As of 2/24/2018 – ACE will be the only authorized electronic data interchange system for processing drawback filings.

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According to a notice posted on the Federal Register, starting February 24, 2018, the Automated Commercial Environment (ACE) will be the sole electronic data interchange (EDI) system authorized by US Customs and Border Protection (CBP) for processing electronic drawback filings under NAFTA and non-TFTEA drawback.

After February 24, 2018, Automated Commercial System (ACS) will no longer be a CBP-authorized EDI for drawback filings.

The full notice can be found here:

https://www.federalregister.gov/documents/2018/01/18/2018-00803/automated-commercial-environment-ace-becoming-the-sole-cbp-authorized-electronic-data-interchange

If you have any questions regarding drawback or this Federal Register notice, please do not hesitate to contact David Hsu at 832.896.6288 or attorney.dave@yahoo.com.

Department of the Treasury – List of Countries Requiring Cooperation with an International Boycott.

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According a January 8, 2018 Federal Register notice here, the U.S. Department of the Treasury (Treasury) published it’s quarterly “List of Countries Requiring Cooperation with International Boycott”. According to the notice, the following countries do require or may require participation in, or cooperation with, an international boycott (within the meaning of section 999(b)(3) of the Internal Revenue Code of 1986:

Iraq, Kuwait, Lebanon, Libya, Qatar, Saudi Arabia, Syria, United Arab Emirates, and Yemen (all 9 of these countries have previously been designated as boycotting countries).

The Treasury rules apply to U.S. taxpayers, including but not limited to members of a controlled group, regardless of whether the transaction involves U.S. goods or services. The rules do impose reporting requirements on U.S. taxpapers and their related companies. If taxpayers have coopreated with an unsanctioned boycott, they are denied certain tax benefits as a peanlty. U.S. taxpapers must report anything related to boycotting countries by filing IRS Form 5713 and attaching to the taxpayer’s federal tax return.

If your company does business overseas, it is important to be aware of reporting found instances of boycott laws and regulations and ensure your company is in compliance with all of the rules. We find our clients sometimes overlook the boycott issue, unfortunately Customs will not, and failure to comply with boycott rules may result in significant penalties.

If you have any questions regarding boycotts, contact David Hsu at 832.896.6288 or by email at: attorney.dave@yahoo.com.

Office of the United States Trade Representative (USTR) issues their 2017 Out-of-Cycle Review of Notorious Markets.

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On January 11, 2018, the USTR released their report on “notorious markets”. As the name suggests, the USTR issues annual reviews of cities, places or shopping areas (both physical and online) that are believed to be involved in large commercial-scale copyright piracy and trademark counterfeiting. In addition to financial losses, the USTR says copyright piracy and counterfeit goods undermine advantages to innovation, creativity of US workers while also posing risks to consumer health and safety.

The notorious market list (NML) maintained by the USTR highlights physical and online marketplaces that “reportedly engage in, facilitate, turn a blind eye to, or benefit from substantial piracy and counterfeiting”. The list includes 18 physical markets and over 20 online marketplaces. The USTR does note that the NML list does not make findings of legal violations nor reflects the US analysis of the IP protection and enforcement climate in the countries in which the listed markets are found.

The report focus this year is on “illicit streaming devices” that includes streaming, on-demand, and over-the-top media service providers or other piracy applications that allow users to stream content, download or otherwise access information. Such streaming devices include Amazon fire TV sticks that are “jailbroken” or have the “Kodi” application installed. Other lesser known manufacturers also sell and market such stream devices using keywords such as: mini tv, tv box, stream, kodi, internet media player, tv browser, android tv, or variations thereof. The USTR estimates pirated content viewed on these streaming devices cost up to $840 million in lost revenue in the US and over $4-5 billion a year to the entertainment industry.

The USTR report spends the remaining 35 pages of the report highlighting various websites and physical brick-and-morter markets worldwide that may contribute to the sale and distribution of counterfeit and intellectual property infringing products.

If you have had your imported goods seized by Customs due to suspected intellectual property and trademark violations, call David Hsu at 832.896.6288 or email attorney.dave@yahoo.com. Certain time limitations do apply and you need legal representation.

APHIS Recognizes Mexico as Free of Classical Swine Fever.

pig-alp-rona-furna-sow-63285.jpegClassical swine fever (CSF or sometimes referred to as hog cholera/swine fever/European swine fever) is a highly contagious viral disease of pigs. CSF used to be widespread but many countries had eradicated the disease until it was reintroduced in 1997-199 (CSF was eradicated in the US in the 1970’s). A 1997 outbreak of CSF in the Netherlands involved more than 400 herds and cost $2.3 billion dollars to eradicate with some 12 million pigs killed.

While eradicated in North America, the US is also not immune to the risk as CSF is still endemic in South and Central America. Because of this, the United States Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) previously classified imports of live swine, swine genetics, pork and pork products from Mexico as risky following a 2015 site review.

However, at the request of Mexico’s government, the USDA APHIS has now determined that the risk of CSF through Mexican imports of live swine, swine genetics, pork and pork products is very low. As such, these items can now be saefly imported into the US as long as the imports follow APHIS’ import regulations.

Importations of live swine, swine genetics, pork and pork products must (1) be accompanied by a certificate issued by a Mexican government veterinary officer, (2) must come from swine raised and slaughtered in regions APHIS considers CSF free.

If your company would like more information regarding importation of swine and swine products or other general USDA APHIS concerns, please do not hesitate to contact David Hsu at 832.896.6288 or by email at attorney.dave@yahoo.com.

 

USITC Votes to Continue Investigations on Common Alloy Aluminum Sheet from China.

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According to News Release 18-008 from the United States International Trade Commission (USITC) website (found here), the USITC voted to continue investigations on common alloy aluminum sheet from China. The USITC typically continues investigations if they believe there is a reasonable indication that a U.S. industry is materially injured due to imports of common alloy aluminum sheet from China. The “material injury” results because the USITC believes the manufacturing of aluminum sheet is being subsidized and sold in the US at a cost lower than “fair value”.

A continuation of an investigation means the US Department of Commerce (Commerce) will continue antidumping and countervailing duty investigations. The due date for the preliminary countervailing duty determination is due February 1, 2018. The antidumping duy determination is due on April 17, 2018.

The investigation of common alloy aluminum sheet from China can be found in Investigation Numbers 701-TA-591 and 731-TA-1399, publication number 4757, dated January 2018.

If you have any questions about these orders, or want to know if any of the products you import may be subject to dumping, please feel free to contact David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.

January 11, 2018 – Initiation of Antidumping and Countervailing Duty Administrative Reviews.

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As posted in the Federal Register here, the U.S. Department of Commerce is initiating administrative reviews on multiple antidumping and countervailing duty orders:

Antidumping Duty Proceedings:
India: Welded Stainless Pressure Pipe A-533-876
Indonesia: Monosodium Glutamate A-560-826
Mexico: Certain Circular Welded Non-Alloy Steel Pipes and Tubes A-201-805
Mexico: Steel Concrete Reinforcing Bar A-201-844
Republic of Korea: Circular Welded Non-Alloy Steel Pipe A-580-809
Taiwan: Certain Circular Welded Non-Alloy Steel Pipe A-583-814
The People’s Republic of China: Diamond Sawblades and Parts Thereof A-570-900
The People’s Republic of China: Certain Hot-Rolled Carbon Steel Flat Products A-570-865
The People’s Republic of China: Fresh Garlic A-570-831
The People’s Republic of China: Monosodium Glutamate A-570-992
The People’s Republic of China: Polyethlene Terephthalate (Pet) Film A-570-924
The People’s Republic of China: Seamless Refined Copper Pipe and Tube A-570-964
United Arab Emirates: Polyethylene Terephthalate (Pet) Film A-520-803

Countervailing Duty Proceedings
India: Welded Stainless Pressure Pipe C-533-868
The People’s Republic of China: Certain Passenger Vehicle and Light Truck Tires 7 C-570-017
The People’s Republic of China: Chlorinated Isocyanurates C-570-991 1/1/16-12/31/16
Turkey: Steel Concrete Reinforcing Bar C-489-819

If you have any questions about administrative reviews or general antidumping and countervailing duty questions, feel free to call us at anytime: 832.896.6288 or contact us by email at attorney.dave@yahoo.com.

U.S. Department of Commerce Issues Preliminary Antidumping Duties On Chinese Solar Cells.

pexels-photo-371900.jpegYesterday I posted about countervailing duties on imports of crystalline silicon photovoltaic cells; today’s solar panel post is about the preliminary results of the antidumping review and preliminary duties on Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules, From the People’s Republic of China.

The Department of Commerce (Commerce) conducted an administrative review of the antidumping duty order on crystalline silicon photovoltaic cells, whether or not assembled into modules (solar cells), from the People’s Republic of China (China) and looked at imports from December 1, 2015, through November 30, 2016 (Period of Review, POR).

The scope of the antidumping review covered “crystalline silicon photovoltaic cells, and modules, laminates, and panels, consisting of crystalline silicon photovoltaic cells, whether or not partially or fully assembled into other products, including, but not limited to, modules, laminates, panels and building integrated materials. Merchandise covered by this order is classifiable under subheadings 8501.61.0000, 8507.20.80, 8541.40.6020, 8541.40.6030, and 8501.31.8000 of the Harmonized Tariff Schedule of the United States (HTSUS).”

Commerce typically covers multiple mandatory respondents. However, in the instant review, the administrative review covered only mandatory respondent, Trina Solar (Hefei) Science and Technology Co., Ltd (Trina). Commerce treated the various Trina entities: Changzhou Trina Solar Energy Co., Ltd./Trina Solar (Changzhou) Science and Technology Co., Ltd./Yancheng Trina Solar Energy Technology Co., Ltd./Changzhou Trina Solar Yabang Energy Co., Ltd./Turpan Trina Solar Energy Co., Ltd./Hubei Trina Solar Energy Co., Ltd., as one single entity.

As a result of their review, Commerce preliminary found that Trina sold subject merchandise in the United States at prices below normal value during the Period of Review and is therefore subject to a duty of 61.61%.

All other exporters of crystalline silicon photovoltaic cells will be subject to the China-wide entity rate of 238.95%.

As the findings are preliminary, interested parties still have 30 days from January 9th, 2018 to submit case briefs.

The entity wide rate of 238.95% for imports of crystalline silicon photovoltaic cells from China highlight why it is important for all manufacturers, producers, exporters, importers or other interested parties to enter an appearance with Commerce and request a review, file a separate rate application or certification, scope requests, or other actions to protect their interests.

The full notice from the Federal Register can be found here.

If you are a producer, importer, exporter of crystalline silicon photovoltaic cells and have any questions about how these preliminary ADD/CVD orders effect your company and business, call David Hsu’s office at 713.932.1540, mobile phone at 832.896.6288 or email at attorney.dave@yahoo.com.

 

U.S. Department of Commerce Issues Preliminary Duties On Chinese Solar Cells.

pexels-photo-356049.jpegIn a notice posted on the Federal Register here, the U.S. Department of Commerce (Commerce) has preliminarily found that “Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules, From the People’s Republic of China”, will be subject to preliminary countervailing duties.

Commerce determined that countervailable subsidies are being provided to producers and exporters of crystalline silicon photoltaic cells, whether or not assembled into modules (solar cells) from the People’s Republic of China (China).

The scope of the order covers crystalline silicon photovoltaic cells, and modules, laminates, and panels, consisting of crystalline silicon photovoltaic cells, whether or not partially or fully assembled into other products, including, but not limited to, modules, laminates, panels, and building integrated materials.

The two mandatory respondents and their respective subsidy rates include Canadian Solar Inc. and its Cross-Owned Affiliates - 13.72% and Changzhou Trina Solar Energy Co., Ltd. and its Cross-Owned Affiliates - 10.93%. Non-selected companies under review have a subsidy rate of 12.64%

If you or someone you know imports crystalline silicon photovoltaic cells from China and they have questions about how this order affects them, please call David Hsu at 832.896.6288 or by email at attorney.dave@yahoo.com.

MoneyGram-Ant Financial Merger Fails CFIUS Clearance.

pexels-photo-259165.jpegChina-based Ant Financial Services Group sought CFIUS approval for a merger with Dallas-based MoneyGram. On January 2, 2018 a joint press release from MoneyGram and Ant Financial confirmed the parties have terminated their agreement to merge despite their efforts to seek approval from the Committee on Foreign Investment in the United States (CFIUS).

In April 2017, MoneyGram approved a $1bn takeover offer from Ant Financial. Ant Financial is run by Jack Ma, founder of Ali Baba – the world’s largest financial technology company with more than 500 million customers in China.

If you have questions or need CFIUS approval, give me a call, 832.896.6288 or email: attorney.dave@yahoo.com.

 

What is the Global Magnitsky Human Rights Accountability Act?

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Short Answer: The Global Magnitsky Act is a US effort to stop human rights abuses and corrupt actors by allowing President Trump to impose sanctions against parties involved in human rights violations and corruption around the world.

This Act sounds familiar, how is it different from the Sergei Magnitsky Rule of Law Accountability Act of 2012 (“Magnitsky Act”)? The Magnitsky Act was only targeting human rights abusers in Russia. The Global Magnitsky Act applies to human rights abusers and corrupt actors globally.

Long Answer: President Trump signed Executive Order 13818 titled “Blocking the Property of Persons Involved in Serious Human Rights Abuses or Corruption” on December 20, 2017 implementing the Global Magnitsky Human Rights Accountability Act (“Global Magnitsky Act”).

The passage of the Global Magnitsky Act authorizes President Trump to impose sanctions on individuals, governments or other entities who commit human rights violations such as extrajudicial killings, torture, gross violations of human rights. Additionally, this act also applies to parties who are involved in significant corruption such as expropriation of assets for personal gain, corruption in government contracts, bribery or other acts of corruption.

In late December, OFAC also designated 52 new parties as SDN’s as part of the Global Magnitsky Act and the Executive Order. If you are in trade compliance, be sure to check out the new OFAC designated parties as the updated list includes parties from the following countries: The Gambia, South Sudan, Russia, Nicaragua, China, Pakistan, Democratic Republic of the Congo, Dominican Republic, Uzbekistan, and Ukraine.

These designations are the first under the Global Magnitsky Act and won’t be the last.

Click the below link for the U.S. Department of Treasury sanction list and other OFAC information:

https://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx

If you have any questions about compliance with the new or old Magnitsky Act, OFAC, SDN or blocked persons or any general trade compliance matters, call 832.896.6288 or e-mail attorney.dave@yahoo.com