Blog/News

Recycled Retail

By; Carli Valinoti, Express Trade Capital

One of the newest sustainability trends is making old garments new again. Evrnu, a Seattle-based textile-technology startup, is making old clothes and fabrics into new fibers that can be used for recyclable fashion.

Although their products are still being tested, Evrnu has just launched a limited run of recyclable unisex sweatshirts for Adidas by Stella McCartney, calling them “EVER-new.” The hoodies will not be available for the public until 2020 but will be given to athletes to promote the new sustainable line. “Right now, in the U.S., consumers dispose of about 80% of their textiles directly into their garbage can. That’s the behavior we’re really trying to tackle,” said Stacy Flynn, chief executive and co-founder of Evrnu. Recycled textiles can be made into premium fibers which can be dyed and woven into new fabrics made for all different types and styles of clothing. In 2016, Evrnu teamed up with Levi’s Jeans and launched a prototype of jeans made only from repurposed cotton T-shirts.

Consumers are becoming more aware of certain industries’ toll on the environment, including the fashion industry. Although creating new fibers still has some detrimental impact, the process uses a fraction of the amount of energy and chemicals used to make polyester clothing. These recycled garments may end up having a higher price-point, but as more people become aware of how sustainability can help the environment, people may be willing to pay more.

ETC takes great pride in working with sustainable and eco-friendly companies. Contact us for all your factoring needs!

Blockchain on Trade Finance

By: Tajinder Marwaha, Express Trade Capital

As the trade finance industry faces challenges related to logistics and fraud, blockchain technology may help in creating transparency and assurance of delivery while still providing confidentiality for trade parties. Blockchain can support cross border trade transactions that otherwise would be difficult due to costs and the documentation process.

90% of the world relies on trade finance and the incorporation of blockchain would speed the delivery of funds and reduce the usage of paper. The trade finance industry still operates in a very old-fashioned manner, which entails manual inputting documents and physical letters of credit to ensure that payments will be received. Blockchain may streamline such manualcomplexity by enabling companies to securely and digitally confirm where products were originated, its transaction details, and other requisite information. Indeed, through blockchain, payments can be processed through a tokenized form depending upon the delivery or receipt of goods. Focusing on just contracts, parties can create their own rules that would ensure automatic payments and eliminate the possibility of missed, or repeated shipments. Incorporating blockchain technology will create greater trust for trade parties that may well result in an increase in global trade.

If you Import from China

By; Carli Valinoti, Express Trade Capital 

After meeting with President Xi over the weekend, President Trump announced decisions regarding the bilateral trade dispute. The President announced that while current tariffs will remain in place, he will not move forward with additional tariffs as negotiations continue. Therefore, there are no immediate plans to implement Tranche or List 4 trade-remedy tariffs.

The United States Trade Representative recently concluded seven days of hearings on the proposed List 4. The testimony and comments solicited from the public as part of the List 4 review may influence the products to be included and tariff rate if and when any additional trade-remedy actions are taken. But for now, any action on List 4 is on hold.

If you import from China, Express Trade Capital is here to assist with trade strategies to minimize the impact, apply for exemptions, and process refund claims where exemptions have been granted. Click here to contact Express Trade Capital for expertise and support. We are here to help.

Reminder – ETC Summer and Holiday Hours

Every Friday through Labor Day, ETC will close at 4pm.

Separately – in observance to Independence Day, ETC will be closing Wednesday, 7/3 at 3pm and closed the day of 7/4. Regarding any funding request’s, please contact your account officer accordingly during this time frame.

We greatly appreciate your understanding and apologize for any inconvenience.

IF YOU IMPORT FROM MEXICO

By; Carli Valinoti, Express Trade Capital 

Late Friday night the President announced successful negotiations with Mexico.  With a signed agreement addressing illegal immigration, the President has suspended indefinitely the planned tariffs against Mexico. 

The 5% tariff on goods from Mexico will not go into effect on June 10, 2019.  

Issues Importing from India

Carli Valinoti, Express Trade Capital 

On May 31, 2019, President Trump issued a proclamation announcing the termination of India as a beneficiary developing country. The decision comes as a result of the fact that, according to the President, India has not assured the United States that it will provide equitable and reasonable access to its markets as well as refrain from engaging in unreasonable export practices. 

Among other things, this means that US imports from India entered for consumption or withdrawn from warehouse for consumption, will no longer be eligible for preferential duty treatment under the Generalized System of Preferences as of June 5.

Contact Us to learn how ETC can help you manage your supply chain and any unforeseen costs.

Possible Rising Tariffs at the Mexican Border

Carli Valinoti, Express Trade Capital

President Trump has announced plans to impose 5 percent tariffs on all goods imported from Mexico, rising to as high as 25 percent until – according to the White House – the Mexican government stems the flow of migrants. While most specifics are not yet known – conceptually, tariffs will become effective June 10 and gradually increase by 5 percent each month until they reach 25 percent in October.

What we still don’t know:

  • If the action is to be administered by the date of export
  • If all exports from Mexico to the US are covered including non-Mexican origin goods exported from Mexico and the US goods returned
  • Whether NAFTA benefits for duty and merchandise processing fee will be allowed
  • Whether these tariffs are eligible for drawback, among others

Contact us today to learn about ETC’s trade protection financing options.

Turkey Trade Designation Update

Sadie Keljikian, Express Trade Capital

The President issued Proclamation 9887 on May 16th, entitled To Modify the List of Beneficiary Developing Countries Under the Trade Act of 1974. The proclamation indicates the termination of Turkey’s status as a beneficiary developing country, effective May 17th, 2019. The decision comes as a result of Turkey surpassing minimum economic criteria for the designation.

For US importers, this has a few implications. First, all goods brought in from Turkey are no longer eligible for preferential duties under the Generalized System of Preferences, or GSP. Crystalline silicon photovoltaic (CSVP) cells from Turkey are now subject to safeguards outlined in Proclamation 9693. Additionally, large residential washers coming from Turkey will be subject to stipulations indicated in Proclamation 9694.

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Contact us to learn how ETC can help you manage your supply chain and any unforeseen costs.

Trade War with China Rages On

Sadie Keljikian, Express Trade Capital

Per last week’s announcement, the White House has raised existing tariffs on $200B worth of Chinese imports from 10% to 25% and is now threatening new tariffs of up to 25% on an additional $300B worth of Chinese imports as part of its ongoing trade war with China. The latest list targets a wide variety of goods, including apparel, accessories, food and beverage products, and livestock.   

President Trump seems optimistic about reaching an agreement with Chinese President Xi Jinping and downplays the conflict as a “little squabble…because we’ve been treated very unfairly for many, many decades.” The proposed changes will likely take effect in late June or July unless a trade agreement can be reached before then. Importers should begin preparing to either pay the newly raised tariffs or acquire their goods elsewhere.   

Talk to our team today to learn how ETC can help you plan for the increased costs your business will incur due to the new tariffs and how to protect your business during these uncertain times.   

Tariffs on Chinese Imports May Rise Again

Sadie Keljikian, Express Trade Capital

Due to delays in establishing a trade deal between the US and China, the President unofficially announced plans to raise the trade remedy tariff from 10% to 25% effective Friday. This will seemingly apply to all List III goods. The President also suggested a possible extension of the trade remedy tariffs to all imports from China.

Although an official notice has not been published yet, it is wise to prepare for the tariff increase as of May 10 if you import any included goods from China.

Contact us today to learn about ETC’s trade protection financing options.