US collected $63 billion in tariffs through June.

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According to the Wall Street Journal, the Treasury department’s tariffs is expected to generate almost $72 billion in tariffs through June of this year. This number will likely go much higher if the “List 4” duties take effect on September 1st. On September 1st, over $300 billion in Chinese goods will be subject to a 10% tariff with a potential to increase to 25%.

Specifically, as of June 30th, the Treasury department has collected $63 billion in tariffs over the past 12 months. In contrast, prior to the trade war, the US only brought in $30 billion dollars.

The WSJ estimates the annual generated amount can be as high as $100 billion by the end of the year once the 10% duties are placed on over $300 billion worth of imported goods from China.

If you have any questions how the current 301 duties or proposed List 4 duties will impact you, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Chinese exports drop 20% from last year.

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According to the General Administration of Customs in China, Chinese exports fell 20.7% from this time a year ago. Causes for the slow down may be related to a slow down in global demand for Chinese goods and the Chinese New Year holiday in February.

January and February 2019 customs data showed exports down 4.6% compared to 2018 data, indicating a slowing global economy and not the trade war is the cause.

The country’s exports to the U.S. fell 26.2% last month, while imports from the U.S. dropped 28.6%, leading to a bilateral trade surplus of $14.72 billion, a two-year low.

Check back for more trade law news.

Updated List of Countries Requiring Cooperation With an International Boycott.

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The Department of the Treasury is required under section 999(a)(3) of the Internal Revenue Code of 1986 to publish a list of countries which require or may require participation in, or cooperation with an international boycott.

As of 5/16/2018, these countries include:

Iraq

Kuwait

Lebanon

Libya

Qatar

Saudi Arabia

Syria

United Arab Emirates

Yemen

The full Federal Register notice can be found here.

Office of Antiboycott Compliance (OAC)

Overview
The United States Export Administration Regulations (EAR) require all US persons (individuals, corporations) to report requests they have received to take actions to comply with, or support an unsanctioned foreign boycott. The Treasury Department publishes a quarterly list of “boycotting countries.”

 

What do the Laws Prohibit?
Conduct that may be penalized under the TRA and/or prohibited under the EAR includes:

(1) Agreements to refuse or actual refusal to do business with or in Israel or with blacklisted companies.
(2) Agreements to discriminate or actual discrimination against other persons based on race, religion, sex, national origin or nationality.
(3) Agreements to furnish or actual furnishing of information about business relationships with or in Israel or with blacklisted companies.
(4) Agreements to furnish or actual furnishing of information about the race, religion, sex, or national origin of another person.
(5) Implementing letters of credit containing prohibited boycott terms or conditions.

 

How To Report?:
All requests for boycott participation is required quarterly and can be filed electronically or by mail (Form BIS 621-P or BIS 6051P). BIS 621-P should be used for single transactions and BIS 6051P for multiple transactions in which boycott requests may have been received in a calendar quarter.

 

If you have any questions about boycotts, contact experienced trade and compliance attorney, Davis Hsu at 832.896.6288 or by email at: attorney.dave@yahoo.com.

US Treasury Secretary Mnunchin may travel to Beijing for trade talks.

Steven_Mnuchin_official_portrait

77th United States Treasury Secretary, Steven Mnuchin

Earlier this week, current US Treasury Secretary Steven Mnuchin told reporters he may travel to Beijing for trade negotiations to ease U.S.-China tensions.

In recent weeks both countries have announced tariffs on goods imported from the other country and the tensions between the US and China (the world’s two largest trading partners) has raised concerns of an impending trade war. The US first proposed tariffs totaling $150 billion on Chinese imports and Beijing has proposed tariffs on American goods such as soybeans.

In response, the Ministry of Commerce, People’s Republic of China would “welcome” the move by Treasury Secretary Mnuchin.

More updates as they become available.