiative. These final rules, which become effective October 15, 2013, mark the first migration of items from the International Traffic in Arms Regulations (ITAR) United …

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Rewrite of Cat. XI of the U.S. Munitions List – Get Ready for Change!

Acme Electronics (Acme) is a medium-sized company that produces populated printed circuit board assemblies and wiring harnesses as a subcontractor to aerospace and electronics companies.  Currently, Acme’s process for classifying its products for export control purposes has been a simple one: If the products are used in a military application they go in Category XI …

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How to Limit Personal Liability After U.S. v Trek Leather

When Personal Liability is Not Proper Importers may be able to rest a little easier as a result of a recent Court of Appeals decision negating the long held assumption in customs law that corporate officers can be held personally liable for their company’s violation of 19 USC 1592, which requires importers to exercise reasonable …

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Centers of Excellence and Expertise: A Boon for Importers

U.S. Customs and Border Protection: A Boon for Importers It doesn’t take much to recognize the benefits that U.S. Customs and Border Protection’s new Centers for Expertise and Excellence offer to importers frustrated with fragmented ports of entries. I say fragmented because, by nature, ports of entries fragment knowledge, experience, and CBP’s relationship with importers. An importer …

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The Raytheon Case Illustrates the Other Half of Compliance

The Raytheon Company recently entered into a consent agreement with the Directorate of Defense Trade Controls (DDTC) of the Department of State settling allegations that it violated the Arms Export Control Act and the International Traffic in Arms Regulations (ITAR) by failing to properly manage license agreements and temporary export and import licenses. In the …

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European Commission Issues Guidelines on the Classification of Sets

On April 11, the European Commission published “Guidelines on the classification in the Combined Nomenclature of goods put up in sets for retail.” The guidelines clarify what types of goods once assembled for sale as a “set” can be classified under a single Harmonized Tariff Code rather than having to break out the items and …

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Satellites and Spacecraft Move to Commerce Control List: Proposed Rule

In a long-awaited move, the Bureau of Industry and Security (BIS) of the Department of Commerce announced a proposed rule transferring certain commercial satellite, spacecraft and related items from State Department to Commerce Department control. This proposed rule is the result of extensive efforts by the satellite and spacecraft industries in the U.S. whose exports …

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What does the Defense Distributed Case Teach Us?

The International Traffic in Arms Regulations don’t usually garner national attention from the press, but when they do, they do so with a bang. A recent case involving University of Texas law student Cody Wilson has brought the ITAR into the national spotlight in a way that few events have. The State Department alleges that …

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C-TPAT System of Records Notice: What does it Mean for Your Privacy?

Participants in the Customs Trade Partnership Program Against Terrorism (C-TPAT) program may be interested to know that U.S. Customs and Border Protection  has published a concurrent “System of Records Notice” (SORN) and “Notice or Proposed Rule Making” (NPRM). The recent move by CBP now brings the information that CBP has gathered on C-TPAT members and …

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The Impact of Export Control Reform on an Electronics Subcontractor

Acme Electronics (Acme) is a medium-sized company in the U.S. that makes products (primarily circuit board assemblies and wiring harnesses) used in commercial and military aircraft. Acme occasionally sells these products to aircraft manufacturers, but most of its sales are to major U.S. and foreign subcontractors to aircraft manufacturers. Acme has a pretty straightforward process …

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Bureau of Census Publishes Foreign Trade Regulations Final Rule

On March 14, 2013, the U.S. Census Bureau’s Foreign Trade Division (FTD) published the final rule revising the Foreign Trade Regulations (FTR), Title 15, Part 30. The publication of the final rule amends the FTR published in 2008. The effective date of the final rule is January 8, 2014, which gives the trade community approximately …

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U.S.-Korea Free Trade Agreement: Business is Booming

Business is booming under the recently enacted U.S.-Korea Free Trade Agreement (UKFTA).  One of the many free trade agreements that the U.S. has engaged in recently, the UKFTA went into effect on March 15, 2012. A year after its initiation, trade numbers in certain commodities between South Korea and the U.S. indicate a successful future …

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Blue Lantern Highlights the Need for a Strong Compliance Program

The Department of State, through the Research & Analysis Division (RAD), Office of Defense Trade Controls  Compliance (DTCC), Bureau of Political-Military Affairs (PM) operates an end-use monitoring program called Blue Lantern. The Blue Lantern program monitors the end-use of defense articles, defense services, and brokering activities to ensure that “the recipient is complying with the requirements …

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Commodity Jurisdiction Request to Juries

The 1st Circuit Appeals court found in a recent case that juries may sometimes decide whether certain products are covered by the United States Munitions List. In United States v. Zhen Zhou Wu, the defendant was convicted of multiple counts of willful violations of the International Traffic in Arms Regulations and Export Administration Regulations. The …

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Explaining the Mexican Pedimento

In Mexico, the pedimento is the most relevant custom form that importers or exporters use during the importation or exportation of their goods. The pedimento can only be completed by the Mexican customs broker (Agente Aduanal) at the request of the importer or exporter. Even though the pedimento can be reduced to one-page document, the …

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2012: A Busy Year for Customs and Border Protection

U.S. Customs and Border Protection (CBP) recently released a summary of its activities in Fiscal Year 2012, which the agency says was marked by “historic levels of personnel, technology and resources” dedicated to the Southwest border, coupled with efforts to facilitate legitimate trade and travel. “In 2012, the men and the women of CBP played …

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Making a “Made in USA” Claim – First Understand the Basics

Both the Federal Trade Commission (FTC) and U.S. Customs and Border Protection (CBP) have responsibilities related to the use of country-of-origin claims. While the FTC regulates claims of U.S. origin under its general authority to act against deceptive acts and practices, foreign-origin markings on products (e.g., “made in Japan”) are regulated primarily by CBP. This …

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An Update on Export Control Changes for Commercial Satellites

Recent movement toward loosening export controls for commercial satellites and related items has that sector of U.S. industry crossing its fingers. Notably, the President recently signed into law an act loosening export controls. The National Defense Authorization Act of Fiscal Year 2013 (“the Act”), signed on January 2, is a signature step in the movement …

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