11/22/2024

USTR Adds Five New Entities to UFLPA Entity List

Check out this week's Customs Corner to read about the USTR addition of five new entities to the UFLPA entity list, truthfulness of origin documents, and more.

Trade and Customs Updates

1) USTR Adds Five New Entities to UFLPA Entity List

USTR has updated the UFLPA Entity List adding five entities to the section 2(d)(2)(B)(ii) list of the UFLPA and twenty-five entities to the section 2(d)(2)(B)(v) list of the UFLPA. In addition, the update also includes a technical correction to remove an alias for one entity already on the UFLPA Entity List.

 

The U.S. Trade Representative (USTR) has updated the Uyghur Forced Labor Prevention Act (UFLPA) Entity List to include five entities believed to be involved in forced labor practices tied to the Xinjiang Uyghur Autonomous Region (XUAR). These companies are:

Western Gold Co., Ltd. - Mines and processes gold, manganese, chromium ore, and iron ore in Urumqi, XUAR.

Western Gold Hami Gold Mine Co., Ltd. - Mines and processes gold ore in Hami City, XUAR.

 

Western Gold Karamay Hatu Gold Mine Co., Ltd. - Mines and processes gold and chromium ores in Karamay City, XUAR.

Xinjiang Nonferrous Metals Industry Group Co., Ltd. - Engages in mining and processing metallic materials, including copper, lithium, and gold, in Urumqi, XUAR.

 

Xinjiang Zhonghe Co., Ltd. (aka Xinjiang Joinworld Co., Ltd.) - Specializes in electronic materials and aluminum products, used in various industries including aerospace and automobiles, in XUAR.

 

The U.S. government has determined, based on specific evidence, that these companies collaborate with the XUAR government to engage in forced labor involving Uyghurs, Kazakhs, Kyrgyz, and other persecuted groups. These activities meet the criteria for inclusion in the UFLPA Entity List under Section 2(d)(2)(B)(ii).

 

The Entity List is also being updated by adding 25 entities to the Section 2(d)(2)(B)(v) category. This category identifies facilities and entities that source materials from the Xinjiang Uyghur Autonomous Region (XUAR) or work with the XUAR government or Xinjiang Production and Construction Corps as part of government labor schemes. These include programs such as the "poverty alleviation" or "pairing-assistance" initiatives, which are associated with the use of forced labor.

 

These additions highlight the U.S. government’s ongoing efforts to address and prevent forced labor practices tied to entities benefiting from labor schemes involving Uyghurs and other persecuted groups. The inclusion of these entities reflects the broadening scope of enforcement under the UFLPA to disrupt supply chains implicated in forced labor.

 

Lastly, the U.S. Trade Representative (USTR) has made a technical correction to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List regarding Xinjiang East Hope Nonferrous Metals Co., Ltd., a company based in the Xinjiang Uyghur Autonomous Region (XUAR). This company manufactures nonferrous metals and alloys, and engages in power generation and transmission activities.

Initially added to the UFLPA Entity List in June 2022, the entity was listed with the alias "Xinjiang Nonferrous." Upon review, the Forced Labor Enforcement Task Force (FLETF) determined that "Xinjiang Nonferrous" is not an alias of Xinjiang East Hope Nonferrous Metals Co., Ltd. As a result, the FLETF has updated the UFLPA Entity List to remove the alias, ensuring the listing accurately reflects the entity's identity.

 

The Federal Register including all of the above be published next week.

2) Truthfulness of Origin Documents

CBP has provided a guidance on the rules and responsibilities related to the completion and submission of origin declarations, origin statements, or certifications of origin under trade preference programs.

 

In CSMS # 63096696, CBP updated their guidance defining who is responsible to ensure the origin documents are correct.  Origin declarations, origin statements, or certificates of origin must be completed by a “responsible official” of the importer, exporter, or producer.  The forms may also be completed by an authorized agent of the importer, exporter, or producer when that agent has knowledge of the relevant facts.  The party completing these forms is responsible for the truthfulness and all information contained in the forms and is liable for false statements and material omissions.

 

This guidance builds on CSMS # 60588833, in which CBP says that the importer must state the actual Importer of Record.  If a consignee is not the Importer of Record, the consignee may not be listed as the importer on the origin documents.

 

Information on parties who are eligible to be the Importer of record can be  found in 19 CFR 101.1 and Customs Directive 3530-002A.

More information on required documents for each trade program can be found in the below regulations:

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3) Lacey Phase VII Reminder

APHIS will begin implementing Phase VII of the Lacey Act for entries filed on/after December 1, 2024. Lacey Act declarations will be required for all remaining plant product HTS codes that are not 100% composite materials.  

 

The HTS codes that will require Lacey Act declarations are listed in this Federal Register notice

Certain products are excluded:

  • Packing materials used as such, not as a product entered individually.
  • Pallets used for dunnage – new pallets entered as merchandise do need a declaration.
  • Common cultivars – these must be raised, grown, or cultivated as described in 7 CFR Part 357.2.  See APHIS information on Common Cultivars.
  • De Minimis Exemptions – if the plant material in the product represents no more than 5% of the total weight of the individual product, provided that the total weight does not exceed 2.9 kgs.  (note this is not related to Type 86 entries) 
  • Exclusions do not apply if the product contains protected plants listed in CITES, the Endangered Species Act, or in any State law.

More information on Lacey Act declarations can be found here.  

4) New Entry Summary Validation to Prevent Ineligible Polyester Staple Fiber Temporary Importation under Bond (TIB) Entries

CBP has provided information regarding the upcoming changes concerning polyester staple fiber (PSF) under TIB entries.

 

CSMS # 63100038  confirms that on November 23, 2024, CBP will enforce a new validation in the Automated Commercial Environment (ACE) for specific TIB entries (entry type 23) related to PSF.

 

Presidential Proclamation 10857 signed on November 8, 2024, establishes quantitative restrictions on TIB entries of PSF. The affected Harmonized Tariff Schedule of the United States (HTSUS) codes are 5503.20.0025 and 9813.00.0520.

 

The proclamation modifies Chapter 99 of the HTSUS to add HTSUS 9903.55.01 for tracking these restrictions.

 

If filing entries with HTSUS codes 9813.00.0520 and 5503.20.0025, the new HTSUS 9903.55.01 must also be included. Failing to include HTSUS 9903.55.01 will trigger the error message:

“F60A ADDTNL HTS REQUIRED FOR ENTRY TYPE: For TIB Entry type (‘23’) when both 9813.00.0520 and 5503.20.0025 are present on summary line, 9903.55.01 must be provided.”

5) Information on Customs Broker Permit User Fee Changes Effective October 1, 2024

The General Notice (89 FR 59126) published on July 22, 2024, outlines adjustments to customs user fees and limitations established under the Consolidated Omnibus Budget Reconciliation Act (COBRA) for Fiscal Year 2025 (FY 2025).

 

CSMS # 63093090 advises the adjusted fees are effective October 1, 2024, in accordance with the General Notice published on July 22, 2024 (89 FR 59126). The fee has increased from $174.80 to $180.57 and applies to Broker permits issued on or after October 1, 2024.

 

The payment deadline and the opening of the eCBP portal for submissions will be announced in a future Federal Register Notice.

Important Note: CBP will not accept payments for the CY 25 annual fee until after the due date has been announced.

 

The General Notice may be accessed at the link below:

Federal Register: Customs User Fees to Be Adjusted for Inflation in Fiscal Year 2025

6) New Error Codes for the EPA Hydrofluorocarbon Program

The Environmental Protection Agency (EPA) is making minor refinements to the validation of certain business rules related to the import of hydrofluorocarbons (HFCs).

 

According to CSMS # 63114216 the Environmental Protection Agency (EPA) will be rolling out minor refinements to the validations of some business rules pertaining to the import of hydrofluorocarbons (HFCs). The implementation guidance for how to file does not change and can be found in the EPA Supplemental Guide to the CATAIR.

 

The following error codes will be generated based on specific filing errors:

[PHF] – PG02C NOT ALWD IF PG07 PRESENT PER PGA - Triggered if both an ASHRAE number (PG07) and a CAS number (PG02C) are provided on the same PGA line.

 

[PHG] – PG07 NOT ALWD IF PG02C PRESENT PER PGA - Triggered if both a CAS number (PG02C) and an ASHRAE number (PG07) are provided on the same PGA line.

 

[PHH] – INSUFFICIENT ALLOWANCE PER PGA - Triggered if the importer’s filing exceeds their remaining HFC allowances for the year.

 

The error codes will be live in CBP’s Certification environment on December 13, 2024, and in the Production environment in late-January 2025, with the exact date to be confirmed via a forthcoming CBP Cargo Systems Messaging Service (CSMS) notification.

7) CBP Aligns Hours of Operations at Northern Border Ports of Entry

Starting midnight, January 6, 2025, U.S. Customs and Border Protection (CBP), in collaboration with the Canada Border Services Agency (CBSA), will adjust operating hours at 38 ports of entry (POEs) along the U.S.-Canada border.

 

The adjustment of operating hours at 38 ports of entry (POEs) along the U.S.-Canada border will enable U.S. Customs and Border Protection (CBP) to enhance border security, facilitate legitimate trade and travel and optimize resource allocation.

 

The following are the new permanent POE hours of operation by state:

 

Washington:

Metaline Falls will expand its operating hours to 8 a.m.-6 p.m.

Laurier will permanently maintain current hours of 8 a.m.-8 p.m.

 

Montana:

Scobey will expand its operating hours: 

8 a.m.-9 p.m., June 1 to Sept. 15 and 9 a.m.-7 p.m., Sept. 16 to May 31

Opheim will expand its operating hours and days to 9 a.m.-5 p.m. seven days a week.

Del Bonita will permanently maintain current hours of 9 a.m.-5 p.m.

Morgan will permanently maintain current hours of 9 a.m.-5 p.m. Monday through Friday

 

North Dakota:

Fortuna will expand its operating hours to 9 a.m.-7 p.m.

Neche will expand its operating hours to 8 a.m.-6 p.m.

Noonan will expand its operating hours to 9 a.m.-7 p.m.

Walhalla will expand its operating hours to 8 a.m.-8 p.m.

Carbury will permanently maintain current hours of 9 a.m.-5 p.m.

Maida will permanently maintain current hours of 9 a.m.-5 p.m.

Northgate will permanently maintain current hours of 9 a.m.-5 p.m.

St. John will permanently maintain current hours of 8 a.m.-4 p.m.

Sherwood will permanently maintain current hours of 9 a.m.-7 p.m.

Westhope will permanently maintain current hours of 8 a.m.-4 p.m.

 

Minnesota:

Lancaster will permanently maintain current hours of 8 a.m.-6 p.m.

 

New York:

Chateauguay will reduce its operating hours from 24 hours to 6 a.m.-6 p.m.

Overton Corners will reduce its operating hours from 24 hours to 6 a.m.-10 p.m.

Rouses Point will reduce its operating hours from 24 hours to 8 a.m.-8 p.m.

Trout River will reduce its operating hours from 24 hours to 6 a.m.-6 p.m.          

 

Vermont:

Alburg (joint port) will reduce its operating hours to 8 a.m.-8 p.m.  

Canaan will reduce its operating hours to 8 a.m.-8 p.m.  

North Troy will reduce its operating hours to 8 a.m.-8 p.m.            

West Berkshire will reduce its operating hours 8 a.m.-8 p.m.

Alburg Springs will permanently maintain current hours of 8 a.m.-4 p.m. 

Derby Line (Route 5) will permanently maintain current hours of 8 a.m.-8 p.m.

 

New Hampshire:

Pittsburg will permanently maintain current hours of 8 a.m.-8 p.m.

 

Maine:

Monticello will maintain current operating hours, but will close on U.S. and Canadian holidays.

 

CBP will temporarily expand its hours at the following location:

 

North Dakota:

Antler will expand its operating hours temporarily for 120 days to 9 a.m.-10 p.m.

 

CBP and CBSA will align hours at the following locations:

 

North Dakota:

Hannah will continue to operate from 9 a.m.-5 p.m.

Hansboro will continue to operate from 8 a.m.-4 p.m.

Sarles will continue to operate from 9 a.m-5 p.m.

 

Minnesota:

Pinecreek will continue to operate from 9 a.m.-5 p.m.

Roseau will continue to operate from 8 a.m.-8 p.m.

 

Maine:

Limestone will continue to operate from 6 a.m.-6 p.m.

Orient- will continue to operate: 

7 a.m. to 7 p.m. from Memorial Day to Labor Day, and

7 a.m. to 5 p.m. for the remainder of the year.

Vanceboro will continue to operate 8 a.m.-8 p.m.

8) CPSC Proposed Rule on Neck Floats

The Consumer Product Safety Commission (CPSC) has issued a notice of proposed rulemaking to enhance the safety standard for aquatic toys, specifically neck floats, due to potential safety hazards.

 

CPSC’s notice confirms they are seeking stronger standards for safety which include new performance and labeling requirements to reduce hazards and mandating ASTM F963 as the mandatory toy safety standard, which includes performance benchmarks, warning labels, and instructional material standards.

 

Manufacturers and importers must conduct third-party testing to ensure compliance with the safety standards. Proposed regulation under § 1250.5(e) will prevent large-scale production or importation of noncompliant neck floats before the final rule takes effect.

Stakeholders can submit comments on the proposed rule, including labeling and literature requirements under the Paperwork Reduction Act, by January 21, 2025.

9) CPSC Final Rule on Safety Standards for Soft Infant and Toddler Carriers

CPSC has published a mandatory standard for soft infant and toddler carriers ordered in 16 CFR part 1226, “Safety Standard for Soft Infant and Toddler Carriers.

 

The Federal Register affirms that in March 2014, the CPSC published a safety standard for soft infant and toddler carriers under section 104 of the Consumer Product Safety Improvement Act of 2008 (CPSIA). The standard incorporated by reference ASTM F2236-14, Standard Consumer Safety Specification for Soft Infant and Toddler Carriers, the voluntary standard for soft infant and toddler carriers that was in effect at the time. ASTM has now issued a revised standard, ASTM F2236-24. Consistent with the CPSIA, this direct final rule updates the mandatory standard to incorporate by reference ASTM's 2024 version of the voluntary standard.

 

The rule is effective as of February 22, 2025 unless CPSC receive adverse comments that are due by December 20, 2024. 

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