Category Archives: Uncategorized

Does President Trump want the US to become the 12th TPP member?

April 12, 2018 By in Uncategorized Tags: , , , , Leave a comment

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According to a Daily Caller website article published today, President Trump asked Ambassador Robert Lighthizer and National Economic Council director Larry Kudlow to look into rejoining the trans-pacific partnership. The Daily Caller cites Senators Ben Sasse and Pat Roberts as the source of the news.

Sasse noted that Trump “deputized” Kudlow to “go get it done” and explore the possibility of rejoining TPP as the 12th party now that the other 11 nations have struck a deal. “It might be easier for us to join now, as opposed to long process,” he elaborated.

No other details are mentioned in the article but updates will be posted they are available.

Latest CBP Instructions on Section 232 Investigations (April 11, 2018)

April 11, 2018 By in ADD/CVD, Attorney, countervailing duty, U.S. Customs and Border Protection, Uncategorized Tags: , , , , , Leave a comment
Donghai Service Port

Photocredit: Imaginechina/REX/Shutterstock

See below for the most recent instructions regarding the Section 232 Investigations. These instructions were released by the CBP, on April 11th. The original text can be found here.

Commodities: Unchanged and includes steel mill and aluminum articles as specified in proclamations.

COUNTRIES COVERED:
March 23, 2018 through April 30, 2018: All countries of origin except Canada, Mexico, Australia, Argentina, South Korea, Brazil and member countries of the European Union (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom).

However, after May 1, 2018, all countries of origin.

Customs does make a note to remind readers that it is based on the country of origin, not the country of export.

ENTRY SUMMARY FILING INSTRUCTIONS:

Steel Products: importers shall use the HTS classification for imported merchandise subject to duty: 9903.80.01 (25 percent ad valorem additional duty for steel mill products)

Aluminum Products: importers shall use HTS classification: 9903.85.01 (10 percent ad valorem additional duty for aluminum products)

If the two above HTS numbers are not used for importers under Chapters 72, 73 and 76 for the covered countries of origin, these error messages will display:

E1 IQ10 LINE SUBJECT TO QUOTA

E1 FQ09 QUOTA NOT ALLOWED FOR ENTRY TYPE

E1 FQ05 BANNED IMPORT

E1 RF998 TRANSACTION DATA REJECTED

Note: Quota is not in effect, but this ACE functionality is being used to validate entry summary transmissions and reject when validations determine the data is missing the required chapter 99 number.

If importers or filers do not include the chapter 99 code with their Post Summary Corrections for imports under Chapters 72, 73 and 76, the above reject messages will also appear.

Importers may file a protest if they believe an entry was incorrectly liquidated.

Below are the FREQUENTLY ASKED QUESTIONS from the CBP website copied for your convenience.

1. What is the timing of duty calculations on immediate transportation in bond entries subject to Section 232?

Pursuant to the Presidential Proclamations, duties are due on goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on March 23, 2018.

19 CFR 141.69(b) states:

Merchandise which is not subject to a quantitative or tariff-rate quota and which is covered by an entry for immediate transportation made at the port of original importation, if entered for consumption at the port designated by the consignee or his agent in such transportation entry without having been taken into custody by the port director for general order under section 490, Tariff Act of 1930, as amended ( 19 U.S.C. 1490), shall be subject to the rates in effect when the immediate transportation entry was accepted at the port of original importation.

For such entries covered by an entry for immediate transportation, and with a country of origin and Harmonized Tariff Schedule classification subject to the Presidential Proclamations, such entries shall be subject to the duty rates in effect when the immediate transportation entry was accepted at the port of original importation.

Accordingly, entries of steel and aluminum articles covered by an entry for immediate transportation accepted at the port of original importation before March 23, may have been incorrectly rejected by CBP and/or incorrectly filed with a Chapter 99 steel or aluminum HTS classification.

CBP is working to address the incorrectly filed entries to alleviate the need for the trade to resubmit entry summaries, submit post summary corrections (PSC), or file protests. CBP is aware that some entry summaries incorrectly submitted with the Chapter 99 HTS classification may have a deadline approaching to pay the associated duties. CBP will fully consider the issues associated with these entries in enforcing the duty deadline and CBP will be addressing these entries promptly. Importers who incorrectly paid duties pursuant to the Presidential Proclamations on an AD/CVD entry, and want to request an administrative refund of these duties prior to liquidation, may file a PSC to request an administrative refund of these duties prior to liquidation.

2. Which Harmonized Tariff System (HTS) classifications under HTS 7616.99.51 are subject to the Section 232 duties.

Per the Presidential Proclamations, 7616.99.51.60 and 7616.99.51.70 are subject to the Section 232 duties.

If you have any questions, call customs and trade law attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com.

US-Bahrain Sign Memorandum of Understanding on Trade in Food and Agriculture Products.

April 10, 2018 By in Bahrain, trade compliance, Uncategorized Tags: Leave a comment
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Flag of Bahrain (credit Wikipedia)

According to a press release posted on Monday, April 9th – the Office of the U.S. Trade Representative announced that the United States and Bahrain have signed a Memorandum of Understanding (MOU) on Trade in Food and Agriculture Products. One highlight of the MOU is the increase in certainty and enhanced cooperation on requirements for U.S. exports of food and agriculture products to Bahrain, and enables more opportunities for the United States and Bahrain to continue joint efforts to facilitate bilateral trade in food and agriculture products.

The MOU also says indicated that Bahrain will continue to accept existing U.S. export certifications for food and agricultural products. Accepting current export certifications will save U.S. exporters the cost of new certifications. The MOU also discussed increasing the export of food and agricultural products from the United States to Bahrain.

A full copy of the US-Bahrain MOU can be found here.

US Court determines Thanksgiving and Christmas dinnerware is not eligible for duty-free entry into the US.

April 6, 2018 By in Uncategorized Tags: , , Leave a comment

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In an interesting case, the U.S. Court of Appeals agreed with the Court of International Trade’s argument that dinnerware decorated with “festive motifs” and frequently used during Thanksgiving or Christmas dinner do not qualify for duty-free treatment because the articles are not “for use in specific religious or cultural ritual celebrations”.

The importer’s dinnerware included holiday designs such as Christmas trees, turkeys, wreaths etc. intended for using during a traditional Thanksgiving or Christmas meal. The importer initially claimed the dinnerware was duty-free under HTSUS 9817.95.01 “Certain Festive Articles”. The importer said the Thanksgiving and Christmas dinners were specific cultural celebrations and the dinnerware was part of the performance of these celebrations. The CIT claimed, and the US Court of Appeals agreed, that while Thanksgiving and Christmas dinner were cultural celebrations, they however were not specific rituals as required under the HTSUS code.

 

China files WTO complaint over U.S. tariff actions.

April 6, 2018 By in Uncategorized Tags: , , , , , , , Leave a comment

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According to a World Trade Organization (WTO) report, the Chinese have requested a consultation with the United States under the WTO’s Dispute Settlement process about recent US tariff measures on Chinese goods.

Specifically, China claims the tariffs would be above the US bound rates of the General Agreement on Tariffs and Trade (GATT). A request for consultation begins the dispute process in the WTO. After a consultation has been requested, the parties have an opportunity to discuss the matter and find a solution without litigation. If a solution is not reached between the two parties after 60 days, China may then request a panel to adjudicate the matter.

For more information, contact trade and customs attorney David Hsu, 832-896-6288, attorney.dave@yahoo.com.

US Customs and Border Protection release FY 2018 enforcement statistics.

April 6, 2018 By in U.S. Customs and Border Protection, Uncategorized Tags: Leave a comment

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CBP just released their FY2018 enforcement statistics ending this past March. The link to the statistics website is here (opens in new window).

The report includes categories for arrests of individuals with criminal convictions, nationwide arrests by gang affiliation and nationwide drug seizures.

As a point of reference, in FY 2017, agents arrested more than 20,000 criminal aliens and nearly 11,000 individuals who were wanted by law enforcement authorities. Additionally, they seized more than 2.14 million pounds of narcotics, including nearly 1,500 pounds of fentanyl and other synthetic opioids.

China’s Ministry of Commerce publishes Section 301 Retaliatory Tariff List.

April 5, 2018 By in Export, Uncategorized Tags: , , , , Leave a comment

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Yesterday, the People’s Republic of China, Ministry of Commerce (MOFCOM) issued Announcement 34. Announcement 34 states that the PRC will implement tariffs of 25% on soybeans, various agricultural products, chemicals, automobiles and airplanes, encompassing a total of 106 U.S. products in response to recent tariffs issued by the current administration.

A simplified Chinese-only version of 2018’s Announcement 34 can be found here.

If you have any questions about whether these tariffs will effect your exports to China, contact bilingual and experienced trade and customs attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com.

Court of International Trade sides with Canadian textile importer and dismisses Customs $4.5 million penalty claim.

April 5, 2018 By in Customs Lawyer, Import, U.S. Customs and Border Protection, Uncategorized Tags: , , , Leave a comment

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In a just released decision by the the U.S. Court of International Trade (CIT), the CIT dismissed U.S. Customs and Border Protection’s (CBP) efforts to collect $4.5 million in penalties against Tricots Liesse 1983, Inc. (Tricots), a Candian textile company importing goods into the US. The full text of the CIT Slip Op. 18-29 can be found here.

In the instant case, Tricots tried to correct NAFTA rules of origin claims by filing a prior disclosure with CBP. CBP issued an administrative penalty and duty demand while not providing Tricots an opporutnity for oral hearings during the administrative proceedings. CBP then filed suit against Tricots in the CIT to collect $4.5 MM in penalties and duties. In response, Tricots filed a motion to dismiss the claims because CBP did not allow Tricots the opportunity to attempt administrative remedies.

In short, the CIT opinion faults CBP for not allowing Tricots a “reasonable opportunity” to make oral representations after issuing the penalty notice. This decision helps future importers by ensuring any importer has the opportunity to receive an administrative hearing before CBP imposes a penalty.

If you have received a penalty notice from Customs and need assistance, contact experienced trade and customs attorney David Hsu at 832-896-6288, or by email at attorney.dave@yahoo.com.

Sudan joins the UN’s Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

April 4, 2018 By in Uncategorized Tags: , , , Leave a comment
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Credit: Wikipedia 

In October 2017, the US revoked certain sanctions against Sudan and the Sudanese government. These sanctions include those put in place by then-President Clinton (Executive Order 13067) and then-President Bush (Eexecutive Order 13412). However, OFAC sanctions related to the conflict in Darfur: EO 13400, EO 13067.

Following the removal of sanctions, the Sudanese government has made efforts to increase foreign investment – with the Sudanese state minister touring Germany, Bahrain and other countries in December 2017.

In a move to further increase foreign investment to Sudan, on Tuesday, April 3rd, Sudan joined the network of countries that agree to enforce and recognize other nation’s arbitral awards. By joining this network, the Sudanese government hopes to increase confidence of foreign investors – especially in Sudan’s oil and gas sector.

Nations that sign the UN Convention on the Recognition and Enforcement of Foreign Arbitral Awardshe Signatories to the New York Convention agree to recognize arbitration agreements and enforce awards issued in other countries party to the rules. This agreement is viewed as the basis for international arbitration and allows a way for companies to settle commercial disputes.

The removal of 20 years of trade and financial sanctions will allow U.S. citizens and companies to now do business in Sudan, including deals with their government. However, U.S. citizens and companies are still probibited from conducting business with parties on the OFAC list.

If you or your company is planning to invest in Sudan, contact our offices, we can verify compliance with the most recent OFAC list and assist your company in taking all efforts to maintain export compliance – David Hsu, 832-896-6288 or by email at attorney.dave@yahoo.com.

US proposes tariffs impacting $50 billion worth of Chinese imports.

April 4, 2018 By in Customs Lawyer, Import, Uncategorized Tags: , , , , , Leave a comment

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The current administration announced tariffs on an additional 1,300 technological and transport products from China. Imports of these 1,300 goods are worth an an estimated $50 billion and could be subject to an additional 25-percent tariff.

The list posted on US Trade Representative’s (USTR) office covers nonconsumer products, ranging from chemicals to electronic components and excludes some common consumer products such as cellphones and laptops assembled in China. However, the list also includes consumer products such as flat-panel televisions, LED’s, motorcycles and electric cars.

Part of the justification for tariffs is an effort by the administration to cut the trade surplus – in which China has a $375 biillion trade surplus on goods from the US in 2017. Throughout his campaign, President Trump promised reducing the trade surplus by $100 billion during his presidency.

After the proposals were announced, the USTR has a public comment period from now until May 11th. A hearing will follow on May 15th. During this comment period, companies and consumers will be able to ask the government to remove or add certain products to the list.

If you have any question about these potential tariffs or want to know more about how to get your good off the list, contact trade and customs attorney David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.