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

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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, dh@gjatradelaw.com.

Importer and company executives pay $5.2 million penalty under the FCA.

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The DOJ recently announced a $5.2 million settlement from importer, Blue Furniture Solutions, LLC, based on alleged importation of merchandise into the United States using false descriptions and invoices that claimed the merchandise was not within the scope of the antidumping duties on wooden bedroom furniture from China.

A whistleblower under the FCA’s qui tam provisions exposed Blue Furniture Solution’s intentional misrepresentations totaling $1.7 million in antidumping payments. The US Department of Justice (DOJ) intervened under the FCA.

One year later, on April 20, 2020, the DOJ announced the $.52 million settlement – in which the company pays $4.7 million and executives pay $550,000 for personal liability. Information on this case can be found in the following: United States ex rel. University Loft Company v. Blue Furniture Solutions, LLTC et al., No. 15-CV-588-LY (W.D. Tex.). The related criminal matter appeared under the case name United States v. Zeng, No. 19-CR-64-DCN (D.S.C.).

If you believe an importer is misrepresenting their customs entry to save on AD duties, or if you are a subject of an FCA investigation, contact experienced customs and trade law attorney David Hsu at 832-896-6288 by phone or text; or email attorney.dave@yahoo.com; dh@gjatradelaw.com.

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.

US and Mexico reach deal to end tomato dispute.

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According to Reuters, Mexican tomato growers and the Trump administration reached a deal to end a potential anti-dumping investigation and end a tariff dispute. The agreement means many Mexican tomato exports will be subject to U.S. border inspections, and specialty tomatoes face higher reference prices on the American marketplace.

The negotiations began back in May when the Trump administration imposed a 17.5% tariff on Mexican tomatoes after the parties did not reach an agreement.

The Commerce Department said the new deal will ensure sales do not fall below certain prices for Mexican tomatoes and allows a mechanism to audit up to 80 Mexican tomato producers per quarter, or more.

If you have any questions how the tomato deal may impact your business – contact experienced trade attorney David Hsu at dh@gjatradelaw.com or attorney.dave@yahoo.com.

Commerce Department finds dumping of refillable stainless steel kegs from Mexico.

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Earlier today, the U.S. Department of Commerce issued an affirmative final determination in the antidumping (AD) investigation of imports of refillable stainless steel kegs from Mexico.

Here’s a summary:

  1. Commerce found that exporters from Mexico have been selling refillable stainless steel kegs at less than fair value in the United States at a rate of 18.48 percent.
  2. After today, Commerce will instruct U.S. Customs and Border Protection to continue to collect cash deposits equal to the applicable final weighted-average dumping rate.
  3. Last year, imports of refillable stainless steel kegs from Mexico were valued at an estimated $13.4 million.
  4. The US manufacturer is the American Keg Company, LLC located in Pottstown, Pennsylvania.

So far into Trump’s administration, the Commerce Department has initiated 179 new antidumping/countervailing duty investigations – a 231% increase from the same time during the Obama administration.

The full text of the affirmative determination can be found at the following link:

https://enforcement.trade.gov/download/factsheets/factsheet-mexico-refillable-stainless-steel-kegs-ad-final-081319.pdf

If you have any questions how this new AD determination will impact your business or would like to discuss ways to reduce your AD/CVD duties, contact experienced trade attorney David Hsu at dh@gjatradelaw.com, attorney.dave@yahoo.com.

Commerce issues affirmative preliminary determination in CVD investigation of wooden cabinets and vanities.

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The U.S. Department of Commerce has issued affirmative preliminary determination CVD investigation of wooden cabinets and vanities from China, finding that exporters received countervailable subsidies ranging from 10.97 to 229.24 percent.
As such, Commerce will instruct CBP to start collecting cash deposits from importers of wooden cabinets and vanities from China. Last year, imports of wooden cabinets and vanities from China were valued at an estimated $4.4 billion. The final CVD determination is expected to be on or about December 17, 2019. A final injury determination will then be announced on January 30, 2020.
The announcement and preliminary rates can be found here.
If you have any questions about importing wooden cabinets and vanities, contact experienced trade attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

US collected $63 billion in tariffs through June.

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According to the Wall Street Journal, the Treasury department’s tariffs is expected to generate almost $72 billion in tariffs through June of this year. This number will likely go much higher if the “List 4” duties take effect on September 1st. On September 1st, over $300 billion in Chinese goods will be subject to a 10% tariff with a potential to increase to 25%.

Specifically, as of June 30th, the Treasury department has collected $63 billion in tariffs over the past 12 months. In contrast, prior to the trade war, the US only brought in $30 billion dollars.

The WSJ estimates the annual generated amount can be as high as $100 billion by the end of the year once the 10% duties are placed on over $300 billion worth of imported goods from China.

If you have any questions how the current 301 duties or proposed List 4 duties will impact you, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Senator Rubio comments on the investigation of tomatoes from Mexico.

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U.S. Senator Marco Rubio issued a statement today about the ongoing antidumping investigation on fresh tomatoes from Mexico (Inv. No. 731-TA-747).

Senator Rubio said that “U.S. tomato growers should not have to lose their livelihoods due to a deal imposed on them by their own government”, adding that the loss of livelihood happened under the previous agreement.

Also stating: “The fact remains that the Mexicans have avoided serious negotiations for well over a year, preferring to use scare tactics and inflammatory rhetoric to try to force President Trump and Secretary Ross to back down on their commitment to ensure that American tomato growers are able to fairly compete in our own domestic market.”

Key upcoming dates in this investigation:

09/03/2019: Prehearing Report
09/10/2019: Prehearing Briefs
09/19/2019 9:30 am: Hearing
09/26/2019: Posthearing Briefs
10/10/2019: Report to the Commission
10/17/2019: Record Closing
10/21/2019: Final Comments
10/23/2019: Proposed Vote
11/04/2019: Determination(s) Issued
11/04/2019: View(s) Issued
11/04/2019: End

If you have any questions about how this investigation will impact you, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

019: Report to the Commission
10/17/2019: Record Closing
10/21/2019: Final Comments
10/23/2019: Proposed Vote
11/04/2019: Determination(s) Issued
11/04/2019: View(s) Issued
11/04/2019: End

If you have any questions about how this investigation will impact you, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Easy to understand version of the Chinese billionaire’s scam to avoid paying duties on aluminum.

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Who is involved:
Chinese billionaire: Zhongtian Liu
His company: China Zhongwang Holdings Ltd.
Key players according to investigators: Zhaohua Chen, Xiang Chun Shao, Perfectus Aluminum Inc, Perfectus Aluminum Acquisitions, four LLC’s that owned the warehouses. A business agent named Po-Chi

What was he importing:
Aluminum pallets that appeared to be “finished” to avoid duties on unfinished aluminum extrusions. The pallets were “spot-welded” to appear to be finished pallets.

Purpose of scam:
Unfinished aluminum is subject to a high rate of duty (up to 400%)

How he scammed Customs:
He imported the aluminum as finished aluminum pallets. Finished aluminum pallets have a lower duty.

How did the scam work?
1. Import aluminum pallets instead of extruded aluminum. Manufactured pallets avoid the duties versus extruded aluminum.
2. The pallets were then stored in warehouses.
3. The pallets were “sold” to entities owned by the billionaire to inflate sales and deceive investors.
4. Investigators believed Liu was going to build a smelting plant to melt the palllets then sell as raw aluminum. The aluminum imported was a higher grade and used in applications such as surgical tools.

How big ($) was the scam?
A total of 2.2 million pallets were imported from 2011 to 2014.
Customs believe the billionaire avoided paying $1.8 billion.

When was the scam discovered?
Started in 2017 with notice of the charges released this week.

What will happen to the people charged?
Probably not much, Liu and the defendants are in China and the US cannot extradite them (no treaty with China).

If you have any questions about limiting your tariff liability the legal way – contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Trump threatens tariffs on $300 billion of Chinese imports on September 1st.

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Official portrait of President Donald J. Trump, Friday, October 6, 2017. (Official White House photo by Shealah Craighead)

As you are aware, yesterday, President Trump imposed a September 1st deadline for an additional $300 billion in tariffs on Chinese goods if a trade deal is not reached.

The $300 billion covers the remaining items not previously listed in Lists 1, 2 or 3. The List 3 exclusion process is currently underway and Commerce recently published lists of additional exclusion requests that have been granted in Lists 1 and 2.

Here is a summary of what has been reported by various news outlets:

  1. There has been no progress in trade talks with China this week in Shanghai between Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer and their Chinese counterparts.
  2. Trump believes China is moving too slow in working on a deal and set September 1st as a deadline to impose duties on the remaining imports of goods from China.
  3. The new duties if imposed in September will be at 10%. We have seen goods in List 1, 2, 3 have tariffs as high as 25%.
  4. Some news outlets report that China may be stalling to sign a trade deal until after the 2020 election.
  5. September 1st would mark an end to a “truce” between the two countries.
  6. China has threatened to respond with their own retaliatory tariffs if Trump goes through with the September 1st deadline.
  7. Trump claims China has not gone through with their promise to buy more agricultural products from the US in large quantities.
  8. Trump also claims China would curtail the shipments of Fentanyl to the United States, but has not and the shipments continue to harm Americans.
  9. According to reports, Chinese negotiators want Trump to remove the tariffs on $250 billion in Chinese goods before they will purchase US agricultural goods and comply with their other concessions.
  10. Trump believes the US economy is strong as unemployment has hit a 50-year low, a position that will enable the US to outlast China in the event of a prolonged trade war.
  11. Analysts claim further duties will only hurt Americans in increasing the prices of goods.
  12. Shipping companies and importers are trying to get as many shipments into the US prior to the September 1st deadline.

Will post more news as they become available. If you have any questions how the 301 duties will impact your business, contact David Hsu at: dh@gjatradelaw.com, attorney.dave@yahoo.com or by phone/text at 832-896-6288.