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No Exclusion Process on $200 Billion Section 301 List 3 Products Unless Tariff Raised to 25%

On January 11, 2019, in letters to lawmakers, United States Trade Representative Robert Lighthizer made clear that an exclusion process will not be initiated for the Section 301 List 3 products unless negotiations with China fail and the tariff on $200 Billion is raised from 10% to 25%. This increase is currently scheduled for March 2, 2019.

Lighthizer went on to address a request to exempt Chinese goods admitted into Foreign-Trade Zones (FTZ’s) by noting, “the longstanding rules and practices governing such entries continue to apply.” He continued, “As of this time, we have not found a basis for exempting U.S. importers who use FTZ’s from the additional duties when those duties apply to all other U.S. importers.”

For more information please contact your local MIQ Logistics representative.


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Terminal Congestion at West Coast Ports Continues

U.S. West Coast ports, specifically Los Angeles and Long Beach terminals, continue to experience heavy congestion due to the unprecedented volumes arriving in the U.S. in anticipation of the upcoming Lunar New Year and the pending tariff changes. Containers are 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.

Key contributing factors:

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U.S. Imports of Composite Wood Products Must Be TSCA Compliant by March Deadline

U.S. Customs and Border Protection (CBP) is advising that after March 22, 2019, all regulated composite wood products (i.e., panels) created from binding strands, particles, fibers, veneers, or boards of wood together with adhesives (i.e., glues), including hardwood plywood, medium-density fiberboard (includes thin-MDF), and particleboard must be certified and labeled as compliant with the Toxic Substances Control Act (TSCA) Title VI. All labels must include the panel producer’s name, lot number, and an EPA-recognized TSCA Title VI third-party certification (TPC) number. All importers will be responsible for providing a positive TSCA Import Certification for all applicable shipments, which will be transmitted to CBP via the Automated Commercial Environment (ACE). Upon request by the Environmental Protection Agency (EPA), importers must make available within thirty (30) calendar days certain records that document compliance with this rule. Recordkeeping requirements apply.

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MIQ NRF Graph

Retail Imports Level Off after Rush to Beat Tariffs

Source: National Retail Federation

Imports at the nation’s major retail container ports have slowed down after a months-long rush to beat increased tariffs on goods from China, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.

“With the holiday season behind us, the immediate pressure to stock up on merchandise has passed but retailers remain concerned about tariffs and their impact on the nation’s economy,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Retailers have also brought in much of their spring merchandise early to protect consumers against higher prices that will eventually come with tariffs. Our industry is hoping the talks currently under way will bring an end to this ill-advised trade war and result in a more appropriate way of responding to China’s trade abuses that won’t force American consumers, workers and businesses to pay the price.”

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ISM December 2018 Graph

December 2018 Manufacturing ISM® Report On Business®

Source: Institute for Supply Management – January 3, 2019

Economic activity in the manufacturing sector expanded in December, and the overall economy grew for the 116th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business® .

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U.S. Federal Government Shutdown – U.S. Customs and Border Protection Update

To keep the U.S. trade community informed during the Federal Government shutdown, U.S. Customs and Border Protection (CBP) is holding weekly calls with the National Customs Brokers and Forwarders Association of America (NCBFAA).

This week CBP made the following announcements to the NCBFAA:

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China Tariffs: March 2, 2019 – New Effective Date for the 25% Tariff on List 3 Products

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.


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December 2018 Logistics Link

During the month of December 2018, MIQ Logistics was involved in a number of events throughout the logistics industry. Read industry updates, services offered by MIQ, and events that will be taking place in the December 2018 logistics link.

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2018 Dec GRI PSS LSF Report

Transpacific General Rate Increases (GRI), Peak Season Surcharges (PSS), and China Low Sulfur Surcharges (LSF)

The following are the announced levels for upcoming General Rate Increases (GRI), Peak Season Surcharges (PSS), and China Low Sulfur Surcharges (LSF) from carriers.

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Terminal Congestion at West Coast Ports

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.

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