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.
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

Goal
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

Contracts with Foreign Companies May Require a Rewrite

Contracts
Hwan Kim | Neil A.F. Popović | Sheppard Mullin Law Firm A recent California case may force companies doing business with foreign entities to reconsider—and maybe rewrite—their contracts. In  Rockefeller Tech. Invs. (Asia) VII v. Changzhou Sinotype Tech. Co. , No. B272170, 2018 WL 2455092 (Cal. App. June 1, 2018), the California Court of Appeal held that parties may not contract around the formal service requirements of the Convention on the Service Abroad of Judicial...
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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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GTC Repost

Why is Trade Compliance operating like its 1999?

AAEI
Reflections on AAEI 2018 – Why is Trade Compliance operating like its 1999? As always AAEI puts together an agenda that is meaningful for the trade compliance community.  The sessions are highly informative and relevant to the current trade environment and provide really good insights into what CBP, Commerce, and the PGAs are working on. However, my biggest take away from AAEI was not the information from the sessions.  The overriding impression that I was...
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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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Lawrence M. Friedman

Country of Origin for Dumping Orders

Dumping
I have trying to get to this one, and now is the time.  Bell Supply Co, LLC v. United States  is an important decision from the Court of Appeals for the Federal Circuit. The issue presented is whether, when making a scope determination, Commerce should apply the traditional substantial transformation test to determine the origin of the merchandise that was partially manufactured in a country subject to the order and partially manufactured outside that country....
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GTC Repost

New China Customs Advance Manifest Rules Effective June 1, 2018

NewChinaRules
Effective June 1, 2018, additional manifest-related data must be provided to the Chinese General Administration of Customs China (GACC) for inbound and outbound shipments to China for all modes of transportation. Chinese Customs will require more detailed information including: Shipper’s business registration code and phone number Consignee’s business registration code and phone number, and contact name and phone number For “To order” shipments, notify party’s business registration code and phone number The type of required...
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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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Robert J. Bowman

Customs Regs: A Necessary Evil, or The Key to Competitive Advantage?

CUSTOMS
How those burdensome Customs rules and regulations imposed on importers and exporters can make companies more competitive and efficient. Companies engaged in international trade are quick to complain about their regulatory burden. Indeed, one could cite countless cases of shipments delayed by agents of U.S. Customs and Border Protection for the importer’s failure to adhere to the slew of rules that governs cross-border commerce. And the number of regulations seems to grow every day, requiring...
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GTC Repost

Cuba-U.S. Relations: The Rapprochement Slows Down

Cuba
Written by Alejandro E. Moreno | Sheppard, Mullin, Richter & Hampton LLP Soon after Fidel Castro overthrew the government of Cuba to found a communist state in 1959, Cuba began nationalizing U.S-owned properties in Cuba. In response, the U.S. implemented trade restrictions, closed its embassy in Havana, broke official diplomatic relations with Cuba, and attempted to overthrow the Cuban government. The U.S. also declared a trade embargo on Cuba in 1960, which severely hampered the...
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Kenneth J. Nunnenkamp | Giovanna M. Cinelli

The Nuts and Bolts of the Steel and Aluminum 232 Matters

Steel Imports
On March 8, President Donald Trump announced that trade remedies would be imposed on steel and aluminum imports pursuant to Section 232 of the Trade Expansion Act of 1962. Section 232 allows for trade remedies when the president, acting through and on the recommendation of the Department of Commerce, finds that imports threaten the national security of the United States. Upon such a finding, the president can “adjust the imports of an article and its...
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Steve Lowery

Bigger Requires Better

Port
In transportation, everyone knows that  bigger is always better ; it’s why we have 18-wheelers and jumbo jets. So, it only stands to reason that ships, which still move about 90 percent of all global trade, would travel this route. Big time. And, indeed, since their civilian introduction in the 1950s, container ships have grown with the kind of consistent bursts we normally associate with adolescents. A really big container ship in the mid-’50s maxed...
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Steve Lowery

When Pigs and Tariffs Fly

Tariff Pork Exports
China’s announcement that it would be imposing a 25 percent additional tariff on exported American pork could not have come at a worse time for the  American pork industry , coming as it does after the industry had just hit record levels in 2017, when U.S. pork exports recorded the largest year ever in volume, with sales to more than 100 countries around the world. United States pork  and pork variety meat exports totaled 5.399...
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Laurel Delaney

How a Letter of Credit Can Boost Profitability

G8104LC
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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Jennifer Diaz

CBP Releases New E-Commerce Strategy

CBP
On December 1, 2016, we wrote about U.S. Customs and Border Protection’s (CBP)  new E-Commerce and Small Business Branch , which was created to help consumers and merchants safely navigate the complexities associated with the steady rise of global e-commerce. CBP defines  e-commerce  as high-volume, low-value shipments purchased via electronic means. E-commerce shipments pose the same health, safety, and economic security risks as containerized shipments, but the volume is higher and growing. Additionally, transnational criminal...
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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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