Huawei chip supply diminishing due to US export sanctions, may soon halt production of their Kirin chipset.

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Photo by Pixabay on Pexels.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 attorney.dave@yahoo.com.

Counterfeit coolers seized by CBP.

Counterfeit cooler, source: CBP.gov

Earlier this week, U.S. Customs and Border Protection (CBP) inspected a rail container at the Portal Port of Entry and found coolers in violation of intellectual property rights. The seized coolers, if genuine would total approximately $151,149.

Author note – not sure which brand these coolers appear to be trying to counterfeit – I see RTIC and YETI both have these types of coolers – but could not find one that was similar.

If you have any questions about importing and/or exporting, contact us for a no fee consultation – David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

CBP seizes $1.41 million in eyewear.

Counterfeit glasses, source: CBP.gov

U.S. Customs and Border Protection (CBP) officers in Chicago seized seven shipments containing eyewear worth more than $1.41 million. The glasses were entered duty free claiming country of origin as Israel. However, upon further inspection, CBP officials found the origin markings on the eyeglasses did not match the country of origin on the paperwork.

CBP reports the country of origin on the goods included China, France, Italy and the United States. CBP seized the goods for fraudulently misrepresenting the country of origin and attempting to avoid the payment of duties. CBP seized the goods for violation of 19 USC 1304 and 19 USC 1595a(c).

If you have had your goods seized by customs for suspicion of being counterfeit, contact seizure attorney David Hsu by phone/text at anytime at 832-896-6288 or by email at attorney.dave@yahoo.com.

CBP seizes mislabeled shipment filled with counterfeit goods.

Image of counterfeit sandals, source: CBP.gov

In late June, U.S. Customs and Border Protection (CBP) officers Kentucky detained and seized a shipment containing over 300 counterfeit items shipped from Hong Kong.

While the outside packing list indicated the contents were belts, CBP officers instead found watches from “Rolex”, “Cartier” and “Panerai Luminor”. The shipment also contained sandals from Tory Burch, earrings from Chanel, Gucci sandals bracelets, LV scarves, Gucci scarves, Chanel Scares and many more luxury branded goods. CBP indicated the shipment contained over $371,365 worth of goods – if authentic.

Author’s note: in general, CBP will detain goods suspected of being counterfeit and then send images or samples of the goods to the trademark holder. If the trademark holder tells Customs the goods are not authentic – CBP will seize them and issue the importer of record a seizure notice.

Also – in addition to seizing the goods for being counterfeit, CBP can also seize any goods that are included in the shipment, but not properly declared or mis-declared on the packing list and entry paperwork.

In general – it is easy to run into Customs problems – before you import, or before you export, contact David Hsu by phone/text anytime at 832-896-6288 or by email at attorney.dave@yahoo.com for a free consultation.

$5.5 million in fake Gucci, Instagram and Facebook clothing seized.

Seized goods, source: CBP.gov

Earlier this past July, U.S. Customs and Border Protection (CBP) officers at one of our great nation’s biggest seaport of Los Angeles / Long Beach seized a large shipment of women’s sleepwear containing counterfeit brands such as Gucci, Facebook and Instagram.

2020 is a weird year indeed when we consider Facebook and Instagram to be a luxury brand. If authentic the 16,340 items of seized counterfeit pajamas (called “sleeping dresses”) would be worth an approximate retail value of $5.5 million.

CBP reported the counterfeit goods were concealed inside generic non-branded pajamas which CBP believes was intentionally packaged to avoid detection.

Author’s note – yes, in general if you pack counterfeit goods underneath unbranded goods, or try to conceal a counterfeit logo (such as using black tape to cover a logo), CBP will assume you are aware of the nature of the goods and are attempting to smuggle them into the US in violation of 19 USC 1595a (c)(1)(A), in other words merchandise that “is stolen, smuggled, or clandestinely imported or introduced“.

In addition to violating intellectual property rights of the trademark holder, CBP also claims counterfeit goods may not be in compliance with the U.S. Consumer Product Safety Commission (CPSC) requirements for flammability standards of sleepwear.

If you have had your shipment seized for alleged counterfeit violations or seized for alleged violations of CPSC consumer guidelines – contact seizure attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com.

450 fake iPhone cases valued at over $17,000 seized by Chicago Customs.

Seized cases. Source: CBP.gov

According to a U.S. Customs and Border Protection (CBP) media release, CBP officers at the Chicago Express Consignment facility seized 450 Apple iPhone cases from Hong Kong. Officers opened the shipment labeled “mobile phone shell” and found the cases for the 11 Pro, 11 Pro Max and the 8 Plus phone models.

CBP officers determined the cases were counterfeit based off bad quality design, materials, packaging and printing. Based off the image attached to this media release, I believe the cases are counterfeits of the Apple OEM cases sold through the website.

If authentic, the value of the cases would retail for about $17,550. If you have had your DHL/UPS/FedEx shipment seized by CBP for alleged counterfeit violations – contact seizure attorney David Hsu 24/7 by phone at 832-896-6288 or by email at attorney.dave@yahoo.com.

Counterfeit footwear valued over $270k seized in Kentucky.

Counterfeit Louis Vuitton, source: CBP.gov

In early June, U.S. Customs and Border Protection (CBP) officers in Kentucky seized a shipment of counterfeit luxury footwear from Turkey headed for a home in Georgia.

The seizure consisted of two shipments of counterfeit Louis Vuitton sandals carrying an MSRP of $276,540 if authentic.

CBP claims the purchase of counterfeit goods supports criminal activity while robbing businesses of revenue. The early June seizure of sandals is only a small portion of the reported $4.3 million worth of counterfeit products seized daily last year, as reported by CBP.

If you have had your goods seized by Customs, you do have to act fact – certain time lines are in effect from the day Customs issues the seizure notice.

Contact trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com anytime for immediate help.

San Juan CBP seizes counterfeit luxury products worth $265,000.

Image of seized Rolex watches, source: CBP.gov

U.S. Customs and Border Protection (CBP) agents in San Juan seized counterfeit watches and jewelry from a shipment from Hong Kong. If genuine, the value of the counterfeit products would total approximately $256,000. The above image from Customs shows a display of the fake Rolex brand watches seized.

If you have had your goods seized by Customs, you may face both criminal and civil penalties. Contact David Hsu by phone/text at 832-896-6288 to discuss your options – feel free to also send us an email at attorney.dave@yahoo.com.

Hong Kong could lose special status and trade benefits.

Last year, the US passed a law that requires Hong Kong to retain independence to qualify for the continued favorable trading terms with the US. I mentioned this in my blog post on June 15th, 2019 here.

The bill requires the US Secretary of State to certify each year that Hong Kong remains autonomous from China. If Hong Kong does not pass the certification of independence from China, then Hong Kong would lose trade privileges with the US (goods from Hong Kong will now be subject to duties on goods from China).

Fast forward almost a year later – where in late May China’s central government passed a national security law to apply to Hong Kong (as Hong Kong has not been able to pass such a law since they were handed back to China in 1997). The new security law would ban secession, subversion of state power, terrorism, foreign intervention and allows mainland China’s state security agencies to operate in the city.

After passage of the security law, Secretary of State Mike Pompeo told Congress that Hong Kong was no longer independent from China – signaling a potential move towards Hong Kong not passing certification.

If Hong Kong loses it’s special status a big impact would be on tariffs on goods from Hong Kong would now apply. This would impact over $66 billion in trade according to 2018 trade numbers. In 2018, Hong Kong was America’s third-largest market for wine, 4th largest for been and seventh largest for agricultural products.

If you have any questions how your imports or exports to and from Hong Kong may be impacted, contact David Hsu 24/7 by phone/text to 832-896-6288 or by email at attorney.dave@yahoo.com.

Will new US export controls block Huawei’s 5G ambitions?

Photo by Pok Rie on Pexels.com

As previously posted on my blog, the May 19th Commerce Department export rules are part of the US effort to limit Huawei’s access to semiconductor chips needed to build components in their 5G infrastructure. The new rules prohibit chipmakers located mostly in Taiwan and South Korea from using U.S. origin machines and software to produce semiconductors for Huawei.

Huawei relies on Taiwan and South Korean chipmakers to make the actual chips – however the chipmakers are now subject to the US export rules since the machines and software used are based off American machines from US companies and technology.

These new rules were meant to close a loophole that allowed semiconductor foundries to manufacture chips for Huawei as long as the manufacturing occurred outside of the U.S.

The U.S. government views Huawei as a national security threat because their hardware could potentially allow them to access sensitive information and hand it over to the Chinese government – a claim denied by Huawei.

If you have any questions how the new US export control regulations will impact your ability to do business with Huawei or one of its entities, contact export control attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.