Huawei 5G technology coming to the US?

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As Huawei is on the US Commerce Department’s Entity List, Huawei is prevented from doing business with US companies without permission (ie without a license from BIS).
However, media outlets report that Huawei is discussing licensing of their 5G technology to unnamed American companies who have shown interest in long term and one-time transfers. Even a license to an American company may be a violation even if no goods exchange hands.
The Huawei inclusion on the entity list is part of an effort to prevent suspected Chinese government surveillance onto their communications equipment.
If you or your company is interested in doing any business with Huawei – contact experienced BIS/trade compliance attorney David Hsu by text/phone at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Huawei claims they are victims of 1 million cyber attacks daily.

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According to a Forbes.com article, the Huawei security chief, John Suffolk claims Huawei is cyber attacked almost 1 million times per day on the Huawei networks and computers. According to their security chief, most of the attacks are looking for intellectual property theft as Huawei leads the world in 5G technology. In response to these attacks, Huawei has pledged to work with their customers to secure their defenses from further cyber attacks.
On the other hand, the US government has alleged that Huawei receives Chinese state support and as such is subject to assisting Beijing with intelligence gathering overseas through backdoors in their hardware.
The US is not alone in its suspicion, the Forbes article also cites a EU report warning of the “combination of new technologies and 5G networks risks hostile state control of critical infrastructure, logistics, transportation even law enforcement”. The EU report did not cite China or Huawei but the article did indicate that 5G suppliers from countries “with poor democratic standards,” for which the reference to Huawei and China was clear.
If you do business with Huawei and have questions about maintaining Huawei compliance, contact export compliance attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

“Ignorantia juris non excusat” and the need for export compliance in the wake of the Huawei ban.

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Huawei’s surprise placement on the BIS Entity List highlights the crucial need for your company to have a compliance program in place.

Many people believe export compliance programs only apply to the big guys – however, even the smallest business that sends their products to customers outside of the country are subject to the various export regulations and the steep penalties for export violations. as the saying goes, Ignorantia juris non excusat or ignorantia legis neminem excusat (Latin for “ignorance of the law excuses not” and “ignorance of law excuses no one” respectively).

Small and medium sized company personnel may not know of these requirements until it is too late – fines for export violations can reach up to $1 million per violation in criminal cases and administrative cases can result in penalties amount to the greater of $250,000 or twice the value of the transaction. Criminal violators may even face up to 20 years in jail time and punishment for administrative cases can include denial of export privileges – it’s a risk you can’t afford to take.

Here are a few quick tips to protect your company –

  1. Be sure your exported items do not require an export license.
  2. Determine if the destination country requires an export license.
  3. Know your customers – screen who is buying your goods and be sure a restricted party does not receive your goods.
  4. Red flags – does the destination country of your product meet a need for your product?
  5. Be sure you have a copy of all the required documentation – it is not enough to hire a freight forwarder to handle the export.

For more information and a no obligation consultation on creating an export compliance program – contact experienced compliance attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com or attorney.dave@yahoo.com.

White House imposes tariffs on $50 billion of Chinese goods.

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As expected, the administration announced Section 301 tariffs on about $50 billion worth of Chinese goods with two purposes: (1) balance the trade relationship between the US and China and (2) prevent the transfer of American technology and intellectual property to China when US businesses operate in China.

After the announcement this morning, China responded by issuing their own tariffs on 659 types of goods from the US starting on July 6th. When announcing the initial $50 billion in tariffs, Trump also indicated any Chinese retalation will also be met with additional US tariffs.

Cliff Notes version of today’s developments:

  1. 2/3rds of the US duties on 1,102 types of goods begins July 6th.
  2. The goods announced on Friday will apply later after a review period ends.
  3. The US imposed these tariffs to limit the transfer of technology to China.
  4. Some lawmakers say these tariffs will only impact the average American due to higher prices.
  5. The first list of goods subject to tariffs can be found here.
  6. The second list of goods subject to tariffs can be found here:

Whether or not these announcements are posturing on both sides, check back for more details.

If you have any questions on how these new tariffs will impact your import or export business, contact experienced trade attorney, David Hsu at 832-896-6288 or by email at: attorney.dave@yahoo.com

 

In Houston and want to learn more about U.S. Export Controls?

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The The Bureau of Industry and Security, Outreach and Educational Services Division will hold a conference regarding “Complying with U.S. Export Controls”

Date: June 12-13, 2018

Location: Norris Conference Center, Houston, TX (City Centre)

About the program (from the BIS website):

Complying with U.S. Export Controls

The two-day program is led by BIS’s professional counseling staff and provides an in-depth examination of the Export Administration Regulations (EAR). The program will cover the information exporters need to know to comply with U.S. export control requirements on commercial goods. We will focus on what items and activities are subject to the EAR, steps to take to determine the export licensing requirements for your item, how to determine your export control classification number (ECCN), when you can export or reexport without applying for a license, export clearance procedures and record keeping requirements, and real life examples in applying this information. Presenters will conduct a number of “hands-on” exercises that will prepare you to apply the regulations to your own company’s export activities. This program is well suited for those who need a comprehensive understanding of their obligations under the EAR. Technical, policy, and enforcement professionals from BIS, as well as specialists from other agencies such as the Bureau of the Census, will participate.

About the Instructors

The instructors are experienced export policy specialists, engineers, and enforcement personnel from BIS’s Washington, D.C. headquarters and field offices, as well as representatives from other U.S. government agencies as appropriate. The instructors will be available throughout the seminar to answer your questions on how the export regulations affect the export activities of your organization or client.

Location/time

The program will be held at Norris Conference Center located at 816 Town & Country Blvd. Suite 210, Houston, Texas 77024. Registration and continental breakfast will begin at 7:30 a.m. on June 12, 2018. The program will begin at 8:30 a.m. and end at 5:00 p.m.

Registration

The registration fee for the Complying with U.S. Export Controls seminar is $525 per person before May 11, 2018 and $575 after. To register for both this program and the Technology Controls seminar on June 14, 2018, the fee is $775 before May 11 and $845 after. The fee includes continental breakfasts, coffee breaks, lunches and materials for the entire seminar. Fee is not refundable after May 18, 2018. Substitutions may be made. To guarantee placement for the BIS seminar: Click here to register.

If you have any questions about BIS, export controls or customs law, contact experienced trade and customs attorney David Hsu at 713-932-1540 or by email at attorney.dave@yahoo.com.

 

 

China’s Ministry of Commerce publishes Section 301 Retaliatory Tariff List.

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Yesterday, the People’s Republic of China, Ministry of Commerce (MOFCOM) issued Announcement 34. Announcement 34 states that the PRC will implement tariffs of 25% on soybeans, various agricultural products, chemicals, automobiles and airplanes, encompassing a total of 106 U.S. products in response to recent tariffs issued by the current administration.

A simplified Chinese-only version of 2018’s Announcement 34 can be found here.

If you have any questions about whether these tariffs will effect your exports to China, contact bilingual and experienced trade and customs attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com.

Renegotiated KORUS FTA results in changes more favorable to US companies.

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According to the Office of the United States Trade Representative website, the Trump administration has negotiated additional favorable terms of the United States – Korea Free Trade Agreement (KORUS) that went into effect in 2012.

Fulfilling part of his campaign promises, President Trump has re-negotiated the KORUS with these (and many more) favorable changes to US companies:

1. Korea will double the number of US automobile exports to 50,000 cars per manufacturer per year.

2. US automobile exports to Korea that meet US safety standards can enter the Korean market without further modification. This lowers the cost of US cars being sold in Korea as additional testing and modifications are not needed before the US cars are sold in the marketplace.

3. Korea will recognize US standards for auto parts to service US vehicles in Korea, this reduces the labeling burden for US parts manufacturers.

4. Korea will amend their Premium Pricing Policy for Global Innovative Drugs to ensure non-discriminatory and fair treatment for US pharamceutical exports.

5. Korea imports of steel products into the US will be subject to a product-specific quota equal to 70% for the average annual import volume of such products during the years 2015-2017, resulting in reduction of Korean steel shipments to the US.

If you have any questions regarding the KORUS or other trade and customs law issues, feel free to contact David Hsu at 832.896.6288 or by email at attorney.dave@yahoo.com.

China imposes new tariffs on imports from the United States.

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In response to the U.S. Section 232 tariff measures imposed on steel and aluminum products, China’s Ministry of Commerce announced their intention to impose tariffs on certain products from imported from the United States.

According to an English press release issued by the Ministry of Commerce (full text here), China intends to impose tariffs on 128 products that cover a wide range of items, from food and alcohol to oil and gas pipes.

The tariffs vary from 15% to 25% and a notice of tariffs is available here online for public comment.

A quick look at the list shows these items are subject to the increased tariffs: citrus fruits,
watermelons, dried apples, steel drilled oil and gas drilling pipes with an outside diameter less than 168 mm, cold rolled alloy steel seamless circular cross-section tubes
other fresh or cold pork, frozen pork liver, aluminum scrap, modified ethanol, and American ginseng.

For more information or if you would like to know whether your exported product will be subject to these new duties, contact experienced and bi-lingual English/Chinese Mandarin speaking attorney David Hsu now at 832.896.6288 or by email at attorney.dave@yahoo.com.

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What is the Global Magnitsky Human Rights Accountability Act?

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Short Answer: The Global Magnitsky Act is a US effort to stop human rights abuses and corrupt actors by allowing President Trump to impose sanctions against parties involved in human rights violations and corruption around the world.

This Act sounds familiar, how is it different from the Sergei Magnitsky Rule of Law Accountability Act of 2012 (“Magnitsky Act”)? The Magnitsky Act was only targeting human rights abusers in Russia. The Global Magnitsky Act applies to human rights abusers and corrupt actors globally.

Long Answer: President Trump signed Executive Order 13818 titled “Blocking the Property of Persons Involved in Serious Human Rights Abuses or Corruption” on December 20, 2017 implementing the Global Magnitsky Human Rights Accountability Act (“Global Magnitsky Act”).

The passage of the Global Magnitsky Act authorizes President Trump to impose sanctions on individuals, governments or other entities who commit human rights violations such as extrajudicial killings, torture, gross violations of human rights. Additionally, this act also applies to parties who are involved in significant corruption such as expropriation of assets for personal gain, corruption in government contracts, bribery or other acts of corruption.

In late December, OFAC also designated 52 new parties as SDN’s as part of the Global Magnitsky Act and the Executive Order. If you are in trade compliance, be sure to check out the new OFAC designated parties as the updated list includes parties from the following countries: The Gambia, South Sudan, Russia, Nicaragua, China, Pakistan, Democratic Republic of the Congo, Dominican Republic, Uzbekistan, and Ukraine.

These designations are the first under the Global Magnitsky Act and won’t be the last.

Click the below link for the U.S. Department of Treasury sanction list and other OFAC information:

https://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx

If you have any questions about compliance with the new or old Magnitsky Act, OFAC, SDN or blocked persons or any general trade compliance matters, call 832.896.6288 or e-mail attorney.dave@yahoo.com

2018 Houston BIS Export Compliance Event – Register Now.

hall-congress-architecture-building-159213.jpegSave the date if you are in Houston and want to learn more about BIS export compliance.

The first two-day program session will be led by BIS staff and provide in depth information regarding Export Administration Regulations (EAR). Covered topics include EAR, how to determine export control classification numbers (ECCN); when to reexport without applying for a license, Export Management Compliance Program (EMCP) and more!

Additionally, session 2 on day three covers technology controls, specifically how to comply with U.S. export and reexport controls related to technology and software. Topics include export or reexport of technology, kinds of tech and software subject to EAR, license exceptions and more!

The 3-day seminar will be held at the Norris Conference Center in City Centre Houston near Beltway 8 and I-10 West.

For more details, click the link below:

http://events.r20.constantcontact.com/register/event?llr=qg6pm6iab&oeidk=a07eeqlbbsq77507f3b