Qualcomm asks Judge to block iPhone imports – Judge says no because of “public interest factors”.

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Qualcomm appeared in front of the US International Trade Commission Judge on Friday to request a ban on the importation of Apple iPhones due to Apple phones infringing Qualcomm’s patent related to power management technology. Apple’s position is that Qualcomm is requesting royalties for technology unrelated to Qualcomm.

The administrative law judge, Thomas Pender, found Apple did infringe on one patent, but denied the request for a ban citing “public interest factors”.

From my experience, CBP will readily and gladly detain and/or seize any import that infringes upon any intellectual property or trademark registered by the holder. We all know the reason why the Judge said he would not ban the importations of iPhones – he does not want to be known as “that guy” that banned importation of some iPhones to the US – especially due to the release of the new iPhone max and other variations.

Unfortunately, this decision highlights the rules being selectively applied to some and not to others.

If your imports have been detained or seized by Customs, contact experienced trade attorney, David Hsu at 832-896-6288 or by email at dhsu@givensjohnston.com.

How you can protect your company in light of the new China tariffs.

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Since “List 1” of the tariffs on Chinese goods became effective on July 6th, we’ve had many calls from importers, forwarders and brokers on the best practices moving forward. Here’s a quick summary of what any importer should do regarding their imports of Chinese goods –

  1. Apply for a company-specific exclusion from the tariffs. The U.S. Department of Commerce (Commerce) has published procedures for doing so on their website. The current approved exclusions are from steel tariffs with more exclusions to follow as Lists 2 and 3 take effect likely later this year.
  2. Review your classifications of imported merchandise. There may be more appropriate HTSUS numbers that your merchandise can be entered under and not subject to duties.
  3. Companies can also use the rules of origin to see if imported merchandise can be from another country other than China. This could result from moving the manufacture location, or moving the location of the “substantial transformation” of those goods.
  4. Adjust the valuation of the merchandise. See if the imported goods are properly valued.
  5. If merchandise is imported to the US for export out of the US, be sure property TIB, IT, T&E bonds are filed.
  6. No one likes surprises – it is best for importers, compliance, supply chain, sales and accounting to notify company management of potential tariff changes and the economic impact these new tariffs will have on profit and costs.

If you have any questions or want to know how your company can protect itself from these new duties, contact experienced trade attorney David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.

FDA issues new warning on Kratom – May 22, 2018.

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U.S. Food & Drug Administration Logo, credit: FDA.gov

On May 22, 2018, the U.S. Food and Drug Administration (FDA) issued a new warning (full text here) for three marketers and distributors of kratom products:

1. Front Range Kratom of Aurora, Colorado;
2. Kratom Spot of Irvine, California and
3. Revibe, Inc., of Kansas City, Missouri.

The FDA claims the above distributors and others like them are illegally selling unapproved kratom-containing drug products with unproven claims about their ability to help in the treatment of opioid addiction and withdrawal.

The FDA cited the companies claims that kratom also treats pain, lowers blood pressure, treats cancer and reduces the damage caused by strokes.

As you are aware, all medical claims from a food or drug product must be approved by the FDA. The FDA position is that kratom as an “opioid analogue” that may contribute to the opioid epidemic instead of treating the addiction.

The FDA warning reiterated FDA”s position that Mitragyna speciosa (kratom) use expose users to a risk of addiction, abuse and dependence by affecting the same opioid brain receptors as morphine. At the moment there are no FDA-approved uses for kratom.

Benefits of kratom?
Commonly argued benefits of kratom include: helping end drug addiction, ability to lower blood pressure, relieve pain, boost metabolism, increase sexual energy, improve the immune system, prevent diabetes, ease anxiety, eliminate stress, and induce healthy sleep. It is believed that kratom also reduces the opiate withdraw effects allowing those addicted to other opioids an opportunity to quit. The list of kratom benefits also include relieving headaches, vascular pain, arthritic pain and muscle pain?

FDA-Approval soon?
A check on the FDA site shows no indicating kratom/mitragyna speciosa will be approved anytime soon or even in the near future. Some argue FDA-approval doesn’t legitimize a drug as evidenced by the multitude of mass tort pharmaceutical lawsuits over dangerous drugs (trasylol, accutane, actos, depakote, hydroxycut, etc).

How does this FDA release impact imports of kratom?
U.S. Customs and Border Protection (CBP) enforces the laws of all the US government agencies (FDA, Consumer Product Safety Commission, Department of Commerce, Department of Defense, etc). This new FDA warning and others before it mean that imports of kratom may be subject to detainment and seizure if the imports of kratom contain non FDA-approved statements concerning the benefits of kratom. Officially, kratom is still being imported into the US with sporadic reports of seized kratom shipments.

More questions?
If you have any questions about the importation of kratom or a seizure related to kratom, contact experienced trade and customs attorney David Hsu by text/phone at 832-896-6288 or by email at: dhsu@givensjohnston.com.