Blog/News

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:

https://www.whitehouse.gov/briefing-room/statements-releases/2022/09/15/statement-by-president-joe-biden-on-tentative-railway-labor-agreement/


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:

https://ustr.gov/about-us/policy-offices/press-office/press-releases/2022/september/ustr-receives-requests-continuation-china-301-tariffs


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 Holidayour 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:

https://content.govdelivery.com/accounts/USDHSCBP/bulletins/3273582

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:

https://www.federalregister.gov/documents/2022/08/01/2022-16533/cobra-fees-to-be-adjusted-for-inflation-in-fiscal-year-2023

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


REMINDER – ETC INDEPENDENCE DAY HOLIDAY HOURS.

Kindly note that our office will close at 3 p.m. EDT on Friday, July 1st and will be CLOSED on Monday, July 4th in observance of Independence Day Holiday.

Please contact your account officer to plan accordingly during this time frame.

We greatly appreciate your understanding and apologize for any inconvenience.

We hope you have a great holiday weekend!


EXPRESS TRADE CAPITAL COMPLETES $3.2MM TRADE FINANCE FACILITY.

When a well-established and long-term client needed to execute a Trade Finance transaction within 48 hours in order to take advantage of an extremely profitable purchase opportunity, they knew the financier to turn to Express Trade Capital . Our deep understanding of Letters of Credit along with the Logistical parameters that were required to be navigated, allowed ETC to issue the Letter of Credit seamlessly and expeditiously within the required time frame constraints. Our Letter of Credit  and Logistic teams are “second to none “commented Mark Bienstock – Managing Director. No matter what day or hour of the week, our team is committed to providing unparalleled service to bring each transaction to a satisfactory conclusion.

Since 1993, Express Trade Capital has been a leading provider helping clients build and operate sustainable and successful businesses. We provide A.R Financing , P.O Financing Letters of Credit as well as Shipping & Logistics

For more information, you may contact us at sales@expresstradecapital.com


Happy Thanksgiving!

Happy Thanksgiving from our family to yours.

Yours truly,

Express Trade Capital.