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 dhsu@givensjohnston.com or call/text: 832-896-6288.

 

 

 

US/China trade talks amid new charges against Huawei.

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Earlier this week, Chinese Vice Premier Liu He and his trade team arrived in the US to begin negotiations with US Trade Representative Robert Lighthizer. At about the same time of Vice Premier Liu He’s arrival, the US Department of Justice announced charges against Huawei for violations of US sanctions against Iran and among other things, theft of US intellectual property from T-Mobile.

Negotiations are in progress to reach a deal that could prevent an additional 15% tariff (total 25%) on $200 billion worth of goods from China before the March 1st deadline.

Since the truce, China has increased their purchases of American exports, such as soy beans and have also taken steps to crackdown on intellectual property theft. However, the US government is also requesting China open its market and limit government direction for state-owned enterprises (SOE). A change to Beijing’s economic support of certain industries is likely something that will not change.

Check back for the latest news as it becomes available. If you have any export compliance questions or have concerns about compliance with US sanctions, contact trade attorney, David Hsu at 832-896-6288 or by email at dhsu@givensjohnston.com.

US/China Meeting Cancelled?

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According to CNBC, officials with the U.S. trade representative’s office were supposed to meet with their Chinese counterparts this week to try and resolve some trade differences before the March 1st deadline – but the meeting was cancelled.

An unnamed source claimed the trade planning meeting was cancelled as both sides continue to disagree over the enforcement of intellectual property rules.

As you are aware, one of the US goals with China is to ensure adequate IP protections for US companies operating in China. More specifically, US companies doing business in China are expected to turn over IP to a China joint venture as a condition to doing business in China. The US claims this has resulted in the involuntary transfer of IP that ultimately hurts the US company.

While an unnamed source said a meeting was cancelled, the White House economic advisor, Larry Kudlow claimed there was cancellation and a meeting set for next week is still on schedule.

 

Tesla applies for tariff exclusion.

According to Reuters, Tesla has applied for a tariff exemption for the Chinese made computer brain found in the Model 3.

While not mentioned in the Reuters article, the computer component is currently included under List 2 of the Section 301 duties that came into effect in August of last year.

All goods under List 2 have a duty of 25%.

Tesla’s filing did not specify the Chinese manufacturer and included language mentioning China as the only source of this product that could meet the required specifications and volume.

It will be interesting to see whether this exclusion request is approved as very few of the tens of thousands have been approved. I’ll definitely updated this if and when it is approved.

The time to apply for a tariff exclusion under List 2 has passed and there are currently no instructions for a tariff exclusion request for goods covered under List 3.

Feel free to contact me if you have any questions how these 301 tariffs will impact you and your interests. My cell is 832.896.6288 or email me at dhsu@givensjohnston.com.

Midlevel US-China trade talks end – higher-level talks next?

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According to the New York Times, the midlevel US trade negotiators and their Chinese counterparts concluded trade talks today (Wednesday, January 10th).

No new concerns were mentioned in the NYT article. The US is still concerned about China’s purchase of US agricultural, energy and manufacturing products; forced technology transfer; intellectual property protection and concerns regarding China’s 2025 initiative.

The next step is to report the results of their talks to President Trump. As you are aware, the imposition of List 3 tariff increases to 25% (from the current 10%) occurs on March 1st (a 90-day extension announced during the “truce” at the G-20 summit in December 2018).

If you have any questions on how the Section 232 or Section 301 duties on Chinese imports impact your business, contact experienced trade and customs attorney David Hsu at dhsu@givensjohnston.com or by phone/cell/text: 832-896-6288.

Key 2019 Trade Deadlines.

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Happy new year everyone! Hope your new year is off to a great start.

2018 was a busy year for trade policy and 2019 will likely continue that trend. Here’s some important dates for trade in this new year:

1/1/2019 – the updated US trade agreement with South Korea signed in September 2018 will enter into force.

1/7/2019 – during this week, a US delegation will travel to Beijing for trade talks with Chinese officials. This will be the first face to face meeting since President Trump met with President Xi Jinping at the G20 summit on December 1st.

1/7/2019 – while a delegation goes to Beijing, the EU Trade Commissioner will meet with USTR Robert Lighthizer on other trade negotiations with the EU.

1/10/2019 – this is the deadline for submission of comments by US businesses regarding restrictions on high-tech American exports such as microprocessors and robotics

1/21/2019 – the US and Japan will likely enter into formal talks for a trade agreement.

2/17/2019 – deadline for the U.S. Department of Commerce to publish their report on the justification of tariffs on foreign cars. Once a report is submitted, President Trump has 3 months (May 18th) to make a decision on tariffs for foreign cars.

3/1/2019 – end of the 90-day truce started on December 1st. If no trade agreement is reached, $200 billion of Chinese goods will see increased tariffs from 10% to 25%.

4/2019 – deadline for the U.S. Department of Commerce to publish a national-secuirty report on the impact of uranium imports.

1st half of 2019 – congress will vote on the U.S.-Mexico-Canada Agreement to replace NAFTA.

Check back for more updates as they become available. If you have any questions how these upcoming events will impact your business, contact experienced trade attorney David Hsu at 832-896-6288 or by email at dhsu@givensjohnston.com.

China drafts new technology transfer law – will this be enough to alleviate US concerns?

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According to a just published South China Morning Post article – new legislation has been introduced in China that banns forced technology transfers. The draft foreign investment law was revealed on Sunday and includes a clause on protection of intellectual property.

According to the SCMP article, the newest version of the law states that “forced technology transfer through administrative measures is prohibited, and technology cooperation should be “based on voluntarily agreed terms and business practices”.

A similar law was written in 2015 but was not enacted at that time. However, given the US/China trade war and one of the main concerns on forced technology transfer – 2019 may see an enactment of the new law. Will update this article as more news peoples available.

If you have any questions regarding, trade, import, export, compliance or FCPA issues and how they may impact your business, contact experienced compliance attorney David Hsu at 832-896-6288 or by email at dhsu@givensjohnston.com.

China and US plan trade negotiations in January.

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According to Bloomberg, China and US held vice-ministerial level talks today to discuss a resolution to the ongoing trade war and are moving closer to a January meeting.

Both sides spoke on the phone and are making arrangements for a face-to-face meeting sometime next month. We’ll see if both sides can reach an agreement concerning the trade imbalance, market access, technology transfers and other trade related matters.

China imports zero U.S. soybeans in November – first time since trade war started.

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According to Reuters, China imported zero U.S soybeans in November, the first time since the trade war started earlier this year. China is the world’s largest soybean buyer and according to Reuters, sourced soybeans from Brazil to replace U.S. soybean imports.

China imported 5.07 million tonnes of soybeans from Brazil in November whereas U.S. soybean imports dropped to only 67,000 tonnes in October (a sharp drop from the 4.7 million tonnes imported to China in November 2017).

Trade in soybeans totaled over $12 billion in 2017 when the U.S. was the second largest supplier of soybeans to China. U.S. soybean imports have a duty of 25%, the same percentage the Trump administration levied on over $200 billion in Chinese goods.

Check back for the latest news. If you have any questions on how to importing/exporting or how the China duties may impact your business – contact experienced trade and customs attorney David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.