Adding to a list of seemingly never-ending problems, the Boeing Company recently agreed to pay a $51 million civil penalty for violating U.S. export regulations, specifically the International Traffic in Arms Regulations (ITAR) and Arms Export Control Act (AECA).  The company also agreed to remedial compliance measures and entered into a Consent Agreement with the U.S. Department of State.  This penalty is one of the highest to-date imposed by the U.S. Government for ITAR and AECA violations. Boeing is a multi-billion-dollar company with hundreds of full-time trade compliance personn ..read more

Duty drawback is probably the most under used duty recovery program available by U.S. Customs. Most companies tend to look for duty savings on the front end when they import goods into the U.S.  With duty drawback, you get a refund on the back end. It’s kind of like when you file your personal taxes. Throughout the year you are paying with each paycheck you receive.  Then, when it’s time to file your return, you look for all the deductions to help drop your tax liability. If you are fortunate enough, you’ll get a pretty penny back from Uncle Sam.  Duty drawback is similar in thi ..read more

Shipping goods into the United States isn’t always a seamless process.  At some point, almost every U.S. importer will experience a clearance delay getting their goods through U.S. Customs & Border Protection (CBP).  What does this mean? In a nutshell, a clearance delay means your shipment hasn’t cleared Customs and is still in their possession.  Most people assume these delays are due to U.S. Customs holding up the shipment’s arrival, however, this isn’t always the case. Some clearance delays are not due to any action by CBP.  In fact, there are many reasons a delay ca ..read more

Years ago, I heard an enforcement official describe deemed exports like “hugging a cloud.”  As soon as you had your arms around a situation, it would dissipate – evaporating into mist, expanding, visibly there, but at the same time, somehow, not there. Fast forward to today, and the same government agency is trying to get its arms around a range of new technologies and advancements.  The U.S. Commerce Department has proposed a rule which, if enacted, would create substantial new regulations for Infrastructure as a Service (IaaS) providers.  The rule also takes aim at foreign per ..read more

Shipping goods into the United States isn’t always a seamless process.  At some point, almost every U.S. importer will experience a clearance delay getting their goods through U.S. Customs & Border Protection (CBP).  What does this mean? In a nutshell, a clearance delay means your shipment hasn’t cleared Customs and is still in their possession.  Most people assume these delays are due to U.S. Customs holding up the shipment’s arrival, however, this isn’t always the case. Some are avoid clearance delays that are not due to any action by CBP.  In fact, there are many rea ..read more

What Is OFAC & Why Is It Important? According to their website, the Office of Foreign Assets Control (“OFAC”) of the US Department of the Treasury “administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United States” (Home | Office of Foreign Assets Control (treasury.gov). If y ..read more

Do you slap “Made in USA” labels on your products or advertise in this way?  Can you, without a doubt, declare your products are – in fact – made in the USA?  This is one of the most overused (and misunderstood) proclamations companies make on the market today.  Ensuring accuracy is imperative because the consequences can be expensive. Who regulates “Made in USA” claims? The agency responsible isn’t one you would normally think of when it comes to import or export compliance.  While U.S Customs has their rules on country of origin marking for imports, the Federal Trade Comm ..read more

“Toto, I have a feeling we’re not in Kansas anymore.”  Sorry, Dorothy, but we aren’t over the rainbow, either.  Specifically, we’re across the ocean … in a place called Russia.  Talking about a Kansas-based company named (wait for it) … KanRus Trading.  Here’s what transpired in this not-so-fairytale ending. Two Americans stand accused of violating U.S. sanctions intentionally and continuously.  Cyril Buyanovsky and Douglas Robertson, of KanRus Trading in Kansas, are accused of smuggling avionics equipment to Russia in direct violation of U.S. export regulations.  ..read more

If your company imports or exports, you might hear the word Sanctions thrown around. You might even feel like Jan Brady and wonder why Marcia gets all the attention or, in this case, Sanctions. What are Sanctions? The word Sanction has several meanings and can be used as a noun or a verb, but in trade compliance, it is an economic measure used against other nations, companies, or individuals who have violated international law. It is also a way to accomplish foreign policy or national security goals. Sanctions are used by imposing trade restrictions or blocking assets. When sanctions are issue ..read more

In November, Binance Holdings, Ltd. (“Binance”) – the largest cryptocurrency exchange in the world – paid the largest settlement in OFAC history for alleged sanctions violations.  Together with other agencies, the settlement totaled over $4 billion!  On top of that, the CEO also pled guilty, has relinquished his role, and must pay a personal fine of $50 million.  What happened? A closer look at Binance’s problems In a nutshell, Binance is accused of enabling U.S. customers to trade with sanctioned entities and countries, a direct violation of OFAC regulations.  By offering ..read more