Please note there will be no Factoring advances on Wednesday, October 5, 2022 in observance of Yom Kippur. PO Funding & LC transactions will be extremely limited. Please plan accordingly.
Express Completes $7MM Factoring and $3MM PO Funding Deal for Hong Kong-based Denim Wholesaler.
In September 2022, Express Trade Capital Inc. secured a deal for a Hong Kong-based denim manufacturer who will work directly with top U.S. retailers who previously bought their denim goods through indirect wholesale channels.
The prospect reached out to Express to expand their U.S. wholesale presence which would allow them to take advantage of growing interest from top U.S. retailers. Led by AVP Dina Davletshina and VP Drew Cohen, ETC’s team worked directly with the client to develop a uniquely tailored program for their U.S. entity.
To support an expected annual sales revenue of $15MM, ETC created a $7MM factoring facility and a $3MM purchase order funding line. Prior to signing with ETC, the team assisted the client with setting up their U.S. entity and bank account. ETC will also handle the client’s shipping and logistic needs, ensuring goods arrive promptly and POs are fulfilled timely. According to Dina Davletshina, who shepherded the deal to smooth completion: “our team worked hard to overcome several challenges inherent in funding a company that was technically new on paper but had many years of good history overseas. Although this was a non-traditional prospect, their customer base, product line and management team all fit well into our family of clients, so we rolled up our jeans and got creative. Overall, we were able to get the comfort and security we needed to get this deal done right.”
ETC specializes in financing companies through factoring, purchase order funding, letters of credit and inventory-based lines of credit. In addition, ETC offers back-end support from logistics to warehousing to credit protection. Since 1993, ETC has helped companies grow, fulfill purchase orders, mitigate risk, and navigate supply chain issues, all while maintaining and enhancing their equity. Our consultative approach leverages our combined 100+ years of experience to ensure clients get maximum support to handle any obstacle.
Don’t hesitate to contact us HERE for questions about how Express Trade Capital can help your business.
SUPPLY CHAIN UPDATE: U.S. Rail Strike has been Deterred.
U.S. Rail Strike has been Deterred as Freight Railroads and Unions Reach Tentative Agreements. Earlier today, the 46th President of the U.S, Joe Biden has released a statement on the tentative Railway Labor Agreement. It reads as follows:
“The tentative agreement reached tonight is an important win for our economy and the American people. It is a win for tens of thousands of rail workers who worked tirelessly through the pandemic to ensure that America’s families and communities got deliveries of what have kept us going during these difficult years. These rail workers will get better pay, improved working conditions, and peace of mind around their health care costs: all hard-earned. The agreement is also a victory for railway companies who will be able to retain and recruit more workers for an industry that will continue to be part of the backbone of the American economy for decades to come.
I thank the unions and rail companies for negotiating in good faith and reaching a tentative agreement that will keep our critical rail system working and avoid disruption of our economy.
I am grateful for the hard work that Secretaries Walsh, Buttigieg, and Vilsack, and NEC Director Deese put into reaching this tentative agreement. I especially want to thank Secretary Walsh for his tireless, around-the-clock efforts that delivered a win for the hard working people of the US rail industry: as a result, we will keep Americans on the job in all the industries in this country that are touched by this vital industry.
For the American people, the hard work done to reach this tentative agreement means that our economy can avert the significant damage any shutdown would have brought. With unemployment still near record lows and signs of progress in lowering costs, tonight’s agreement allows us to continue to fight for long term economic growth that finally works for working families.”
The Association of American Railroads released details of the agreement, which indicates that the new contracts provide rail employees a 24 % increase during the 5 years period from 2020-2024, including an immediate payout on average of $11,000 upon ratification, following the recommendations of Presidential Emergency Board (PEB) No. 250.
To read the full statement from AAR, you may click HERE.
If you have any additional questions, please don’t hesitate to contact us here.
References:
Trade Update: USTR Declares for Continuation of China 301 Tariffs.
On September 02, 2022 the United States Trade Representative declared a continuation of China 301 Tariffs in a press release.
It reads as follows:
“WASHINGTON – Today, the Office of the United States Trade Representative confirmed that representatives of domestic industries benefiting from the tariff actions in the Section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation have requested continuation of the tariffs. Accordingly, as required by statute, the tariffs did not expire on their four-year anniversary dates and USTR will proceed with the next steps as provided in the statute.
USTR’s formal notice of the continuation may be found here. Details on the next steps in the four-year review process will be set out in subsequent notices.
In May 2022, USTR commenced the statutory four-year process by notifying representatives of domestic industries that benefit from the tariff actions of the possible termination of those actions and of the opportunity for the representatives to request continuation. Because requests for continuation were received, the tariff actions have not terminated and USTR will conduct a review of the tariff actions.”
If you have any additional questions, please do not hesitate to contact us HERE.
References:
HAPPY LABOR DAY WEEKEND FROM ETC!
Happy Labor Day weekend to our employees, clients and partners. The world runs on your contributions and you all deserve recognition. We hope you have a great holiday weekend.
LABOR DAY HOLIDAY HOURS.
Due to the upcoming Labor Day Holiday, our office will be closing Friday, September 2nd at 3 p.m. EST and be closed on Monday, September 5th in the observation of the holiday.
Please contact your account officer to plan accordingly during this time frame.
We greatly appreciate your understanding and apologize for any inconvenience.
Happy Labor Day to all!
TRADE UPDATE: September 2022 Webinar Schedule Dates Announced by NCSD.
On August 8th, U.S. Customs and Border Protection announced September 2022 webinar schedule hosted by National Commodity Specialist Division (NCSM) in CSMS #52901250.
You may find the registration links below:
Thursday, September 1, 2022 | 1:30 p.m. EDT – Classification of Vehicles of Chapter 87 and Saying Hello to Hybrids.
Tuesday, September 13, 2022 | 12:00 p.m. EDT – Other Articles of Base Metals.
The full message reads as follows:
“The Office of Trade’s National Commodity Specialist Division and the Office of Trade Relations is excited to present a series of approximately 40 commodity-specific, educational webinars to support Customs and Border Protection’s internal and external customers. The webinars began in February and will run through September 2022. Each webinar will be approximately an hour. The date and time will vary, so please be sure to check the time for each webinar.
The schedule for the September webinars is below. Please click on the webinar title to register. The link to join will be sent via email no later than 9 a.m. on the day of the webinar. We look forward to your participation!”
If you have any additional questions, please do not hesitate to contact us HERE.
References:
Trade Update: U.S Customs User Fees Changes Effective October 1, 2022
The latest in user fee changes have been announced by the U.S Customs and Boarder Protection in CSMS #52834229. The message reads as follows:
“Pursuant to the General Notice (87 FR 46973) published August 1, 2022, adjustments to certain customs user fees and corresponding limitations, as codified in 19 U.S.C. § 58c, will take effect on October 1, 2022. These adjustments are being made in accordance with the Fixing America’s Surface Transportation Act of 2015 (FAST Act), Public Law 114-94. The General Notice may be accessed at the link below:
The Merchandise Processing Fee (MPF) ad valorem rate of 0.3464% will NOT change. The MPF minimum and maximum for formal entries (class code 499) will change. The minimum will change from $27.75 to $29.66; and the maximum will change from $538.40 to $575.35.
Some other fees that are changing:
The fee for Informal Entry/Release, automated and not prepared by CBP personnel (class code 311a), will change to $2.37.
The Surcharge for Manual Entry/Release (class code 500) will change to $3.56.
The Dutiable Mail fee (class code 496) will change to $6.52.
The Express Consignment Carrier/Centralized Hub Facility fee will change to $1.19 per individual waybill/bill of lading. An individual air waybill is the bill at the lowest level and is not a master bill or other consolidated document. See 82 FR 50523 (Nov. 1, 2017).
The Commercial Vessel or Commercial Aircraft Passenger Arrival customs fee will change to $6.52 per passenger.
The Commercial Vessel Passenger Arrival (from exempt areas) customs fee will change to $2.29 per passenger.
The Commercial Truck Arrival fee will change to $6.50. The Commercial Truck Arrival Fee is the CBP fee only; it does not include the United States Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) Agricultural and Quarantine Inspection (AQI) Services Fee (currently $7.55) that is collected by CBP on behalf of USDA to make a total single crossing fee of $14.05.
Please see the General Notice for the full list of fees that are changing. Another CSMS will be sent when the changes are in the ACE Certification environment for trade testing.”
If you have any additional questions, please do not hesitate to contact us HERE.
References:
https://content.govdelivery.com/bulletins/gd/USDHSCBP-3262fb5?wgt_ref=USDHSCBP_WIDGET_2
GLOBAL TRADE MARKET UPDATE.
On June 14,2022 the PMA( Pacific Maritime Association) and ILWU ( International Longshore and Warehouse Union) have issued a joint statement assuring an interruption free pathway, even in the case of negotiations extending beyond July 1, 2022. Nonetheless, the present activity suggests to the contrary.
The week of June 12, Los Angeles and Long Beach ports demonstrated a delayed pace of unloading to container release with wait times over 12 hours which has a relentless impact on drayage companies. This results in additional charges applied for longer wait times along with disruption of drivers availability. Due to this scenario, empty return yard storage per diem would be unavoidable.
Vessel wait time on the West Coast:
Los Angeles – up to 15 days.
Long Beach – up to 18 days.
In light of immense import volume, port labor shortages along with dwell times, allotted appointment times to redeem containers are heavily influenced by trucking lines and overall terminal congestion which leads to appointment window expiration and the need for rescheduling the container retrieval. Reserving an appointment to return empties is still a challenge due to shortage of chassis.
Vessel wait time on the East Coast:
New Jersey ( APM terminal) – up to 3 days.
New Jersey ( PNCT terminal) – 1 to 3 weeks.
The delays are caused by stringent berth congestions, chassis shortages which can’t be reused for new container collection as empty container receiving is not accessible. Conclusively, line hall operations, drayage and cross-dock are being influenced by restraining the capability of picks up before the last free day adding extra charges.
The current ocean freight global state of affairs may continue for months to come which made vigilant shippers re-route cargo to USEC.
As for air-freight, the market interest to the European Union and United States from Central China is strong in Q2 with increased volume of electronic products. The market available volume has booked up expeditiously. The cross border services between Hong Kong and South China are almost at normal pace (1 to 2 days).
Department of Commerce Announced an Expansion of Sanctions Against Russian Industry Sectors Under the Export Administration Regulations.
Bureau of Industry and Security announced a final ruling in response to the Russian federation’s ongoing aggression against Ukraine. The Department of Commerce is expanding the existing sanctions against Russian industry sectors by imposing a license requirement for exports, reexports, or transfers (in country) to and within Russia for additional items subject to the Export Administration Regulations (EAR) identified under specific Schedule B numbers or Harmonized Tariff Schedule codes. The Bureau of Industry and Security (BIS) is taking these actions to further restrict Russia’s ability to withstand the economic impact of the multilateral sanctions, further limit sources of revenue that could support Russia’s military capabilities, and to better align with the European Union’s controls.
The article reads as follows:
I. Background
In response to Russia’s February 2022 invasion of Ukraine, BIS imposed extensive sanctions on Russia under the Export Administration Regulations (15 CFR parts 730 – 774) (EAR) as part of the final rule Implementation of Sanctions Against Russia Under the Export Administration Regulations (EAR) (the Russia Sanctions rule), effective on February 24, 2022, and published on March 3, 2022 (87 FR 12226). Since the publication of the Russia Sanctions rule, BIS has published a number of final rules imposing additional stringent export controls on Russia. These actions reflect the U.S. Government’s position that Russia’s invasion of Ukraine flagrantly violated international law, was contrary to U.S. national security and foreign policy interests, and undermined global order, peace, and security, all of which necessitated the imposition of stringent and expansive sanctions. The export control measures in this final rule build upon the policy objectives set forth in one of the subsequent rules, a final rule effective on March 3, 2022, and published on March 8, 2022 (87 FR 12856), Expansion of Sanctions Against the Russian Industry Sector Under the Export Administration Regulations (EAR) (Russian Industry Sector Sanctions rule). Among other things, the Russian Industry Sector Sanctions rule revised part 746 of the EAR (Embargoes and Other Special Controls) by adding a new paragraph (a)(1)(ii) which imposed an additional license requirement for exports, reexports, and transfers (in-country) to or within Russia of any items subject to the EAR if identified under certain Schedule B or Harmonized Tariff Schedule 6 (HTS) codes. The Russian Industry Sector Sanctions rule also added supplement no. 4 to part 746 – HTS Codes and Schedule B Numbers that Require a License for Export, Reexport, and Transfer (in-country) to or within Russia pursuant to § 746.5(a)(1)(ii) – which identifies HTS codes and Schedule B numbers that are subject to the license requirement set forth in paragraph (a)(1)(ii). The four columns added in supplement no. 4 to part 746 consisted of: the Harmonized Tariff Schedule (HTS)-6 Code, HTS Description, Schedule B and Schedule B Description to assist exporters, reexporters, and transferors in identifying the items subject to this license requirement. This final rule builds upon the policy objectives set forth in the Russian Sanctions rule and the Russian Industry Sector Sanctions rule by expanding upon the latter to further restrict Russia’s access to items that it needs to support its military capabilities. The expansion of these export controls under the EAR, implemented in parallel with similarly stringent measures by partner and ally countries, further limits sources of revenue that could support Russia’s military capabilities, as well as Russia’s ability to withstand the economic impact of the multilateral sanctions.
II. Revisions to the Export Administration Regulations (EAR)
1. Expansion of Russian Industry Sector Sanctions
This final rule amends part 746 of the EAR (Embargoes and Other Special Controls) to further expand the scope of the Russian industry sector sanctions by adding additional HTS codes and Schedule B numbers to supplement no. 4 to part 746 of the EAR, thereby imposing a license requirement for all exports, reexports, and transfers (in-country) to or within Russia for such items. In this final rule, BIS is adding 205 HTS codes at the 6-digit level and 478 corresponding 10-digit Schedule B numbers to better align with the European Union’s controls.
2. Clarifications to Supplement No. 4 to Part 746 Controls
This final rule revises supplement no. 4 to part 746 by re-organizing the list of items subject to a license requirement under § 746.5(a)(1)(ii) in order to make it easier for exporters to determine whether a particular item is described in this supplement. Specifically, the columns in supplement no. 4 were previously listed in the following order: Harmonized Tariff Schedule (HTS)-6 Code, HTS Description, Schedule B, Schedule B Description. This final rule reorganizes the columns to list them in the following order: Schedule B, Schedule B Description, HTS Code, and HTS Description. In addition, this final rule is individually listing the existing Schedule B numbers so each number corresponds with a single HTS Code; previously, some of these Schedule B numbers were listed with multiple HTS Codes. It also reorganizes the list of items by ordering them numerically by Schedule B number; previously they had been organized alphabetically by HTS Description.
This final rule revises the existing language in the introductory text in supplement no. 4 to part 746 to reflect the reorganization of the list. In addition, this final rule adds Schedule B number 8705200000 to the introductory text to indicate it is also listed in both supplements no. 2 and 4 and adds a sentence to indicate that Schedule B number 8412294000 is listed in both supplements no. 4 and 5 to this part.
This final rule also adds a second paragraph to the introductory text in supplement no. 4 to part 746 to clarify the relationship between the four columns included in supplement no. 4 to part 746 by further explaining the scope of the items controlled under § 746.5(a)(1)(ii). The first sentence being added clarifies that under the Foreign Trade Regulations (15 CFR 30.6(a)(12)), exporters can use either the referenced HTS Code or Schedule B number from supplement no. 4 to part 746 when filing Electronic Export Information (EEI) in the Automated Export System (AES). The Russian Industry Sector Sanctions Rule included the applicable HTS-6 Code and Schedule B number and descriptions of items listed in supplement no. 4 to part 746 to assist exporters, reexporters, and transferors who may be more familiar with one or the other of the HTS Code or Schedule B number identification systems. The second sentence being added clarifies that only the items identified in the HTS Description column are subject to the license requirement under § 746.5(a)(1)(ii), which is consistent with how the European Union (EU) applies its comparable controls. Lastly, the third sentence being added clarifies that the other three columns –HTS Code, Schedule B, and Schedule B Description – are only intended to assist exporters with their AES filing responsibilities and does not indicate that all items classified under those HTS Codes or Schedule B numbers are subject to § 746.5(a)(1)(ii)’s restrictions.
3. Conforming changes
This final rule revises the last sentence of the introductory text of supplement no. 2 to part 746 – Russian Industry Sector Sanction List – to provide guidance on certain Schedule B numbers that are identified in both supplement no. 2 and supplement no. 4 to part 746. It now clarifies that in addition to Schedule B number 8479899850, Schedule B number 8705200000 is also listed in both supplements no. 2 and 4, and that exporters, reexporters, and transferors must comply with the license requirements under both § 746.5(a)(1)(i) and (ii), as applicable, for these Schedule B numbers.
In addition, this final rule adds one sentence at the end of the introductory text of supplement no. 5 to part 746 – ‘Luxury Goods’ That Require a License For Export, Reexport, and Transfer (In-Country) to or Within Russia or Belarus Pursuant to § 746.10(a)(1) and (2) – to provide guidance on one Schedule B number that is identified in both supplements no. 4 and no. 5 to part 746. This sentence clarifies that exporters, reexporters, and transferors must comply with the license requirements under both §§ 746.5(a)(ii) and 746.10 as applicable, for Schedule B number 8412294000.
In § 746.5 (Russian industry sector sanctions), this final rule revises the license review policy in paragraph (b)(2) to specify that applications involving items that meet humanitarian needs will be reviewed under a case-by case license review policy. This case-by-case license review policy will allow for discretion in approving licenses for items that meet humanitarian needs while also providing discretion to deny licenses for items that could generate revenue to support Russia’s military capabilities.
Savings Clause
For the changes being made in this final rule, shipments of items removed from eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR) as a result of this regulatory action that were en route aboard a carrier to a port of export, reexport, or transfer (in-country), on [INSERT DATE OF FILING FOR PUBLIC INSPECTION], pursuant to actual orders for export, reexport, or transfer (in-country) to or within a foreign destination, may proceed to that destination under the previous eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR).
To read the full article, click here.
If you have any additional questions, please do not hesitate to contact us HERE.
References: https://public-inspection.federalregister.gov/2022-10099.pdf