17.5% tariffs on Mexican tomatoes.

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While we frequently hear “tariff” and “China” in the same sentence, we will likely now start hearing “tariff” and “Mexico” more frequently as the Trump administration has placed near tariffs on imports of fresh tomatoes from Mexico.

A little background – in 1996 the US did not pursue tariffs on Mexican tomAatoes based off assurances from Mexican tomato growers would not sell their tomatoes at articially lower prices. However, last year Florida tomato growers requested the Trump administration to investigate whether Mexican tomatoes were being sold at articially low prices. In February 2019, the Trump administration issued a notice they would withdraw from the 1996 agreement on May 7th if a new deal could not be reached. Since no agreement was reached, Mexican tomatoes are now subject to a 17.5% tariff. If a subsequent investigation finds no unfair pricing, then any tariffs paid will be refunded.

Questions about the tomato tariffs, call/text David Hsu at 832.896.6288 or email at attorney.dave@yahoo.com.

Charlotte Pipe and Foundry wins case against Chinese cast iron pipe producers.

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Last week, the International Trade Commission (ITC) voted unanimously in favor of Charlotte Pipe and Foundry in their anti-dumping duty (AD) and countervailing duty (CVD) petition against imports of cast iron soil pipe from the People’s Republic of China.

A vote in favor of Charlotte Pipe and Foundry means the U.S. Department of Commerce determined that Chinese producers or exporters undersold the subsidized cast iron soil pipe in the US. AD/CVD duties are to level the playing field and cast iron soil pipe imported into the US from China will include duties ranging 251% to 345%. These additional duties go info effect immediately.

If you are a Chinese exporter or want to know how these new duties impact your business – regardless of whether you import or export, give David Hsu a call at 832-896-6288 or email at attorney.dave@yahoo.com.

US Kitchen cabinet companies petition for anti-dumping duties against Chinese cabinet producers.

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The American Kitchen Cabinet Alliance (AKCA) filed a petition with the International Trade Commission to impose antidumping duties and tariffs on imports of cabinets from Chinese manufacturers.

The AKCA claims the $10 billion cabinet industry is being harmed by imports of cabinets from Chinese manufacturers. The AKCA claims U.S. cabinet manufacturers have seen poor financial performance despite a 12.5% increase in the number of housing units completed in the U.S. The AKCA blames cheap imports from China for their financial decline.

The petition to the ITC by AKCA claims the kitchen cabinets from China are also sold at a below normal value and the AKCA is requesting an ADD rate of 175.5% to 259%.

If you are an importer or manufacturer of kitchen cabinets and ahve questions how the investigation on kitchen cabinets may impact you, contact attorney David Hsu at attorney.dave@yahoo.com or by text/call at 832.896.6288.

American Farm Bureau Federation supports Commerce Department anti-dumping investigation of Mexican tomatoes.

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The U.S. Department of Commerce will resume anti-dumping investigations into imports of Mexican tomatoes despite a previous agreement not to.

Zippy Duvall, President of the American Farm Bureau Federation indicated an anti-dumping investigation was needed because Mexican producers have increased their market share despite an agreement to ban artificially low prices.

On February 6, 2019, the Department of Commerce notified Mexico they would withdraw from the 2013 Suspension Agreement on Fresh Tomatoes from Mexico under a clause that the signatories may withdraw from the Agreement with “ninety days written notice to the other party”. The expiration of the 90-days is May 7, 2019.

After the withdraw on May 8th, an investigation by the Department of Commerce will continue and will send notification to the International Trade Commission of its final determination.

If you are an importer of Mexican tomatoes or want to know how this may impact you, contact antidumping duty attorney David Hsu at attorney.dave@yahoo.com or by phone/text at 832.896.6288 for a no cost or obligation consultation.

Investigation on Certain Fabricated Structural Steel from Canada, Mexico, and China.

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Yesterday, the American Institute of Steel Construction, LLC (AISC) filed a petition to assess antidumping and countervailing (AD/CVD) duties on imports of certain fabricated structural steel from Canada, Mexico and China.

The scope covers:

The merchandise covered by this investigation includes carbon and alloy (including stainless) steel products such as angles, columns, beams, girders, plates, flange shapes (including manufactured structural shapes utilizing welded plates as a substitute for rolled wide flange sections), channels, hollow structural section (HSS) shapes, base plates, plate-work components, and other steel products that have been fabricated for assembly or installation into a structure (fabricated structural steel). Fabrication includes, but is not limited to, cutting, drilling, welding, joining, bolting, bending, punching, pressure fitting, molding, adhesion, and other processes.

Fabricated structural steel products include products in which iron predominates and the carbon content is two percent or less by weight. Most notably, the investigation and potential duty orders will apply to fabricated structural steel.

The products subject to the investigation are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under subheadings: 7308.90.9590, 7308.90.3000, and 7308.90.6000.
The products subject to the investigation may also enter under the following HTSUS subheadings: 7216.91.0010, 7216.91.0090, 7216.99.0010, 7216.99.0090, 7228.70.6000, 7301.10.0000, 7301.20.1000, 7301.20.5000, 7308.40.0000, 7308.90.9530, and 9406.90.0030.

If you have any questions how the investigation and potential antidumping or countervailing duties will impact your business, call experienced trade and customs attorney David Hsu at attorney.dave@yahoo.com or call/text: 832-896-6288.

 

 

 

US Trade Commission reverses decision, finds the US tire market IS being harmed by truck and bus imports from China.

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Summary of what happened:
On January 30th, the US International Trade Commission (USITC) reversed their earlier decision, finding the US tire market is being harmed by truck and bus imports from China. In short – bus and truck imports from China will now be subject to tariffs. A tariff rate and timeline for imposition of duties was not reported by the USITC.

The USITC released a 62-page determination in response to an order of the U.S. Court of International Trade. Back in November 2018, the USITC remanded the ITC’s decision therefore requiring the ITC to re-evaluate their case.

What caused the reversal?
The five-members of the ITC had changed membership in 2017 when commissioner Scott Kieff left 3 years before the end of his term. President Trump later nominated and the Senate confirmed former President Barack Obama’s nominee to fill the commission – Jason Kearnes.

Jason Kearnes turned out to be the swing vote in the most recent reversal of the ITC decision on bus and truck tires.

Very brief history:
In January 2016, the US Steelworkers filed a complaint that tire imports from China was hurting US industry. After investigating, the ITC voted in February 2017 to NOT impose tariffs. This was a surprise because every other tire investigation led to imposition of duties.The US Steelworkers then appealed the decision to the Court of International Trade and in November 2018, the USITC was forced to re-evaluate their decision. Ultimately in their re-evaluation, the ITC found: “In sum, we find that the significant volume of subject imports, at prices that undersold the domestic like product and depressed domestic prices, adversely impacted the domestic industry. We consequently determine that the domestic industry is materially injured by reason of subject imports.”

Please contact our offices if you have questions on how the most recent ITC decision will effect your company’s imports of bus and truck tries from China. You can call David Hsu at 832-896-6288 at anytime or email attorney.dave@yahoo.com.

 

 

 

 

 

 

Taiwan – beneficiary of the US-China trade war.

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According to the Taipei Times, a beneficiary of the US-China trade war may be Taiwan. With tariffs of 10-25% on goods from China, some of Taiwan’s tech companies are exploring options of moving back to Taiwan – specifically the city of Taoyuan. Taoyuan is half an hour south of Taiwan and home to the Taoyuan International Aiport (Chiang Kai-Shek (CKS) Airport).

Several Taiwanese companies such as iPhone assembler Pegatron, laptop maker Compal Electronics and Apple supplier Inventec are adding capacity in Taoyuan. Even Quanta Computer is back in Taiwan seeking factory land.

30 years ago, Pegatron, Compal, Inventec and Quanta along with countless other Taiwanese companies moved to China due to lower production costs. In fact, 15 of the top 20 exporters from China to the US in 2016 initially originated from Taiwan.

If you have any questions how the 232 or 301 duties may impact your business, contact experienced trade law attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com

CBP investigating Philippines exporter for transshipment.

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According to the Inquirer.net, U.S. Custom and Border Protection (CBP) is investigating whether a Philippines manufacturer (Enlin Corporation) of stainless steel flanges has been evading the payment of antidumping duties (AD) and countervailing (CVD) duties by marking the flanges as “made in the Philippines”. Shipping goods from one country to another and falsely claiming the country of origin to avoid AD/CVD duties is frequently referred to as “transshipment”.

Under the tariffs enacted earlier this  year, the combined AD/CVD on stainless steel flanges can reach as high as 400%. CBP has already placed certain importers of stainless steel flanges from the Philippines subject to AD/CVD duties.

If you have any questions about country of origin, transshipment (trans shipment) or your company is under an investigation by CBP, contact experienced trade attorney David Hsu at 832-896-6288 or by email at: attorney.dave@yahoo.com for immediate assistance.

ITC preliminary determination on aluminum wire and cable from China.

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According to Bloomberg Bureau of National Affairs, Inc., the International Trade Commission (ITC) preliminarily ruled that aluminum wire and cable from China receive government subsidies such as tax breaks, loans and grants. The lower cost of production to these goods from China are “dumped” to the US thereby hurting US manufacturers.

A preliminary determination is one step towards the implementation of anti-dumping and countervailing duties. Countervailing duties are to counteract any subsidies that may be given to foreign manufacturers.

Two US companies – Encore Wire and Southwire Co. petitioned the ITC to assess duties on goods for China because (1) the margins of wire and cable from China are up to 63.47 percent and (2) Chinese producers receive government subsidies, tax breaks, loans and grants. These two factors allow Chinese companies to have a competitive advantage against U.S. manufacturers.

According to the article, the US imported about 157.2 million worth of wire and cable from China in 2017 alone.

Besides the just passed preliminary stage, the next state is a “final determination” phase that determines whether the imported steel and

The U.S. will only impose anti-dumping or countervailing duties if Commerce makes a final determination that the imports were sold in the U.S. at less than fair value or unfairly subsidized, and the ITC makes a final determination that the imports seriously hurt or threaten U.S. industry.

Check back for more news as it becomes available. If you have any anti dumping or countervailing duty questions, please do not hesitate to call me at 832-896-6288 or by email at attorney.dave@yahoo.com.

Current US Tariff Action Deadlines

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I receive many questions about the deadlines for all the various tariff actions, I thought I’d post all the upcoming deadlines for your convenience.

If you have any questions regarding any 301 or 232 duties or are interested in filing of comments or an exclusion, or need assistance filing a response to comments, feel free to contact David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.

August 20-23 – Public hearing in DC for List 3

August 23, 2018 – 25% duty effective on List 2

September 6, 2018 – deadline to submit written comments for List 3

September 6, 2018 – deadline to submit post-hearing rebuttal comments

October 9, 2018 – deadline for product-specific exclusions for List 1

14 days after request for exclusion posted on docket – deadline for responses to requests for product-specific exclusion.

7 days after the close of response period – deadline for responses filed during the 14-day response period.

To Be Announced – 10% or 25% duty on List 3