China

Trade Trouble – East, West and South, but North is Settled for Now!

Container Ship Enroute to Port

Photo credit: iStock.com/Darwin Brandis

By Susan Kohn Ross

Agriculture Secretary Perdue recently stated the trade damages to be addressed in a new round of farm aid is $15 to $20 billion! The general press is replete with stories about how, as these tariffs continue, companies are making sourcing changes that will be hard to reverse. So, what is the latest news?

First, there is trade with China. It seems clear that unless there is a breakthrough at the G-20 meeting in Tokyo, or shortly thereafter, the anecdotal headaches we hear about will get far more costly. The American Chamber of Commerce in China and the American Chamber of Commerce in Shanghai conducted a survey before List 3 was announced. Even at that point, American companies operating in China acknowledged higher production costs, decreased demand for products, reduced staffing, reduced profits, increased inspections at importation, increased bureaucratic oversight and regulatory scrutiny, slower approval of licenses and permits, higher product rejections, and increasing plans to relocate (but not back to the U.S.). (more…)

Tariff Turmoil

USA and Chinese flags on mountain signpost.

Photo credit: iStock.com/Darwel

By Susan Kohn Ross

The last few days have seen some startling developments regarding trade between the U.S. and China. Perhaps none of this is remarkable given the current climate, but trying to keep track has caused untold whiplash!

On May 10, we learned from USTR the timing of the 25% tariff on List 3 was changed. It is now applicable to goods entered on or after June 1, 2019. Given that CBP originally programmed its computer and the 25% on List 3 goods applied so long as the arrival date was May 10 or later, if you get caught in the payment timing cycle of having to pay the 25%, you will want to coordinate with your customs broker to file a Post Summary Correction and seek a 15% refund. (more…)

The Roller Coaster Ride Continues

Tariff, Taxes on Imported Goods

Photo credit: iStock.com/Olivier Le Moal

By Susan Kohn Ross

In yesterday’s “Talking Trade” Periscope broadcast, we made the point that the wording in the China 301 tariff notice left confusion which needed to be cleared up, and now, it has been. As is common knowledge, the 10% tariff on the goods on List 3 or Traunch 3 went up to 25% at 12:01 a.m. on May 10, 2019. How this applies is, however, a bit more nuanced. The Federal Register Notice reads: “Effective with respect to goods (i) entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on May 10, 2019, and (ii) exported to the United States on or after May 10, 2019…” (more…)

OFAC Brings the Hammer

Logistics and transportation of Container Cargo ship and Cargo plane with working crane bridge in shipyard at sunrise, logistic import export and transport industry background

Photo credit: iStock.com/thitivong

By Susan Kohn Ross

In March, there was a good deal of consternation in the general press trying to understand news that President Trump had overruled the actions of the Office of Foreign Assets Control (“OFAC”) to impose additional sanctions on North Korea. Beside the oddity of a President overruling actions by a part of the Executive branch after they had been taken, it remains a mystery what the President was seeking to overrule. Not being deterred, OFAC marched on, and in so doing, it provided multiple examples again how compliance programs need to not be just written, but also followed and enforced, and cost at least one American company $1,869,144 plus significant compliance upgrade costs. (more…)

No Further Shutdown; List 3 Exclusion Process Coming

USA and Chinese flags on mountain signpost.

Photo credit: iStock.com/Darwel

By Susan Kohn Ross

The Consolidated Appropriations Act of 2019 was signed into law on Friday, February 15, 2019, so the potential for another shutdown was averted, but there was a hidden gem buried in a related document. This new law contains a specific appropriation for the U.S. Trade Representative’s office which reads: “For necessary expenses of the Office of the United States Trade Representative, … $53,000,000, …” (more…)

China Tariffs – List 3 Finalized and Taking Effect

Economic trade war between USA and China

Photo credit: iStock.com/cybrain

In this video blog, MSK Partner & International Trade Practice Chair Susan Kohn Ross covers the latest developments with the 301 tariffs. 

At the end of the day on September 17, 2018, the U.S. Trade Representative issued notice that List 3 of the China tariffs has been finalized and takes effect with a 10% tariff on September 24, 2018. If “sufficient” progress is not made with the Chinese as defined by the Trump Administration, that tariff rate will rise to 25% on January 1, 2019. List 3 is the list containing products worth $200 billion.

The USTR announcement can be found here. The original list of products was 6,031. The final list was reduced to 5,745 and can be found here.

To no one’s surprise, the Chinese immediately announced their own retaliatory action and those details can be found here. (more…)

China 301 List 2 – Effective August 23, 2018

USA and Chinese flags on mountain signpost.

Photo credit: iStock.com/Darwel

By Susan Kohn Ross

USTR Lighthizer yesterday published notice that the 25% tariff on goods appearing on List 2 will become effective on August 23, 2018. For those who wonder if filing comments makes a difference, the answer is yes! In his announcement, USTR Lighthizer made the point the list dropped from 284 to 279 tariff items based on testimony and comments which had been received. None of this, of course, helps those companies which are taking a serious financial hit from these tariffs, but then once the official notice is published in the Federal Register, an exclusion request will be included, and so companies should be gearing up to do two things: (more…)

Brief Updates on China 301 List 3

By Susan Kohn Ross

On August 1, 2018, USTR Lighthizer issued a press release indicating he was following through with President Trump’s direction and will consider raising the rate of duty from 10% to 25% on those products on China 301 List 3. A formal notice in the Federal Register is expected soon.

Mr. Lighthizer also announced the written comment period is being extended to September 5, 2018, while the deadline to request to appear at the public hearing is changed to August 13, 2018. The hearing itself is still scheduled for August 20 to 23, 2018.

There is a new publication which appeared on the USTR website on August 2, 2018. In it, USTR clarifies the August 17, 2018 deadline for comments regarding products on the China 301 List 3 has also been extended to September 5, 2018.

8/7/18 UPDATE:

In the August 7, 2018 Federal Register, U.S. Trade Representative Lighthizer published the latest official timeline for those planning to participate in the China 301 List 3 proceedings. The relevant dates are:

  • August 13, 2018 – due date for filing requests to be a witness and a summary of expected testimony;
  • August 20-23, 2018 – public hearing dates;
  • September 6, 2018 – due date of submission of comments and post-hearing rebuttal comments – this deadline was previously announced as September 5, 2018.

For those planning to participate in this part of the 301 case, these are the dates by which to be governed.

Talking Trade: The Latest on 232 & 301

July 10, 2018
Talking Trade: 301 & 232 – What’s New

In this video blog, MSK Partner & International Trade Practice Chair Susan Kohn Ross covers what’s new with the 301 & 232 tariffs, including exclusions, the timeline, the 232 process, alternate sourcing, and more.

July 11, 2018
Talking Trade: China 301 – List 3 is Here

In this video, Su Ross provides the update that the new List 3 is now a reality and further explores what this new List entails. For more information on List 3, see this alert.

China 301: List 3 Now A Reality

China United States Trade Solution

Photo credit: iStock.com/wildpixel

By Susan Kohn Ross

Late on July 10, 2018, U.S. Trade Representative Lighthizer released a list of the next Chinese-made products targeted for additional duties, this time at a 10% rate and worth about $200 billion. The statement in support of this action can be found here, and the list of affected products here. As before, the list of products is released in Federal Register pre-publication format.

The dates to keep in mind are as follows… (more…)