October 2020

BIS Expands Export Restrictions Targeting China’s Largest Chipmaker

Last week, the U.S. Department of Commerce’s Bureau of Industry & Security (“BIS”) informed some U.S. semiconductor manufacturers via a confidential letter that they would require export licenses before exporting certain products to China’s largest semiconductor manufacturer, Semiconductor Manufacturing International Corporation (“SMIC”). Although the letter is not available for public view, a September 28, 2020 Wall Street Journal article that broke the story said that the Commerce Department was concerned about high risks of diversion to a military end use. This additional export license requirement is part of a broader pattern of increased export restrictions, particularly to China.

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By Jennifer Diaz|2022-07-07T14:39:49-04:00October 27, 2020|Best Practices, China Trade War, Customs Expert, Enforcement, Expert, Import, International Business, International Law, International Trade, Pre-compliance, U.S. Customs and Border Protection (CBP)|7 Comments

LIST 3 Exclusion Updates

On June 24, 2019, the Office of the United States Trade Representative (USTR) provided the public with an exclusion process for items included subjected to Section 301 Tariffs. Specifically, the exclusions related to products included on List 3, which went into effect on September 24, 2018.

Originally, List 3 imposed 10 percent ad valorem duties on 5,757 full and partial subheadings of the Harmonized Tariff Schedule of the United States (HTSUS) and had an annual trade value of $200 Billion. Months later, in May 2019, the 10 percent ad valorem duties were increased to 25 percent. […]

By Jennifer Diaz|2022-07-07T14:38:56-04:00October 26, 2020|China, China Trade War, Enforcement, Export, HTSUS, Import, Intellectual Property Rights, International Business, International Law, International Trade, Investigation, IPR, Trademarks and Logos, Seizure, Supply Chain, U.S. Customs and Border Protection (CBP), U.S. Office of the United States Trade Representative (USTR)|1 Comment

List 4 Exclusion Update

On June 26, July 17, and August 11, 2020, the Office of the United States Trade Representative (USTR) requested the public to submit comments regarding potential product exclusion extensions for items subject to Section 301 Tariffs. This comment period specifically applied to products that were included on List 4.

When the list was announced on August 20, 2019, it imposed a 10 percent ad valorem on 3,805 full and partial subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), with an annual trade value of approximately $300 billion. Then, on August 30, 2019, USTR increased the rate of the additional duty announced in the August 20 notice from 10 to 15 percent. Finally, on January 22, 2020, USTR determined to reduce the rate from 15 to 7.5 percent. […]

By Jennifer Diaz|2022-07-07T14:38:09-04:00October 23, 2020|China, China Trade War, HTSUS|1 Comment

Diaz Trade Law Now Filing List 4A Complaints – Join Section 301 Refund Lawsuit Now to Demand Refunds

301 Lawsuit Background

In mid-September, a coalition of importers filed a Court challenge to the USTR’s imposition of Section 301 duties on certain imports from China under Lists 3 and 4. These duties were imposed as part of a process purportedly intended to address intellectual property abuses by China. Specifically, this coalition has claimed that these duties were imposed contrary to law and ignored the statutory deadlines in Section 301. Further, the coalition has argued that these duties were not imposed in response to the intellectual property violations alleged in the initiation notice, but rather were filed in response to the retaliatory tariffs enacted by China. Accordingly, the coalition argues, such tariffs were void from the initial imposition.

Since the original coalition filed the lawsuit, over 3,500 complaints have been filed impacting more than 10,000 plaintiffs, including over a hundred of Diaz Trade Law’s clients. Due to the nature of U.S. law, if the challenge is upheld, retroactive relief will only be available to those parties that have filed a court challenge. Diaz Trade Law filed these complaints under a statute of limitations theory which dictated that any challenge must be filed within 2 years of the Government Action. To ensure consideration, a Court case should have been filed by Monday, September 21, 2020. If you have not yet filed a case, there are alternate theories which would justify a later filing date, albeit with some additional risk. If you have not yet filed an action, you should do so quickly.

Who Can Join the List 4A Lawsuit?

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By Jennifer Diaz|2022-07-07T14:37:25-04:00October 22, 2020|Best Practices, China, China Trade War, Customs Expert, Enforcement, Expert, Import, International Business, International Law, International Trade, List 4A, Pre-compliance, U.S. Customs and Border Protection (CBP)|4 Comments

Maritime Industry Rocked by Cyber Attacks

Co-Authored by Sharath Patil

The maritime industry has been rocked by a string of cyber-attacks in recent weeks. Two of the most severe incidents involved the United Nation’s shipping agency, the International Maritime Organization (“IMO”), and the French shipping company CMA GCM S.A. (“CMA GCM”). These attacks remind the shipping industry about the dangers of such attacks and the importance of cybersecurity compliance. From a trade and customs perspective, such incidents trigger post incident analysis and other measures as part of the U.S. Customs & Border Protection’s (“CBP”) Customs Trade Partnership Against Terrorism Minimum Security Criteria. We will discuss two of the most severe cyber-attack incidents in recent weeks below and then discuss the trade and customs implications of such attacks.

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By Jennifer Diaz|2022-07-07T14:36:41-04:00October 21, 2020|Best Practices, Customs Expert, Enforcement, Export, Import, Import Alert, International Business, International Law, International Trade, Pre-compliance, U.S. Customs and Border Protection (CBP)|0 Comments

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