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

board-printed-circuit-board-computer-electronics-163125

Photo by Pixabay on Pexels.com

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, dh@gjatradelaw.com.

CBP revoke withhold release order (WRO) on disposable rubber gloves.

pexels-photo-1267349

Photo by ELEVATE on Pexels.com

According to a U.S. Customs and Border Protection media release, yesterday, CBP revoked a Withhold Release Order (WRO) for rubber gloves imported by WRP Asia Pacific Sdn. Bhd.

Briefly, a WRO is issued by CBP and intended to prevent goods suspected to have been made with forced labor or in violation of labor standards from entering the US.

The WRO, which was initially put in place last September and revoked recently because CBP obtained information demonstrating the company no longer produces rubber gloves under forced labor conditions. The process to revoke a WRO required CBP becoming involved with the manufacturing and labor practices to ensure WRP complied with international and US labor standards.

While the media release made no mention of the corona virus, it is unusual to see a media release singling out a revocation of a withhold release order, especially a WRO on PPE goods  such as disposable rubber gloves.

If you are subject to a WRO and want to explore your options, contact experienced customs attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

New CSMS message about importing personal protective equipment during the COVID-19 public health emergency.

pexels-photo-3962293

Photo by Anna Shvets on Pexels.com

Due to the COVID-19 health crisis and to help facilitate the importation of personal protective equipment (PPE), the FDA issued new instructions for PPE and medical devices through the Cargo Systems Messaging Service. A copy and paste of the entire message is copied below:

 


CSMS #42124872 -Information for Filing Personal Protective Equipment and Medical Devices During COVID-19

The U.S. Food and Drug Administration is providing instruction to the import community regarding the submission of entry information for personal protective equipment and certain other devices. Following the instructions below will help facilitate the import process for all; especially for products related to the Coronavirus Disease-2019 (COVID-19) public health emergency. It is in the best interest of the U.S. to facilitate and expedite the importation of products into the U.S. market that address immediate, urgent public health needs.

For further information regarding entry submission requirements, see the FDA Supplemental Guidance for ACE at https://www.cbp.gov/sites/default/files/assets/documents/2020-Mar/FDA%20Supplemental%20Guide%20Release%202.5.1%202018%200410.pdf.

1. Non-FDA-regulated general purpose personal protective equipment (masks, respirators, gloves, etc.):

Personal protective equipment for general purpose or industrial use (that is, products that are not intended for use to prevent disease or illness) is not regulated by FDA.

For these types of products, entry information should not be transmitted to FDA. At the time of entry for these products, Importers should transmit entry information to US Customs and Border Protection (CBP) using an appropriate HTS code with no FD Flag; or using an appropriate HTS code with an FD1 flag and do a ‘disclaim’ for FDA.

2. Products authorized for emergency use pursuant to an Emergency Use Authorization (EUA)

When importing such products, entry information should be submitted to FDA; however reduced FDA information is required for review.

At the time of entry, Importers should transmit an Intended Use Code of 940.000: Compassionate Use/Emergency Use, and an appropriate FDA product code.

Below is a list of products and the appropriate product codes that are currently authorized by an EUA:

• Diagnostic tests: QPK, OTG, QKO, QJR
• Masks/Respirators: NZJ

Questions regarding appropriate product coding can be submitted to FDA at: COVID19FDAIMPORTINQUIRIES@fda.hhs.gov.

Requests for Emergency Use Authorization can be submitted to FDA at: CDRH-EUA-Templates@fda.hhs.gov (for diagnostic devices) and CDRH-NonDiagnosticEUA-Templates@fda.hhs.gov (for non-diagnostic devices)

3. Products regulated by FDA as a device, not authorized by an EUA, but where an enforcement discretion policy has been published in guidance.

When importing such devices, entry information should be submitted to FDA.

At the time of entry, Importers should transmit an Intended Use Code of 081.006: Enforcement discretion per final guidance, and an appropriate FDA product code.

Below is a listing of guidance documents that have been issued for specific products related to COVID-19, which contain product codes within the scope of each guidance:

• Non-Invasive Remote Monitoring Devices
• Ventilators and Accessories and Other Respiratory Devices

A full list of all guidance documents related to COVID-19 is also available on FDA’s website.

All questions regarding these instructions, or to resolve entry issues for shipments can be submitted to FDA at: COVID19FDAIMPORTINQUIRIES@fda.hhs.gov or 301-796-0356.


 

If you import PPE and have any questions, please do not hesitate to contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

ITC publishes final determination of no material injury by imports of Fabricated Structural Steel from China, Canada and Mexico.

dirty industry stack factory

Photo by Life Of Pix on Pexels.com

About 30 minutes ago, the Federal Register published the final determination decision by the International Trade Commission finding no material injury by imports of fabricated structural steel from Canada, China and Mexico. The Final Determination can be viewed here: https://www.govinfo.gov/content/pkg/FR-2020-03-20/pdf/2020-05845.pdf

The petitioners have 30 days to file an appeal in court. If no appeal is filed, importers who paid duties may be eligible for a refund after the deadline to appeal expires.

If you want to learn more about getting a refund for your imports of fabricated structural steel from China, Canada or Mexico, contact experienced trade attorney David Hsu by phone/text at 832-896-6288, or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Second shipment of prohibited coronavirus test kits seized.

Medical Test Kits

Images of seized test kits, source: CBP.gov

According to a U.S. Customs and Border Protection (CBP) media release on Thursday, CBP officers at O’Hare International Airport, International Mail Facility (IMF) seized packages containing medical drug kits from the United Kingdom. These test kits were to test for viruses and diseases such as meningitis, IVF, MRSA, apple, salmonella and COVID-19.

The Federal Food, Drug, and Cosmetic Act (FDCA) prohibits the importation or delivery for introduction into interstate commerce, or the causing thereof, of any food, drug, device, tobacco product, or cosmetic that is adulterated or misbranded.

CBP says coronavirus testing should occur in laboratories and the public should be aware of counterfeit home testing kits sold online.

If you have had your good seized by CBP, contact experienced seizure attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

US investigating Chinese telecom giant ZTE for alleged bribery.

pexels-photo-745243

Photo by Wolfram K on Pexels.com

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.

Counterfeit designer bags seized from Turkey.

PHL Handbags1L 022620

Image of seized purses, source: CBP.gov

According to a U.S. Customs and Border Protection (CBP) media release, CBP officers in Philadelphia seized a shipment of 32 counterfeit designer brand purses from Turkey. If authentic, the handbags would have a retail price of $113,683.

This is the second significant shipment of designer brand handbags that CBP officers recently seized in Philadelphia, following the $317,080 in counterfeit designer brand products officers seized February 24.

According to the media release, CBP suspected the goods were counterfeit because of the poor quality and packaging.

What happens next?
The importer of record in Atlanta will receive a seizure notice (Notice of Seizure). The IOR can then petition for release, refer to court, abandon the goods or offer in compromise.

If you have been suspected of importing counterfeit goods, don’t risk the civil penalty by Customs, contact experienced seizure attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Costco approved as FDA’s first Voluntary Qualified Importer Program (VQIP) company.

pexels-photo-1797428

Photo by Alexander Isreb on Pexels.com

Costco Wholesale was approved by the U.S. Food and Drug Administration (FDA) as the first company in the FDA’s Voluntary Qualified Importer Program (VQIP).

The VQIP is a voluntary fee-based program ($16,681 FY2020) that helps expedite the review and importation of foods into the US. One main requirement is for importers to demonstrate they maintain control over the safety and security of the supply chain. As the supply chain reaches overseas, most food importers such as Costco need to ensure the locations of their foreign suppliers are certified by the FDA’s third-party certification program.

If you are a food importer and want to take advantage of benefits offered by being a VQIP, contact experienced customs and trade law attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Canada approves USMCA trade deal.

pexels-photo-374870

Photo by Burst on Pexels.com

While the US is focused on the Corona Virus (COVID-19), on Friday, Canada formally approved the United States-Mexico-Canada Agreement (USMCA), the last nation needed to implement the deal to replace the 25-year-old North American Free Trade Agreement (NAFTA).

The trade deal was ratified by the Mexican legislature last June, the US legislature this past January and formally ratified by Canada on Friday. The Canadian parliament is now shut down for five weeks in response to the coronavirus pandemic.

Contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com if you have any questions about how the new USMCA will impact you and your business!

Suspected counterfeit corona virus test kits seized.

That didn’t take long – U.S. Customs and Border Protection (CBP) officers at LAX seized a package containing what they suspect are counterfeit COVID-19 (corona virus) test kids from the UK.

Earlier this week, the CBP officers inspected a package labeled as “Purified Water Vials” with a declared value of $196.81, upon further inspection, CBP officers found six bags of vials filled with a white liquid and labeled “Corona Virus 2019nconv (COVID-19)” and “Virus1 Test Kit”.

CBP turned over the suspected fake test kids to the U.S. Food and Drug Administration (FDA) for analysis.

In general, there is something you can do if your shipment has been detained or seized for being suspected as counterfeit – however, in this situation, and given the current concerns over corona virus, the importer of record will likely not get this shipment returned and may receive a civil penalty notice from CBP in the upcoming weeks.