On Wednesday, December 19, 2018, the U.S. Trade Representatives (USTR) office released a modification to the effective date of the Section 301 tariffs on China goods in the Federal Register Notice (83_FR_65198).
Phase 1 of the Section 301 tariffs, which placed a 10% additional tariff on $200 billion of China goods (List 3), went into effect September 24, 2018. This recently released modification effects Phase 2 of the implementation, which will increase the additional tariffs on the 5700+ China goods specified in Phase 1 to 25%. The Phase 2 implementation, originally scheduled for January 1, 2019, is now set for March 2, 2019.
For more information please contact your local MIQ Logistics representative.
U.S. West Coast ports, specifically Los Angeles and Long Beach terminals have received unprecedented volumes and are experiencing extreme congestion prior to the Lunar New Year. Containers are reportedly sitting longer than normal, and once the containers are out-gated, many are staying out longer than normal. These delays are contributing to chassis shortages in the area.
On Saturday, December 1, 2018, the President of the United States agreed to suspend the increase in tariffs scheduled for January 1, 2019. The White House issued a statement, which included the following: “… President Trump has agreed that on January 1, 2019, he will leave the tariffs on $200 billion worth of product at the 10% rate, and not raise it to 25% at this time.”
On November 08, 2018, a second BNSF train derailed on the San Bernardino subdivision between Prado Dam and Esperanza, CA, impacting BNSF main line tracks. The first main track was opened on November 08, 2018, at 7:20 a.m. CST, and the second main track was opened on November 08, 2018, at 12:30 p.m. CST.
The derailments added to the congestion the market has already been experiencing due to increased volumes. BNSF implemented the following restrictions as part of the recovery effort:
On Monday, October 15, members of the West Coast MTO Agreement (WCMTOA) announced the revised Off-Peak program for providing extended gate hours at the Ports of Los Angeles and Long Beach (PierPass 2.0) is expected to start Nov. 19, subject to the conclusion of applicable Federal Maritime Commission procedures. The current congestion-pricing model, including a Traffic Mitigation Fee (TMF) charged on daytime moves, will be replaced with an appointment-based system that uses a single flat fee on both daytime and nighttime container moves. (Source: www.pierpass.org/)
The following is what you need to know about the changes effective November 19:
The next FDA Renewal period begins October 1, 2018. All domestic and foreign food and medical device facilities, along with the companies that source from them, are required to renew their registration during the period from October 1, 2018, through December 31, 2018.
On September 17, 2018, the Office of the United States Trade Representative (USTR) released the third list (List 3 Final) of approximately $200 billion worth of imports from China that will be subject to additional tariffs. This recent action is part of the Section 301 U.S. response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property.
Unlike previous Section 301 actions, this third list of additional tariffs will be implemented in two phases, with effective dates of September 24, 2018, and January 1, 2019. This third list follows the first list of tariffs on approximately $34 billion of imports from China which went into effect on July 6, 2018, and the second list of approximately $16 billion of imports from China which went into effect on August 23, 2018.
On September 13, 2018, H.R. 4318: Miscellaneous Tariff Bill Act of 2018 (MTB) was signed into law. This bill suspends or reduces through December 31, 2020, import duties on approximately 1700 products generally not made in the United States. Most of the products listed were recommended by the International Trade Commission (ITC) pursuant to a process established in the American Manufacturing Competitiveness Act of 2016. The products covered include specified chemicals, as well as other items such as certain agricultural products, textiles, fabrics, apparel, bags, gloves, footwear, and some equipment and machinery.
For additional information, contact your local MIQ Logistics representative.
The ports along the U.S. East Coast (USEC) are currently operating but have begun to prepare for Hurricane Florence’s arrival over the next 48-72 hours. Florence is forecasted to be a dangerous major hurricane making landfall near the southeast U.S. east coast by late Wednesday or early Thursday. The storm winds had increased to 130mph as of late yesterday.
Ocean carriers advise they are in contact with the U.S. Coast Guard, ports, terminals, and the rail and trucking industry to ensure they have the latest updates. The carriers are recommending customers with high value reefer and other import cargo to pick it up from your local port as soon as possible, due to the risk of flooding and port closures in the days ahead.
On August 29, 2018, the President of the United States signed a proclamation allowing for targeted relief from quotas on steel from Argentina, Brazil, and South Korea and aluminum from Argentina, imposed under Section 232. Importers can apply for product exclusions based on insufficient quantity or quality available from U.S. steel or aluminum producers.