Highlights from Chinese President Xi Jinping’s speech at the International Import Expo.

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As reported by CNN, Chinese President Xi Jinping opened the China International Import Expo in Shanghai with a speech on Monday.

Here’s a summary of the opening remarks and some observations made by CNN:

-The International Import Expo is to highlight China as a destination for foreign goods
-No senior US government officials attended the event
-President Xi Jinping said protectionism should not be a part of international trade
-Over 3,600 companies from over 150 countries participated
-President Xi and President Trump will meet later this month at the G20 summit in Argentina
-President Xi Jinping promised to open the Chinese economy further to international investment and protect foreign businesses already operating in China

If you have any questions regarding export compliance of goods sent to China, contact experienced compliance attorney David Hsu at 832-896-6288 or by email at dhsu@givensjohnston.com.

 

China to cut import tariffs on wide range of products.

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According to Reuters, China’s finance ministry will reduce import tariffs on textiles and metals from 11.5% to 8.4% on November 1st. Tariffs on wood and paper products, minerals and gemstones will be cut from 6.6% to 5.4%.

The reduction in tariffs on imports is part of Beijing’s efforts to increase imports this year and likely due to the current trade situation between China and the United States.

November 1st marks the second time in which China reduced import tariffs – the first reduction occured in early July and covered import tariffs on mostly consumer items – such as clothing, home appliances, fitness products among others.

US and China exchange tariff duties in trade war.

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Sorry for the lack of updates, Trump’s 232 and 301 duties have been occupying most of my time.

As you likely already know, yesterday, the Trump administration announced they will impose 10% duties on $200 billion worth of Chinese goods, earlier today, China announced retaliatory duties on $60 billion in US goods.

If you import from China and have questions about commenting, exclusion requests or other alternatives to minimize the tariff penalty – feel free to give me a call, 832.896.6288 or email me at dhsu@givensjohnston.com.

Trump threatens tariffs on $267 billion in Chinese goods (not a typo).

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President Trump said on Friday (September 8th) he is ready to impose tariffs on $267 billion in goods from China, on top of the current $200+ billion plus in tariffs on goods. This past July, Trump imposed tariffs on $50 billion in Chinese imports in July and then an additional $200 billion in tariffs.

With the threatened $267 billion, Trump will have imposed or threatened to impose a total of over $500 billion in imports from China. To put this amount into perspective, the US imported only $505 billion in Chinese goods in 2017. In short, Trump is threatening tariffs on everything imported from China.

On September 6th, the U.S. Trade Representative finished accepting comments on the List 3 of tariffs that could impact up to $200 billion in Chinese goods.

More updates will be posted as they become available.

If you have any questions about how List 1, 2, 3 and upcoming proposed tariffs will impact your business – or how you can file comments or exclusions, contact experienced trade and customs attorney – David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.

Vinyl manufacturers and importers at odds over upcoming tariffs on Chinese vinyl imports.

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Two US vinyl flooring manufacturers testified in support of the 25% tariffs at an August 21st meeting in Washington with the United States Trade Representative.

According to testimony from one of the leaders of one of the vinyl floor manufacturers, 55 to 70% of the vinyl flooring is from Asia and China alone exported $1.7 billion of vinyl flooring into the US.

On the other hand, two importers of vinyl flooring and tile argued the higher prices would hurt consumers and not change the use of Chinese industrial policies like forced technology transfer and the “Made in China 2025 program”. Specifically, the vinyl flooring importers argued duties would raise home prices, impacting lower and middle income Americans the most. In other words, duties on vinyl flooring hurt low and middle class Americans while having no effect on China’s trade practices.

If you are interested in filing comments or an exclusion to any of the upcoming duties, contact experienced trade attorney David su at 832-896-6288 or by email at dhsu@givensjohnston.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

USTR finalizes “List 2” of Section 301 duties on Chinese goods – tariffs begin on August 23rd.

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The Office of the United States Trade Representative (USTR) released a bulletin today finalizing “List 2” of the tariffs of Chinese products known as “Section 301” duties.

List 2 goods will be subject to an additional 25% tariff on goods from China starting August 23rd. Out of the 284 proposed tariff lines, only 5 tariff lines were removed by the USTR.

List 2 covers approximately $16 billion worth of imports from China. The Section 301 duties are the US response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property.

List 1 went into effect on July 6th and covered about $34 billion of imports from China.

There is no word on when List 3 will be finalized but based on 1 and 2, I believe sometime in December 2018.

If you are importing a good subject to the 301 duties, contact experienced trade attorney, David Hsu for a free legal consultation on what our firm can do for you: dhsu@givensjohnston.com or 832.896.6288.

GM applies for tariff exemption on their Buick Envision manufactured in China and subject to a 25% duty.

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According to Reuters, General Motors (GM) is seeking to apply for a tariff exclusion on their Chinese-made Buick Envision. As the Buick Envision is made in China, imports of the vehicle to the US would be subject to a 25% tariff. According to the same article, sales of the Buick Envision total 19% of Buick brand sales in 2017.

According to GM authority, the automaker has currently sold 16,814 Envisions so far in 2018.

The tariff exclusions are also known as the “Section 301” tariff exclusions. Reuters cites the GM’s argument in the filing: “to invest in our U.S. manufacturing facilities and to develop the next generation of automotive technology in the United States” and that “assembly in our home market is not an option” due to low US sales numbers.

Besides applying for a Section 301 exclusion, GM shipped in a six-month supply of Envisions at the current 2.5% tariffs.

Will followup and update if/when the exclusion has been approved.

If your company would like to file a Section 232 or Section 301 exclusion, contact experienced trade attorney, David Hsu at 832-896-6288 or by email at: dhsu@givensjohnston.com.

US ports first to be impacted if/when China tariffs become effective.

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CNBC on July 28th indicated US ports as the frontline in the trade war with China. Citing interviews with port managers, the CNBC article claims imposition of more duties (estimated to total over $200 billion worth of Chinese goods) will result in cancelled shipments, less container traffic and lost jobs.

One port director from Long Beach believes further duties will impact the port, the state and the nation as a whole. The LA/LB port handled $173 billion in Chinese imports last year and account for 1/3 of all the shipped goods from China to the US.

Last year, $505 billion in goods arrived from China last year with about $130 billion in US goods to China. This difference in the goods arriving versus leaving is part of the $375 billion trade deficit President Trump vowed to lower while on the campaign trail in 2016.

There are currently in place tariffs on $34 billion in Chinese goods that resulted in China also imposing an equal $34 billion in US goods to the mainland. If List 2 and 3 become effective, the tariffs would cover around $200 billion more in Chinese goods.

The port director in Long Beach claimed the import business supports a million jobs throughout Southern California and slowdowns in China trade could result in layoffs, leading to loss of local and state tax revenues generated by business impacted by a slow down in trade.

If you have any questions how the tariff lists will impact your business, or for a free consultation on whether your goods are on one of the three lists, contact experienced trade attorney, David Hsu at 832.896.6288 or by email at: dhsu@givensjohnston.com.

How you can protect your company in light of the new China tariffs.

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Since “List 1” of the tariffs on Chinese goods became effective on July 6th, we’ve had many calls from importers, forwarders and brokers on the best practices moving forward. Here’s a quick summary of what any importer should do regarding their imports of Chinese goods –

  1. Apply for a company-specific exclusion from the tariffs. The U.S. Department of Commerce (Commerce) has published procedures for doing so on their website. The current approved exclusions are from steel tariffs with more exclusions to follow as Lists 2 and 3 take effect likely later this year.
  2. Review your classifications of imported merchandise. There may be more appropriate HTSUS numbers that your merchandise can be entered under and not subject to duties.
  3. Companies can also use the rules of origin to see if imported merchandise can be from another country other than China. This could result from moving the manufacture location, or moving the location of the “substantial transformation” of those goods.
  4. Adjust the valuation of the merchandise. See if the imported goods are properly valued.
  5. If merchandise is imported to the US for export out of the US, be sure property TIB, IT, T&E bonds are filed.
  6. No one likes surprises – it is best for importers, compliance, supply chain, sales and accounting to notify company management of potential tariff changes and the economic impact these new tariffs will have on profit and costs.

If you have any questions or want to know how your company can protect itself from these new duties, contact experienced trade attorney David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.