CBP may approve additional days to pay duties, taxes and fees due to COVID-19.

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According to “CSMS #42097586 – Additional Days for Payments due to COVID-19”, U.S. Customs and Border Protection (CBP) will now approve (although on a case-by-case basis) additional days for payment of duties, taxes and fees. As this was just announced, CBP will issue another message with more information.

China tariff cuts coming soon?

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Last Thursday, the US Trade Representative’s office said they were seeking public comments on lifting additional Section 301 duties (tariffs) on Chinese imports for goods that could help the US fight the current coronavirus pandemic.

The public comments will allow anyone to submit comments if they believe modifications to the Section 301 tariffs may be necessary. Since the corona virus crisis started, the USTR granted exclusions for medical products from China that included medical masks, examination gloves and antiseptic wipes.

Even with the exclusions, the 20-month long duration of the Section 301 China duties still covers over $370 billion in Chinese imports.

A trade deal came into effect on February 15th known as “Phase 1”, but no new trade deals will be announced until after the corona virus crisis ends.

If you have would like to submit comments on what other goods should be excluded – contact experienced customs and trade law attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

ITC publishes final determination of no material injury by imports of Fabricated Structural Steel from China, Canada and Mexico.

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About 30 minutes ago, the Federal Register published the final determination decision by the International Trade Commission finding no material injury by imports of fabricated structural steel from Canada, China and Mexico. The Final Determination can be viewed here: https://www.govinfo.gov/content/pkg/FR-2020-03-20/pdf/2020-05845.pdf

The petitioners have 30 days to file an appeal in court. If no appeal is filed, importers who paid duties may be eligible for a refund after the deadline to appeal expires.

If you want to learn more about getting a refund for your imports of fabricated structural steel from China, Canada or Mexico, contact experienced trade attorney David Hsu by phone/text at 832-896-6288, or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

US China Trade Deal as of 12/13/2019.

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Official portrait of President Donald J. Trump, Friday, October 6, 2017. (Official White House photo by Shealah Craighead)

As you are aware, the Trump administration has confirmed a trade deal with China has been reached.

Phase one of the trade deal was just announced:

-List 1 remains at 25%

-List 2 remains at 25%

-List 3 remains at 25%

-List 4b is gone (4b was initially scheduled to take effect December 15th, and included consumer electronics such as cell phones, laptops, computers, etc.).

-“Most” (not all) of List 4a is going to drop to 7.5%.

We will monitor the Federal Register for what specifically is being reduced. If you have any further questions, contact experienced trade attorney David Hsu for immediate help 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.

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.

US collected $63 billion in tariffs through June.

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According to the Wall Street Journal, the Treasury department’s tariffs is expected to generate almost $72 billion in tariffs through June of this year. This number will likely go much higher if the “List 4” duties take effect on September 1st. On September 1st, over $300 billion in Chinese goods will be subject to a 10% tariff with a potential to increase to 25%.

Specifically, as of June 30th, the Treasury department has collected $63 billion in tariffs over the past 12 months. In contrast, prior to the trade war, the US only brought in $30 billion dollars.

The WSJ estimates the annual generated amount can be as high as $100 billion by the end of the year once the 10% duties are placed on over $300 billion worth of imported goods from China.

If you have any questions how the current 301 duties or proposed List 4 duties will impact you, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

China threatens retaliation if tariffs are imposed on September 1st.

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According to the Associated Press, earlier today, China threatened the US with retaliation if Trump goes through with his threat to impose sanctions on “List 4” of goods from China on September 1st.

The primary issues of disagreement between the US and China are the forced technology transfers that are required by US companies doing business in China in addition to the lack of intellectual property protections for companies doing business in China. Additionally, the US has also expressed concerns over China’s 2025.

At the current time, the US has imposed tariffs over $250 billion in Chinese imports while the China has imposed tariffs on over $110 billion in US goods. The proposed September 1st tariffs cover over $300 billion in goods – effectively covering all imports of goods from China. The US government may have an upper hand as China only imported about $160 billion in US goods – a number that highlights the unequal trade balance ($160 billion versus $550 billion).

It will be interesting to see how China retaliates, they can only threaten to impose an additional $50 billion in tariffs on US goods, only 1/6th of the what the US can impose.

China’s industrial profits fall in June, sparking fears of slowdown.

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According to CNBC, profits earned by China’s industrial firms fell 3.1% in June from a year earlier, according to the China’s National Bureau of Statistics.

The decrease in industrial profits is likely due to the US/China trade war and the increase in tariffs on Chinese imports. CNBC also states that economic growth in the second quarter slowed to a near 30-year low.

With the US and China set to meet on July 30th for the first time since May, both sides may be looking for an agreement to end the almost year-long trade war.