Severe truck capacity shortage (Repeat from March)
We are still experiencing severe shortages of truck availability for delivery from the port/airport to your facilities. Further, ocean carriers are levying emergency delivery fees, $300 in some cases, and restricting or eliminating door deliveries (we will be delighted to arrange delivery from the port for you, but please let us know WELL in advance). This shortage has come about primarily from increased demand as the economy grows (imports are up 9.8% from last year), but also bad weather, the mandate for electronic logging devices (ELD’s) becoming effective last month, and congestion in the ports/airports. We are working with our truckers to schedule your deliveries well in advance, and so far, we have been successful in getting timely deliveries. We cannot, however, control the rate increases we are seeing, between 10 and 25 percent. Please understand that in this current market, you should expect to pay more for truck deliveries.
ADD/CVD reminder (Repeat from January)
We continue to see a steady increase in the number of anti-dumping and countervailing duty complaint investigations being brought by the Department of Commerce. This is especially true for non-market economies, particularly China and Vietnam, but we have seen many from other countries like Thailand, India, Indonesia, Korea, Turkey, and even Canada. It is the responsibility of the importer of record to know if/what ADD/CVD cases apply to your merchandise. Further, we MUST get special permission from your surety for any entry involved with ADD/CVD, and the surety will usually require collateral for the full value of your bond. The collateral can be either a cash deposit or standby letter of credit. To avoid being assessed unexpected costs of ADD/CVD on your imports, we urge you to frequently check the list of Commerce investigations that can be found at
http://enforcement.trade.gov/stats/inv-initiations-2000-current.html
Alternatively, you can engage a service that monitors ADD/CVD cases for you. Their fees vary, but they are pricey. If you prefer to engage a service, please contact us for a referral.
DHS Offers Guidance on Examining Supply Chains for Prohibited North Korean Labor (From Sandler Travis)
The Department of Homeland Security has published a list of frequently-asked questions that provide further guidance on complying with an August 2017 law that generally prohibits imports of goods made by North Korean workers. U.S. law (19 USC 1307) prohibits the importation of goods mined, produced, or manufactured, wholly or in part, in any foreign country by forced or indentured labor, including forced child labor. The Countering America’s Adversaries Through Sanctions Act enacted in 2017 created a rebuttable presumption that significant goods, wares, merchandise, and articles mined, produced, or manufactured in whole or in part by North Korean nationals or citizens anywhere in the world are forced labor goods under Section 1307. As a result, such goods are not entitled to entry at any U.S. port and may be subject to detention, seizure, and forfeiture. Violations may result in civil penalties as well as criminal prosecution. For some of the questions and more info, please go to:
https://www.strtrade.com/news-publications-North-Korea-forced-labor-DHS-import-041318.html
Ed. note: If you suspect some of your merchandise may be produced using North Korean labor, you should contact your customs attorney immediately. If you do not have competent customs counsel, we will gladly make a referral.
Contact us with any questions.
Lee Hardeman LeeH@LHCB.com Direct: 404-477-3452
Sandy Cato SandyC@LHCB.com Direct: 404-477-3454
Brittany Albaneso BrittanyA@LHCB.com Cell: 404-401-5950
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