CATCH UP ON DTL’S TOP BLOGS FROM 2018!

We want to make sure you stay up to date with the hottest trade topics from 2018. below is a summary of what you missed by category. Enjoy!

Why You Need Your VERY OWN ACE Account

The Automated Commercial Environment (ACE) is a U.S. Customs and Border Protection (CBP) system designed to facilitate legitimate trade while enhancing border security. ACE improves collection, sharing, and processing of information submitted to CBP and government agencies.

You can now double check your entries filed by your broker  with CBP & directly (or via a trusted consult) interact with CBP via ACE!

HELP US CELEBRATE 2018 SUCCESSES!

DTL saved clients MILLIONS of dollars in 2018, below we share some of success stories with you. We look forward to assisting you in 2019! U.S. Customs & Border Protection (CBP)

• Successfully assisted numerous importers in various seizure cases to assist in getting property returned, despite CBP claims merchandise was drug paraphernalia, counterfeit, etc.

Deadline Approaching - A Snapshot of Section 301 Duties & Your Options!

The trade war has kept members in the trade industry on their toes – here is a recap.

Effective Dates: 

For importers being hit by additional duties it is crucial to know when the additional duties are effective and must be paid. USTR has now issued three lists under 301 Section Trade Remedies. We urge importers to clearly understand which list their products are subject to and develop a business plan on how to prepare for additional import costs.

Dietary Supplement Labeling Do’s and Don’ts

You don’t want to miss this one! The U.S. Food and Drug Administration (FDA)’s top rationales for detention of dietary supplements include non-compliant labeling, products subject to an Import Alert, unauthorized claims, and more. Consistently, we encounter dietary supplements with outrageous claims turning the intended use of the products into “drugs” instead of Supplements. In this webinar we will explore the confusion surrounding suitable structure/function claims versus disease claims made on Dietary Supplements and the nuances involved behind the FDA’s approach of deciding what constitutes a valid claim. Participants will also what’s required on a dietary supplement label, best practices and how to handle FDA enforcement actions, and much more! Don’t delay, RSVP Today!

Drug Paraphernalia, Priority Trade Initiatives, & Forced Labor

You don’t want to miss this one!

What: Drug Paraphernalia, Priority Trade Initiatives, & Forced Labor - An Update on CBP Enforcement

When: November 27th, 2018, 12:00PM-1:00PM EST

RSVP TODAY!

BRIDGING THE GAP - EMPOWERING BUSINESSES TO GO GLOBAL (October 24-25, 2018 - Nairobi, Kenya)

As President of OWIT International, I am honored to invite you to participate in our 18th Annual World Conference!!

In response to global demand and burgeoning trends in trade modernization, OWIT International is bringing back its 18th Annual World Conference. In recognition of Nairobi’s vast potential to engage in global trade, OWIT International has selected its OWIT Chapter in Nairobi, Kenya as the host for this year’s annual conference. On October 24-25, 2018, OWIT members around the globe will converge with supporters and experts in their field to empower both the local community and business leaders throughout the world. Day One will be comprised of a capacity-building workshop for local women entrepreneurs seeking to take their business across borders. Day Two is a conference for trade practitioners and policy makers from around the world for discussing best practices, what’s next for the future of trade, and what women’s roles should be in that future. Day 3 will be the first ever OPEN OWIT Board Meeting where we will discuss what it takes to start an OWIT chapter and best practices for existing chapters. Of course, we are making this a week to remember, so it also includes a safari!

REGISTER TODAY!

Deadline Approaching - Why Should Your Product Not Be on The 301 List!

We have been working hard to keep you up to date on the current Trade War between the United States and China.China has taken retaliatory actions against the United States in response to the first wave of additional U.S. duties that became effective on July 6, 2018. The United States is gearing up to impose a second round of 10% additional duties on approximately $200 billion worth of products of Chinese origin. The USTR has also been directed to consider levying a 25% tariff on these $200 billion worth of Chinese imports - thereby increasing the 10% to 25%.

Now, you have the ability to tell USTR why your products should not be on the 301 List.

Chinese Telecom Giant, ZTE, Faced with Largest Penalty Ever Levied

In our previous post, we discussed ZTE’s record penalty for selling technology with US-origin chips to North Korea and Iran, in violation of US trade laws. The company initially received a $1.19 billion in penalties and was ordered to reprimand the executives responsible for the malfeasance's as a condition to re-enter the United States (US) market after a three-year suspension. Despite telling the US government that the guilty executives had been properly punished, it became clear that they were instead rewarded with bonuses. This violation triggered an automatic ban of ZTE from the US market for seven (7) years. As the 4^th largest seller of cell phones to the US, the ban on ZTE serves as a means of protecting American production.

After the announcement, the ensuing backlash from Beijing, as well as trade talks in China, President Trump stated that he and Chinese president Xi Jiping are working together to bring ZTE “back into business”.

Now, the Trump administration threw a metaphorical lifeline to this tech giant, seemingly easing tensions with Beijing. Secretary Ross announced a $1.4 Billion dollar settlement with ZTE.

ZTE has agreed to severe additional penalties and compliance measures to replace the U.S. Commerce Department’s Bureau of Industry and Security (BIS) denial order imposed as a result of ZTE’s violations of its March 2017 settlement agreement.  Under the new agreement, ZTE must pay $1 billion and place an additional $400 million in suspended penalty money in escrow before BIS will remove ZTE from the Denied Persons List. These penalties are in addition to the $892 million in penalties ZTE has already paid to the U.S government under the March 2017 settlement agreement.

The announcement of a deal stirred up controversy in Washington, due to the administration’s uncertain stance towards China. The deal provides ZTE the opportunity to buy American parts, so long as it complies with specific parameters. The US not only levied over 1 Billion in penalties against ZTE, but also placed $400 million in escrow, in the event it reneged on the deal. The agreement will be enforced by a handpicked US compliance team, which will serve at the US Commerce Department for the next decade. The team is tasked with overseeing ZTE’s replacement of its entire board of directors, as well as oversight of general compliance.

The conditions set on ZTE to reenter the US are the toughest sanctions ever to be placed on a public or private company. Although the move faced backlash in Washington, “analysts say the ban is likely to have cost ZTE billions of dollars in lost revenue, tarnished its brand and strained its relationships with customers around the world”. As one of the largest and most profitable companies in China, ZTE, touting over 160 corporate and governmental clients worldwide, plays a vital role in the China’s functioning.

The initial announcement of ZTE’s ban, included “Commodity, Software or Technology” products as items prohibited to be sold or exported to ZTE. Effectively, the ban would do more than just tarnish the brand, rather it would have potentially ended ZTE’s ability to function as a mobile electronics production company.

While seemingly gracious for the Chinese government and the Chinese economy, the deal sets a precedent that sanction violators may never face severe consequences. Although the company must pay over $1 Billion in penalties, it was granted a gift. Assuming that they work within the confines of the deal, the penalties will be a minuscule price to pay, while ZTE maintains its position and its prowess.

Will President Trump Impose New Tariffs on Imported Vehicles?

Under the direction of President Trump, U.S. Secretary of Commerce, Wilbur Ross has initiated an investigation under Section 232 of the Trade Expansion Act of 1962, as amended. “The investigation will determine whether imports of automobiles, including SUVs, vans and light trucks, and automotive parts into the United States threaten to impair the national security as defined in Section 232.”

What are the Section 232 Investigations?