International Trade Today is providing readers with the top stories from last week in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
A bipartisan amendment that would ban mink farming for fur production in the U.S. passed the House of Representatives 262-168, as the House was working its way through hundreds of amendments to the America Competes Act. The amendment, co-sponsored by Reps. Rosa DeLauro, D-Conn., and Nancy Mace, R-S.C., amends the Lacey Act. It was changed from the original language, which spoke specifically of ending import and export of Neovison vison, the species known as American minks. The new version bans the sale, possession, acquisition, purchase or transport of the species, if it was raised in captivity for fur production. If this section of the bill survives the conference committee process with the Senate, it would take effect Dec. 31.
Amendments that would have directed the Office of the U.S. Trade Representative to broaden access to Section 301 exclusions and would have liberalized the Generalized System of Preferences benefits program will not get a vote when the America Competes Act gets a vote on the House floor this week, but the Ocean Shipping Reform Act will get a vote. That bill passed the House last year, but has not gotten a vote in the Senate.
Rep. Adrian Smith of Nebraska, the new ranking Republican on the House Ways and Means Trade Subcommittee, testified to the Rules Committee that the trade section of the America Competes Act of 2022 contains items that could have a "significant negative impact on our economy," and that Republicans didn't see anything about it until last week. He noted that his amendment that would have renewed trade promotion authority, which gives Congress a say in new free trade negotiations, was ruled out of order, so it will not get a vote.
Mandating a broad exclusion process for importers of goods subject to Section 301 tariffs, extending the period of the Generalized System of Preferences benefits program renewal, reforming the GSP competitive needs limitations, a ban on importing sodium cyanide briquettes, and changes to the Lacey Act are all among hundreds of amendments to the America Competes Act that have been submitted to the Rules Committee, which has the responsibility for shaping the bill that will get a vote on the House floor (see 2201310033).
CBP issued the following releases on commercial trade and related matters:
Corporations need be careful and exercise due care when establishing their supply chains, said Assistant Attorney General Todd Kim while speaking Dec. 14 at the American Bar Association's National Environmental Enforcement Conference's Section on Environment, Energy and Resources. Kim discussed the DOJ's enforcement approach and mentioned the Lacey Act as an example. "If a corporate supply chain originates from a criminally-tainted source, then my division will consider the criminal responsibility of all parts of that supply chain," Kim said. "A corporation seeking credit for cooperation will need to identify all individuals involved in misconduct, including individuals outside the company in a supply chain. ... A corporation would be well advised to protect itself and its investments by exercising due care over its supply chain in light of the prospect of criminal sanction; the potential seizure and forfeiture of illegally-sourced timber, goods, vessels and other equipment; and the unavailability of an innocent owner defense."
CBP issued the following releases on commercial trade and related matters:
CBP created Harmonized System Update (HSU) 2111 on Nov. 9, containing 40 Automated Broker Interface records and 8 Harmonized Tariff Schedule records, it said in a CSMS message. The update includes changes to the U.S. Department of Agriculture's Lacey Act code flags, it said. "This modification will allow trade to use the Lacey Act disclaimer codes 'A' and 'B' for HTS code 4415 entries on not new wood without modifying import software or practices," CBP said.
Herdade Lokua and Jospin Mujangi, both of the Democratic Republic of the Congo, were arrested and indicted for trafficking elephant ivory and white rhinoceros horn from the Congo to Seattle, the Department of Justice said. The pair allegedly worked with a middleman to bring in four packages that contained the ivory and rhinoceros horn. All four were sent via air freight, with three arriving in August and September 2020, and the remaining one in May 2021. Lokua and Mujangi also conspired to send large packages via ocean freight. The shipments in this scheme allegedly included elephant ivory, pangolin scales and rhinoceros horns. The pair cut the tusks and horn into smaller pieces that were painted black to avoid detection. The parts were mixed with ebony wood and declared as "wood" with values of $50-$60, DOJ said. The duo also allegedly paid bribes to local authorities in Kinshasa, the city where they live, to get the goods out of the Congo. Lokua and Mujangi now stand accused of conspiracy, money laundering, smuggling and Lacey Act violations, facing a maximum of 20 years in prison for the smuggling and money laundering charges and five years for the Lacey Act and conspiracy violations.