Trump will decide tariffs on auto imports “soon”.

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Today’s November 14th deadline on whether to impose tariffs (duties) on cars and auto parts imported into the US will likely result in President Trump extending the time to make a decision.

These additional tariffs on vehicles and parts are part of the “Section 232” national security tariffs enacted during the Cold-War that could see tariffs as high as 25% on vehicles and parts from the European Union, South Korea, and Japan.

A delay would likely result in a 6-month extension and allow for negotiators from all sides attempt to reach an agreement.

If you are an importer of car parts or vehicles and want to know what you can do, contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

China leading the way for new trade deal with ASEAN nations.

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This week, the 10 members of the Association of Southeast Asian Nations (ASEAN) are meeting in Bangkok, Thailand and one main focus will be the creation of a free-trade pact that will cover 50% of the world’s population and 40% of the world’s commerce. The ASEAN nations hope to enact the Regional Comprehensive Economic Partnership (RCEP), a trade deal that covers a territory from India to New Zealand.
In negotiation for the past few years, the current US China trade war is pushing the effort to create the RCEP. Will post any updates as available.
Do you have any trade or customs law questions, contact your trade and customs attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Phase 1 of the China trade deal explained.

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Earlier this week, US and Chinese representatives met for the 13th time in ongoing negotiations to reach a trade deal. On Friday, President Trump outlined what has been referred to as “Phase 1”:
1. Suspension of tariff hike set for October 15th that would have increased tariffs from 25% to 30% on $250 billion in Chinese goods.
2. Some intellectual property protections on copyrights, trademarks and piracy (no movement on technology transfers, data flows, cyber security, product standard reviews or the new social credit system.
3. China’s commitment to purchase $50 billion in US agricultural products
The announcement is short on details and more information should be available in 5 weeks and details will be posted as soon as they are available.
If you have any questions how these duties will impact your business, or for any questions on trade with China, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

US China exchange good will measures prior to next trade talks.

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US and China will send mid-level negotiators to meet in a few weeks prior to higher level talks afterwards. In advance of the meetings, both sides have displayed signs of good will – for example, the US rescheduled the proposed October 1st deadline for new tariffs to take effect to October 15th, as October 1st is the 70th anniversary of the founding of the People’s Republic of China (PRC).
China on the other hand, has indicated their importers are looking to increase purchases of American agricultural products such as soybeans, pork and other farm goods.
US Trade Representative Robert Lighthizer has indicated the talks will occur sometime in October. I don’t believe an agreement can be reached – the US is using trade as a leverage against China’s ambitions to be the world leader in robotics, artificial intelligence and high tech industries (2025), along with allegations of steal trade secrets and forcing foreign firms to participate in joint ventures with required tech transfers.
If you have any questions about how the current 232 or 301 duties will impact your business, contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

China reduces penalties for importation of unapproved drugs – improving access for its citizens.

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In late August, the Chinese government said they would reduce the penalties for the sale and import of unapproved drugs, thereby improving access to cheaper generic pharmaceuticals from other countries. This action was taken to allow greater affordable drugs for chronic diseases increasingly impacting the Chinese population.

The reduction in penalties is set to take effect on December 1st. Current penalties for people selling drugs that are not approved by the National Medical Products Administration could result in a fine and criminal prosecution with jail sentences up to 3 years.

For example, under the new law, cheaper generic drugs made outside of China could be imported and sold in China. One drug cited in the article was the Indian version of the lung-cancer drug Iressa cost $10 a day in 2016, compared with $100 a day for the patented drug in China. He said generic drugs cost, on average, 97 percent less than patented drugs sold in China.

If you want to be sure you are compliance with US FDA regulations, contact experienced compliance attorney David Hsu by phone or text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

US and China trade talks to resume in October.

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The office of the US Trade Representative (USTR) confirmed on Thursday that a deputy-level meeting would be held in mid-September to discuss plans for trade talks in October.
This past Sunday, new tariffs on US$125 billion of Chinese imports, including shoes and smartwatches, came into effect after President Trump said he was disappointed in China’s lack of effort to buy US farm goods. In return, China responded with duties on $75 billion of American goods, affecting crude oil exported from the US.
The agreed to talks in October will hopefully resolve the 13-month trade war between the two countries.
If you have any questions how your company may be impacted by the US/China trade war – contact experienced trade attorney David Hsu at by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

USTR to open comment period on List 4.

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This past Thursday, the US Trade Representative (USTR) gave formal notice of the plan to raise tariffs on $300 billion of Chinese imports from 10% to 15% starting December 15th. The formal notice starts the opportunity for importers or anyone impacted by the potential tariffs to submit comments. The comments are an opportunity for businesses to tell the White House why the tariffs are good or bad. As in the past, comments have been both supportive and critical of the potential tariffs.
This round of tariffs encompasses goods on “List 4” and includes mostly consumer goods – such as smartphones, computers, and other consumer electronics.
If you want to submit comments regarding any goods on “List 4”, contact experienced trade and customs attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

China threatens retaliation if India bans Huawei.

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According to a Reuters article, China has warned India not to block Huawei from doing business in the country, warning there could be consequences for Indian firms operating in China.

Part of the warning comes as India is holding trials for a 5G networking in the upcoming months and has not yet determined whether they will invite Huawei to take part in the rollout of 5G in India.

The Reuters article says Indian companies do not have a larger presence in China, but do have manufacturing, healthcare, financial services and outsourcing companies there.

India is currently evaluating bids from 5G firms such as Ericcson, Nokia, Samsung and officials have not yet confirmed Huawei will take part. The Indian Department of Telecommunications have found no evidence of Huawei capabilities of a backdoor or malware to collect data and the Indian Ministry of Home Affairs has issued no directive to curtail Huawei’s entry.

Trump delays List 4 tariffs until December 14th.

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The Trump administration has postponed the levying of 10% tariffs on List 4 goods covering $300 billion in imports from China until December 15th. The initial date of September 1st was postponed after reports of a phone call with Beijing.

A new round of trade talks will be held in September after this month’s talks did not result in a trade deal.

There is still time to lower your import risk, if you would like solutions to lowering the duties you need to pay, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Commerce issues affirmative preliminary determination in CVD investigation of wooden cabinets and vanities.

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The U.S. Department of Commerce has issued affirmative preliminary determination CVD investigation of wooden cabinets and vanities from China, finding that exporters received countervailable subsidies ranging from 10.97 to 229.24 percent.
As such, Commerce will instruct CBP to start collecting cash deposits from importers of wooden cabinets and vanities from China. Last year, imports of wooden cabinets and vanities from China were valued at an estimated $4.4 billion. The final CVD determination is expected to be on or about December 17, 2019. A final injury determination will then be announced on January 30, 2020.
The announcement and preliminary rates can be found here.
If you have any questions about importing wooden cabinets and vanities, contact experienced trade attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.