Monthly Archives: December 2018

Huawei CFO seeks bail due to health concerns.

December 10, 2018 By in Huawei, Uncategorized Tags: , , , , Leave a comment

At a court hearing in Canada  yesterday, jailed Huawei CFO, Wanzhou Meng, argued she should be released due to fears for her health while incarcerated. Since her arrest, the 46 year old has been treated for hypertension.

As bail is usually not granted if someone is a flight risk, Wangzhou claimed through an affidavit that she is not a flight risk as she has “longstanding ties” to Canada and even owns properties in Vancouver.

However, it is unlikely Canada will release her on bail as an extradition hearing will determine whether she be extradited to the United States to face trial for allegedly misleading banks about Huawei’s control of a company in Iran. In addition to Wanzhou facing charges; the US could also put the banks at risk for violating US sanctions and incurring penalties.

CBP and searching your electronic devices.

December 10, 2018 By in Uncategorized Tags: , , , , Leave a comment
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According to an Associated Press article, the U.S. Customs and Border Protection officers searching electronic devices of travelers more often.

A local watchdog report made available today indicated there were 29,000 devices searched in 2017, up from the 18,400 the year before. CBP officials claim the travelers searched represent less than 1 percent of all travelers (ie, 18,400 searches out of 390 million travelers).

In general, travelers are required to hand over their electronic devices for inspection if they are referred to secondary inspection. Secondary inspection is after primary inspection (travel documents and passports). During secondary inspection, CBP may search phones, thumb drives, and computers.

A Office of the Inspector General for Homeland Security report found that some searches were not properly documented or conducted – for example, devices were not taken offline before hand. In general, CBP cannot access your information that is on a cloud network.

Will update again if/when CBP publishes a review process for searching electronic devices of travelers.

If you or anyone you know has had an item detained or seized by CBP, contact experienced trade and customs attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com.

Summary of information we have about the Huawei CFO Arrest.

December 10, 2018 By in Hong Kong, Huawei, Skycom, Uncategorized Tags: , , , , , , , Leave a comment
black huawei android smartphone

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Below is a summary in bullet point of news we know about the arrest of Huawei’s CFO as reported by multiple sources:

  1. Who is Meng Wangzhou?
    1. 46 year-old global CFO of Huawei
    2. Daughter of Huawei founder.
    3. She faces extradition to the US.
    4. She also goes by Cathy or Sabrina
  2. When was the arrest?
    1. December 1, 2018
    2. The arrest warrant was issued on August 22nd.
  3. Where did they arrest the CFO?
    1. The arrest took place in Vancouver’s airport as she traveled from Hong Kong to Mexico.
  4. Why did they arrest the CFO?
    1. The arrest stems from 2013 statements made by Meng Wanzhou. In 2013, she told financial institutions Huawei had no connection to a Hong-Kong based company called Skycom.
  5. Why is Skycom Tech Co. Ltd. under investigation by the US?
    1. Skycom is suspected of selling Hewlett-Packard computer equipment to Iran’s largest mobile-phone operator.
    2. There is an embargo in place and selling HP equipment to Iran is in violation of US sanctions.
    3. Meng’s lawyer claims Huawei already divested itself from Skycom and left the Skycom board.
    4. US authorities also believe Huawei operated Skycom as an “unofficial subsidiary” to conduct business in Iran.
    5. Meng previously served on the board of Skycom from February 2008- April 2009 according to Skycom filings with Hong Kong’s Companies Registry.
    6. Several past Skycom directors may also have connections to Huawei.
  6. Tell me more about the court case?
    1. Eastern District of New York.
    2. US authorities will like allege Meng played a role in fraud by telling banks there was no link between Huawei and Skycom.
  7.  Why arrest the CFO in Canada?
    1. The US does not have an extradition treaty with China
    2. Canadian authorities consider her a flight risk because of her wealth.
  8.  What is China’s response?
    1. The Chinese government has demanded Meng’s immediate release.
    2. China has asked Ottawa and Washington to clarify their reasons for the detention.
    3. The arrest has sparked anger on Chinese social media with users calling for boycott of US goods.
  9.  Who is Huawei?
    1. Huawei was founded in 1987 by Zhengfei Ren, a prominent business figure in China.
    2. Huawei is the world’s second-largest maker of smartphones (behind Samsung) and one of the world’s largest makers of telecommunication equipment.
    3. Huawei and ZTE are considered by some US officials as a threat to national security due to the potential for spying on US companies or agencies that use their equipment.

Check back for more news as they develop.

US-China Trade Deadline – March 1, 2019.

December 10, 2018 By in trade law, Uncategorized Tags: , , , , Leave a comment
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As reported by the Guardian, over the weekend, Robert Lighthizer appeared on TV and spoke regarding several trade issues:

  1. The Trump administration is set to impose further duties on Chinese goods on March 1, 2019 if a trade deal is not reached. The March 1st deadline marks the end of 90 days starting December 1 of this month.
  2. The US Trade Representative, Robert Lighthizer was chosen by Trump to negotiate the trade deal and Lighthizer told CBS’s Face the Nation that March 1, 2019 is “a hard deadline”.
  3. In other news, at Trump’s last meeting with Chinese President Xi Jinping, both sides announced a truce and delay in the scheduled January 1, 2019 increase in tariffs to 25% from 10% on approximately $200 billion of Chinese goods.
  4. In response to last Monday’s arrest of Huawei’s CFO, Lighthizer indicated the two issues are separate (trade on one side and law enforcement on the other side).
  5. Lighthizer indicated that part of the negotiations require China to increase purchases of US goods along.
  6. Other requirements for China would be changes to the rules requiring American firms to provide technology to Chinese partners as a condition of doing business.

Check back for more information as it becomes available. Also, if you have any goods scheduled under “List 3” and have questions about what the delay may mean to your imports under List 3, feel free to give me a call, 832-896-6288 or email at attorney.dave@yahoo.com.

 

CBP seizes over $50,000 in currency from travelers.

December 7, 2018 By in Uncategorized Leave a comment
CBP Seizure 12072018

Source: CBP.gov

According to a Customs media release, U.S. Customs and Border Protection officers in Dulles seized currency from two different travelers as they left the US.

In the first instance, a Cameroon man boarding a flight to Belgium was detained by CBP. The traveler first reported he had $26,000 in cash but a subsequent search of the traveler’s backpack and carry-on revealed a combined $35,688 dollars. CBP is allowed to return some of the seized money for “humanitarian purpose” and in this instance returned $1,688 to the traveler.

In the second seizure, CBP seized $17,122 from a family headed to Sudan. The family first reported they had $11,000 until a subsequent search found $16,500. Oddly, CBP only released $621.00 to the family whereas they returned $1,688 to the lone traveler in the first instance.

CBP allows you to carry as much cash or monetary instruments – the only caveat being the entire amount must be declared. Many travelers do not know, but you would have to declare this amount regardless of whether you are leaving or entering the US or even if you are transiting through the airport.

If you are ever asked by CBP how much cash or monetary instruments – it is best to report and declare everything. Be sure to write the correct amount if presented with a “FinCen” form.

If you or anyone you know has had currency seized at the airport – contact experienced currency seizure attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com.

US Trade Representative Lighthizer will meet with tech CEOs.

December 6, 2018 By in silicon valley, Uncategorized Tags: , , , , Leave a comment
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According to anonymous sources, U.S. Trade Representative Robert Lighthizer will meet with CEO’s from Google, Microsoft, Qualcomm and Oracle today in Silicon Valley.

The topics likely center around intellectual property protections, the ongoing trade war, reports of bias in news searches, emerging technologies such as 5G, AI and robotics.

Other topics could include the Trump Administration’s plan to increase restrictions on exports of new technologies to China due to national security concerns. The new technologies include AI, quantum computing, and speech recognition.

Check back for more news as they become available.

Huawei CFO arrested in Canada for violating U.S. sanctions on Iran.

December 6, 2018 By in Huawei, Iran, Uncategorized Tags: , , , , , Leave a comment
black huawei android smartphone

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According to Bloomberg – Huawei’s CFO, Wanzhou “Sabrina” Weng was arrested in Canada on December 1st over Huawei’s potential violations of U.S. sanctions on Iran. Sabrina Weng is the deputy chairwoman and daughter of Huawei founder Zhengfei Ren.

The arrest prompted China’s embassy in Canada to demand Sabrina be released and for the US and Canada to “rectify wrongdoings” and to “to clarify the grounds for the detention, to release the detainee and earnestly safeguard the legitimate rights and interests of the person involved”.

It is not known when or if Sabrina will be expedited to the US.

Check back for more updates as they are available. If you have any questions about your company’s compliance with US export controls and or want to ensure your company is in compliance with all the sanctions and laws regarding exporting, contact David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com.

Trump may end special trade status with Hong Kong

December 6, 2018 By in Hong Kong, trade law, Uncategorized, US-Hong Kong Policy Act Tags: , , , Leave a comment
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According to Bloomberg – the U.S-China Economic and Security Review Commission recommended Congress to reassess Hong Kong’s special trading status for sensitive US technology imports. Since 1992, the US-Hong Kong Policy Act of 1992 treats Hong Kong as fully autonomous for trade and economic matters even after Hong Kong was returned to China in 1997. As such, Hong Kong has not been impacted by the current China tariffs and is also supported by the US in the WTO.

The report indicated that Beijing’s actions toward Hong Kong “continue to run counter to China’s promise to uphold Hong Kong’s autonomy”. The report further states that President Trump could issue an executive order suspending these privileges to Hong Kong if he believes Hong Kong is not autonomous from Beijing.

If President Trump were to revoke the special trade status with Hong Kong regarding exports of dual-use technology (technology that can be used by consumers and the military) to Hong Kong.

The Bloomberg article quoted Hong Kong legislature member, Felix Chung: “The Western community would look at Hong Kong with different eyes and may not even trust Hong Kong. The business sector cannot take this kind of risk.”

Will follow up with more updates if and when available.

$1.7 million in fake Nike shoes seized by CBP.

December 5, 2018 By in trademark, Uncategorized Tags: , , , , , , Leave a comment
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Photo by Wendy Wei on Pexels.com

According to the CBP media release, CBP officers in New York/Newark seized nearly 9,024 pairs of counterfeit Nike speakers. If genuine Nike products, the total value of the shipment equaled almost $1.7 million dollars.

The shipment of sneakers was from Dongguan City. Dongguan is a city in Guangdong (Canton) Province and borders Shenzhen and Hong Kong. When CBP suspects goods to be counterfeit, CBP will take photos and submit the photos or samples to the trademark holder. In this case CBP’s Apparel Footwear and Textiles Center for Excellence and Expertise sent the images to Nike where the images were determined to represent fake shoes.

The rest of the news release mentions ICE and Homeland Security Investigations will continue to investigate and look into the destination address in Chino, California. Given the value of the funds and the referral to ICE and HSI, it is likely CBP will look further into this shipment and may involve criminal charges for the importer of record.

If you have had your shipment seized on the basis of suspected counterfeit goods, or if you receive a penalty notice or seizure notice, contact experienced trade attorney David Hsu at 832.896.6288 or email at attorney.dave@yahoo.com for immediate assistance.

 

 

CBP finds invasive Egyptian Locusts from Italy.

December 5, 2018 By in Emergency Action Notice, invasive species, Italy, U.S. Customs and Border Protection, Uncategorized Tags: , , , , Leave a comment
ETL

Screenshot of the Egyptian tree locust. Source: cbp.gov

In mid-November, agriculture specialists from US Customs and Border Protection (CBP) discovered the Egyptian tree locust in the port of Baltimore. The locusts were found in a shipment of Italian wine. As a result of the finding, CBP had the shipment re-exported back to Italy.

The Anacridium aegyptium, or commonly known as the Egyptian tree locust is a leaf feeder and pest to grapevines, citrus, fruit and other vegetable. While the Egyptian tree locust is common in Europe, it is considered an invasive species in the US.

In addition to invasive pests, CBP’s agriculture specialists also work hard to stop noxious weeds and prevent foreign plant and animal diseases from entering the US.

If CBP finds the presence of invasive species in your shipment – you will receive an EAN (Emergency Action Notification) typically requiring you to re-export the shipment and contents. If you have received an EAN, contact experienced trade and customs attorney, David Hsu at 832.896.6822 or by email at attorney.dave@yahoo.com for immediate assistance.