W. A. Smith International, Incorporated

W. A. Smith International, Incorporated Baltimore based U. S. Customs Broker and Foreign Freight Forwarder/Logistics Provider

01/06/2020

President Trump to Sign Chinese Trade Deal on January 15

In a tweet published on December 31, President Trump announced that he would "be signing our very large and comprehensive Phase One Trade Deal with China on January 15." This signing is scheduled to take place at the White House and will include high level Chinese representatives. In the tweet, the President also announced that he would be going to Beijing at a later date to begin Phase Two of the negotiations.

12/16/2019

SECTION 301 TARIFFS:
US and China
Reach Phase One Trade Agreement
Today the USTR issued a press release and notice announcing that the US and China have reached a Phase One trade agreement, resulting in immediate changes to the implementation of Section 301 tariffs.

As a result of the agreement, the tariffs on Section 301 List 4B, originally scheduled for December 15, 2019 are suspended indefinitely.

Section 301 List 4A tariffs will be reduced from 15% to 7.5%, but the USTR has not specified when this change will happen or whether it will be retroactively effective. The USTR is expected to issue a notice in the near future reducing the rate. The 25% tariffs on Lists 1, 2 and 3 will remain in place.

The trade agreement reportedly will require “structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange,” in addition to China’s commitment to substantial U.S. goods purchases and a strong dispute resolution system.

LIST 3 EXCLUSIONS GRANTED: On November 29, 2019 and December 12, 2019, the USTR announced additional exclusions granted to products on List 3. CBP will issue instructions on entry guidance and implementation through its Cargo Systems Messaging Service.

All exclusions are available for any product that meets the description in the Annex to each notice and enumerated ten-digit HTSUS classification, regardless of whether the importer filed an exclusion request. The scope of each exclusion is governed by the scope of the product descriptions in the Annex, and not by the product descriptions set out in any particular request for exclusion. Clients may also benefit through filing Post-Summary Corrections or Protests for those entries now covered by a List 3 product exclusion to secure refunds plus interest.

Details of the granted exclusions are below.
LIST 3: The exclusions granted to List 3 products on November 29, 2019 are reflected in 32 specially prepared product descriptions, which cover 39 separate exclusion requests, outlined in the Annex to the notice.

The exclusions granted to List 3 products on December 12, 2019 are reflected in 9 ten-digit HTSUS subheadings and 35 specially prepared product descriptions, which cover 75 separate exclusion requests, outlined in the Annex to the notice.

These exclusions will apply as of the September 24, 2018 effective date of the $200 billion action, and are effective until August 7, 2020.

10/10/2019

10 October 2019

The US-EU conflict over Boeing and Airbus subsidies is spilling over into other goods. The Trump administration announced yesterday that tariffs on certain European-origin imports will begin October 18, 2019.
While certain aircraft will be subject to 10% ad valorem import duties, the rest of the products on USTR’s list will be subject to 25% duties. The list includes whiskies, wine, olives, various cheeses and other dairy products, fruit, coffee, clams and other shellfish, certain metal tools and textiles.
Considerations for Importers and EU-based Companies
The effective date of the new tariffs is October 18, 2019, although what exactly is meant by this is not yet clear. However, the normal effective date of tariffs such as these is usually stated in terms of “entered on or after,” referring to the date that Customs accepts the formal entry of the goods. The Customs broker submits an “entry” to Customs, and the date of entry is considered to be when Customs accepts the entry by releasing the goods. The goods must be within port limits before an entry can be accepted. If you have impacted shipments which you expect to enter port close to October 18, 2019, there are procedures that we can recommend that will ensure the earliest possible entry date. We believe that when the products leave Europe will likely be irrelevant. The date of Customs entry almost always governs.
Importers and manufacturers of goods on USTR’s list will want to stay updated on the status of the tariffs. Previous tariff actions on Chinese-origin goods have included a procedure to request an exclusion of a particular product; although no announcements have been made yet, there may be a similar exclusion process for EU products as well. In addition, importers may have other options to manage the new tariffs, even in the absence of an exclusion application procedure. Bookmark Navigating New Tariffs, as we’ll update it regularly when there are new developments.

FDAImports.com, LLC | Benjamin L. England & Associates, LLC

08/01/2019

August 1, 2019



Tariffs on All Remaining Imports from China to Begin Sept. 1

Initial indications are that the 10 percent tariff, which would be in addition to any other applicable tariffs, will be applied on the entire list of 3,805 full and partial subheadings announced in May. The Office of the U.S. Trade Representative said at that time that this list covers all apparel, footwear, and manufactured textile products, among others, but excludes pharmaceuticals, certain pharmaceutical inputs, select medical goods, rare earth materials, and critical minerals.

06/01/2019

ST&R Efforts Yield Extension of Grandfather Clause for Higher China Section 301 Tariffs
Monday, June 03, 2019
Sandler, Travis & Rosenberg Trade Report
The Office of the U.S. Trade Representative announced May 31 that its intent to extend the deadline by which List 3 goods from China must enter the U.S. to remain subject to a Section 301 additional tariff of 10 percent rather than being subject to a higher tariff of 25 percent. Originally, such goods exported before May 10 had to be entered by June 1 or be subject to the higher tariff rate, but USTR has now extended that entry date to June 15.

Many companies were caught with goods on the water when the increased tariffs were announced. USTR initially said that any goods exported before May 10 would be grandfathered in at the 10 percent tariff rate regardless of the import date, but less than 24 hours later the agency modified that notice and imposed an imported-by date of June 1.

This date, only 21 days after the increased tariffs went into effect, would have negatively impacted many companies. Those that clear their goods through East Coast ports were especially disadvantaged, as ships could not possibly leave China, clear the Panama Canal, and arrive in an East Coast port within 21 days.

Sandler, Travis & Rosenberg, P.A. discussed these concerns with members of Congress and USTR, explored legal action to prevent the tariff increase on goods shipped in reliance upon USTR’s original notice, and advocated for a revision. USTR subsequently made this favorable change, which will benefit all companies importing List 3 goods from China.

04/05/2019

Follow-up Questions to CBP's Port of Entry
Operations Trade Call
At the conclusion of yesterday's U.S. Customs and Border Protection's (CBP) Port of Entry Operations trade call, the NCBFAA followed-up with the agency with questions from our members regarding the redeployment of CBP resources to the southern border and the effect it would have on the clearance of trade at our ports.

1. Question: Will the redeployment of CBP resources on the southern border affect PGA clearance at border crossings along the southern border?

Answer: "PGA clearance will be based on PGA availability and not just CBP. When CBP clears the cargo, we depend on PGA guidance, both onsite and in the electronic systems, for admissibility determinations. If those are provided at the time of CBP release, the cargo clearance should not be additionally impacted."

2. Question: Can you give us confirmation that CBP has no plans to wholly close ports along the southern border?

Answer: "As mentioned on the [Port of Entry Operations] call, there are no current plans to fully close any ports that our office is aware of."

3. Question: For Outbound drivers crossing into the U.S., how do you recommend they remain legal (under 10 hours as per U.S. DOT) as line wait times increases? Is switching drivers out in the line an option?

Answer: "Based on the manifesting requirements and system, the driver could be changed, or additional parties added at the primary processing booth (or amended by the carrier) even after the 1-hour window for advance manifesting. As long as the parties do not violate other requirements (presentation at the border as appropriate, correct documentation, etc.) I would see no issue with exchanging drivers. Please advise if this is an ongoing issue and we can provide clearer guidance to our ports if necessary."
At the completion of the call, CBP announced plans to potentially hold weekly/bi-weekly conference calls informing the trade of on-going developments. If there are questions you would like CBP to cover in the future, the NCBFAA is asking that you please send them in prior to the scheduled calls and we will do our best to ensure they are answered.

The NCBFAA will continue to keep our members apprised of this developing situation as needed through use of email blasts and the Monday Morning eBriefing.

02/27/2019

President Trump announces delay in tariff hikes against China, plans summit

President Donald Trump announced Sunday on Twitter that he would be delaying an increase in tariffs against China and plans to meet with Chinese President Xi Jinping to settle on a final trade agreement.
Trump said ongoing trade negotiations with China have been "very productive" and he would delay the tariffs, which were set to go into effect on March 1, ahead of a meeting with President Xi at the president's Mar-a-Lago resort in Florida.

"I am pleased to report that the U.S. has made substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues," Trump wrote on Twitter. "As a result of these very productive talks, I will be delaying the U.S. increase in tariffs now scheduled for March 1."

Trump originally had warned he would escalate the tariffs imposed on $200 billion in Chinese imports, from 10 to 25 percent, if the U.S. and China failed to reach a deal by March 2. Negotiators held two days of talks starting Thursday in Washington and agreed to extend the negotiations through the weekend.

"We're making a lot of progress," Trump told reporters at the White House on Friday. "I think there's a very good chance that a deal can be made."

Trump previously imposed 25 percent tariffs on $50 billion in Chinese imports and 10 percent tariffs on $200 billion worth. China has responded with import taxes of its own on $110 billion in U.S. goods. These tariffs have been aimed largely at soybeans and other agricultural products in an effort to pressure Trump supporters in the U.S. farm belt. In the first 10 months of 2018, U.S. soybean exports to China dropped to 8.2 million metric tons from 21.4 million metric tons a year earlier — a 62 percent freefall, according to the Agriculture Department.

On Friday, Agriculture Secretary Sonny Perdue tweeted that Beijing had agreed to buy 10 million metric tons of American soybeans.

Please keep in mind that while it appears a delay may occur, until a date is officially announced in the Federal Register Notice - tariffs remain as planned. Additionally, changes to the duty rates will not be programmed until after the official FRN comes out instructing CBP to leave the rate at 10%. We will continue to monitor the Federal Register for this change.

Source: Fox News and USA Today

12/04/2018

U.S. to Delay Tariff Hike During Trade Talks with China
Tuesday, December 04, 2018
Sandler, Travis & Rosenberg Trade Report
President Trump has agreed to delay a tariff increase on $200 billion worth of imports from China while the two sides conduct negotiations on longstanding trade irritants. In addition, Beijing has agreed to increase purchases from the U.S. in an effort to reduce its bilateral trade surplus.

An increase in the Section 301 additional tariff imposed on Chinese goods from 10 percent to 25 percent had been scheduled to take effect Jan. 1, 2019. (Click here for more details on this and other developments in the U.S. Section 301 case against China.) However, a White House statement said this increase will not take effect “at this time” and that the two countries “have agreed to immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture.”

The statement indicates that both sides “will endeavor to have this transaction completed within 90 days.” If no agreement is reached within that time, the 10 percent additional tariff will be increased to 25 percent (although the statement does not say whether such an increase would be immediate).

While a Xinhua article cited Chinese Foreign Minister Wang Yi as saying the U.S. and China “also agreed to step up negotiations toward the elimination of all additional tariffs” (presumably those affecting $250 billion in U.S. imports from China as well as more than $100 billion in Chinese imports from the U.S.), at press time the White House had offered no confirmation.

In addition, the White House statement said, China has agreed to purchase an as-yet-unspecified “but very substantial” amount of agricultural, energy, industrial, and other product from the U.S. to reduce the trade imbalance between the two countries. Agricultural purchases are set to begin immediately, which should benefit U.S. farmers that have seen export shipments decline in recent months amid trade tensions with China and other major trading partners.

11/05/2018

Registration Now Open for NCBFAA's 46th Annual Conference!

We're excited to announce that registration is now open for NCBFAA's 46th Annual Conference! From April 14-17, the nation's leading customs brokers, freight forwarders, NVOCCs, OTIs and service providers will take a "Step Toward Success" in gorgeous San Antonio, TX, to update themselves on industry developments, growth opportunities, products, services and more from government leaders and leading subject matter experts. It's the perfect opportunity to connect with peers, new and old, discover tips and tricks to make your business more efficient and stay ahead of industry developments before your competitors do!

11/01/2018

Presidential Proclamation 9813 to Take Effect November 1
On October 30, President Trump issued Presidential Proclamation 9813, which implements changes to the Generalized System of Preferences (GSP) by removing the eligibility of certain goods for preferential duty treatment and makes changes to Harmonized Tariff Schedule (HTS) classifications. This Proclamation is set to go into effect on November 1.

For a full list of the changes and to read the Proclamation in its entirety, please see here.

09/24/2018

USTR Requests Comments for Exclusion of Particular Products from Additional Action Pursuant to Section 301

Announced in the September 18 edition of the Federal Register, the Office of the United States Trade Representative (USTR) is seeking requests for exclusion from the additional duties of a particular product classified within an HTSUS subheading set out in Annex A of the August 16, 2018 Notice for Additional Action.

Each request must identify the product looking to be excluded and will need to be accompanied by supported data and the rationale behind the request.

If you would like more information or where to submits comments, see here.

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