CBP seizes $3.4 million worth of counterfeit luxury goods.

close up photography of red and black nike running shoe

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According to a U.S. Customs and Border Protection media release, CBP officers in Los Angeles seized handbags, belts, shoes, watches, electronics and other counterfeit items from brands such as Hermes, Fendi, Gucci, Versace, Casio and Samsung from a shipment originating from Hong Kong.

Import specialists stopped the shipment and seized over 5,300 counterfeit products that have an estimated MSRP of $3,475,000. The seizures included 1,242 counterfeit Gucci belts, 678 counterfeit Nike shoes, 531 counterfeit Louis Vuitton, 500 counterfeit Samsung adaptors and 502 counterfeit Gucci fanny packs among other items.

If you have had items seized by Customs due to suspicion of being counterfeit, contact experienced seizure attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

China threatens retaliation if India bans Huawei.

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According to a Reuters article, China has warned India not to block Huawei from doing business in the country, warning there could be consequences for Indian firms operating in China.

Part of the warning comes as India is holding trials for a 5G networking in the upcoming months and has not yet determined whether they will invite Huawei to take part in the rollout of 5G in India.

The Reuters article says Indian companies do not have a larger presence in China, but do have manufacturing, healthcare, financial services and outsourcing companies there.

India is currently evaluating bids from 5G firms such as Ericcson, Nokia, Samsung and officials have not yet confirmed Huawei will take part. The Indian Department of Telecommunications have found no evidence of Huawei capabilities of a backdoor or malware to collect data and the Indian Ministry of Home Affairs has issued no directive to curtail Huawei’s entry.

CBP Officers seize counterfeit items.

Entire IPR Nike & Exclipse

Images of the seized Nike earbuds and watches, source CBP.gov

According to a US Customs and Border Protection (CBP) media release, officers at the Champlain Port of Entry seized a shipment of more than 500 counterfeit Nike ear buds and over 200 counterfeit Eclipse watches. The shipment had a Manufacturer Suggested Retail Price (MSRP) value of $22,599.

The ear buds were suspected to be counterfeit due to the poor quality. Further examination confirmed the goods were counterfeit.

While not mentioned in the media release, CBP will send photos or samples to the holder of the intellectual property for verification. Most likely a photo was taken and submitted to Nike along with the details of the shipment. Nike would then confirm the shipment to be counterfeit.

The goods from Canada were seized. Also not mentioned in the media release, CBP will send a seizure notice to the importer of record. If the importer of record does not take any action, the goods will be forfeited and destroyed by Customs at a later date.

If you have had a seizure for intellectual property violations and want to discuss your options, contact experienced seizure attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Trump delays List 4 tariffs until December 14th.

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The Trump administration has postponed the levying of 10% tariffs on List 4 goods covering $300 billion in imports from China until December 15th. The initial date of September 1st was postponed after reports of a phone call with Beijing.

A new round of trade talks will be held in September after this month’s talks did not result in a trade deal.

There is still time to lower your import risk, if you would like solutions to lowering the duties you need to pay, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Huawei hires law firm of Sidley Austin to lobby on their behalf.

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According to Bloomberg, in July of this year, Huawei Technologies Co. hired the law firm Sidley Austin LLP to lobby on their behalf on export controls, trade sanctions and other national-security related topics. Sidley Austin is also the firm retained by Huawei for their other legal issues in the US.

Even though Huawei was added to the BIS entity list in May, the Trump administration delayed the restrictions after meeting with Chinese President Xi Jinping at the G20 summit in Japan six weeks ago. The delay in imposing restrictions on doing business with Huawei expires this upcoming Monday, August 19th.

As Huawei is the biggest purchasers of semiconductors, chipmakers such as Intel, Qualcomm, and Broadcom have sent their chief executives to meet with Trump in July in additional lobbying efforts.

The US claims Huawei can build backdoors into its equipment and that part of their technology is based off stolen intellectual property. Huawei counters that governments and customers in 170 countries use their equipment and that they pose no threat to cybersecurity.

Canada’s Global Affairs consults whether South Korea, Taiwan, Thailand and the UK should join CPTPP.

The Global Affairs Canada organization includes individuals, businesses (including SMBs), industry associations, experts, consultants, academics, civil society organization, labour unions, governments, indigenous groups, students and youth and other interested Canadian stakeholders.

In late July, Global Affairs Canada started discussions whether South Korea, Taiwan, Thailand and the United Kingdom should join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”).

An announcement was published in the Canada Gazette, Part 1. Global Affairs Canada has has begun soliciting comments for whether these countries (and China) should join the CPTPP. The deadline for submissions is midnight, August 25, 2019.

The announcement asks for the following information:

1. Contributor’s name and address and, if applicable, the name of the contributor’s organization, institution or business;
2. The specific issues being addressed; and
3. Where possible, precise information on the rationale for the positions taken, including any significant impact it may have on Canada’s domestic or international interests.

Additionally, they would like feedback on specific markets that Canadians and businesses would support entry to the CPTPP.

The full text of the announcement and additional topics Global Affairs Canada would like feedback on can be found here:

http://www.gazette.gc.ca/rp-pr/p1/2019/2019-07-27/html/notice-avis-eng.html#nL5

 

Children in China forced to produce Amazon Alexa devices. Where’s the outrage?

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According to the Guardian, a leaked document by China Labor Watch details school children in China forced to work over night to produce Amazon Alexa devices. The children were required to work nights and overtime to produce the smart-speaker devices at Foxconn, an OEM manufacturer supplying Amazon’s Alexa-enabled devices.

The documents delivered to the Guardian indicate teenagers from schools and technical colleges in China were classified as “interns” with teachers being paid by the factory to accompany the students. The legal age of employment is 16, but school children are not allowed to work at night or overtime.

One “intern” quoted in the report said they were applying protective film on 3,000 Echo dots a day for 10 hours a day, six days a week for $2.34 an hour. When the intern complained, their teacher told them they had to work or else it may impact their ability to graduate from school.

Foxconn admitted students were working and they vowed to take action to remedy the problem. As Foxconn is also the OEM for Apple’s iPhone, it is unknown whether school children also made those devices.

It will be interesting to see what penalty Amazon will face. Most likely there will be a disparity in punishment – for example, the Ivory Coast is facing a potential ban of cocoa to the US due to the use of child labor; but there is no discussion for a ban of Amazon Alexa products. tudying computing, was given the task of applying a protective film to about 3,000 Echo Dots each day. Speaking to a researcher, she said she was initially told by her teacher that she would be working eight hours a day, five days a week, but that had since changed to 10 hours a day (including two hours’ overtime) for six days a week.

Will post more Amazon child labor violations as soon as they become available.

US Companies can no longer do business with Huawei on August 19th.

In May, the Trump administration placed Huawei on the BIS entity list – a list of foreign organizations with whom U.S. companies are restricted from doing business with due to national security concerns. The Trump administration believes the Chinese government has influence over Huawei and that certain Huawei equipment and technology may allow the Chinese government to spy using the Huawei equipment – especially the planned 5G equipment Huawei has developed.

Even though Huawei is on the BIS entity list, the Trump administration issued a 90-day exemption to the ban, allowing U.S. companies to sell certain products and services to Huawei. However, this 90-day exemption will end on Monday, August 19th.

It is unknown whether the U.S. government will issued another extension. Given the current situation in Hong Kong and the lack of progress on US/China trade talks, the Trump administration will likely not grant another extension.

Will post any additional Huawei news as it becomes available. If you have any questions or concerns about whether your business can continue business with Huawei, contact experienced export compliance attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

Houston CBP finds Asian Gypsy Moths and Egg Masses on international vessel.

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Image of egg pods seized in Houston, source: CBP.gov

According to the U.S. Customs and Border Protection (CBP), agriculture specialists from Houston found two dead female Asian Gypsy Moths (AGMs) and 20 Asian Gypsy moth egg masses on the superstructure of an international vessel. CBP was notified of this vessel after they received notification from Japanese inspectors of 52 egg masses and 52 live moths before the vessel departed to the US.

The AGM’s are an invasive species that damages hardwood forests and urban landscapes. CBP says the AGM’s can lay 500-1,000 eggs that become hungry caterpillars, resulting in a potential to defoliate a million acres annually.

When vessels are found to contain invasive pests, Customs requires the vessel and shipment to be re-exported, fumigated, then returned to Houston. According to the media release, the vessel had to depart and return “multiple times” before CBP determined it did not contain AGM or their egg masses.

t of Agriculture (USDA) for identification; the agency confirmed Aug. 2 that the pests were in fact AGM. As required by law, the vessel left the port to receive treatment and to provide verification that it was free from AGM and egg masses.

The vessel had to depart and return multiple times before CBP agriculture specialists determined that it was absolutely free from AGM egg masses.

If you or someone you know has a shipment seized by CBP for containing invasive species or eggs from invasive species, contact experienced trade and customs attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

CBP officers seize $663K in unmarked Viagra pills.

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Image of the seized pills, source: cbp.gov

According to a US Customs and Border Protection media release, CBP officers in Mississippi seized a shipment containing 27,000 unmarked Viagra capsules.

The shipment originated from Hong Kong and was estimated to have a MSRP of $663,000. The capsules were seized due to improper marking and only after inspection were the pills discovered to contain the active ingredient in Viagra – Sildenafil citrate. Specifically, the shipment violated the Federal Food, Drug, and Cosmetic Act, prohibiting the importation of drugs that are adulterated or misbranded.

If you have had a seizure by Customs, call our office immediately, there are certain things you must do within 30 days of any Customs seizure – David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.