CBP issues new withhold release order against cotton from Turkmenistan.

Turkmenistan-map

Map of Turkmenistan from Wikipedia.

Last week, U.S. Customs and Border Protection (CBP) issued a new withhold release order for goods suspected of being made by forced labor.

This time, a detention order (withhold release order) was issued against cotton from Turkmenistan. The May 18, 2018 WRO includes “all Turkmenistan Cotton or products produced in whole or in part with Turkmenistan cotton”.

Importers are expected by CBP to be informed whether the goods they import are subjec to WRO’s. A full list of current imports subject to WRO’s can be found here.

Background regarding CBP’s efforts against forced labor:
Section 307 of the Tariff Act of 1930 (19 U.S.C. § 1307) bans the importing of merchandise that is mined, produced or manufactured, in whole or in part, in any foreign country by forced labor/child labor. Such merchandise is subject to seizure or excluded from importation into the US.

When information reasonably but not conclusively indicates that subject merchandise is being imported, Customs may issue withhold release orders pursuant to 19 C.F.R. § 12.42(e). If the Commissioner is provided with information sufficient to make a determination that the goods in question are subject to the provisions of 19 U.S.C. § 1307, the Commissioner will publish a formal finding in the Customs Bulletin and in the Federal Register.

A withhold release order will require detention at all US ports of entry of any such merchandise manufactured by these companies. Withhold release orders are usually issued against types of goods and specific producers from specific countries.

If you have had issues regarding importation of good subject to a withhold release order, contact experienced customs attorney David Hsu at 832.896.6288 or by email at attorney.dave@yahoo.com.

 

In Houston and want to learn more about U.S. Export Controls?

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The The Bureau of Industry and Security, Outreach and Educational Services Division will hold a conference regarding “Complying with U.S. Export Controls”

Date: June 12-13, 2018

Location: Norris Conference Center, Houston, TX (City Centre)

About the program (from the BIS website):

Complying with U.S. Export Controls

The two-day program is led by BIS’s professional counseling staff and provides an in-depth examination of the Export Administration Regulations (EAR). The program will cover the information exporters need to know to comply with U.S. export control requirements on commercial goods. We will focus on what items and activities are subject to the EAR, steps to take to determine the export licensing requirements for your item, how to determine your export control classification number (ECCN), when you can export or reexport without applying for a license, export clearance procedures and record keeping requirements, and real life examples in applying this information. Presenters will conduct a number of “hands-on” exercises that will prepare you to apply the regulations to your own company’s export activities. This program is well suited for those who need a comprehensive understanding of their obligations under the EAR. Technical, policy, and enforcement professionals from BIS, as well as specialists from other agencies such as the Bureau of the Census, will participate.

About the Instructors

The instructors are experienced export policy specialists, engineers, and enforcement personnel from BIS’s Washington, D.C. headquarters and field offices, as well as representatives from other U.S. government agencies as appropriate. The instructors will be available throughout the seminar to answer your questions on how the export regulations affect the export activities of your organization or client.

Location/time

The program will be held at Norris Conference Center located at 816 Town & Country Blvd. Suite 210, Houston, Texas 77024. Registration and continental breakfast will begin at 7:30 a.m. on June 12, 2018. The program will begin at 8:30 a.m. and end at 5:00 p.m.

Registration

The registration fee for the Complying with U.S. Export Controls seminar is $525 per person before May 11, 2018 and $575 after. To register for both this program and the Technology Controls seminar on June 14, 2018, the fee is $775 before May 11 and $845 after. The fee includes continental breakfasts, coffee breaks, lunches and materials for the entire seminar. Fee is not refundable after May 18, 2018. Substitutions may be made. To guarantee placement for the BIS seminar: Click here to register.

If you have any questions about BIS, export controls or customs law, contact experienced trade and customs attorney David Hsu at 713-932-1540 or by email at attorney.dave@yahoo.com.

 

 

Givens and Johnston will give an AD/CVD presentation to the HCBFFA.

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On Wednesday, May 23, 2018, Scott Johnston, James Garland Hurst and Luis Arandia of Givens and Johnston, PLLC will present a half-day program regarding Anti Dumping/ Countervailing Duties.

Topics covered include:

1. What are orders

2. Overview

  • a. Process
  • b. Scopes
  • c. Updates

3. Meaning of Case numbers

4. How to Research AD / CVD

5. Scope Determinations

6. Administrative Review

7. Petitions

8. What is Critical Circumstances

9. CBP Role in AD / CVD

10. Origin irregularities

11. Collection

12. Sunset Reviews

13. Other Trade Remedies

14. Section 232 – 301

15. Current Trade Issues

CCS / CES Point Information:  

This event has been approved for 3.5 NCBFAA CCS points.

For more details and to register, visit HCBFFA.org

 

Does the NAFTA certificate of origin have to be in English?

NAFTA Cert

I am frequently asked if the NAFTA Certificate of Origin has to be in English.

The short answer is no –

The rule (in bold) states:

Section A – Certification of Origin

Article 501: Certificate of Origin

  1. The Parties shall establish by January 1, 1994 a Certificate of Origin (CO) for the purpose of certifying that a good being exported from the territory of a Party into the territory of another Party qualifies as an originating good, and may thereafter revise the Certificate by agreement.
  2. Each Party may require that a Certificate of Origin for a good imported into its territory be completed in a language required under its law.

For importations into the US, the NAFTA CO can be in English, Spanish or French, however, Customs does have the right to request any non-English certificate to be translated into English.

Let me know if you have any other NAFTA questions. If enough people ask I’ll post the reply on this blog.

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 and China agree to end trade war.

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According to aMay 19th article from the Agence France-Presse (AFP), China’s Vice-Premier Liu He announced the US and China “reached a consensus, will not fight a trade war, and will stop increasing tariffs on each other”. The AFP article cited Chinese state media for their article and here is the Cliffs Notes version:

1. Both the US and China will stop increasing tariffs against each other.
2. China agreed to increase purchases of US goods and services.
3. Joint statement did not address reducing the trade deficit with China.
4. New trade cooperation to medical care, high tech products and finance.
5. Each part will cooperate on protecting intellectual property rights

Will update as more news becomes available.

ZTE may need to change management and board in order to access US suppliers.

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According to a May 19th South China Morning Post article – Larry Kudlow, White House economic advisor suggested any change in ZTE’s Denial Order may require a change of management, board and “everything”.

Part of the US decision to re-evaulate the Denial Order against ZTE (effectively cutting ZTE off from their US suppliers) was a result of President Trump asking the Commerce Department to get ZTE back into business.

ZTE report to the HKEX on the impact of the US denial order: “major operating activities of the Company have ceased”.


According to a May 10, 2018 filing with the Stock Exchange of Hong Kong (HKEX) online here, ZTE announced the April 2018 BIS Denial Order has resulted in “major operating activities of the Company have ceased”.

Earlier in April 2018, the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce (Commerce) issued a Denial Order against ZTE for failing to comply with the terms of a plea deal reached in 2017 after ZTE plead guilty for illegally shipping US equipment to Iran and North Korea. One often cited plea deal was for ZTE to reprimand responsible employees and deny bonuses to those employees. However, BIS determined ZTE did pay full bonuses and kept 35 employees who violated the law.

A “Denial Order” bans American companies from exporting parts to ZTE. In the instant case, ZTE is faced with a 7-year Denial Order and can no longer receive Qualcomm Snapdragon chips (84% of all ZTE phones use Snapdragon chips) and Google Android updates.

The HKEX release further states that, “the Company maintains sufficient cash”, and ends with ZTE indicating they would seek a modification or reversal of the Denial Order and update investors as soon as possible.

It will be interesting to see the second quarter ZTE results if the Denial Order is not reversed – ZTE’s shipped 75% of their smartphone shipments to the US in the first quarter of 2018.

US Department of Commerce initiates antidumping and countervailing investigations on certain quartz surface products from China.

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On May 7, 2018, the Department of Commerce (Commerce) initiated its less-than-fair-value and countervailing duty investigations on “Certain Quartz Surface Products from the People’s Republic of China (China)” (Initiation Notices). These investigations have been assigned the following case numbers: A-570-084 and C-570-085.

Scope Description:

According to the Commerce Department, the scope of the certain quartz surface products from China are covers:


The merchandise covered by the investigation is certain quartz surface products. 1
Quartz surface products consist of slabs and other surfaces created from a mixture of materials that includes predominately silica (e.g., quartz, quartz powder, cristobalite) as well as a resin binder (e.g., an unsaturated polyester). The incorporation of other materials, including, but not limited to, pigments, cement, or other additives does not remove the merchandise from the scope of the investigation. However, the scope of the investigation only includes products where the silica content is greater than any other single material, by actual weight. Quartz surface products are typically sold as rectangular slabs with a total surface area of approximately 45 to 60 square feet and a nominal thickness of one, two, or three centimeters. However, the scope of this investigation includes surface products of all other sizes, thicknesses, and shapes. In addition to slabs, the scope of this investigation includes, but is not limited to, other surfaces such as countertops, backsplashes, vanity tops, bar tops, work tops, tabletops, flooring, wall facing, shower surrounds, fire place surrounds, mantels, and tiles. Certain quartz surface products are covered by the investigation whether polished or unpolished, cut or uncut, fabricated or not fabricated, cured or uncured, edged or not edged, finished or unfinished, thermoformed or not thermoformed, packaged or unpackaged, and regardless of the type of surface finish.

In addition, quartz surface products are covered by the investigation whether or not they are imported attached to, or in conjunction with, non-subject merchandise such as sinks, sink bowls, vanities, cabinets, and furniture. If quartz surface products are imported attached to, or in conjunction with, such non-subject merchandise, only the quartz surface product is covered by the scope.

Subject merchandise includes material matching the above description that has been finished, packaged, or otherwise fabricated in a third country, including by cutting, polishing, curing, edging, thermoforming, attaching to, or packaging with another product, or any other finishing, packaging, or fabrication that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the quartz surface products.

Not covered by the scope of the investigation:


The scope of the investigation does not cover quarried stone surface products, such as granite, marble, soapstone, or quartzite. Specifically excluded from the scope of the investigation are crushed glass surface products. Crushed glass surface products are surface products in which the crushed glass content is greater than any other single material, by actual weight.

Applicable HTSUS numbers subject to the scope of the investigation:


The products subject to the scope are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under the following subheading: 6810.99.0010. Subject merchandise may also enter under subheadings 6810.11.0010, 6810.11.0070, 6810.19.1200, 6810.19.1400, 6810.19.5000, 6810.91.0000, 6810.99.0080, 6815.99.4070, 2506.10.0010, 2506.10.0050, 2506.20.0010, 2506.20.0080. The HTSUS subheadings set forth above are provided for convenience and U.S. Customs purposes only. The written description of the scope is dispositive.

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1
Quartz surface products may also generally be referred to as engineered stone or quartz, artificial stone or quartz, agglomerated stone or quartz, synthetic stone or quartz, processed stone or quartz, manufactured stone or quartz, and Bretonstone®.

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If you have any questions about how the AD/CVD investigation will impact your quartz import business, or if you would like to discuss other options, contact the experienced antdiumping and countervailing duty attorney David Hsu at 832.896.6288 or email at attorney.dave@yahoo.com.

ZTE and Huawei banned for sale to US military personnel.

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In addition to my blog post from April 19, 2018, ZTE has once again made news according to a Washington Post May 2nd article. In the Washington Post article, the Pentagon instructed the military from selling ZTE and Huawei branded phones from U.S. military bases.

The Defense Department cited security risks posed by the devices made by Huawei and ZTE writing:

“Huawei and ZTE devices may pose an unacceptable risk to Department’s personnel, information and mission” and that “it was not prudent for the Department’s exchanges to continue selling them to DoD personnel.”

Besides phones, modems and other wireless products manufactured by ZTE and Huawei are also included in the ban.

Under the direction of the President, the move by the Pentagon was an attempt to limit the use of wireless equipment manufactured in China that may contain technology used to spy or hack US citizens and military personnel.