Japan seeks assurance from US on car tariffs.

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Trade representatives from the US and Japan are working out details for a trade deal between the two nations – with both sides hoping to sign a trade deal this week during the United Nations General Assembly in New York.

Previously, Trump has threatened the imposition of tariffs of upwards of 25% on Japanese cars, and the Japanese want a clause added to any trade deal that would cancel any trade benefits if and when the US imposes tariffs on automobiles.

This is the only issue currently delaying the signing of a long awaited trade deal between the US and Japan.

Other parts of the trade deal are expected to include more access for US farmers to the Japanese market, modernization of digital trade rules, internet development, prohibition of cross-border taxation of e-commerce and data localization requirements.

US DOJ warns of increase in Chinese theft of trade secrets.

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According to CNBC, the Justice Department launched the “China Initiative” in November 2018 in response to Chinese national security threats while the Chinese have accused the United States protecting US companies from competition and attempting to hinder China’s technological development.

The Justice Department issued a warning to companies to bolster their defenses against economic espionage, which has seen an 80% increase in cases since 2012. US Deputy Assistant Attorney General Adam Hickey is quoted as saying more “more cases are being opened that implicate trade secret theft”.

Further more, Adam’s states:

“We expect other nations will want to become self-sufficient in critical technologies. That’s what we’d expect of a responsible government,” he said. “The issue isn’t that China has set out to do that. It’s that part of their industrial policy, part of the way they try to accomplish that, is state-sponsored theft or creating an environment that rewards or turns a blind eye to it.”

The DOJ believes part of the continued espionage efforts are part of the “Made in China 2025” strategic plan to reduce China’s dependence on importations of technology in 10 industries including information technology, robots, aviation, bio-pharmaceuticals and railway transportation.

If you have questions on imports or exports from China, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Counterfeit e-cigarettes seized by CBP.

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According to a US Customs and Border Protection media release, CBP officers in Phliadelphia seized 300 counterfeit Juul e-cigarette pods. The counterfeit brands were Eonsmoke and VGOD branded cigarette pods of various flavors from Hong Kong. 
After the pods were seized, CBP’s Consumer Products and Mass Merchandising Centers evaluated the goods and verified they were counterfeit. The fake e-cigarettes have a MSRP of $11,500 if authentic. This seizure follows an April seizure of 1,152 counterfeit Juul pods.
As with any media release on counterfeit goods, CBP was quick to point out the dangers of counterfeit goods – especially products such as e-cigarettes which have the potential to damage the health of the users.
If you or someone you know has had a counterfeit seizure, contact experienced customs attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Baltimore CBP stops Asian Gypsy Moths from entering US.

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CBP agriculture specialists removing egg mass, source: cbp.gov

Last week, CBP agriculture specialists at the Port of Baltimore detected over 120 egg masses across 4 different ships.
The Asian Gypsy Moth or AGM for short is a destructive invasive insect pests that is not typically found in the United States. CBP agriculture specialists at Baltimore have intercepted over 120 of the AGM egg masses since July of this year.
The AGM, scientifically known as the Lymantria dispar asiatica/japonica, pose a significant threat to the national forests and urban landscape because they are very mobile and can travel up to 25 miles per day- laying egg masses that produce hundreds of hungry caterpillars.
If you have had a shipment seized, detained or requiring re-export for fumigation – call experienced pest and invasive species attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com – there may be some other options available besides re-export. Time is of the essence in bug cases so call now!

US China exchange good will measures prior to next trade talks.

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US and China will send mid-level negotiators to meet in a few weeks prior to higher level talks afterwards. In advance of the meetings, both sides have displayed signs of good will – for example, the US rescheduled the proposed October 1st deadline for new tariffs to take effect to October 15th, as October 1st is the 70th anniversary of the founding of the People’s Republic of China (PRC).
China on the other hand, has indicated their importers are looking to increase purchases of American agricultural products such as soybeans, pork and other farm goods.
US Trade Representative Robert Lighthizer has indicated the talks will occur sometime in October. I don’t believe an agreement can be reached – the US is using trade as a leverage against China’s ambitions to be the world leader in robotics, artificial intelligence and high tech industries (2025), along with allegations of steal trade secrets and forcing foreign firms to participate in joint ventures with required tech transfers.
If you have any questions about how the current 232 or 301 duties will impact your business, contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Fake NBA championship rings worth $560,000 seized by Customs.

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Image of counterfeit NBA rings, source: cbp.gov

According to a U.S. Customs and Border Protection (CBP) media release – officers assigned at Los Angeles International Airport (LAX) seized 28 counterfeit NBA rings with a manufacturer’s suggested retail price (MSRP) of $560,000.

According to the media release, the rings were shipped from China and packaged in a wooden box to be sold as a collection of championship rings from multiple teams – including the Cavaliers, Lakers, Bulls, etc.

When CBP suspects items are counterfeit, they will take photos or send samples to the  Consumer Products and Mass Merchandising Center of Excellence (CPMM Center) for a final determination regarding the authenticity of the items. If they are determined to be counterfeit, CBP will seize the goods and issue a seizure notice to the importer of record (in this instance, it is a not a formal entry – so the notice would be shipped to the person receiving the goods).

If you have had your goods seized by CBP, contact experienced seizure attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com or dh@gjatradelaw.com.

Counterfeit goods seized at Kentucky World Fest.

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Counterfeit goods seized at 2019 WorldFest. (Source: Louisville Metro Alcoholic Beverages Licences)

According to WDRB, a local station in Louisville, Kentucky – an investigation funded by a 2-year, $25,000 federal grant from the US Department of Justice resulted in the seizure of more than $1 million worth of counterfeit goods from this past weekend’s WorldFest.

The article did not specify the brands that were seized, but did mention the counterfeit items included purses and sunglasses. Two men, 59-year-old Kassoum Thiam and 52-year-old Saidou Djau were cited for selling counterfeit merchandise at five separate booths.

While this was not a customs seizure, I’m pretty sure the next step for investigators is coordinate with CBP to determine how or where the two men received the merchandise.

If you or anyone you know is facing accusations of importing counterfeit merchandise or have had items seized by Customs for suspicion of being counterfeit – contact experienced seizure attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Newest Huawei P30 smartphone ships with Google Android 10.

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Despite a current ban on US companies from supplying technology to Huawei, the new P30 Pro features a 6.47 inch display, 4 cameras and Google’s  Android 10 (Android 9 “Pie”was the last Android version to be released with a name associated with a confectionary food).
While Google was exempt from export restrictions imposed against Huawei and the supplying of software for new products. Future Huawei smartphones such as the 5G Mate 30 Pro may include the Huawei developed Harmony OS.
If your company does business with Huawei and you want to be sure you are in compliance, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

China reduces penalties for importation of unapproved drugs – improving access for its citizens.

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In late August, the Chinese government said they would reduce the penalties for the sale and import of unapproved drugs, thereby improving access to cheaper generic pharmaceuticals from other countries. This action was taken to allow greater affordable drugs for chronic diseases increasingly impacting the Chinese population.

The reduction in penalties is set to take effect on December 1st. Current penalties for people selling drugs that are not approved by the National Medical Products Administration could result in a fine and criminal prosecution with jail sentences up to 3 years.

For example, under the new law, cheaper generic drugs made outside of China could be imported and sold in China. One drug cited in the article was the Indian version of the lung-cancer drug Iressa cost $10 a day in 2016, compared with $100 a day for the patented drug in China. He said generic drugs cost, on average, 97 percent less than patented drugs sold in China.

If you want to be sure you are compliance with US FDA regulations, contact experienced compliance attorney David Hsu by phone or text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Post Brexit US, Britain trade deal?

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According to the Associated Press, at last week’s visit to London, Vice President Pence indicated to Britain’s Prime Minister Boris Johnson that President Trump would be eager to reach a new trade deal with the UK once the UK leaves the European Union with the AP quoting Vice President Pence: “The minute the U.K. is out, America is in”.
While the US may be eager to join a trade deal, the AP cited British officials who are hesitant to entering into any deals that may favor the US. For example, the EU agriculture policy benefits British farmers, and any trade deal will include US demands for more access for agricultural products.
Another trade issue that will arise post-Brexit is between the UK and Ireland. With the
UK and Ireland belonging to the EU, free trade of people and goods has moved across the border with no problem. However, post-Brexit, this may complicate a new trade deal with the UK. In 2018, the UK was America’s 4th biggest export market with a US trade surplus of $18.6 billion.