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.

Potential US Japan deal looks to boost US agriculture exports.

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As promised during his campaign, President Trump withdrew the US from the Trans Pacific Partnership – leaving Canada, Mexico and Australia as the major players; opting instead to enter into bilateral agreements with individual countries.
After the TPP took effect this January, US farm exports to Japan dropped by 2% for the first half of the year, with a projected annual net farm income loss of $4.4 billion annually. This could be due to US exports of beef to Japan now subject to a 38.5% duty, ground pork at 20% and some cheeses at 40%. The lack of a trade deal has also impacted
Japan’s exporters of steel and aluminum to the US. The President has previously threatened Japan with duties on auto imports.
The US and Japan have reached an agreement in principle expect to make the trade deal official in the upcoming months.

US and China trade talks to resume in October.

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The office of the US Trade Representative (USTR) confirmed on Thursday that a deputy-level meeting would be held in mid-September to discuss plans for trade talks in October.
This past Sunday, new tariffs on US$125 billion of Chinese imports, including shoes and smartwatches, came into effect after President Trump said he was disappointed in China’s lack of effort to buy US farm goods. In return, China responded with duties on $75 billion of American goods, affecting crude oil exported from the US.
The agreed to talks in October will hopefully resolve the 13-month trade war between the two countries.
If you have any questions how your company may be impacted by the US/China trade war – contact experienced trade attorney David Hsu at by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

CBP finds rare first-in-nation pest in importation of corn.

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A specimen of Cratosomus punctulatus
Gyllenhal
, source: cbp.gov

U.S. Customs and Border Protection officers in Brownsville, Texas intercepted a rare “First in Nation” pest in a shipment of corn.  The interception of the pest occurred at the Los Indios International Bridge import lot in a shipment of fresh corn from Mexico.
When the corn was inspected, CBP officers found the pest and submitted it to a U.S. Department of Agriculture entomologist. The initial identification was later confirmed by a national specialist as Cratosomus punctulatus Gyllenhal (Curculionidae) a pest not known to occur in the United States and intercepted for the first time in the nation.
This is a type of snout weevil that are plant feeders and many weeevils are pests of agricultural crops and forests.
If you have had your shipment seized due to pests or other invasive species, there may be some alternatives besides the ones given to you by Customs – contact experienced wood packing material and pest seizure attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com or dh@gjatradelaw.com.

CBP seizes $200,000 in unreported currency.

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CBP media release of the seized funds.

According to a U.S. Customs and Border Protection (CBP) media release, officers in Roma, Texas  at the Falcon Dam Port of Entry seized over $200,000 in unreported currency hidden within a passenger vehicle during an outbound examination, Aug. 31.

The cash was found within 8 bundles totaling approximately $221,319 in unreported currency hidden within the 2012 Nissan Maxima. The traveler was a 41-year old male greencard holder (lawful permanent resident). The currency was seized and the driver was arrested before handling the case over to USCIS – Homeland Security Investigations (HSI).

My thoughts – Customs can arrest people for traveling with unreported currency. It is discretionary and depends on the amount of the currency, destination and other circumstances. It isn’t a crime for someone to travel with more than $10,000, but the amount must be reported.

If you have had your hard-earned currency seized by Customs, call experienced currency seizure attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

US trade war impacts US/China military relations.

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In the past, the US Navy frequently made port calls to Qingdao, Hong Kong and Shanghai. However, the current trade war and pro-democracy protests in Hong Kong (which China accuses the US of inciting) have increased tensions enough for the Chinese government to deny an American warship permission to visit a port in Qingdao. Besides Qingdao, permission was also denied to for a port call to Hong Kong. China most likely denied the port call to Hong Kong as it may have been supportive of the protesters.

Other reasons for the current denials could be a response to the trade war and the recent $8 billion dollars sale of F-16 fighter jets to Taiwan.

Japan downgrades South Korea’s trade status.

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This past Wednesday, Japan downgraded South Korea’s preferential trade status – requiring Japanese manufacturers to now apply for approval for technology-related goods to be exported to South Korea. Japan claims the trade status of South Korea was needed over concerns the technology could be used for military purposes. Prior to Wednesday, exports to South Korea required less compliance as a preferential trade partner. South Korea also announced their action to downgrade Japan’s trade status to take effect later this month (September).

As previously posted on this blog, South Korea accuses Japan using trade as retaliation in responses to court decision granting compensation to individuals who were victims of forced labor during Japan’s occupation of Korea. The AP reports leadership from both countries are working on an agreement.

Citizens from both countries have also joined in street protests and boycotting goods from either country.

USTR to open comment period on List 4.

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This past Thursday, the US Trade Representative (USTR) gave formal notice of the plan to raise tariffs on $300 billion of Chinese imports from 10% to 15% starting December 15th. The formal notice starts the opportunity for importers or anyone impacted by the potential tariffs to submit comments. The comments are an opportunity for businesses to tell the White House why the tariffs are good or bad. As in the past, comments have been both supportive and critical of the potential tariffs.
This round of tariffs encompasses goods on “List 4” and includes mostly consumer goods – such as smartphones, computers, and other consumer electronics.
If you want to submit comments regarding any goods on “List 4”, contact experienced trade and customs attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Chinese traveler to US denied entry to the US due to body armor.

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U.S. Customs and Border Patrol agents at Detroit Metro sent a traveler back to China after the passenger initially claimed he was not carrying any prohibited items. A subsequent inspection found armor and tactical apparel. Federal Agents also searched the residence of the traveler and found “a significant cache of firearms and other regulated paraphernalia”.
CBP determined the passenger was inadmissible to the United States and returned him to China. 
I don’t understand how he could be sent back, the article says the traveler had a residence where they found a lot of firearms. Maybe he is on a student visa? Most likely, this individual was just a fan of guns – as private gun ownership is prohibited in China, he probably enjoyed being able to collect firearms here in the US. Given the high-profile mass shootings, the CBP agents are probably being extra cautious.