In an effort to improve the security and tranquility of Americans, Department of Homeland Security (DHS) along with U.S. Customs and Border Protection (CBP) U.S. Citizen and Immigration Services (USCIS) and Transportation Security Administration (TSA) are looking for tech-startups and scientific talent to be integrated into DHS’ Silicon Valley Innovation Program (SVIP). DHS and its subsidiary groups seek to find commercially viable companies to invest in, many of which reside in the same territory of SVIP–Silicon Valley. The goal is to bridge the gap between American technological innovation and the security and effectiveness of government agencies, tasked with the protection of the country.
USTR published a Federal Notice on May 21, laying out the exclusion process for list 3. USTR anticipates that the exclusion period will open up on or around June 30th. USTR estimates that over 60,000 US Stakeholders will request an exclusion for a particular product. On May 13, USTR proposed a 4th list, which slaps a 25% tariff on roughly 300 billion worth of goods. From food products to furniture, the proposed list would include “essentially all products not currently covered” under previously imposed lists including literally thousands of irrelevant goods.
If your product appears on any Section 301 tariff list there are three avenues to potentially get it removed. You may submit a comment, attend public hearings, or obtain an exclusion. Below is a big picture of the past and future opportunities get products off tariff lists:
China Imposes Retaliatory Tariffs and US intends to Strike Back – Tell the USTR Why Your Product Should Not Be on the New List!
As the trade war between United States and China drags into its second year, a resolution does not appear to be in the near future. In fact, following the most recent wave of escalations, the US stock market plummeted over 600 points leading into Monday, May 13.
While the trade war continues, neither side seems ready to reconcile. In early May, the two parties came close to a consensus. According to President Trump, China backed out of the deal, re-igniting tensions. In response to China reneging on the tentative agreement, President Trump called for an additional 25% tariff increase on Chinese Products on List 3.
Since September 17, 2018, the trade industry has been bracing themselves for the increase of China tariffs from 10% to 25%. The trade community has enjoyed a few months of postponements – January 1st, 2019 to March 1st, 2019. The postponements led many to believe the increase was unlikely, until May 6, when the President emphatically stated that “the 10% will go up to 25% on Friday [May 10, 2019].” via twitter. Only three days later and USTR has officially announced the anticipated 25% increase is effective on 12:01 am, May 10, 2019.
Until recently the Section 301 Tariffs have been associated with China deceptive practices. The USTR is now expanding Section 301 Tariffs to the European Union (EU). As a result of the World Trade Organization (WTO) repeatedly finding that EU subsidies to Airbus have caused adverse effects to the United States; the Office of the United States Trade Representative (USTR) has launched a process under Section 301 of the Trade Act of 1974 to identify products of the EU to which additional duties may be applied. These additional duties will be in effect from the dated published until the EU removes those subsidies.
Pursuant to the Customs Modernization Act, the importer of record (IOR) must use “reasonable care” when providing the value of the goods to Customs and Border Protection (CBP). All merchandise imported into the United States is subject to valuation or appraisement. The Trade Agreements Act of 1979, codified at 19 U.S.C. § 1401a, sets forth a hierarchy of methods for the appraisement of imported merchandise. Under the Trade Agreements Act of 1979, the transaction value of imported merchandise is the primary or preferred method for determining the value of imported merchandise. Generally, transaction value is the price actually paid or payable for merchandise when sold for exportation to the United States, plus certain statutorily enumerated additions.
China Tariff Hike Postponed – USTR to Establish an Exclusion Process – Seminar on “China Tariffs/AD/CVD 101”
The on-going trade war continues as China and the US make progress to come to an agreement. For background information on past actions taken by the Trump Administration to protect American Intellectual Property, check out our previous blogs.
China Tariff Increase is Postponed
President Trump reported in a February 24th tweet that as a result of the “substantial progress” in trade negotiations with China on “important structural issues” he will be delaying the increase from 10 percent to 25 percent in the additional Section 301 tariffs on the List 3 goods (valued at about US$200 billion) that is scheduled to take place on March 2nd. To formalize the extension, the administration will have to publish a Federal Register notice stating the Section 301 additional tariff on the so-called List 3 products will remain at ten percent for now and the notice will likely provide the new date for the tariff increase. To date no formal notice has been published.
As we continue to work hard to keep you up to date on the current Trade War between the U.S. and China, the U.S. International Trade Commission (USTIC) released The Year in Trade 2017 on August 21, 2018. The report is the USTIC’s 69th annual report submitted to the U.S. Congress under section 163(c) of the Trade Act of 1974 (19 U.S.C. § 2213(c)). The report is one of the government’s most comprehensive reports about developments regarding the administration of U.S. trade policies, trade laws, and trade agreements. […]
On April 11, amid a high demand for soccer apparel in preparation for FIFA World Cup, U.S. Customs and Border Protection (CBP) seized counterfeit soccer apparel shipped from China to the Port of Savannah. The value of the seized goods exceeded $1 million in manufacturer’s suggested retail price (MSRP). The apparel seized contained counterfeit trademarks of the following professional soccer clubs: Arsenal, Barcelona, Celtic, Chelsea, Mexican Federation, Paris Saint-Germain, and Real Madrid. Little did they know they should have tried to import Germany’s soccer club’s apparel.
“You look at that Chelsea patch, and it just looks off,” said Steve Sapp, a spokesman for U.S. Customs and Border Protection. “The last B is smaller than the rest, and that’s the kind of thing you often see with these counterfeit goods. Our investigators know the signs that these goods aren’t real.”
With the concentration of US imports from China increasing in parallel with intellectual property rights seizures, companies rely heavily on the government, specifically on US Customs and Border Protection ("CBP") to help protect and enforce their intellectual property rights ("IPR"). IPR seizure statistics are published yearly. From 2010-2011 alone, IPR seizures increase by 24%, and have nearly doubled since 2009.