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All eyes are on China right now as the World Health Organization declares a public health emergency for the coronavirus that is spreading around the world. There are a few important things to keep in mind about what is happening right now.

  • China's government has extended the Lunar New Year through Sunday, February 3rd country-wide, however some individual provinces have extended it another week through next Sunday.
  • Airlines are suspending service immediately or within the next week because passenger volumes to and from China have fallen off precipitously.
  • While China customs has been operating as they normally do through the holiday, there are questions about what steps the government will take as people return from the holiday (assuming they traveled at all) and factories with hundreds or thousands of people need to reopen.
  • We have been advised by one carrier that they are blanking an additional post Lunar New Year sailing as continue monitoring things with our partners on the Chinese mainland.

We will continue to keep our clients apprised of information that affects their supply chains but we strongly encourage importers and exporters to be in touch with their buyers and sellers to plan accordingly. ( Photo credit: Getty Images )
US and China sign Phase One deal - some duty relief arriving on February 14th
It's not much, but importers of goods on List 4a can feel some relief as the agreement which was signed this month between President Trump and Chinese Vice Premier Liu He sets the stage for the first Section 301 duty reduction. Items on List 4a will be halved beginning February 14th from 15% to 7.5%. Unfortunately there will not be an opportunity for importers to file for a refund of already paid duties and the 25% threshold remains for products on Lists 1, 2 and 3.
Coppersmith to consolidate hunting trophy exports in Dallas
A process related announcement for our hunting trophy exporters - our Dallas branch has a tremendous amount of experience handling trophies and we have made the decision to centralize all outbound shipments in Dallas. This will allow us to maximize our expertise and leverage the relationships we have with the appropriate regulatory agencies such as Fish & Wildlife in DFW to ensure a smooth export process with a minimum amount of delays. Read the full details on our blog.
US announces restoration of some additional steel and aluminum duties
On January 24th, the President issued a proclamation announcing that Section 232 duties in the amount of 25% and 10% on steel and aluminum, respectively, would be applied to derivative products made from those metals. The proclamation states that "... while imports of these goods have declined since the tariffs were imposed, imports of certain derivatives of these articles have significantly increased. The Department of Commerce believes this increase is part of an effort to circumvent the tariffs." These additional duties go into effect on February 8th.
Fresh Fruit Portal is reporting that global production of citrus is expected to decline in 2019-2020 because of lower crop levels overseas due to unfavorable weather. The only fruit not expected to see a drop worldwide in production is grapefruit. Early next week, the fruit industry is gathering in Berlin for the annual FruitLogistica conference and we are monitoring any announcements and developments coming from the conference for our citrus and other fresh fruit exporters. For the full details by tonnage and country including a link to the USDA's biannual report detailing their calculations, click the button below.
Following passage in the House and Senate, the President signed the implementing legislation for the US, Mexico, Canada Agreement, or USMCA. USMCA will bring changes to regional value content requirements for automobiles but also opens Canadian and Mexican markets to US exports like dairy and other agricultural products. Canada and Mexico were usurped by China as America's largest trading partners, but the decrease in trade with China because of the reciprocal imposition of additional duties has moved it down on the list once more. The US also secured increases in the de minimis levels for exports to both countries.
Today's the day that the United Kingdom leaves the European Union. Boris Johnson's government is stepping into the breach with no clear guidance on what trade, Customs processes, or the border with Northern Ireland and the Irish Sea will look like. What is certain, is that while Johnson's supporters may feel a sense of relief at finally accomplishing their goal of Brexiting, the uncertainty of what's ahead weighs heavily on the British economy and trade.
News from our Portland branch office as SM Line has called the Port of Portland with their vessel Qingdao, a 4,360 TEU vessel. Pacific Maritime Online Magazine reports, " The inaugural call – which departed the Port of Ningbo in China on Dec. 22 as part of the South Korea-based container carrier’s Pacific Northwest Service – included nearly 200 containers being imported, more than 70 export containers going to Korea, and 330 empty containers. The company’s service route includes stops in Shanghai, Pusan, Vancouver, BC and Seattle, Washington."
The Department of Homeland Security has released a report on the danger that e-Commerce poses to counterfeiting and intellectual property rights violations. This report will serve as a guiding document for changes that they will seek to make to CBP regulations to enhance their ability to impose financial penalties and controls on recipients of e-Commerce merchandise, specifically platforms or warehouses which are receiving the goods from overseas sellers. If your company is involved in e-Commerce, we strongly suggest you give it a read .