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News / Supply Chain Alerts

LOCKDOWN OF VITAL NINGBO PORT DUE TO COVID-19 OUTBREAK

Chinese authorities announced a lockdown due to positive COVID infections in Ningbo effecting the supply chain. The district of Beilun in Ningbo is on partial lockdown following the discovery of coronavirus cases on Saturday.

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LUNAR NEW YEAR HOLIDAYS

Please refer to the below chart listing the holidays in Asia surrounding the Lunar New Year.

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UYGHUR FORCED LABOR PREVENTION ACT BECOMES LAW

On Thursday, December 23, 2021, President Biden signed into law the Uyghur Forced Labor Prevention Act, which is a bipartisan bill to ensure that goods made with forced labor in the Xinjiang Uyghur Autonomous Region (XUAR) of China do not enter the United States.

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MAJOR HARMONIZED TARIFF SCHEDULE CHANGES POSTPONED

The Major Harmonized Tariff Schedule Changes that were to take place on January 1, 2022, have been postponed until late January. Today, the President issued a Proclamation to Modify the Harmonized Tariff Schedule; however, the changes will not go into effect until 30 days following the publication of the Presidential Proclamation in the Federal Register which has yet to take place.

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MAJOR HARMONIZED TARIFF SCHEDULE CHANGES EFFECTIVE JANUARY 1, 2022

On January 1, 2022, the seventh edition of the Harmonized System (HS) will enter into force for all countries which subscribe to the Harmonized System Convention. This edition makes some sweeping changes to the Harmonized System with a total of 351 sets of amendments covering a wide range of goods moving across borders.

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FLOODING IN BRITISH COLUMBIA TEMPORARILY SUSPENDS RAIL SERVICE TO/FROM VANCOUVER

Due to recent flooding in British Columbia, Canada, all rail service to and from the Port of Vancouver, including Deltaport and Centerm terminals, has been suspended at this moment. Both CN and CP rails are working to assess the damages and timing needed for repair and resume operations.

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CHINA TARIFFS: COVID-19 EXCLUSIONS EXTENDED

On Tuesday, November 16, 2021, the United States Trade Representative (USTR) office in Federal Register Notice 86 No 218 FR 63438 stated that the Section 301 Exclusions for 99 Covid-19 related medical supplies originally scheduled to expire on November 14, 2021, would be extended through November 30, 2021, and that 81 items would be extended for an additional six months to May 31, 2022.

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TEMPORARY INCREASE OF THE TMF/PIERPASS AT PORTS OF LOS ANGELES AND LONG BEACH – EFFECTIVE DECEMBER 1, 2021 – JANUARY 31, 2022

The West Coast MTO Agreement (WCMTOA) announced on November 10, 2021, the Traffic Mitigation Fee (TMF) at the Ports of Los Angeles and Long Beach will be temporarily increased from December 1, 2021, through January 31, 2022, subject to regulatory clearance by the Federal Maritime Commission.

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U.S.– E.U. REACH AGREEMENT ON SECTION 232 STEEL AND ALUMINUM TARIFFS

On Sunday, October 31, 2021, the United Sates and the European Union announced in a Joint Statement on Trade in Steel and Aluminum that the U.S. would remove the section 232 tariffs and the E.U. would suspend related tariffs on U.S. products. In addition to the removal of tariffs both will also suspend their related World Trade Organization disputes.

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LA/LB “EMERGENCY FEE” SURCHARGE

In reaction to the ongoing historic container port congestion, the Biden Administration announced on October 25th that effective November 1, 2021, the ports of Los Angeles and Long Beach will begin charging an “emergency fee” on all long dwelling cargo.

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