The opinions expressed are those of David Hsu and do not necessarily reflect the views of the firm, its partners, or its clients. The information in this blog is for general information purposes only and is not intended to be and should not be taken as legal advice on any subject. No recipient of content from this site, clients or otherwise, should act on the basis of any content in this site without seeking the appropriate legal or professional advice based on the particular facts and circumstances at issue from an attorney licensed in the recipient's state.
U.S. Customs and Border Protection (CBP) officers in Louisville, Kentucky seized 1,280 “Rolex” watches, if authentic, would be worth an estimated $25.2 million dollars. The shipment from Hong Kong arrived in four shipments to Louisville, Kentucky ultimately destined for Salt Lake City, Utah. If you are wondering why the seizures usually occur in Louisville, it is because that is where DHL/FedEx/UPS have their hub for shipments from China.
The Customs media release claims the watches were mis-manifested (wrongly described on the entry paperwork, packing list, or invoice). As an aside – Customs at their discretion seize goods that are mis-identfied.
Customs seized the watches and sent either sample photos or a sample seized watch to Rolex to confirm authenticity. As Rolex (and any property rights holder) denied the authenticity, the watches were seized and will be forfeited (destroyed by Customs).
2 days ago, Huawei announced “Huawei Docs”, an office productivity software suite with individual software titles: Document, Spreadsheet and Presentation – clear alternatives to Microsoft’s Word, Excel and Power Point. Take a page from Google, Huawei Docs claims to support over 50 types of file formats and “Huawei Drive” allows users to save changes to the same document across all devices using their “Huawei ID.”
For Huawei users, Huawei Docs is avialable on all Huawei Mate 40 devices worldwide. While Huawei is number one in the world for most phones shipped, this new office productivity software can only increase sales.
Ultimately, I believe this move by Huawei is a result of the export ban on Huawei – preventing Huawei from accessing Google software and or Microsoft apps found on the Google play store.
Do you supply goods to Huawei and want to know if you are in compliance with the current export regulations? Contact David Hsu by phone/text at 832-896-6288 or by email at email@example.com for a no-cost consultation.
According to a U.S. Customs and Border Protection (CBP) media release. CBP officers at the Roma, Texas Port of Entry seized more than $838,000 in unreported currency hidden in a vehicle heading out of the US.
As you are aware, all currency and monetary instruments $10,000 or more need to be reported. In this case, CBP officers seized stacks of cash totaling $838,481 in unreported currency concealed within a 2016 Chevrolet Colorado.
After seizing the currency – CBP referred the case to U.S. Immigration and Customs Enforcement – Homeland Security Investigations (ICE-HSI). In general, if your case is referred to HSI – then there is likely a criminal case.
If you have had your currency seized by Customs, contact our office immediately – there are time limits regarding the seizures – call or text David Hsu directly at 832-896-6288 or by email at firstname.lastname@example.org.
According to a U.S. Customs and Border Protection (CBP) media release, CBP officers in Louisville seized five shipments containing counterfeit goods, if authentic would be worth more than $1.1 million.
On that day, CBP seized multiple shipments, with 5 separate shipments containing: 30 “Louis Vuitton” toes, 4 “Dior” handbags, 2 “Gucci” handbags, 200 “YSL” purses and another 366 “LV” bags. The last shipment contained a box with Louis Vuitton wallets.
When Customs detains goods for suspicion of counterfeit goods, CBP will submit photos or send samples to the trademark or other intellectual property rights holder. Almost 100% of the time the trademark holder will notify Customs the importer of record does not have a right to import the covered goods. If so, then Customs will seize the goods and send a “Notice of Sezizure” to the importer of record.
If you have had your goods seized by Customs, call David Hsu or text anytime at 832-896-6288 or email email@example.com.
With the US, UK, Australia, and India (as of late July) prohibiting the use of Huawei and/or ZTE components from being used in future 5G infrastructure, China’s Huawei has shifted their focus to other parts of the world – this time on the Africa continent.
According to the South China Morning Post, South Africa hosts Africa’s data-only mobile network with stand alone 5G and is teaming up with Huawei and other local telecommunication companies to expand 5G services. Kenya is likely to follow suit this year followed by Lesotho, Egypt, Nigeria, Uganda, Senegal, Morocco, Democratic Republic of Congo and Gabon.
Whereas Western governments have criticized Huawei, South Africa’s President and Kenya’s Minister of Information both have publicly supported Huawei and have chosen Huawei for their 5G network. Huawei’s lower equipment price compared to rivals Nokia, Ericsson and Samsung have also helped their success into African projects along with special financing terms for African nations.
If you have any questions how the Huawei export ban may be impacting your business – contact David Hsu by phone/text at 832-896-6288 or by email at firstname.lastname@example.org.
U.S. Customs and Border Protection (CBP) officers in Ohio seized 54 counterfeit watches from two packages shipped from China – and according to CBP, if authentic would total over $1.9 million.
According to Customs, the fake watches were replicas of luxury brands such as: Audemar Piguet, Rolex, Cartier, and Gucci. The watches were manifested as “timers and “watch” with a declared value of $33 and $200.
Author’s note – usually Customs will detain suspected counterfeit goods and then verify the authenticity of the watches. Authenticity usually occurs by sending photos or samples to the property rights holder. 100% of the time the property rights holder will say the goods are counterfeit. During this period of time, there is nothing for the importer to do, except wait to receive notice the goods will be seized. A “Notice of Seizure” will be sent to the address where the watches were to be sent – after you receive a Notice of Seizure, be sure to mark the date of the letter. You will have 30 days to respond to a seizure notice.
If you have received a seizure notice and want to discuss your options – call David Hsu by phone/text at 832-896-6288 or by email at email@example.com.
Every importer of record needs to make declarations to Customs regarding tariff classification, valuation, origin of imported goods and more. Incorrect declarations can potentially lead to long term and expensive problems for the importer.
The NAFTA rules provided a method in which importers could seek guidance from Customs through an advance ruling to predetermine tariff classification, valuation, regional value issues, questions on qualifications of originating good, country of origin marking requirements, and more. NAFTA limited requests for guidance to only importers in the US and exporters and producers in Canada and Mexico who exported their goods to the US.
Fortunately, the new USMCA implemented several key changes. First, the USMCA not only allows an importer, but also allows an exporter, producer or anyone related to the trade transaction to request an advance ruling. Advance ruling requests are no longer limited to domestic residents.
Secondly, the USMCA agreement requires Customs to make a decision within 120 days – increasing transparency and predictability to the advance ruling process. Additionally, the USMCA also identifies the subjects that can be decided through ruling requests – tariff classification, customs valuation, origin of goods, quotas or “other issues agreed upon”.
Lastly, the USMCA offers increased protection in the event of customs modifying or revoking an advance ruling. Under the USMCA, an advance ruling cannot be revoked or modified if doing so will hurt the original ruling requester – unless the requester did not follow the advance ruling or the ruling was based on false information provided by the requester.
The best way to limit your USMCA import liability is to request an advance ruling – taking out the guesswork before the goods are shipped or entered into the US. Please do not hesitate to contact David Hsu by phone/text at 832-896-6288 or by email at firstname.lastname@example.org.
Another day, another seizure – this time in Chicago on July 28th. CBP officers found 555 counterfeit Nike and Air Jordan shoes, 462 Louis Vuitton branded handbags, totes, backpacks, 165 Gucci handbags, totes, wallets, 13 Beats headphones and 10 Apple Airpods.
The media release noted the poor manufacturing and packaging quality as an indication the goods may be counterfeit. The shipment from Hong Kong (likely another reason why Customs believes the goods are counterfeit).
Author’s note – Customs can detain a shipment for up to 5 days to verify the authenticity of the goods seized. In this instance, CBP asked the importer of record to produce documentation showing they were licensed to import trademarked goods. If an importer cannot show they have a license to import goods of a certain brand holder – then the goods will be seized and a seizure notice will be issued.
Also, if a shipment has been detained for suspicion of violating trademark or copyright violations – the 5-day detention rule does not apply. The reason the 5-day rule does not apply is because CBP will contact the property rights holder and ask if the importer has a license to import the goods. Very rarely will the trademark holder side with the importer.
If you have had your goods seized by Customs, contact David Hsu by phone/text at 832-896-6288 to discuss your options. You can also email David at email@example.com.
As you are aware, in May 2019 the US Government added Huawei and its affiliated entities to the entity list – preventing US firms from selling technology to Huawei without a license. Huawei was to remain on the list until 2021. However, in May 2020, the US Department of Commerce changed the export rule to stop any shipment of semiconductors chips to Huawei from any company that produced chips using US software and technology, unless they applied for a license.
The May 2020 revised rule had an immediate impact on Huawei. For example, Taiwan Semiconductor Manufacturing Company (world’s largest semiconductor manufacturer) stopped accepting any orders for Huawei in May following the new rule.
Huawei’s consumer business unit CEO Richard Yu, said the chips purchased from foreign semiconductor manufacturers that use US software and technology will stop production on September 15th. Without chips from foreign manufacturers, Huawei will no longer be able to manufacture their Kirin chips.
If you have any questions about Huawei or want to ensure you are not violating any export controls, contact David Hsu by phone/text anytime at 832-896-6288 or by email at firstname.lastname@example.org.