Huawei may seek higher royalties from US firms relying on Huawei’s 5G patents.

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Reuters reported Huawei asked Verizon to pay $1 billion in royalties for use of more than 230 of Huawei’s patents on network equipment. In addition to Verizon, the Huawei CEO, Ren Zhengfei indicated Huawei may seek more royalties from other companies.

As reported by CNBC, Huawei has more than 69,000 patents worldwide and 49,379 patents pending – with 57% of patents in China and 18% in the US.

The request for additional royalties is likely due to Huawei’s inclusion on the BIS entity list, which resulted in Huawei forecasting a loss of $30 billion in revenue this year. As the ban will impact Huawei’s smartphone business, Huawei is likely to focus on other avenues for revenue – patent royalties.

EU to import more US beef.

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The European Commission reached an agreement with the United States to allow the importation of more hormone-free US beef into the European market, allowing US farmers to import up to 35,000 tons of beef.

Hormone treated beef has been banned in Europe since the 1980’s and in 2002 the proponents of the ban were further strengthened when an EU scientific committee reviewed 17 studies and confirmed the use of hormones as a growth promoter raised the health risk to consumers.

Mexico first country to ratify USMCA.

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This past Wednesday, Mexico became the first country to pass the new U.S.-Mexico-Canada Agreement (USCMA) to replace NAFTA. NAFTA was a free trade agreement also entered between the three countries over 25 years ago. As Mexico sends 80% of exports to the US, the passage of the trade agreement is a necessity for Mexico.

Canada’s Prime Minister Justin Trudeau is trying to get the deal through the Canadian Parliament while in the United States, House Speaker has not yet put the passage of the USMCA up for vote. The House Speaker and her Democrat allies hold a majority in the House and are requiring stronger enforcement mechanisms for the provisions related to labor and environmental rules.

If you have any questions how the new USMCA or old NAFTA will impact your  business, contact David Hsu at dh@gjatradelaw.com or attorney.dave@yahoo.com.

Canada bans importing/exporting shark fins.

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According to the website politics.ca, the Canadian government revised their Fisheries Act to protect fish habitat, enact new sustainability efforts and banning the import and export of shark fins in Canada.

The United States still allows the importation and exportation of shark fins – however, each state has their own specific laws about the transportation of shark fins within state lines – some states require the fin to be attached to the body, others don’t. Before you move your shark fins, contact David Hsu first.

Also, if you have encountered any problems with US Fish and Wildlife regarding your importation or exportation of shark fins – feel free to David Hsu a call/text at 832-896-6288, or by email at dh@gjatradelaw.com, or attorney.dave@yahoo.com. The rule on shark fins is complex and the penalties are great.

Hong Kong Customs in the news again – seizing counterfeit dolls (stuffed animals?) from claw machines.

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According to the website insideretail.hk, it Hong Kong Customs authorities seized counterfeit dolls and toys found in “claw machines” as part of “Operation Octopus”. The total seized value of the goods totaled about $38,000 USD.

The article did not specify what type of dolls were counterfeit, but my guess is the stuffed animals were Hello Kitty, Disney or other licensed plush animals. No photo was included in the article – but most likely the word “dolls” here refers to stuffed animals.

HK Customs seized 2700 dolls, 15 claw machines and 5 change machines.

Hong Kong Customs seizes fake Apple and Samsung parts at a repair facility.

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According to a South China Morning Post article, Hong Kong Customs officials investigated and ultimately raided a cell phone repair shop after receiving complaints from a trademark holder (not specified whether Apple or Samsung complained).

The article claimed the repair shop refurbished devices for clients in the US, UK and Australia that sent second-hand phones for repair at 1/3 the typical rate of an authorized repair facility. The repairs typically included replacing the screen or housing.

HK Customs officials claimed the repair shop used counterfeit parts to repair damaged iPhones, and seized over $120,000 worth of fake goods.

Based on the article, I’m pretty sure Apple complained about the IP violations since most Samsung phones do not have the housing replaced when being refurbished. While not listed in the article, the IP violations probably were for the wordmark “iPhone” or the trademark Apple logo found on the back housing. The iPhone replacement glass do not have any IP marks, so the seized goods were most likely the housings.

If you have any cell phone seizures, contact experienced cell phone seizure attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com or dh@gjatradelaw.com.

No FDA import alert updates for kratom.

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The FDA frequently modifies alerts for food imports on their website here. For the most recent update on June 18, 2019, the entry for “DIETARY SUPPLEMENTS AND BULK DIETARY INGREDIENTS THAT ARE OR CONTAIN MITRAGYNA SPECIOSA OR KRATOM” remains unchanged.

Will update if/when the FDA modifies their import alert for kratom. If you have any kratom related import questions, contact experienced import attorney David Hsu by text/call on David’s mobile, 832-896-6288 or by email at his personal email: attorney.dave@yahoo.com or work address: dh@gjatradelaw.com.

7 effects of Huawei’s inclusion on the BIS entity list.

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Lots of articles on Huawei and the impact on the company following their inclusion on the BIS entity list, here’s a summary of what has been reported as potential impacts to Huawei:

1. Huawei’s projected revenue will fall from $120 billion to $100 billion;

2. 40% decrease in overseas smartphone shipments;

3. Postponing of their planned new MateBook 14 and update to the MateBook X Pro Line set for June 2019;

4. Google ended Huawei’s Android License;

5. Huawei sales of their Mate 20X and Mate X folding handset postponed in the UK and Japan;

6. Broadcom (major supplier to Huawei) lowered 2019 revenue forecast by $2 billion;

7. Huawei creating it’s own smart phone operating system compatible with Android applications.

If your company is a Huawei supplier and you have questions on how the “Huawei ban” will impact your company, contact David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com or dh@gjatradelaw.com.

CBP seizes $17k from Jamaica-bound Traveler.

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According to a Customs media release, CBP officers in Philadelphia seized $16,542 in unreported currency from a traveler heading to Jamaica.

Upon initial questioning, the traveler indicated to CBP officials he was carrying $6,000. CBP then explained to him the reporting requirements and the traveler indicated in writing he was carrying $8,000. Upon secondary inspection, CBP found $16,542 in the traveler’s carry-on bag.

What do you do if Customs asks how much you are carrying?
Be truthful and tell them how much you are carrying, even if it exceeds the $10,000.

Do I sign the form they present to me?
Sometimes CBP will ask you to sign a form indicating how much money you are carrying – fill out that form truthfully and declare all the money you are carrying.

I’m traveling with my family, do I include the currency they are carrying?
Yes, count the currency of everyone traveling in your party (your kids, spouse, parents, in-laws, friends, etc).

They seized my currency, what do I do?
Contact experienced seizure attorney David Hsu at 832-896-6288. I’m available 24/7 by phone or text. Or email me anytime at my personal email: attorney.dave@yahoo.com or my work email: dh@gjatradelaw.com.

 

American New Balance shoe manufacturer opposes expanding China duties.

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While New Balance in the past supported a tough trade policy in 2016, the American shoe manufacturer is now taking an about face as it imports a majority of its components from China.

While New Balance manufacturers about 4 million pairs of shoes a year in the US, it relies on the importation of components in order to do so – and a majority of those components are from China. New Balance claims the parts they need that are covered under “List 4” are no longer available in the United States.

A letter from New Balance indicated the new tariffs would impact their ability to reinvest and manufacture shoes in the US. New Balance will join more than 300 executives from other companies to testify against the List 4 goods this week.

Will post more news from the hearings starting tomorrow as they become available. If you have questions whether your imports will be covered under “List 4”, contact experienced trade attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com.