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China Tariffs: Section 301 List 3 Increase Postponed

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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Section 301 List 1 Exclusions Being Accepted

U.S. Customs and Border Protection is now accepting entries for products that were excluded from the United States Trade Representative (USTR) Section 301 List 1 Tariffs on certain products imported from China. The exclusions granted thus far, which only apply to List 1 products subject to a 25 percent tariff, are retroactive to July 6, 2018, and will be effective until December 28, 2019.

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Section 232 Automobiles and Auto Parts Report Submitted to President

The U.S. Department of Commerce (DOC) finalized their Section 232 investigation into automotive imports and presented their findings to the President of the United States on February 17, 2019. The president now has 90 days to decide whether to act upon any of the recommendations.

In May 2018, the DOC self-initiated the investigation under Section 232 of the Trade Expansion Act of 1962 to determine whether imports of automobiles and automotive parts threaten to impair U.S. national security. If the DOC makes an affirmative determination and the president concurs, he has the authority to adjust imports, including the use of tariffs and quotas. Any action to be taken would be imposed within 15 days of the president’s decision.

The final report has not yet been released to the public. If the process is the same as the Section 232 investigation on steel and aluminum, the report would be released within the next few weeks.

For more information please contact your local MIQ Logistics representative.


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Exclusion Process for $200 Billion Section 301 List 3 Products Mandated

On February 15, 2019, the President of the United States signed a mini-omnibus bill which requires the United States Trade Representative (USTR) to introduce an exclusion process for Section 301 List 3 products to Congress by March 17, 2019. The tariffs on List 3 products are currently set at 10 percent and are scheduled to increase to 25 percent on March 2, 2019.

In an explanatory statement accompanying the appropriations legislation, the USTR office was directed to establish a List 3 exclusion process “following the same procedures as those in rounds 1 and 2”.

For more information please contact your local MIQ Logistics representative.


NRF Import Cargo Volume Report

Retail Imports Still Strong as Possible March Tariff Hike Approaches

Source: National Retail Federation – February 11, 2019

Imports at the nation’s major retail container ports have dipped since peaks seen last fall but remain at higher-than-usual levels as a possible increase in tariffs on goods from China approaches in March, according to the monthly Global Port Tracker report released today by the National Retail Federation and Hackett Associates.

“With trade talks with China still unresolved, retailers appear to be bringing spring merchandise into the country early in case tariffs go up in March,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “We are hopeful that the talks will succeed, but until the trade war is behind us, retailers need to do what they can to mitigate the higher prices that will inevitably come with tariffs.”

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MIQ Logistics January 2019 Manufacturing ISM Report On Business

January 2019 Manufacturing ISM® Report On Business®

Source: Institute for Supply Management – February 1, 2019

Economic activity in the manufacturing sector expanded in January, and the overall economy grew for the 117th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

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January 2019 Logistics Link

During the month of January 2019, 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 January 2019 logistics link.

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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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