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MIQ Supply Chain Logistics

China Tariffs: USTR Releases Third Set of Exclusions

  • Regulatory Updates, Supply Chain Alerts

On Thursday, April 18, 2019, the United States Trade Representative (USTR) office released a third Notice of Product Exclusions to Section 301 List 1 products currently subject to a 25% tariff.

Companies are encouraged to refer to the Annex to the notice of product exclusions to determine if any of your products are included in the 21 products now available for exclusion. The scope of each exclusion is governed by the 10-digit level Harmonized Tariff Schedule (HTS) numbers and product descriptions identified in the Annex to the notice. It is important to note that these exclusions are available for any product that meets the description in the official notice, regardless of whether the importer filed an exclusion request. If you import products that fall under these descriptions, you will be able to claim an exclusion using HTS# 9903.88.07.    

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MIQ Supply Chain Logistics

Liquidated Damages being Issued for Violations of ISF-5

  • Regulatory Updates, Supply Chain Alerts

On March 15, 2019, U.S. Customs and Border Protection (CBP) ended their delayed enforcement period of the Importer Security Filings (ISF-5) and began issuing liquidated damage claims for the violations of the ISF requirements for Freight Remaining on Board (FROB) cargo, cargo intended to be transported as immediate exportation (I.E.), and transportation and exportation (T&E) in-bond shipments. These shipments, which are docking at United States ports, require the transmission of five (5) data elements 24 hours in advance of cargo being laden on board a vessel.

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MIQ Supply Chain Logistics

International Maritime Parade off Coast of Qingdao

  • Supply Chain Alerts

The MIQ-China team has advised that China will hold an international maritime parade on April 23, 2019, to mark the 70th anniversary of the founding of the Chinese People’s Liberation Army (PLA) Navy. Navies from several other countries are expected to participate. The parade is to take place in the Yellow Sea off the coast of Qingdao city in Shandong province. The following parade-related activities are scheduled:

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MIQ Supply Chain Logistics

U.S. Proposes Additional Tariffs on $11 Billion of European Union Goods

  • Regulatory Updates, Supply Chain Alerts

On Monday, April 8, 2019, the United States Trade Representative (USTR) office issued a press release in response to a World Trade Organization (WTO) finding that subsidies provided to Airbus by the European Union (EU) have caused adverse effects to the United States. The USTR announced that they are identifying EU products to which additional duties may be applied, pursuant to Section 301 of the Trade Act of 1974.

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U.S. / Mexico Border Crossing Delays Expected

  • Supply Chain Alerts

U.S. Customs and Border Protection (CBP) has notified the trade community to expect increased wait times as a result of lane closures across our Southwest border ports of entry. In a press release dated March 27, 2019, U.S. CBP Commissioner Kevin McAleenan noted, “CBP is facing an unprecedented humanitarian and border security crisis along our Southwest Border.” Per the release, “Up to 750 CBP officers from ports of entry along the Southwest border will soon be supporting Border Patrol with care and custody of migrants.” It is expected that the relocation of these officers will have a detrimental impact at all Southwest border ports of entry, including Mexico border crossings. The public can monitor wait times using the BWT – CBP Border Wait Times website.

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China Tariffs: USTR Releases Second Set of Exclusions

  • Regulatory Updates, Supply Chain Alerts

On Wednesday, March 20, 2019, the United States Trade Representative (USTR) office released a second Notice of Product Exclusions to the Section 301 List 1 products currently subject to a 25% tariff.

The scope of each exclusion is governed by the 10-digit level Harmonized Tariff Schedule (HTS) numbers and the descriptions identified in the notice. It is important to note that these exclusions are available for any product that meets the description in the official notice, regardless of whether the importer filed an exclusion request. If you import products that fall under these descriptions, you will be able to claim an exclusion using HTS number 9903.88.06.

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Transit Disruptions Continue Due to India – Pakistan Conflict

  • Supply Chain Alerts

International transportation continues to be impacted by the India – Pakistan conflict. The MIQ India team has shared the following Information:

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United States to Terminate GSP Designation for India and Turkey

  • Regulatory Updates, Supply Chain Alerts

In a press release dated March 4, 2019, the Office of the United States Trade Representative (USTR) announced “the United States intends to terminate India’s and Turkey’s designation as beneficiary developing countries under the Generalized System of Preferences (GSP) program because they no longer comply with the statutory eligibility criteria.”

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Transit Delays Due to India-Pakistan Conflict

  • Supply Chain Alerts

Transportation is being impacted by the current India-Pakistan conflict. Our MIQ India team advised that a short-term impact to business and freight capacity is likely, especially in Delhi. The MIQ India team has shared the following Information:

  • India is on high alert.
  • Pakistan air space is blocked for most flights. International flights to and from Delhi are being re-routed, adding almost 3 hours of flying time to certain parts of Europe and almost 2 hours for Dubai and the Middle East.
  • The reductions in air capacity could result in additional re-routings, potential backlogs of cargo, increased need for fuel for longer routes, and possible increases in air rates.

MIQ will continue to monitor any service delays and/or routing changes that can impact transit times. We will provide updates as they are available.

For more information, please contact your local MIQ Logistics representative.

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China Tariffs: Section 301 List 3 Increase Postponed

  • Regulatory Updates, Supply Chain Alerts

On February 24, 2019, the President of the United States announced that the increase in tariffs from 10% to 25% on $200 billion worth of Section 301 List 3 imports from China scheduled for March 2, 2019, is being postponed. The tariffs will remain at 10% for the foreseeable future as no new deadline for increasing the duties has been announced.

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