Import Export Customs Compliance and Trade News

Trade and customs compliance and regulation news that affect import, export, transportation, logistics, and supply-chain industry and how you do business.
Center for Automotive Research

Trade Briefing: Consumer Impact of Potential U.S. Section 232 Tariffs & Quotas on Imported Automobiles & Automotive Parts

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The U.S. Department of Commerce is currently investigating whether U.S. automobiles and automotive parts constitute a national security threat under Section 232 of the Trade Expansion Act of 1962, as amended. The Center for Automotive Research (CAR) estimates that consumers will see the price of all new vehicles rise by $455 to $6,875 depending on the level of tariff or quota, where the vehicle was assembled, and whether the policy provides exemptions for automotive trade...
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Jennifer Diaz

U.S. issues additional Chinese Tariffs – Is Your Product on the List?

Product Tariff List
On June 15 , President Trump kept true to his  May 29th promise  of imposing additional tariffs against Chinese goods. The Office of the United States Trade Representative (USTR) has officially released the “ Section 301 Product List ”. The additional duties are effective on or after July 6, 2018. History We previously proved advised our readers of  President’s Trump directive is based upon the USTR Findings of the Investigation into China’s Acts, Policies, and Practices...
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Rick Chappel

Tariffs: Manufacturers are Ill-equipped for Raw Material Cost Hikes

Tariffs: Manufacturers
The import tariffs on steel and aluminum, as  confirmed  by President Trump on May 31, exacerbated worries for B2B manufacturers—and their customers. The implications for  employment  and the  economy  are significant, but most manufacturers are also grappling with practical questions, such as: How will this impact my per-unit costs? How can we effectively pass these changes on? How will customers react to an across-the-board price increase? How can we hold the line on margin erosion...
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Marisela Molina

5 Requirements for Importing Goods into Mexico

Import
In order to be successful, companies that manufacture within the borders of Latin America’s second-largest economy must be knowledgeable regarding the requirements for importing goods into Mexico. Although much has been done in recent years to simplify the process, those that are importing goods into Mexico must know the applicable rule in order to avoid complications that may include delays and fines. Those that are importing goods into Mexico must remember that: 1. A Mexican...
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George W. Thompson

Trade War Own Goal

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What do World Cup football and international trade policy have in common? Not much, really, but for each, the desire to avoid an “own goal” – scoring against yourself – is paramount. Morocco found that out the hard way in its first-round match with Iran. My expectation is that the Trump administration will as well, with its first round of “Section 301” tariffs against China set to begin July 6, 2018. As a recap, the...
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GTC Repost

World Cup Better Than Expected for Logistics

World Cup
Automotive Logistics | Vladislav Vorotnikov The FIFA World Cup 2018 has caused a temporary shortage of transport capacities in certain regions of Russia, with a local rise in tariffs and some delays at customs, according to Irina Novikova, the inland transport department director of Gefco. However, fears of Russia ceasing to import automotive components including spare parts from May 25 to July 25, due to severe security measures, have proved unfounded. Novikova said that restrictions...
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GTC Repost

Global State of Supply Chain Security: Evolving Threats

Global Supply Chain
  This is Part One of a three-part interview | Kristina Tanasichuk World Customs Organization Director of Compliance and Facilitation Ana Hinojosa brought 28 years of customs experience to the global body when elected to her post in 2015. The former U.S. Customs and Border Protection deputy assistant commissioner-international affairs also served as director of field operations for the El Paso Field Office from 2008 to 2013 and as area port director for Los Angeles International...
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Douglas J. Heffner | Kathleen M. Murphy | James L. Sawyer | Luke J. Karamyalil

Trump Administration to Investigate Imports of Automobiles and Automotive Parts

Auto
Following instructions from President Trump, on May 23, 2018, Department of Commerce (DOC) Secretary Wilbur Ross launched an  investigation  to determine whether imports of automobiles and automotive parts threaten the national security of the United States. The investigation will be conducted pursuant to Section 232 of the Trade Expansion Act. This action follows the administration’s recent Section 232 investigation on targeted steel and aluminum imports, which resulted in the assessment of 25 percent and 10...
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Tahlia Townsend | Matthew E. Cvercko | Sean C. Koehle

U.S. Bureau Of Industry And Security Updates Unverified List

EAR
Tahlia Townsend ,  Matthew E. Cvercko  and  Sean C. Koehler  are attorneys in the International Trade Compliance practice at Wiggin and Dana LLP .  On May 17, 2018, the U.S. Bureau of Industry and Security (BIS) updated the Export Administration Regulations (EAR) Unverified List (UVL), adding thirty-three entities and adding a new address for one individual currently on the list. The newly listed entities, which are listed below, include aircraft manufacturers, electronics manufacturers, universities, and...
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Mikah Wisner

Import Compliance Basics: 5 Things You Need to Know

Newbies to Trade
If you’ve been tasked with getting your company’s import compliance under control,  these five steps will get you quickly up-to-speed Taking on a new position at an importer usually means sifting through the remnants of your predecessor’s activities and policies and trying to come up with a way to work better, smarter, and faster. These goals aren’t always easy to achieve in the import space, which tends to move quickly and expect a lot from the people who...
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GTC Repost

What Is LCL Shipping?

LCL FCL
By Rieva Lesonsky Importing products from China is a great way for a small business to diversify their product offerings, stay on top of trends and reduce costs. However, in order to maintain your profit margins, it’s important to understand and manage your shipping costs. Today’s shipping lesson: What is LCL shipping, and how can it benefit your business? LCL shipping vs. FCL shipping When goods are shipped by ocean freight, you have the choice...
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Laurel Delaney

How a Letter of Credit Can Boost Profitability

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MasterCardBiz with Laurel Delaney One of the most important things to negotiate before closing on an export sale is how payment will be made. Short of asking for payment in advance, securing payment with a letter of credit is the next best option. Sure it’s a little more expensive–typically 1/8 of 1 percent of the total transaction price plus incidental fees related to any amendments that might have to be made–but it’s worth it to...
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George W. Thompson

What is EAR?

Exports Administrations Regulations
Commerce Department Export Controls (Export Administration Regulations) The Bureau of Industry and Security (BIS) of the United States Commerce Department has responsibility for administering export controls on commodities, software and technology that is not within the jurisdiction of another agency. The Export Administration Regulations (EAR) issued by BIS set forth the scope of this authority. BIS oversees export and reexport restrictions on controlled products and on specified destinations, persons and activities. For example, BIS administers...
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GTC Repost

US Company Settles Whistleblower Lawsuit, Pays for Importer’s Customs Fraud

uslawsuit
Prosecution a Warning to US Companies That Source Goods From Abroad Written by Mark Strauss Federal prosecutors in New York recently  announced the settlement  of a remarkable lawsuit relating to a scheme to evade import duties. The case involved an importer’s undervaluation of apparel to pay less duties than were really owed. The settlement that prosecutors reached, however, was not with the importer, but its customer. Notations, Inc., a Pennsylvania womenswear wholesaler, agreed to pay...
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Jennifer Saak

Export Controls: 5 Ways to Monitor Changing U.S. Regulations in the Coming Year

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Now is the time to think strategically about the new year.  How will you stay on top of dynamic export controls regulations and remain compliant?  As the Export Control Reform (ECR) Initiative continues, there are still some crucial pending changes that affect both companies and universities in research and technology.  These future updates include a clarification on the ITAR’s definition of “fundamental research” and the transition of certain items from the ITAR’s United States Munitions...
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Lisa M. Richman

Update on the NAFTA Renegotiations: What You Need to Know

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The cancellation of US involvement in the TPP, and its potential withdrawal from NAFTA have sparked considerable anxiety over the loss of protections and opportunities both investment treaties afford. But there are alternatives. The Trump Administration has proposed substantial changes to the terms of the North American Free Trade Agreement (NAFTA), a multilateral trade and investment agreement between the United States, Canada and Mexico. During five rounds of negotiations, the representatives of the parties to...
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Simon Slyper

CTPAT 2018 Update

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At the 2017 Customs Trade Partnership Against Terrorism (CTPAT) Conference in Detroit, Michigan, U.S. Customs and Border Protection (CBP) announced plans to strengthen the existing “minimum security criteria (MSC) for the program and adding new criteria to reflect evolving security threats. The updated, modernized MSC will include the following: • Cybersecurity (elevated firewall performance, test affirmation of resistance to attempted hacking, etc.) • Prevention of money laundering • Emphasis on corporate responsibility of senior management...
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GTC Repost

U.S. Customs plans to update CTPAT best practices, minimum-security requirements, and compliance certification

U.S. Customs plans to update CTPAT best practices, minimum-security requirements, and compliance certification
Director of cargo security program outlines current and planned updates at Coalition of New England Companies for Trade annual cargo symposium. The Customs Trade Partnership Against Terrorism , better known as CTPAT, has a new logo, a red, white, and blue globe made of interlocking puzzle pieces. It has new spelling, with no hyphen in its name or acronym anymore, and a new tag line: "Your Supply Chain's Strongest Link." But that's not all that's...
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GTC Repost

LCL (Less Than Container Load), or FCL (Full Container Load): That Is the Question

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When 20’ and 40’ full containers make up 90% of all goods shipped around the world, a common question arises with newer shippers: “What if I don’t have enough freight to fill a full container?” In this case, LCL (Less-than-Container-Load) may be right for you. Don’t judge a shipper by their carton count LCL offers shippers with regular smaller shipments the flexibility to move their orders when they’re ready rather than waiting for enough orders...
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Ketan M. Ganase

Predictability Through Incoterms

incoterms
Expanding your business beyond the borders and perceived safety of your own country may be a frightening prospect full of uncertainties, but in today’s global marketplace, it often is the only option available to stay competitive. The nature of cross-border business is such that a lot can be lost in (miss)translation. Parties to international transactions will often speak different languages, employ different trade practices, rely on divergent business customs or any other of the plethora...
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