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

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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.

US Trade Representative (USTR) – 2018 National Trade Estimate Report.

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Last week, the Office of the US Trade Representative (USTR) released their 2018 National Trade Estimate. The National Trade Estimate (NTE) is an annual report documenting foreign trade and investment hurdles American exports face when conducting business abroad.

The entire 504 page report can be downloaded here.

Fortunately, the Office of the US Trade Representative (USTR) has made several fact sheets available summarizing major points in these key issues:

2018 Fact Sheet: Key Barriers to Digital Trade

2018 Fact Sheet: Reducing Technical Barriers to Trade

2018 Fact Sheet: USTR Success Stories: Opening Markets for U.S. Agricultural Exports

2018 Fact Sheet: National Trade Estimate Report – Major Developments

For all your legal trade law questions, contact David Hsu, 832.896.6288 or by email at dhsu@givensjohnston.com.

Renegotiated KORUS FTA results in changes more favorable to US companies.

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According to the Office of the United States Trade Representative website, the Trump administration has negotiated additional favorable terms of the United States – Korea Free Trade Agreement (KORUS) that went into effect in 2012.

Fulfilling part of his campaign promises, President Trump has re-negotiated the KORUS with these (and many more) favorable changes to US companies:

1. Korea will double the number of US automobile exports to 50,000 cars per manufacturer per year.

2. US automobile exports to Korea that meet US safety standards can enter the Korean market without further modification. This lowers the cost of US cars being sold in Korea as additional testing and modifications are not needed before the US cars are sold in the marketplace.

3. Korea will recognize US standards for auto parts to service US vehicles in Korea, this reduces the labeling burden for US parts manufacturers.

4. Korea will amend their Premium Pricing Policy for Global Innovative Drugs to ensure non-discriminatory and fair treatment for US pharamceutical exports.

5. Korea imports of steel products into the US will be subject to a product-specific quota equal to 70% for the average annual import volume of such products during the years 2015-2017, resulting in reduction of Korean steel shipments to the US.

If you have any questions regarding the KORUS or other trade and customs law issues, feel free to contact David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.

Trump Announces Tariffs on at Least $50 billion in Chinese Goods.

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On March 22nd, President Donald Trump signed a memorandum instructing the U.S. Trade Representative to prepare a list of goods imported from China that will be subject to tariffs.

The tariffs are in response to China’s policies of forced technology transfers, forced joint ventures, intellectual property theft and technology licensing restrictions for U.S. companies doing business in China.

Check back here for the list when it is published. It is is estimated the list will include approximately 1,300 tariff lines and the public will have 30 days to submit comments.

If you have any questions how this may affect your imports, call experienced trade and customs attorney David Hsu at 832-896-6288 or email dhsu@givensjohnston.com.

Office of the United States Trade Representative (USTR) issues their 2017 Out-of-Cycle Review of Notorious Markets.

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On January 11, 2018, the USTR released their report on “notorious markets”. As the name suggests, the USTR issues annual reviews of cities, places or shopping areas (both physical and online) that are believed to be involved in large commercial-scale copyright piracy and trademark counterfeiting. In addition to financial losses, the USTR says copyright piracy and counterfeit goods undermine advantages to innovation, creativity of US workers while also posing risks to consumer health and safety.

The notorious market list (NML) maintained by the USTR highlights physical and online marketplaces that “reportedly engage in, facilitate, turn a blind eye to, or benefit from substantial piracy and counterfeiting”. The list includes 18 physical markets and over 20 online marketplaces. The USTR does note that the NML list does not make findings of legal violations nor reflects the US analysis of the IP protection and enforcement climate in the countries in which the listed markets are found.

The report focus this year is on “illicit streaming devices” that includes streaming, on-demand, and over-the-top media service providers or other piracy applications that allow users to stream content, download or otherwise access information. Such streaming devices include Amazon fire TV sticks that are “jailbroken” or have the “Kodi” application installed. Other lesser known manufacturers also sell and market such stream devices using keywords such as: mini tv, tv box, stream, kodi, internet media player, tv browser, android tv, or variations thereof. The USTR estimates pirated content viewed on these streaming devices cost up to $840 million in lost revenue in the US and over $4-5 billion a year to the entertainment industry.

The USTR report spends the remaining 35 pages of the report highlighting various websites and physical brick-and-morter markets worldwide that may contribute to the sale and distribution of counterfeit and intellectual property infringing products.

If you have had your imported goods seized by Customs due to suspected intellectual property and trademark violations, call David Hsu at 832.896.6288 or email dhsu@givensjohnston.com. Certain time limitations do apply and you need legal representation.