Category Archives: China

Trump: Apple goods from China will be subject to duties.

July 28, 2019 By in exclusion, Uncategorized Tags: , , , , Leave a comment
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According to the AFP, earlier today, President Donald Trump warned he would deny Apple’s “exclusion request” for tariff exemptions on device components imported from China.

Specifically, President Donald Trump wrote on Twitter:

“Apple will not be given Tariff wavers, or relief, for Mac Pro parts that are made in China. Make them in the USA, no Tariffs!”

Trump’s message on Twitter is in response to Apple’s filing of an “exclusion request” with the U.S. trade representative. Apple claims that some parts of the Mac Pro desktop being sold at $6,000 can only be sourced in China and therefore not be subject to 301 duties.

If your imported goods from China are subject to the current “List 3” duties and you would like to file an exemption, contact experienced trade attorney David Hsu at dh@gjatradelaw.com, attorney.dave@yahoo.com or by phone/text at: 832-896-6288.

Chinese manufacturers return to China leaving ‘inefficient’ Vietnam.

July 21, 2019 By in ADD/CVD, tariff engineering, Uncategorized Tags: , , , , , , Leave a comment
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According to the South China Morning Post, some Chinese manufacturers that relocated to Vietnam due to the tariffs placed on imports to the US, are moving back to China or exploring manufacturing options in Thailand, Bangladesh and Myanmar.

The SCMP article quotes a factory manager who said differences in culture (no over time in Vietnam and lower skill labor force) were two main causes of delays in delivery times and poor production numbers. With the tariffs in place, this has increased the demand for land and labor in Vietnam, causing costs to also increase. As foreigners cannot own land in Vietnam, there is also a risk for Chinese manufacturers to partner with a Vietnamese counterpart. Another factor leading to increased manufacturing costs for Chinese companies are the stricter labor and environmental protections, causing many Chinese companies to face fines for violations.

The current trade situation in Vietnam and US tariffs are forcing some manufacturers to look towards Thailand – attractive because of the stable political situation but high labor costs; Bangladesh which is relatively unknown to Chinese manufacturers and Myanmar which has low labor costs, but Myanmar faces sanctions due to their human rights abuses.

While not discussed in the SCMP article, the other big problem for Chinese manufacturers is the issue of how long the US 301 duties will remain in place. Just as spontaneously as the 301 duties were put in place, the 301 duties can also spontaneously end at the discretion of President Trump. I believe this unpredictability is the main question Chinese manufacturers must answer before spending the money and dedicating the time, resources, and manpower needed to move production to a foreign country.

If you have any questions regarding country of origin and how to avoid tariffs by moving production to other countries besides China, contact experienced trade attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

CBP seizes goods for lead in paint.

July 20, 2019 By in CPSC, Uncategorized Tags: , , , , , Leave a comment
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Image of seized brushes, source: cbp.gov

U.S. Customs and Border Protection (CBP) officers in Baltimore seized 790 children’s hair brushes from China. The children’s folding hair brushes contained a mirror and were included in a shipment which included “hats, gloves, hookah”. A sample of the shipment was sent to the U.S. Consumer Product Safety Commission (CPSC) to conduct a chemical analysis.

The CPSC advised CBP that the brushes contained excessive lead levels – more than 2,500 parts per million. In general, all children’s products made or imported into the US must not contain more than 100 parts per million of total lead content in “accessible parts”.

The appraised value of the seized goods carry a suggested retail price (MSRP) of $5,522. As the lead content is hazardous to children, the brushes will be destroyed by CBP.

While America took had the lead paint abatement initiative starting in the 70’s, the rest of the world is yet to fully rid the use of lead in many paints. Excessive amounts of lead are harmful to children if the accessible parts are placed in their mouths. Lead in paint causes illness and excessive levels further damage the a child’s development.

If you have any import/export questions, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Canadian sofa bed manufacturer no longer shipping to US due to 1,732% duties on Chinese mattresses.

July 12, 2019 By in ADD/CVD, mattress, Uncategorized Tags: , , , , , , , , Leave a comment
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According to a news article from the vancouverisawesome.com webasite, a Vancouver-based company has cancelled shipping their sofa beds into the US due to the 1,732% antidumping duty on Chinese mattresses that are used in their sofa beds. The U.S. Department of Commerce in May dumping rates of 34% to 75% for some Chinese manufacturers with an “all others” rate of 1,732%.

The company claims their sofa beds costing $600 will cost $113,000 due to the tariffs because the sofa beds include the mattress.

Fortunately the company does not only sell beds, and can rely on their Canadian made products. In fact, being made in Canada will probably make this company more competitive than their competitors who rely on Chinese imports for other goods that are likely covered under Lists 1-3 and a potential List 4.

The Commerce Department has set October 11, 2019 as the announcement date for their final decision on antidumping duties for mattresses imported from China.

If you have questions on how this or any other antidumping duty or countervailing duty will impact you and your business, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

CBP Seizes $253k in Counterfeit Edison speakers from China.

July 12, 2019 By in Uncategorized Tags: , , , , , , Leave a comment
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Image of seized speakers, source: CBP.gov

According to a U.S. Customs and Border Protection (CBP) media release, officers seized 1,626 counterfeit Edison Professional speakers in Philadelphia earlier this week. If the Edison speakers were authentic, the manufacturer’s suggested retail price would have been approximately $253,572.

The speakers arrived in two shipments from China destined for an address in Los Angeles. CBP suspected the speakers were counterfeit because of poor packaging and markings. CBP’s Electronics Centers for Excellence and Expertise, confirmed the Bluetooth markings on the speakers were counterfeit.

My guess is these speakers were to be sold through the “white van” scams where people sell supposedly high end speakers or counterfeit speakers from a van. The pitch is that the speakers are “leftovers” from an installation and the installers were told to get rid of them.

CBP claims counterfeit goods cause revenue loss, damage the US economy and threaten the health and safety of Americans. CBP claims in 2018 over $3.7 million worth of good were seized daily for intellectual property rights (IPR) violations.

In our practice, most of the IPR are for fake markings such as the “UL” or “Bluetooth” or “USB” logos in addition to our frequent seizures of Apple and Samsung phones. Protip – if you import legos, that’s fine, but do not include the minifigure head – it will be seized.

If you have had a Customs seizure for IPR violations, contact experienced seizure attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Canadian Conservative leader Andrew Scheer calls for more inspections on Chinese imports and potential tariffs.

July 8, 2019 By in Huawei, Uncategorized Tags: , , , , Leave a comment
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According to Canada’s National Observer, Conservative Leader Andrew Scheer has urged Prime Minister Justin Trudeau to step up inspections on all products from China and to consider levying tariffs on imports on Chinese imports.

The request was sent by letter last Friday in which Scheer urged Prime Minister Trudeau to take a harder line on China’s second largest trade partner. China detained two Canadians in December just days after Canada arrested Chinese high-tech executive Meng Wanzhou in Vancouver on a U.S. extradition warrant. Additionally, China has increased inspections that have led to the suspension or obstruction of key Canadian agricultural imports, including pork and canola. Last week, China announced an additional suspension of all imports of Canadian meat products because of claimed concerns over fraudulent inspection reports.

In Scheer’s publicly released letter, he writes: “There is no other way to put this: Canada is being bullied by the Chinese government and you have done nothing to stand up for Canada in response”. Scheer asks Prime Minister Trudeau to increase Canadian inspection of all imports from China and the potential of placing tariffs on some of the $75 billion worth of goods imported from China last year.

Vietnamese Furniture makers win in Trump’s trade war.

July 5, 2019 By in ADD/CVD, furniture, transshipment, Uncategorized Tags: , , , , , , Leave a comment
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A Bloomberg article highlights one of the winners in Trump’s trade war with China – that being Vietnamese furniture manufacturers.

With imports of Chinese furniture subject to a 25% duty in addition to any applicable anti-dumping or countervailing duties, furniture companies in Vietnam are cashing in as the tariff-free alternative to Chinese manufacturing.

The Bloomberg article quotes, the CEO of Xuan Hoa Vietnam Joint Stock Co., a furniture company that has seen a boom in international visitors – including Ikea. Xuan Hoa is a long time Ikea manufacturer (past 17 years) and their ability to produce cheaper than China is only increasing under the trade war.

In addition to not being subject to 301 duties or AD/CVD duties, the Bloomberg article cites labor costs half of what they are in China and lower electricity costs as it is subsidized by the government. Vietnam’s shared border with China also allows for the ease of materials and components.

If you are a furniture importer from China and want to learn how to save on import duties, contact trade and customs attorney by mobile/text at 832-896-6288 or by email at attorney.dave@yahoo.com or dh@gjatradelaw.com.

China’s #2, – Premier Li Keqiang eases trade tensions with the US.

July 2, 2019 By in exclusion, international trade, Uncategorized Tags: , , , , , Leave a comment
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According to the New York Times, China’s Number 2 official, Premier Li Keqiang speaking at the World Economic Forum in the Chinese port city of Dalian, promised to cut tariffs, loosen restrictions on foreign investments, protect intellectual property rights and allow foreign companies to apply for China’s generous subsidies for research and development.

Speaking during a question and answer session, Li also said that China would allow foreign financial services companies into its market a year earlier than previously promised, and that it would rewrite many rules on foreign investment.

The NYT mentioned the lack of details, and indicated previous vague promises by Chinese officials in the past.

In addition to extending an olive branch to foreign companies, Premier Li’s remarks also sought to calm worries about the relocation of manufacturing overseas as a result of the Section 232 and 301 duties levied against China.

If you have questions how the China duties will impact your business, contact David Hsu by phone/text at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

CNBC report: China’s factory activity in June was lowest since January.

June 30, 2019 By in PMI, Uncategorized Tags: , , , 1 Comment
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A recent CNBC article citing the Caixin/Markit factory Purchasing Managers’ Index for June was 49.4. PMI scores of 50 or above indicate expansion where as below 50 signals a reduction. 49.4 is the lowest the PMI has been since January of this year. In May, the PMI reading was 50.2. China’s official PMI index was also 94.4 in June.

To determine PMI, the official PMI looks at big businesses and state-owned enterprises whereas the Caixin looks at smaller and medium-sized firms.

Will post July numbers as they become available.

Will the new US/China trade war truce lead to a trade deal?

June 30, 2019 By in Uncategorized Tags: , , , , , , , , , 1 Comment
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Two big newsworthy events happened over the weekend at the G20 summit. First, Trump said US companies could supply to Huawei (waiting for official guidance at the moment) and second, the US and China agreed to not enact any further tariffs (current proposed Section 301 List 4 duties) in the near future and to start a new round on trade talks.

This may sound like Groundhog Day, and it partially is. Last year at the Argentina G20 summit, Trump and Xi also reached a similar agreement. And the differences that prevented a deal to be reached in Argentina also exist today. Key issues such as intellectual property and China’s 2025 plan are two areas where the two countries still do not reach a consensus.

With an election looming a little over a year away, Trump may be waiting until after next November before moving forward with a final deal – in the meantime, Trump says the US is already benefiting from the tariffs as the US is “taking in a fortune”.

If you have any questions about any of the 232 or 301 duties and how they may impact your business. Contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.