Tag: International Trade

International Business, International Trade, Regulatory

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. Continue reading “OFAC Brings the Hammer”

Unknown's avatarmskllpLeave a comment
International Business, International Trade, Regulatory

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, …” Continue reading “No Further Shutdown; List 3 Exclusion Process Coming”

Unknown's avatarmskllpLeave a comment
International Business, International Trade, Regulatory, Videos

China 301 Tariffs – Current Events

In this video blog, MSK Partner & International Trade Practice Chair Susan Kohn Ross covers what’s next with the 301, including the tariff China has imposed on goods imported from the U.S., which product lists are at which stage, what is going on with List 3 in both countries, and other current events. Continue reading China 301 Tariffs – Current Events

Unknown's avatarmskllpLeave a comment
International Business, International Trade, MSK Blog

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: Continue reading “China 301 List 2 – Effective August 23, 2018”

Unknown's avatarmskllpLeave a comment
International Business, International Trade, MSK Blog

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 … Continue reading Brief Updates on China 301 List 3

Unknown's avatarmskllpLeave a comment
International Business, International Trade, MSK Blog

China 301 Tariffs Took Effect – What Happens Next?

China tariffs
Photo credit: iStock.com/ANNECORDON

By Susan Kohn Ross

The U.S. Trade Representative (“USTR”) issued a press release on July 6, 2018 in which the process companies can use to seek exclusion from the 25% tariff imposed on the same day on goods from China was announced. The timeline requires all original exclusion requests to be filed by October 9, 2018. Each will be reviewed to insure completeness and will then be posted for public review, and 14 days from the date of any posting, all objections are due. No more than 7 days later, any applicant may file its reply. All such submissions are filed through regulations.gov and must reference Docket No. USTR-2018-0025. Continue reading “China 301 Tariffs Took Effect – What Happens Next?”

Unknown's avatarmskllpLeave a comment
International Business, International Trade, MSK Blog

USTR Publishes 301 Product List / China Reacts With Its Own List

Tariffs - just ahead
Photo credit: iStock.com/gguy44

By Susan Kohn Ross and Kevin Rosenbaum

The U.S. Trade Representative (“USTR”) has prepared for publication a Federal Register Notice (“Notice”) that identifies a list of approximately 1,300 tariff lines on which it proposes to levy additional duties of up to 25% on goods made in China. The pre-published copy of the Notice was released yesterday, April 3, 2018, and includes an Annex identifying the products on which USTR proposes to assess the additional duties. The notice can be found here.  According to an accompanying press release, the sectors targeted for the proposed tariffs “include industries such as aerospace, information and communication technology, robotics, and machinery.” The press release further indicates these tariffs are intended to combat China’s “industrial plans, such as ‘Made in China 2025.’” The tariffs, therefore, are intended to “target products that benefit from China’s industrial plans while minimizing the impact on the U.S. economy.”

The Notice announces a public hearing and an opportunity for interested parties to submit written comments. The public hearing will take place on May 15th; interested members of the public must file requests to appear at that hearing, and a summary of expected testimony as well as any other pre-hearing submissions are due by April 23rd. Written comments must be filed by May 11th, and any post-hearing rebuttal comments are due May 22nd. Continue reading “USTR Publishes 301 Product List / China Reacts With Its Own List”

Unknown's avatarmskllpLeave a comment
International Business, International Trade, MSK Blog

Steel/Aluminum Tariffs Exemptions Clarified

Industrial Welder With Torch
Photo credit: iStock.com/Kerkez

By Susan Kohn Ross

In off the record comments on March 28, 2018, an official of the Dept. of Commerce provided some clarification as to how the product exemption process will work relative to steel and aluminum tariffs. Of course, the starting point is: if your product is subject to the steel or aluminum tariffs and is not from an exempted country, the 25% or 10%, respectively, will have to be paid. After that, things get trickier.

If you decide to seek exemption for your product, the first step obviously is to gather the needed details and file your exemption request. The way the process is intended to work is once the exemption request is uploaded to regulations.gov, the Bureau of Industry and Security (“BIS”) will review it for completeness. If not complete, the application will be rejected. If complete, it will be officially posted on the regulations.gov website. That date is key. Because, if your exemption request is later granted, while not official until five days after it is published, you will be able to seek refunds on any entries filed between the date the exemption request is posted and when it is granted. Continue reading “Steel/Aluminum Tariffs Exemptions Clarified”

Unknown's avatarmskllpLeave a comment
International Business, International Trade, MSK Blog

Trade Trifecta!

USA and Chinese flags on mountain signpost.
Photo credit: iStock.com/Darwel

By Susan Kohn Ross

Some events rather significant to international traders occurred in the last few days. First, on Friday, March 23, 2018, President Trump signed the latest spending bill. It includes a provision to renew Generalized System of Preferences (“GSP”) benefits retroactive to December 31, 2017, when the program last expired. GSP is now authorized through December 31, 2020.

With history as a guide, we should expect Customs and Border Protection to shortly publish a message advising when its programming is updated, the deadline by which to file refunds and similar details. In the past, so long as the entry was filed with an “A” or similar indicator, refunds were routinely issued, but importers would still be wise to make sure their list of eligible entries is current, and then to track their refunds. Since the bill was signed into law on Friday, the deadline to file refund requests will be 180 days later, which works out to September 18, 2018. Continue reading “Trade Trifecta!”

Unknown's avatarmskllpLeave a comment