Category Archives: Export

New rules on exports to China, effective June 29, 2020.

April 28, 2020 By in EAR, Export, Export Administration Regulations, Import Export Attorney, Uncategorized Tags: , , , Leave a comment
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Yesterday, the Federal Register published new guidelines by the Bureau of Industry and Security governing the export, reexport and transfer of goods to the People’s Republic of China (PRC).

The Bureau of Industry and Security (BIS) is amending the Export Administration Regulations (EAR) to expand license requirements on exports, reexports, and transfers (in-country) of items intended for military end use or military end users in the People’s Republic of China (China).

The first major change will require U.S. companies to obtain a license before selling certain items in China that can support the military, even if the products are for civilian use. Previously, a loophole allowed an exception for civilian technology to be exported with a license.

The new regulations will impact several industries in the US, such as the semiconductor industry.

The second major change will require U.S. companies to file declarations for all exports to China, regardless of value.

A third proposed rule change will require foreign companies shipping American goods to China to seek approval from the US prior to export.

There will be a brief comment period to collect information on the proposed changes.

If you would like to submit a comment, or if you would like an evaluation of your company’s export (and import) compliance program, or have any trade questions – contact experienced trade law attorney David Hsu by phone/text at anytime: 832-896-6288 or by email at attorney.dave@yahoo.com

Corona virus’ January and February impact on trade.

April 26, 2020 By in corona virus, Export, Import, Import Export Attorney, international trade, trade law, Uncategorized Tags: , , , , , , Leave a comment
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According to the Financial Times, global trade dropped 2.6 percent in February compared to the same time in 2019. This February drop also follows a 1.5 percent drop from January 2020. Specifically, China had a 7.3 percent fall in imports in January 2020 due to parts of the country shutting down in response to the Corona virus. For February, China had another 3.2 percent drop for the month.

The US did not show any impact in trade volume while the EU trade volume dropped 1.5 percent for February 2020. Will be interesting to see March and April numbers when reported.

General importing/exporting questions? Contact experienced trade attorney David Hsu by phone/email at: attorney.dave@yahoo.com.

Port Laredo #1 in two-way trade.

April 25, 2020 By in Export, Import, Import Export Attorney, Laredo, Uncategorized Tags: , , , , , , , Leave a comment
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They say everything is bigger in Texas and Port Laredo is no exception.

According to census data analysis by WorldCity, for the second time in a year, Port Laredo has occupied the number 1 spot out of 450 international gateways, with a recorded 18.6 billion in two-way trade for the month of February. At the number 2 spot for recorded trade of $17.2 billion, the Port of Los Angeles. Port Laredo also surpassed the Port of Los Angeles in March 2918.

World City attributed LA’s second place ranking to the US-China trade war and corona virus pandemic impacting LA and the state of California.

Port Laredo is located in South Texas along the U.S. Mexico border and includes four vehicle bridges, international rail bridge and an international airport. World City expects Port Laredo to continue holding the lead as the Port of Los Angeles seaport will be impacted by the corona virus and ongoing trade war.

Questions about importing/exporting? Contact experienced trade law attorney David Hsu by phone/text at 832-896-6288 for a no cost or obligation consultation. Email attorney.dave@yahoo.com.

COVID-19 victim? Huawei dropped as UK 5G vendor.

April 21, 2020 By in 5G, Export, Huawei, Import Export Attorney, UK, Uncategorized Tags: , , , , , Leave a comment
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One fallout of the COVID-19 pandemic is the United Kingdom’s recent decision to move away from China-based Huawei as the company to help build the UK’s 5G infrastructure. Last year, Prime Minister Boris Johnson (who is currently recovering from COVID-19) gave Huawei the lead in building the UK’s 5G infrastructure.

UK lawmaker Tom Tugendhat, the Conservative Party’s chairman of the House of Commons Foreign Affairs Committee, is quoted as saying: “It’s a shared realization of what it means for dependence on a business that is part of a state that does not share our values,” Tugendhat said.

This is likely welcome news to the US which was very critical of Johnson’s decision last year to go with Huawei – raising concerns by the US that China could use Huawei technology to collect intelligence.

The US viewed Johnson’s decision on Huawei as a major blow to the “five eyes” electronic surveillance alliance among the US, the UK, Canada, Australia and New Zealand. US officials fear China could use Huawei to collect intelligence.

If you or your company does business with Huawei, and you  have concerns about your export compliance, contact experienced import/export compliance attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

New Update – Port of Anchorage, Alaska closed.

April 3, 2020 By in corona virus, covid-19, CSMS, Customs Lawyer, Export, Import, U.S. Customs and Border Protection, Uncategorized Tags: , , , , , , , Leave a comment
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I earlier posted about CSMS #42243866, in which the Port of Anchorage was closed Thursday and Friday due to an employee testing positive for COVID-19. However, CBP subsequently released CSMS #42247648 in which they announced the Federal Building at 605 West 4th Avenue, Anchorage, Alaska that houses the CBP Area Port office (3126) is now closed for at least 14 days.

The CSMS further announces any documents (entry packages, FP&F payments, petitions, etc.) that would be sent to the 605 West 4th Avenue address should be submitted to: CBP Cargo Office at Ted Stevens International Airport (4600 Postmark Drive, Room NA207, Anchorage, Alaska, 99502).

The Anchorage Seaport and Cargo operations are still running and business as usual.

Hope the employee has a quick and speedy recovery!

Potential changes to the Foreign Direct Product Rule may hinder Huawei supply chain.

March 27, 2020 By in Export, Foreign Direct Product Rule, Huawei, Import Export Attorney, trade law, Uncategorized Tags: , , , , , , , , Leave a comment
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The Trump administration has agreed to changes to the Foreign Direct Product Rule, which subjects some foreign-made goods based on U.S. technology or software to comply with U.S. regulations.  The proposed rule change requires foreign companies that use U.S. chip making equipment to obtain a license before they can supply certain semiconductor chips to Huawei.

The proposed rule change is to limit the number of foreign suppliers who continue to supply chips to Huawei. The new rule will greatly impact Huawei as most chip manufacturers use equipment produc Multiple articles on this subject cite the Taiwan-based “Taiwan Semiconductor Manufacturing Company” (TSMC). TSMC is Taiwan’s largest semiconductor manufacturer with over 15 fabs located throughout Taiwan.

If you have any questions whether you are subject to export controls or if you want to know how you are impacted, contact experienced export controls attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

Taiwan customs officers seize exports of face masks.

March 23, 2020 By in corona virus, Export, face masks, Uncategorized Tags: , , , , , Leave a comment
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According to the Focus Taiwan website, airport officials seized 3,020 surgical face masks from a Taiwanese citizen heading to Singapore in late February – the largest seizure since export restrictions on face masks were put in plate in late January due to the corona virus.

Each Taiwanese citizen is permitted to export 250 masks per trip. After seizing the face masks, Customs returned 250 to the passenger. The seized masks will be sent for use by the government in their efforts to prevent the spread of the corona virus.

I usually don’t post about non-US customs seizures, but found this article interesting for several reasons:

  1. No mention of secondary inspections, no seizures followed by a letter from CBP with threats of a civil penalty, etc.
  2. Sounds like the seizure process in Taiwan is slightly more painful than in the US and it appears the traveler didn’t miss her flight. If this happened in the US and there was a restriction on the export of face masks, I’m sure she would have been detained, all her belongings searched and then held in detention until they missed their flight.
  3. While it seems like this would never happen in the US since it appears to lack due process for a taking by the government, and while I am usually very supportive of individuals who have their goods (especially currency) seized, this time I am siding with the Taiwanese government on this one.

Interesting to note, the Taiwan customs reported confiscating over 171,450 face masks over 851 seizures since the rule was passed on January 24th. Besides export control efforts at the airport, Taiwan Post (equivalent to our USPS), has also seized outbound shipments of surgical masks destined for overseas. The ban on exports ends on April 30th unless extended. I also read another article from Focus Taiwan that Taiwan is expected to ramp up production of face masks to about 13 million per day.

Anyways, interesting read and the first time I’ve heard of a customs seizure at an airport in a foreign country.

Questions about customs seizures? Give me a call or text, David Hsu at 832.896.6288 or by email at attorney.dave@yahoo.com.

US investigating Chinese telecom giant ZTE for alleged bribery.

March 19, 2020 By in Export, Import Export Attorney, Uncategorized Tags: , , , , Leave a comment
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While the news is dominated by the corona virus coverage, the US is investigating whether ZTE paid bribes to foreign officials to gain advantage in ZTE’s operations. ZTE is one of the largest Chinese telecommunications companies and are believed to be closely related to the Chinese Communist Party.

The bribes include allegations of bribery by ZTE in over 12 countries, including but not limited to Algeria, Liberia, Kenya and Zimbabwe.

These new legal issues come right after ZTE plead guilty 3 years ago for violating U.S. sanctions against Iran and North Korea. In 2017, ZTE plead guilty to violating U.S. sanctions, and resulted in ZTE paying a civil and criminal penalty and forfeiture of assets – a settlement costing ZTE over $1.19 billion dollars. ZTE’s probation ended

ZTE’s US headquarters are based in Richardson Texas with the company’s headquarters located in Shenzhen, Guangdong, China.

Port Houston closing two terminals due to corona virus.

March 19, 2020 By in corona virus, Export, Import, Uncategorized Tags: , , , , , , , , Leave a comment
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An employee working at two Port Houston terminals tested positive for the coronaviorus. The Port of Houston Authority reported an employee working at the Barbours Cut and Bayport container terminals tested positive for COVID-19 and as a result the public terminals are closed with operations temporarily suspended. The Port of Houston Authority owns and operates the Barbours Cut Container Terminal and the Bayport Container Terminal.

The Houston ship channel and the other private terminals are still in operation. The Port Houston is one of the largest container ports in the Gulf of Mexico and handle approximately 70% of the containers moving through the gulf.

Huawei’s latest license extension cut in half by US government, 45 instead of 90 days.

February 19, 2020 By in Export, Huawei, Import Export Attorney, NDAA, Uncategorized Tags: , , , , , Leave a comment
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Since May of 2019, Huawei has been placed on the US entity list and therefore unable to conduct business with US companies. However, the Trump administration did permit companies to do business with Huawei through license extensions.

The most recent 90-day extension was granted in November 2019, allowing companies to do business with Huawei until the expiration of 90 days.

Last week, an 45-day extension was granted. After 45 days, and if no further extensions are granted, then American companies can no longer do business with Huawei.

Contact experienced export compliance attorney David Hsu by phone/text if you have any questions how the current prohibitions against Huawei and ZTE will impact your business. Email at attorney.dave@yahoo.com, dh@gjatradelaw.com.