China announces 80% tariffs on Australian barley – the new trade war?

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Photo by Samuel Silitonga on Pexels.com

That escalated quickly! In addition to banning imports of Australian beef, the Chinese government announced on Monday, May 18th, 2020 an 80% tariff on Australian barley exports starting today.

The tariffs are likely in response to Australia’s government demanding an inquiry into the cause of the corona virus. The Chinese President Xi Jinping has claimed China acted “with openness and transparency” in their handling of the outbreak.

Also on Monday, the World Health Organization (WHO) also agreed to launch an independent probe into how they handled the international response to the corona virus. The countries requesting the investigation included African, European and other countries and is looking for a review of the WHO’s response to the corona virus outbreak.

In response to the new tariffs, Australia’s Minister for Trade Simon Birmingham on Monday night denied Australia had subsidized or dumped barley in China. Will be following this news carefully as China accounts for 33% of Australia’s total exports at $135 billion in 2019.

China blocks imports of Australian beef in response to Australian inquiry to the origin of the corona virus.

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Photo by Catarina Sousa on Pexels.com

According to theweek.in, an India news publication – Beijing is blocking imports of Australian beef after the Australian goverment asked for an inquiry into the source of the origin of the corona virus. However, China’s foreign ministry claims the suspension of beef imports is to protect Chinese consumers after violations of inspection and quarantine requirements by Australian companies.

The article highlights other instances of Beijing restricting imports:
1. China blocks imports of Norwegian salmon after a human rights prisoner was awarded the nobel prize
2. China blocks imports of canola from Canada to pressure Canada to release Huawei executive
3. China blocks imports of Philippine bananas in response to dispute over territory in the South China Sea

However, the article notes this is the first time Beijing has used banning imports in response to criticism over the corona virus. In response to the ban on Australian beef, the Australian Prime Minister Scott Morrison said Australia draws clear lines on certain issues And those things are not to be traded.

This isn’t the first time China has blocked imports of Australian goods – in 2019, China suspended imports of Australian coal in response to Australia’s government recision of a visa for a Chinese businessman.

Will be interested to see what happens to the status of Australian beef imports to China.

Potential antidumping duties on tires from Korea, Taiwan, Thailand and Vietnam?

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Photo by Leo Cardelli on Pexels.com

On May 13, 2020, The United Steelworkers (USW) union announced they were filing antidumping and countervailing duty petitions on passenger vehicle and light truck (PVLT) tires from Korea, Taiwan, Thailand and Vietnam.

The petition by the USW claims tires from the 4 countries are “dumped” into the US after being made at a much cheaper cost than can be produced by US manufacturers. Potential dumping margins listed in the petition range from as low as 33% to 217%. As you are aware, the USW previously obtained AD/CVD orders on PVLT tires from China in 2015 that led to a drastic reduction of Chinese tire imports. However, the AD/CVD orders had the indirect impact of shifting tire manufacturing to Korea, Taiwan, Thailand and Vietnam.

The full press release can be found here.

If you have any questions on how the potential antidumping and countervailing duties will impact your business, contact trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

Department of Commerce amends direct product rule to restrict Huawei’s use of US technology and software.

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Photo by Pok Rie on Pexels.com

Yesterday, May 15, 2020, the Department of Commerce’s Bureau of Industry and Security (BIS) announced plans to restrict Huawei’s use of U.S. technology and software to design and manufacture its semiconductors abroad by amending the foreign-produced direct product rule. This change to the rule was established to counter Huawei’s acquisition of semiconductors that are the direct product of certain software and technology from the US.

While BIS added Huawei and its affiliates to the Entity List in 2019 and therefore requiring US companies wishing to export items to Huawei required the companies to obtain a license. Despite being placed on the Entity List, Huawei continued to use software and technology from the US to design semiconductors, there by getting around the basis for placement on the Entity List. Specifically, Huawei would use semiconductor fabrication facilities overseas that incorporated U.S. equipment.

The rule changes specifically mention Huawei and are written to close the loophole. The full announcement and full text of the rule changes can be found at the Department of Commerce website here.

If you have questions how the changes may impact your company, contact export compliance attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

Counterfeit Pokemon, gotta catch ’em all!

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Seized Pokemon, source: CBP.gov

Pennsylvania U.S. Customs and Border Protection (CBP) officers didn’t catch them all, but they did catch 86,000 of them. The seized shipment from Hong Kong was described as “plastic furnishing articles” but instead contained counterfeit Pokemon figurines in 15 boxes.

The figurines were seized for violations of violating U.S. intellectual property rights along with being a potential choking hazard. The estimated value of the shipment, if authentic is approximately $603,936. CBP usually tests counterfeit toys for lead levels, but did not do so in this instance.

If your goods have been seized by Customs, contact David Hsu by phone/text for a no cost or obligation consultation at 832-896-6288, or by email at attorney.dave@yahoo.com.

CBP Seizes Fake Cat and Dog Flea Collars.

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Counterfeit “seresto” brand food, source: cbp.gov

U.S. Customs and Border Protection (CBP) officers in Pittsburgh seized 58 fake “Seresto” brand dog and cat flea collars so far this month. CBP officers seized the 13 parcels and submitted samples the the trademark holder, Bayer. The shipments were from China and Hong Kong and if genuine have an approximate retail value of $3,500.

CBP has warned pet owners to not purchsae counterfeit collars as they may contain harmful ingredients that could cause chemical burns or fur loss.

If your goods have been seized by Customs, contact David Hsu by phone/text for a no cost or obligation consultation at 832-896-6288, or by email at attorney.dave@yahoo.com.

Wigs and books seized for containing counterfeit currency.

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Image of wigs containing concealed cash, source: cbp.gov

U.S. Customs and Border Protection officers at the Dallas Fort Worth port of entry found $63,000 in counterfeit currency in separate shipments from Nigeria. One shipment contained soft cover books, that upon further inspection yielded currency taped to the pages of the books. The other shipment contained wigs and hair. Upon examination, CBP officers opened the package and found currency in $50 and $100 denominations.

The media release says the counterfeit currency was turned over to the Secret Service.

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Image of $100 bills taped to the inside of pages, source: cbp.gov

In general, currency seizures are handled by CBP. In general if your currency case is referred to Homeland Security Investigations (HSI), this means Customs likely believes your seized currency is related to something criminal. If your currency seizure case is referred to the United States Secret Service (USSS), it means your currency is suspected to be counterfeit.

If your currency has been seized by CBP, HSI or the USSS, then contact David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

CBP seizes unsafe toy ducks.

According to a U.S. Customs and Border Protection (CBP), CBP officers at the Georgia seaport seized 5,000 stuffed toy ducks after tests found the ducks contained excessive amounts of lead.

The container arrived from Hong Kong and was labeled in boxes labeled “Doctor Duck”. The toys were detained and a sample was shipped to the Consumer Product Safety Commission (CPSC) for testing.
Test results found the toys contained excess levels of lead and cannot be entered into the US, meaning the next step for CBP will be to destroy the over $100,000 worth of toys.
If your shipment has been seized for excessive lead paint, contact David Hsu for a no cost consultation at 832-896-6288 or by email to attorney.dave@yahoo.com.

Counterfeit Super Bowl rings seized.

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Image of seized rings, source: CBP.gov

U.S. Customs and Border Protection Officers at O’Hare’s International Mail Facility seized a package of 35 counterfeit NFL Championship rings from China. The April shipment was held for further inspection due to x-ray images showing inconsistencies. The shipment was declared as ring and valued at $10 each. However, upon opening the packages, CBP officers found 35 counterfeit NFL Championship rings. CBP determined the rings to be counterfeit due to poor quality, poor packaging and low value. The approximate MSRP of the rings, if real, would have been $350,000.

According to the Customs media release:

The parcel contained fake Superbowl rings for the NY Jets (1) and Giants (4), Pittsburgh Steelers (6), San Francisco 49ers (5), Dallas Cowboys (5), Washington Redskins (5), Green Bay Packers (6) and Denver Broncos (3).

If you have had your shipment seized for IPR violations, contact David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

CBP seizes counterfeit protective equipment and medications.

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Image of seized medication, source: CBP.gov

U.S. Customs and Border Protection (CBP) officers seize shipments of counterfeit personal protective equipment (PPE) and medications to treat the corona virus.

Since late March and the height of the corona virus panemdic, CBP has seized, including but not limited to:

-1,200 “Linhua Qingwen” capsules that are not approved by the FDA for medicine in treatment of COVID-19.
-1,350 counterfeit test kits
-400 counterfeit N95 masks
-2,500 possibly counterfeit medicine such as Hydroxychloroquine Sulfate, Chloroquine, Azithromycin, Lianhua Qingwen and Liushen Jiaonang; and
-67,000 counterfeit ACCU-CHEK test strips.

If you have questions about your shipment seized by Customs and you want a free, no cost or obligation consultation, contact by phone/text David Hsu at anytime: 832-896-6288 or by email at attorney.dave@yahoo.com.

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Image of seized masks, source: cbp.gov