Blog/News

Express Trade Capital’s feature in California Apparel News, February 2023 edition.

Express Trade Capital’s feature in California Apparel News, February 2023 edition. Mark Bienstock weights in on 2023 climate for manufacturers, retailers and consumers.

”As a result of a difficult 2022 holiday-sales environment, apparel importers and manufacturers are facing dual issues going into 2023. First is bringing their inventory back to a more manageable level. Many companies were dealing with a logistical logjam of too many containers arriving at the same time as well as missing the current season. This forced the retail community to postpone or cancel many orders. The importing and manufacturing trades are still carrying elevated inventory, causing added margin compression to their bottom lines.
Second, the rising interest-rate policy of the Federal Reserve to tame inflation is causing many in the apparel community to resize their respective entity structures as we are potentially heading into a recession. Cost containment throughout the entire manufacturing and selling ecosystem will be paramount to come out stronger once economic recovery is underway.”

At Express Trade Capital, we provide financing along with logistics solutions, and serve as your consultant – providing advice including:

– How to structure transactions for maximum profitability.
– How to most efficiently move your goods from pickup to delivery to your customer.
– How to manage cash flow and mitigate risk throughout the various stages of production and delivery.

This advisory capacity truly sets us apart from other financiers. It’s in our best interests to give you the best advice because our own profitability is determined by your success.

To read this top story on California Apparel News, click here ➡️ https://lnkd.in/gjxxDD84

To schedule a discovery call and see how ETC can help your business, contact us here ➡️ https://lnkd.in/e84Ti6hg


Food Industry Update: FDA opens a Voluntary Qualified Importer Program (VQIP) allowing importers to move their food products to the U.S with greater speed and predictability.

The anticipated VQIP application opens as of January 1st, 2023. According to fda.gov, buyers and wholesalers will benefit from this program.

The full announcement reads as follows:

“Participating importers will be able to import their products to the U.S. with greater speed and predictability, avoiding unexpected delays at the point of import entry. Consumers will also benefit from the importer’s robust management of the safety and security of their supply chains.

To participate, importers must meet eligibility criteria and pay a user fee that covers cost associated with the FDA’s administration of the program.

Importers interested in applying can start their application by submitting a notice of intent to participate by setting up an account via the FDA Industry Systems website. Once you have an account, selecting VQIP under the FSMA Program options will take you to the VQIP Application Page with an option for submitting a Notice of Intent to Participate. Importers applying for the next benefit period may wish to refer to the VQIP Portal User Guide as they prepare their applications.”

Here are the steps to apply for the VQIP:

  • Create an account on the FDA Industry Systems website
  • Submit a Notice of Intent to Participate in VQIP between January 1 and May 31, 11:59pm (EST).
  • Pay the user fee.

Begin the VQIP application process, which will take you through the above steps.

Check the status of your application on your VQIP Application home page at http://www.access.fda.gov.

 Most Frequent Asked Questions to assist you with the application:

What are the benefits of participating in VQIP?

Quicker, easier entry

FDA will expedite import entry into the United States for all foods included in an approved VQIP application.

FDA will use its Predictive Risk-based Evaluation for Dynamic Import Compliance Targeting (PREDICT) import screening tool to recognize shipments of food that are part of an approved VQIP application. The screening tool will be programmed to recognize and, in most cases, immediately release the shipment, unless examination and sampling are necessary for the public health reasons listed below.

Limited examination and sampling

FDA will limit examination and/or sampling of VQIP food entries to the following situations: (1) “for cause” situations (i.e., investigation of an outbreak or illness) ; (2) to obtain statistically necessary risk-based microbiological samples (when building a product risk profile based on non-biased surveillance sampling); and (3) to audit a small percentage of import shipments covered by VQIP to verify that products declared in a VQIP entry are consistent with products covered in the VQIP application.

FDA sampling at preferred location

When FDA needs to examine an entry covered by VQIP, FDA will attempt, to the extent possible, to examine an import entry and collect samples at the VQIP food destination or other location preferred by the VQIP importer. If import entry to the U.S. is denied, FDA will assist in fulfilling an importer’s request to U.S. Customs and Border Protection (CBP) to export the refused products from the port preferred by the importer.

Faster lab results

In the event FDA collects a sample of a VQIP food import entry, FDA’s laboratories will prioritize processing of VQIP samples.

What are the eligibility criteria to participate in VQIP?

  • You have a 3-year history of importing food into the United States. Your import history is based on importation of all foods, including food that may not be covered under VQIP.
  • You have a Data Universal Numbering System (DUNS) numberExternal Link Disclaimer. Don’t have a DUNS number, Contact Dun and Bradstreet (D&B) at 866-705-5711 or via e-mail at government@dnb.com. All entities doing business with the U.S. government can receive a DUNS number free of charge through D&B using the basic service or pay a nominal fee to expedite service.
  • You use paperless filers/brokers who received an acceptable rating during their last FDA Filer Evaluation. The filer/broker is the person responsible for submitting import entry and entry summary data on the food into the Automated Commercial Environment (ACE) and as necessary submitting import documents into the International Trade Auxiliary Communication System (ITACS) or through Customs and Border Protection’s Document Imaging System (DIS).
  • None of the foods you import, including ones you do not intend to include in your VQIP application, is subject to an import alert or Class 1 recall at the time you submit your application.
  • Neither you nor the non-applicant entities associated with a VQIP food are subject to an ongoing FDA administrative or judicial action (e.g., Import Alertinjunction, and debarment), or have a history of significant non-compliances relating to food safety (e.g., an “Official Action Indicated” (OAI) FDA inspection classification; one or more voluntary Class 1 recalls relating to food safety) with no documentation of appropriate corrective actions. NOTE: “Non-applicant entities” are those entities associated with a VQIP food that conduct activities throughout the supply chain necessary for ensuring that the eligibility requirements of VQIP are met. Non-applicant entities associated with a VQIP food include, but are not limited to, the FSVP or HACCP importer of the food (if other than you), the foreign supplier of the food, and the import entry filer/broker.
  • If you are the FSVP or HACCP importer (U.S. owner or consignee at the time of entry into the United States or the U.S. agent or representative of the foreign owner or consignee at the time of entry into the U.S.) for a VQIP food, you are in compliance with the supplier verification and other importer responsibilities under the applicable FSVP, juice HACCP, or seafood HACCP regulations.
    • If you are not the FSVP or HACCP importer for a VQIP food, you must identify the FSVP or HACCP importer for the food and ensure that the FSVP or HACCP importer is in compliance with the applicable FSVP or HACCP regulations.
  • You have a current facility certification for each foreign supplier of the food you intend to import under the VQIP.
  • You develop and implement a VQIP Quality Assurance Program (QAP). Documentation of your QAP must be submitted with your VQIP application.
  • Within the past 3 years, you have not been the subject of any U.S. Customs and Border Protection penalties, forfeitures, or sanctions that are related to the safety and security of any FDA-regulated product that you imported or offered for import.
  • You must pay the user fee before October 1, the start of VQIP fiscal year, each year that you are approved to participate in the VQIP.

Why is there a user fee to participate in VQIP?

Annual user fees to participate in VQIP cover FDA’s costs for administering the program. These include the costs of reviewing applications; the costs of conducting inspections of importers (both foreign and domestic) accepted into the program; and the annual Information Technology (IT) maintenance costs. The user fee rates are calculated each Fiscal Year and will be posted in a Federal Register notice on or before August 1 each year. “

To read the full article, click HERE.

If you have any additional questions, please don’t hesitate to contact us here.

References:

https://www.fda.gov/food/importing-food-products-united-states/voluntary-qualified-importer-program-vqip?utm_medium=email&utm_source=govdelivery


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


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


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


Temporary Suspension of 232 Tariffs on Ukraine Steel

The United States Department of Commerce has announced that the United States of America will be temporarily suspending 232 tariffs on Ukrainian steel for one year. 

The full announcement reads as follows:

Ukraine’s steel industry is uniquely important to the country’s economic strength, employing 1 in 13 Ukrainians with good-paying jobs.

Some of Ukraine’s largest steel communities have been among those hardest hit by Putin’s barbarism, and the steel mill in Mariupol has become a lasting symbol of Ukraine’s determination to resist Russia’s aggression. Many of Ukraine’s steel mills have continued to pay, feed, and even shelter their employees over the course of fighting. Despite nearby fighting, some Ukrainian mills have even started producing again.   

Creating export opportunities for these mills is essential to their ability to continue employing their workers and maintaining one of Ukraine’s most important industries.

Statement from Commerce Secretary Gina M. Raimondo:

“Steelworkers are among the world’s most resilient—whether they live in Youngstown or Mariupol.  We can’t just admire the fortitude and spirit of the Ukrainian people—we need to have their backs and support one of the most important industries to Ukraine’s economic well-being.  For steel mills to continue as an economic lifeline for the people of Ukraine, they must be able to export their steel.  Today’s announcement is a signal to the Ukrainian people that we are committed to helping them thrive in the face of Putin’s aggression, and that their work will create a stronger Ukraine, both today and in the future.   

“I want to thank President Biden for his leadership in directing us to do all we can to support Ukraine’s people and their economy, as well as the Ukrainian leaders I have had a chance to work with over the past two months.  Ukraine’s diplomatic leaders have been essential partners and advocates for their people, and we will continue to do all we can to support their work toward peace, freedom, and prosperity.”

About Commerce’s Support for Ukraine

Since Russia invaded Ukraine on February 24, the Department of Commerce has launched a series of new export control restrictions on Russia in partnership with three dozen allies, including 27 EU member states, Canada, the United Kingdom, Australia, New Zealand, Japan, South Korea, Switzerland, Iceland, and Norway.

The multilateral coordination on export controls and other areas has been impressive and led to swift development and implementation of powerful restrictions that are having a serious impact on Russia’s ability to sustain its aggression.

  • Commerce has added 260 parties in Russia, Belarus, and multiple other countries to the Entity List. These entities have been involved in, contributed to, or otherwise supported the Russian security services, military and defense sectors, and military and/or defense research and development efforts. (BIS)
  • U.S. exports to Russia in categories of items subject to new U.S. export licensing requirements have decreased 97% by value as compared to the same time period in 2021 (February 24-April 29). (BIS data)
  • Overall U.S. exports to Russia have decreased approximately 79% by value over the same time period in 2021. (BIS data)
  • Public reports indicate Russia’s two largest tank manufacturing facilities have been forced to shut down, due to an inability to access the necessary parts and equipment. (Wall Street Journal, 4/25)
  • Russia is facing a critical shortage of precision-guided missiles. (Financial Times, 4/30)

Additional information on Commerce’s actions is available on the Bureau of Industry and Security’s website at: https://www.bis.doc.gov/index.php/policy-guidance/country-guidance/russia-belarus

References:

https://www.commerce.gov/news/press-releases/2022/05/raimondo-announces-temporary-suspension-232-tariffs-ukraine-steel


USTR Undertakes a Four-Year Review Process of Section 301 Tariffs on China’s Commodities.

The U.S. Trade Representative is commencing the statutory four-year review of the two actions taken under Section 301 of the Trade Act of 1974, as amended, in the investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. The two actions were effective, respectively, on July 6, 2018 and August 23, 2018, and subsequently were modified by imposing additional duties on supplemental lists of products, as well as by the temporary removal of duties on certain products through product exclusions.

The first step in the four-year review process is notifying representatives of domestic industries which benefit from the trade actions, as modified, of the possible termination of the actions, and of the opportunity for these representatives to request continuation of the actions. Requests for continuation must be received in the 60-day window prior to the four-year anniversary of the respective action: Between May 7, 2022, and July 5, 2022, for the July 6, 2018 action, and between June 24, 2022, and August 22, 2022, for the August 23, 2018, action. The Office of the United States Trade Representative (USTR) is opening dockets in these two time windows for representatives of domestic industries which benefit from the trade actions to request continuation of the corresponding trade actions, as modified. If the actions continue as a result of one or more requests from representatives of domestic industries which benefit from the trade actions, USTR will proceed with the next phase of the review.

The second phase of the review will be announced in one or more subsequent notices, and will provide opportunities for public comments from all interested parties.

DATES: For the July 6, 2018 trade action, the web portal at https:// comments.ustr.gov/s/ will open for requests to continue the action on May 7, 2022, and close at 11:59 p.m. on July 5, 2022. For the August 23, 2018 trade action, the web portal at https:// comments.ustr.gov/s/ will open for requests to continue the action on June 24, 2022, and close at 11:59 p.m. on August 22, 2022.

FOR FURTHER INFORMATION CONTACT: For questions about this notice, contact Assistant General Counsels Megan Grimball or Philip Butler at (202) 395– 5725.

Background: On August 24, 2017, the U.S. Trade Representative initiated an investigation into certain acts, policies, and practices of the Government of China related to technology transfer, intellectual property, and innovation. 82 FR 40213. In a notice published on April 6, 2018 (83 FR 14906), the U.S. Trade Representative announced a determination that the acts, policies, and practices of the Government of China covered in the investigation are unreasonable or discriminatory and burden or restrict U.S. commerce. The April 6 notice also invited public comment on a proposed action in the investigation, in the form of an additional 25 percent ad valorem duty on products of China classified in a list of 1,333 tariff subheadings, with an annual trade value of approximately $50 billion.

  1. Actions Taken Under Section 301 of the Trade Act Following a period of public notice and comment, the U.S. Trade Representative determined to take action under Section 301 of the Trade Act of 1974, as amended (Trade Act) (19 U.S.C. 2411) in the form of additional duties of 25 percent ad valorem on 818 of the proposed tariff subheadings, with an approximate annual trade value of $34 billion, effective July 6, 2018 (List 1). 83 FR 28710 (hereinafter referred to as the July 6, 2018, action). The U.S. Trade Representative also proposed further action in the form of additional ad valorem duties of 25 percent on a list of 284 tariff subheadings with an approximate annual trade value of $16 billion. Following a period of notice and comment, the U.S. Trade Representative determined to take action under Section 301 in the form of additional duties of 25 percent on 279 tariff subheadings with an approximate annual trade value of $16 billion, effective August 23, 2018 (List 2). 83 FR 40823 (hereinafter referred to as the August 23, 2018, action).

 2. Subsequent Modifications Under Section 307 The U.S. Trade Representative subsequently modified the July 6, 2018, and August 23, 2018, actions, pursuant to authority under Section 307(a) of the Trade Act. (19 U.S.C. 2417(a)). These modifications were in the form of (i) additional duties on supplemental lists of products, and (ii) the temporary removal of duties on certain products through product exclusions. The modifications to the July 6, 2018, and August 23, 2018, actions that are currently in effect are as follows: a. List 3—83 FR 47974 (September 21, 2018), as modified by 84 FR 20459 (May 9, 2019), and as amended by 84 FR 21892 (May 15, 2019); 84 FR 26930 (June 10, 2019); 86 FR 22092 (April 26, 2021); and 84 FR 9785 (February 22, 2022); b. List 4A—84 FR 43304 (August 20, 2019), as modified by 84 FR 45821 (August 30, 2019), 84 FR 69447 (December 18, 2019), and 85 FR 3741 (January 22, 2020); c. COVID Exclusions—86 FR 63438 (November 16, 2021), as amended: By 86 FR 69350 (December 7, 2021) and 87 FR 4704 (January 28, 2022): and d. Reinstated Exclusions—87 FR 17380 (March 28, 2022). In the four-year review, USTR will examine the July 6, 2018, action, as modified, and August 23, 2018, action, as modified. To ensure comprehensive coverage of the review, USTR will consider the List 3 and List 4A modifications as applicable to both the July 6, 2018, action and August 23, 2018, action.

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