Tariffs on most remaining imports from China to begin Sept. 1 (From Sandler Travis)
Initial indications are that the 10 percent tariff [“List 4”], which would be in addition to any other applicable tariffs, will be applied on the entire list of 3,805 full and partial subheadings announced in May. The Office of the U.S. Trade Representative said at that time that this list covers all apparel, footwear, and manufactured textile products, among others, but excludes pharmaceuticals, certain pharmaceutical inputs, select medical goods, rare earth materials, and critical minerals. The complete list is at
https://ustr.gov/sites/default/files/enforcement/301Investigations/84_FR_22564.pdf?_cldee=a2V2aW5lQGJlc2xlcmNvLm5ldA%3d%3d&recipientid=contact-ccc194557803e51180d8c4346bace2fc-985ed467c3b844048ea323102a1280a9&esid=57b8cfb9-ff5d-433d-9ccd-ad40c1fe68d3
For more info, please go to
https://www.strtrade.com/news-news-China-list-4-301-tariff-import-trade-080119.html?mkt_tok=eyJpIjoiTXpGbE56RXpPVEE0TXpkbSIsInQiOiIzVGVwbmE4Rkwra2s4eldicjd2ZXpcL25EY3hCUjA1eTNyeFwvam9weXFlMGJWUjlcL01cL051T1l2OHg1NEJBK25Bd09xd1wvOTJTVDBBQ2hcL282NU1za29yNWhaTmpoVkREemw4NXREVEZ5d09McDQ2MlgzaDhXVUducnExTW1Nd1lzMSJ9#utm_source=tradereport&utm_medium=email
US Sanctions on Venezuela (From our friends at GKG Law)
On August 5, 2019, President Trump issued an Executive Order blocking all property and property interests of the Government of Venezuela and authorizing the Secretary of the Treasury to designate companies as SDNs if they provide material support or provide goods or services to any Venezuela-related SDN. In addition, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) updated 12 Venezuela-related general licenses and issued 13 new general licenses, including a wind-down general license that expires on September 4, 2019 (GL 28).
As a result of these actions, U.S. companies are now prohibited from engaging in any unlicensed transactions with
(1) the Government of Venezuela, including any of its political subdivisions, agencies, and instrumentalities;
(2) any entities that are directly or indirectly owned or controlled by the Government of Venezuela; and
(3) any individuals or entities acting on behalf of the Government of Venezuela, whether as agents, members of the Maduro regime, or otherwise.
For a range of activities allowed and further information, please go to
https://files.constantcontact.com/96ef00a5701/eb2060a5-8967-47f8-9a13-75eb6fe71a88.pdf
Increase in Tariff Enforcement Actions Highlights Importance of Compliance (From Sandler Travis )
U.S. Customs and Border Protection reports that there was a significant increase in its efforts to enforce trade remedies and other laws in 2018, highlighting some of the risk factors importers need to be aware of and the importance of taking compliance measures to mitigate them…
…Also in FY 2018 CBP began enforcing 53 new antidumping and/or countervailing duty orders, bringing the total number of orders in effect to 469 and the value of imports subject to those orders to $24.2 billion. To enforce these orders, which has long been a priority for the agency, CBP (a) levied more than $92.1 million in monetary penalties on importers for fraud, gross negligence, and negligence with respect to AD/CV violations, (b) conducted entry summary reviews that resulted in the recovery of more than $65.5 million in AD/CV duties owed, (c) identified through audits approximately $25 million in AD/CV duties owed (with $2.5 million collected to date), and (d) seized shipments with a domestic value of more than $1.3 million for AD/CV violations.
Finally, CBP saw an increase in activity under the Enforce and Protect Act to combat the evasion of AD/CV duty orders on products such as aluminum extrusions, plywood, hangers, pencils, bedroom furniture, steel flanges, and diamond sawblades. CBP received 33 allegations under EAPA from interested parties in FY 2018, nearly doubling the amount from the previous year. CBP also took interim measures in six EAPA investigations and issued final determinations in 12, up from one in FY 2017. CBP states that during the past two years it has initiated 20 EAPA investigations; conducted 18 onsite verifications in Thailand, Vietnam, China, Malaysia, Cambodia, and the Philippines; and prevented the evasion of $50 million in AD/CV duties annually. For more info, please go to
https://www.strtrade.com/news-publications-tariff-enforcement-import-compliance-CBP-072919.html?mkt_tok=eyJpIjoiTnpobU9XRTFabU5tTjJSaCIsInQiOiJBeE5qXC8zaFR0bWVrUE1LbFdGeXRxZDBXQnVOR2tFZzA2ZFZWSXgwKzhSdngrSVY3MmpDY3dVemhOKzB0Q2t2T2s4UnJKbmJRbE52WmE5QVNrQlJHaGFmR0RLQTBGaHpYT3NlaUdIVXpSaTJVYkVnNFg5UitNZEV2czc4SU5Gb0wifQ%3D%3D#utm_source=tradereport&utm_medium=email
Mexico supplants China as #1 U.S. trading partner(From Freightwaves)
The ongoing trade spat with China – and the subsequent U.S. tariffs on over $500 billion of Chinese goods has had another effect on the relationship between the two countries. For the first six months of 2019, Mexico supplanted China as the top trading partner of the United States.
For the first half of the year, imports from China decreased 12 percent. In the same period, U.S. exports to China decreased 19 percent. The U.S. Department of Commerce reported that for the six months of the year, the total value of the bilateral trade of goods between the U.S. and China was $271.04 billion. This amount was less than the U.S. bilateral trade amounts with both Canada and Mexico – the first time this has occurred since 2005. For more info, please go to
https://www.freightwaves.com/news/breaking-news-mexico-supplants-china-as-1-trading-partner-of-us?utm_campaign=Daily%20Newsletter&utm_source=hs_email&utm_medium=email&utm_content=75303681&_hsenc=p2ANqtz--eq3XIkTnU-hfuZwu0Pj7VPwyr-bjY7ZLdh8zYbPShs-kjGykV7GiEpfIPIMgWP4pXJ8q2Ur9YpJPrdU_hScQez0JJBQ&_hsmi=75303681
CBP collected $52 billion in tariffs, taxes, and fees in FY 2018 (From Sandler Travis )
CBP’s trade and travel report states that in fiscal year 2018 the agency collected about $52 billion in tariffs, taxes, and other fees, including more than $40.6 billion in tariffs, an increase of nearly 23 percent over FY 2017. CBP states that much of this increase is attributable to the Section 201 safeguards on washing machines, washing machine parts, and solar cells and panels; the Section 232 tariffs on steel and aluminum goods; and the Section 301 tariffs on imports from China. As of Dec. 19, 2018, CBP had assessed nearly $527 million in Section 201 tariffs, more than $1.1 billion in Section 232 aluminum tariffs, more than $3.4 billion in Section 232 steel tariffs, and more than $8 billion in Section 301 tariffs on goods from China. For more info, please go to
https://www.strtrade.com/news-publications-tariff-enforcement-import-compliance-CBP-072919.html?mkt_tok=eyJpIjoiTnpobU9XRTFabU5tTjJSaCIsInQiOiJBeE5qXC8zaFR0bWVrUE1LbFdGeXRxZDBXQnVOR2tFZzA2ZFZWSXgwKzhSdngrSVY3MmpDY3dVemhOKzB0Q2t2T2s4UnJKbmJRbE52WmE5QVNrQlJHaGFmR0RLQTBGaHpYT3NlaUdIVXpSaTJVYkVnNFg5UitNZEV2czc4SU5Gb0wifQ%3D%3D#utm_source=tradereport&utm_medium=email
Contact us with any questions.
Lee Hardeman LeeH@LHCB.com Direct: 404-477-3452
Sandy Cato SandyC@LHCB.com Direct: 404-477-3454
If you do not wish to continue to receive our newsletter, please email me at leeh@lhcb.com and put “Unsubscribe” in the subject line.