525 S. Douglas St. , #100• El Segundo, CA 90245 • (310) 607-8000
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In our blog this month, even as we celebrated Memorial Day on Monday, we're looking ahead to the next major holiday - Independence Day. There is concern that the hours of service requirements are placing undue hardships on pyrotechnics shippers and they are seeking relief from the regulations in the form of an exemption. Thanks to Cheryl Woodyard, our Dallas branch manager, for her insight into this problem.
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Turkey lost GSP status with the US effective May 17th.
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As of May 17th, Turkish imports are no longer eligible for reduced or duty-free treatment under GSP. The administration initiated a review of both Turkey and India's GSP status for a variety of reasons, and last week the rules changed that now require exports from Turkey to be eligible for Column 1 Most Favored Nation (MFN) duty rates. Along with this decision, the US government changed Turkey's status as a WTO beneficiary country for Section 201 investigations meaning that the reduction in duty on things like large residential washing machines and photovoltaic solar cells went away. ST&R has more in their announcement.
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US announces fourth list for China-origin exports - nearly every Chinese export will be subject to an additional 25% duty.
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After the President's tweet announcing China was not negotiating in good faith, the third annex saw an increase earlier this month from 10% to 25% in additional duty. Importers with goods already in transit were spared slightly as the rule only increased the duty on items leaving from May 10th onwards. But the following week, as promised, the USTR
published in the Federal Register
their intent to impose 25% on nearly all remaining goods that had not already been covered in one of the previous three rounds. The USTR is accepting exclusion requests - written requests are due to the agency in writing by June 17th. If your company is interested in requesting an exclusion, please
contact Bob Glover
for instructions on how to proceed with this written submission.
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Keeping up with the trade activity and actions by the US government is a full-time job for our import department. We pay particular attention when action is taken that affects the products or country of origin for many of our customers' goods. Last month, we shared the petition that was filed about ceramic tile and this month, we bring more information about quartz surfaces products from from China. Commerce determined that exporters from China have sold quartz surface products at less than fair value in the U.S. at rates that range from 265.84% to 336.69%. Commerce also found that exporters from China received countervailable subsidies at rates ranging from 45.32% to 190.99%. A determination of the final injury by the ITC is expected by the end of next month.
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There are many casualties in the trade war between the United States and China and while most attention is being paid to the duties that are inevitably going to be passed along to consumers, American exporters are hurting as well. Last week, the administration announced an additional $16 billion in aid to farmers and while the farming industry is appreciative of the direct payments, the president of Western Growers indicated the insufficiency and that no amount of direct financial payments can salve and recoup the lost business opportunities as the agricultural products of other countries are making their way to Chinese buyers and end consumers. Only time will tell if American farmers can get their products back in the minds of Chinese buyers.
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As a company, Coppersmith Global Logistics has been working to clear shipments of accompanied rescued racing greyhounds from a track in South Korea with new homes throughout the United States. In JFK, when there were questions raised that would have attempted to change the process for accompanied pets arriving that would have put them into a holding facility and require additional steps to clear, our branch manager Lenny Fishman worked with CBP in the port to resolve the issue. Lenny and CBP convened meetings with all of the interested and involved stakeholders and clarified the procedure, ensuring that the animals could continue their journeys unimpeded or without an unnecessary delay. Congratulations and thanks to Lenny for your hard work and leadership in the port on this issue.
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A major concern for companies as the rhetoric on trade between the United States and China continues to heat up is the potential impact on technology. The US took action to block technology transfers to China's Huawei which has had a major impact on telecommunication supply chains. In retaliation, China is threatening to take action on something that would affect us all - rare earth metals exports. Rare earth metals are needed and used in everything from smartphone batteries to vacuum cleaners and with more than 95% of the world's market in these metals - the decision by China to either stop exporting them or stop exporting products manufactured with them. There's a great story on the potential impact in Supply Chain Brain, found
here
.
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Classification of goods has always been key for entry. In the current trade environment, classification is even more critical because with increasing numbers of antidumping / countervailing cases and trade remedy actions, importers are finding products subject to double or triple-digit additional duties. Whether leveraging a scope ruling or an approved exclusion, importers must be fully aware of the products they are importing. Things like the country of origin, technical product details and end use can all play a role in how an item is classified for entry. At Coppersmith, we work with clients to not only provide classification advice, but also to write for binding rulings and, where necessary, with professional counsel to ensure that our clients are able to enter their merchandise correctly, legally and with the lowest available duty rate. For more information, contact your Coppersmith representative about how we can provide classification advice and guidance.
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