01/24/2025

New Term Begins with Executive Orders on Trade and Economic Security

Check out this week’s Customs Corner to read about the Day 1 Executive Orders, Section 321 Warning, and more.

Trade and Customs Updates

1) President Trump Day 1 Executive Orders

President Donald Trump has issued a series of executive orders aimed at rapidly implementing his policy agenda.

 

Since resuming office on January 20, 2025, President Donald Trump has issued a series of executive orders aimed at rapidly implementing his policy agenda.

 

The America First Trade Policy outlines comprehensive directives on trade, economic security, and national security measures. It assigns various tasks to U.S. government departments, including the Department of Commerce, Treasury, Homeland Security, and the U.S. Trade Representative. 

 

Trade Deficits and Policy Reviews

  1. Trade Deficits: Investigate causes of persistent trade deficits and recommend remedies, including tariffs.
  2. External Revenue Service: Explore the feasibility of an ERS for collecting trade-related revenues.
  3. Unfair Trade Practices: Review and recommend actions against unfair trade practices by other countries.
  4. USMCA: Prepare for the USMCA review and assess its impact on American stakeholders.
  5. Currency Manipulation: Identify and counteract unfair currency practices of trading partners.
  6. Trade Agreements: Suggest revisions to existing agreements to maintain reciprocity.
  7. Bilateral Agreements: Identify potential new trade deals for better market access.
  8. Antidumping Laws: Review and recommend updates to antidumping and countervailing duty laws.
  9. De Minimis Exemptions: Address revenue losses and risks from duty-free exemptions for imports.
  10. Discriminatory Taxes: Investigate discriminatory foreign taxes on U.S. citizens or corporations.
  11. Buy American: Ensure trade agreements favor domestic manufacturers and workers.

 

U.S. - China Relations

  1. Agreement Review: Assess China's compliance with the 2020 trade agreement.
  2. Section 301 Investigation: Evaluate and respond to unfair trade practices by China.
  3. Legislative Proposals: Assess changes in U.S. trade relations with China.
  4. Intellectual Property: Ensure reciprocity in IP rights between the U.S. and China.

 

Economic Security Matters

  1. Industrial Base: Review the U.S. industrial base for national security risks.
  2. Steel & Aluminum: Evaluate import measures on steel and aluminum.
  3. Export Controls: Strengthen export control systems against rivals.
  4. ICTS Transactions: Expand controls on connected products, including vehicles.
  5. Outbound Investment: Assess policies limiting U.S. investments in foreign technologies.
  6. Procurement: Address distortions in federal procurement from foreign subsidies.
  7. Fentanyl and Migration: Combat fentanyl imports and unlawful migration through trade measures.

 

Reports from designated agencies are due April 1, 2025, covering specific sections of the memorandum.

2) Section 321 Warning Deployed January 18, 2025

Deployed January 18, the update adds ACE warnings for de minimis shipments exceeding $800 / day.

 

U.S. Customs and Border Protection (CBP) implemented the second phase of the Section 321 enhancement in the Automated Commercial Environment (ACE). Originally scheduled for January 11, the update, which deployed on January 18th introduces warnings in ACE when a de minimis shipment might exceed the $800 per person/per day threshold. The release will also include changes affecting electronic data interchange (EDI).

3) TTB Proposed New Rules on Alcohol Labels to Include Calorie, Nutrient and Allergen Information

TTB has proposed a new rule requiring alcohol beverage labels to include an "Alcohol Facts" statement detailing per-serving alcohol, calorie, and nutrient content.

 

The Alcohol and Tobacco Tax and Trade Bureau (TTB) has proposed two new rules requiring alcohol beverage labels to include an "Alcohol Facts" statement detailing per-serving alcohol, calorie, and nutrient content as well as labeling disclosing all major food allergens. This initiative stems from a 2022 Treasury Department report recommending updates to alcohol labeling regulations to enhance transparency and ensure consistent consumer information.

 

Calorie and Nutrient Content

Alcohol content disclosure will be required for distilled spirits, wines, and certain malt beverages. Nutritional labeling (calories, serving sizes, etc.) will be standardized across products.

Labels will feature both alcohol percentage and fluid ounces per serving under the "Alcohol Facts" title. Numerical alcohol content statements will become mandatory for "table wines" and malt beverages, supporting accurate tax collection and consumer clarity.

 

Allergens

The proposed rule would require the disclosure of the "big nine" allergens recognized in the United States—milk, eggs, fish, Crustacean shellfish, tree nuts, wheat, peanuts, soybeans, and sesame. It also applies to ingredients containing protein derived from these allergens.

 

This measure aims to provide clear information to consumers who need to avoid certain allergens for health reasons. It ensures consistency with the broader food labeling standards set by the Food Allergen Labeling and Consumer Protection Act (FALCPA).

While the proposal includes provisions for mandatory disclosure, it may also outline specific exceptions where labeling might not be required, such as for highly refined ingredients where proteins are removed and no longer pose allergenic risks.

 

This rule would apply to all alcoholic beverages under TTB’s regulatory authority, including beer, wine, and distilled spirits. Producers may need to adjust their labeling practices and potentially revise production processes to ensure compliance. However, it would contribute to greater consumer confidence and safety.

 

The TTB is inviting public comments to refine the proposed regulations, with a focus on balancing transparency, regulatory compliance, and industry impact. All comments must be received on or before April 17, 2025. Instructions and additional information can be found in the Federal Register - Calories and Nutrition, Federal Register - Allergens.

4) Notice of Determination Section 301: China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance

The U.S. Trade Representative has determined that China's targeting of the maritime, logistics, and shipbuilding sectors for dominance is actionable under section 301.

 

On March 12, 2024, five labor unions filed a Section 301 petition alleging that China's policies and practices to dominate the maritime, logistics, and shipbuilding sectors are unreasonable, discriminatory, and harmful to U.S. commerce. The petition claimed that China's actions create unfair advantages across these industries, disrupt supply chains, and threaten U.S. economic interests.

 

After consultations, the U.S. Trade Representative (USTR) initiated an investigation on April 17, 2024, seeking public comments and holding a hearing on May 29, 2024. Over 40 written comments and testimony from the hearing informed the investigation. Despite a U.S. request for consultations, China declined to engage.

 

The investigation concluded that China's targeting of these sectors is unreasonable and burdens U.S. commerce by displacing foreign firms, restricting competition, creating economic dependencies, and undermining supply chain resilience. The USTR determined these actions are actionable under the Trade Act of 1974, and a public report detailing these findings is available on the USTR website.

 

The Notice of Determination can be found here.

5) Interconnection Security Agreement (ISA) Renewals for Trade Participants

The Interconnection Security Agreement (ISA) formalizes the security interface between Customs and Border Protection (CBP) and external automated systems.

 

CSMS # 63846191 announces that all trade participants transmitting electronic data directly to CBP's Automated Systems must maintain a signed ISA, valid for three years.

 

Renewals should be submitted six months before expiration or when changes occur to the company’s legal name or address to ensure uninterrupted data connectivity.

  • For MQIPT, Lan to Lan, sFTP, or DIS/web services users: Complete the eISA at eisavpn.cbp.gov.
  • For MPLS/MQ users: Download and complete the MPLS ISA form (link), have it digitally signed by a corporate officer, and email it to [email protected].

 

Trade participants using a Service Center or Value Added Network (VAN) to file electronic data are not required to submit an ISA; the obligation lies with the Service Center or VAN.

6) Updated De Minimis Frequently Asked Questions Regarding ACE Warning Messages

U.S. Customs and Border Protection (CBP) has published updated Frequently Asked Questions (FAQ) regarding the Automated Commercial Environment (ACE) warning message for de minimis shipments that may exceed the daily per person/per day threshold. 

 

U.S. Customs and Border Protection (CBP) has published updated Frequently Asked Questions (FAQ) regarding the Automated Commercial Environment (ACE) warning message for de minimis shipments that may exceed the daily per person/per day threshold. The updated FAQs can be accessed on the CBP.gov website, under the section “De Minimis Warning Messages:” https://www.cbp.gov/trade/basic-import-export/e-commerce/faqs.

7) EPA Hydrofluorocarbon Program Announces Upcoming Production Deployment Date

The refinements to the EPA Hydrofluorocarbon (HFC) program will be deployed in CBP’s production environment on February 22, 2025, and are currently available for testing in the certification environment.

 

CSMS # 63839859 confirms the HFC program will be deployed in CBP’s production environment on February 22, 2025, and are currently available for testing in the certification environment.

 

Trade testers are encouraged to contact EPA at [email protected] before testing, as EPA can provide test data and cases.

Guidance for filing is available in the EPA Supplemental Guide to the CATAIR at this link.

 

For questions, reach out to EPA at [email protected]. Related messages include CSMS #63476238 and #63114216.

8) Deployment of Changes in FDA ACE Supplemental Guide 2.5.12

FDA Supplemental Guide has been updated to include various validation error warnings and rejections.

 

The FDA Supplemental Guide (Draft Version 2.5.12, updated January 15, 2025) includes updates to Intended Use Code (IUC) validations, with varying deployment dates and transition periods:

 

Transition Period (February 22 - March 22, 2025): Certain IUC validation errors will result in warnings starting February 22, 2025, and rejections starting March 22, 2025. These include issuing valid IUCs for cosmetics (COS), ceramicware/food contact substances (FOO/CCW), animal devices (VME/ADE), or food (FOO).

 

Immediate Validations (February 22, 2025): IUC 110.000 will be added for human drugs (DRU, PRE, and OTC). Affirmation of Compliance (IFE) will no longer be required for medical devices using IUC 170.000.

 

Final Deployment (March 22, 2025): All updates, including the above warnings, will result in rejections if not followed. Missing valid IUCs for pharmaceutical necessities, containers, inactive ingredients, excipients (DRU/PHN), or animal devices (VME/ADE) will result in rejections.

 

Filers are encouraged to transmit accurate data during the transition period. Refer to the FDA Supplemental Guide on CBP.gov for details. For related updates, see CSMS #63443664, 63566274, 63658882, and 63824491.

9) Information Notice for ACE Changes Planned in Response to Sanctions on Russian Diamonds and Seafood

CBP has prepared information documentation on additional required data elements for Russian Diamonds and Seafood.

 

U.S. Customs and Border Protection (CBP) prepared the following informational documents to help the trade community prepare for planned changes in the Automated Commercial Environment (ACE) in response to sanctions on Russian diamonds and seafood:

  1. ACE Information Notice: Implementation of Additional Required Data Elements for Enforcing Sanctions on Russian Diamonds and Seafood
  2. Frequently Asked Questions on Additional Required Data Elements for Enforcing Sanctions on Russian Diamonds and Seafood

EVENT: CBP’s Trade Facilitation and Cargo Security Summit

May 6 - 8, 2025 | Hilton New Orleans Riverside, Two Poydras St, New Orleans, LA 70130

 

This event will be hosted in person and webcasted. Event and registration details will be available soon and posted to the TFCS Summit web page. Click here for more information.

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