Catch Up on DTL’s Top Blogs From 2019!

We want to make sure you stay up to date with the hottest trade blogs from 2019. Below is a summary of what you missed by category. Enjoy!

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2019: A Year in Review!

DTL saved clients MILLIONS of dollars in 2019. It is with great joy that we finish off 2019 celebrating our fourth anniversary! We would like to thank each of you for being an integral part of making DTL a success.

This year has been filled with numerous achievements and accomplishments. We are grateful for the clients who have entrusted their trade and customs issues to us, and we look forward to assisting you in 2020!

Below we share some of our 2019 success stories with you.

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BREAKING NEWS: China Trade War Update – List 4A Reduced to 7.5% and List 4B will NOT become effective on 12/15

We have been monitoring for a news update on whether U.S. & CHINA reached a “PHASE ONE DEAL” since we last wrote about it on October 11, 2019. Two months later, the USTR published a press release confirming that the United States and China have reached an historic and enforceable agreement on a Phase One trade deal and President Trump tweeted the announcement noting that this “is an amazing deal for all”.TP Tweet

What does the “Phase One Deal” Include?

  • The deal requires structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange.
  • The Phase One agreement also includes a commitment by China that it will make substantial additional purchases of U.S. goods and services in the coming years.
  • Importantly, the agreement establishes a strong dispute resolution system that ensures prompt and effective implementation and enforcement.
  • The United States has agreed to modify its Section 301 tariff actions in a significant way.

What is the Impact on Section 301 Tariffs?

  • Lists 1, 2, 3 will continue to be subject to 25% tariffs
    • Approximately $250 billion of Chinese imports
  • List 4A has been reduced to 7.5% from 15%
    • Approximately $120 billion of Chinese imports
    • The effective date for the reduced tariff has NOT been announced.
  • List 4B will not become effective on December 15.

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The New Miscellaneous Tariff Bill Process Set to Begin

A detailed timeline of the process can be found here. The new MTB process, as set out in the law, runs from October 2019 through the end of 2020. The dates and time frames below have been calculated from the start date announced by the U.S. ITC and the text of the legislation:

  • October 11 – December 10, 2019: USITC MTB portal open for petition submission.
  • December 10, 2019 – January 11, 2020: USITC compiles petitions.
  • No later than January 11 – USITC issues Federal Register notice soliciting comments on product petitions.
  • January 11 – Late February, 2020 (45 days): USITC accepts public comments through online portal.
  • January 11 – Mid-April, 2020 (90 days): Commerce conducts its review of petitions, at the end of which it submits its report to the congressional committees and the USITC.
  • January 11 – Mid-June, 2020 (150 days): USITC conducts its review of petitions, at end of which it submits its Preliminary Report to the congressional committees, taking into consideration the Commerce Report.
  • Mid-June – mid-August, 2020 (60 days): USITC conducts re-review of individual petitions, based on information submitted by the congressional committees, at the end of which it submits its Final Report to the congressional committees.

A successful MTB petition will cover a “noncontroversial” or “noncompetitive” product. The guidelines defining those products are:

  • No domestic producer objects to the import duty elimination or reduction for the product;
  • The import duty elimination or reduction […]

33,810 IPR Seizures in 2018!

U.S. Customs and Border Protection (CBP) is tasked with the monitoring of and enforcement of intellectual property rights (IPR). In CBP’s FY 2018 Seizure Statistics, CBP advised that it enforced trademarks and copyrights pertaining to over 17,641 active recordations, including 2,289 new recordations and 812 renewals of expiring recordations.

In fiscal year 2018, 381 individuals were arrested by CBP or ICE for violations related to IPR violations and 260 convictions related to intellectual property crimes proceeded. The total number of IPR seizures decreased by 333 seizures from the previous year. Surprisingly, while the number of seizures decreased from 34,143  in 2017 to 33,810 in 2018, the total estimated manufacturer’s suggested retail price (MSRP) of seized goods, had they been genuine, increased $1.4 billion.

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