A third party logistics provider in Toronto will offer a new service to take advantage of Section 321 de minimis exemptions, the company said in an Aug. 7 news release. Stalco, the 3PL, will let "U.S. sellers have their inventory shipped from countries, such as China, directly to Stalco’s distribution centre in Canada," it said. "Where applicable, duty is paid to Canada Customs (CBSA) on the cost of goods," it said. "Stalco then picks, packs and ships the client’s U.S. consumer orders and automatically files for a refund with CBSA on the previously paid duty, on the seller’s behalf. Consumer orders with a value less than US $800 do not attract duty on entry to the USA when imported under the Section 321 clearance type." This service "allows companies to eliminate their duty costs when selling goods directly to U.S. consumers," the company said.
Although there have been no signs of retail weakness and virtually no signs of inflation from the U.S.-China trade war so far, the National Retail Federation's David French said, "Tariffs thus far have only been on the margin of the consumer economy. What has happened to date has not been indicative of the future." Joann Fabrics and Crafts stores have been on the leading edge of consumer effects, its CEO told reporters Aug. 7 on a conference call organized by the NRF. He said almost half of what they import from China was on List 3, and therefore has a 25 percent tariff.
Even at only 10 percent, the List 4 Section 301 tariffs due to take effect Sept. 1 on up to $300 billion worth of Chinese imports “would have a much larger impact on the U.S. tech sector” than the previous three rounds of 25 percent duties, an Aug. 5 S&P Global Ratings report said. The List 4 tariffs would “significantly raise costs for manufacturers and prices for consumers,” much more so than the current tariffs, it said.
The U.S. imported 10.8 million laptops from China in June under the Harmonized Tariff Schedule’s 8471.30.01 product code, according to Census Bureau data accessed Aug. 5 through the International Trade Commission’s DataWeb tool. That’s nearly a 38 percent spike from the 7.8 million shipped here in May and a 49.1 percent increase from the 7.2 million imported in June 2018, the data show.
Avalara, a tax compliance software company, bought Portway International, Avalara said in an Aug. 2 news release. Portway, which is based in Canada "provides customers with Harmonized System classifications and outsourced customs brokerage services." Scott McFarlane, CEO of Avalara, said that by "combining Portway’s experience and knowledge of cross-border compliance with Avalara’s advanced technologies and expansive product content, we can help businesses reach new customers in new regions with confidence.” Terms of the deal weren't released.
The criminal charges filed against a China-based aluminum extrusions manufacturer, its owner and several related companies over tariff evasion (see 1907310040) is good news for the aluminum extrusion industry, the Aluminum Extruders Council said in an email. The charges allege that Zhongtian Liu, his company China Zhongwang Holdings, and several other companies controlled by Liu, including Perfectus, imported aluminum extrusions but declared them exempt from antidumping and countervailing duties. "ZhongWang and its affiliates have been an ongoing and disruptive force in the U.S. aluminum industry, especially regarding aluminum extrusions," the AEC said. "ZhongWang and its affiliates dumped tens of millions of pounds of aluminum extrusions into the U.S. market for months leading up to our victory in our Fair Trade Case. Although the shipments stopped after the orders took place, soon afterward extrusions were being shipped into Mexico by ZhongWang and stored in the desert. Later, fake pallets, comprised solely of aluminum extrusions, began entering the United States. Once uncovered, the AEC launched its scope clarification case, in which the Department of Commerce sided with the industry and declared the fake pallets were covered merchandise and thus subject to duties. At every turn, the AEC was actively involved in thwarting ZhongWang’s attempt to avoid duties."
RH "expects no impact to Fiscal 2019 or Fiscal 2020 financial results from the tariffs imposed on new product categories imported from China effective September 1, 2019," the luxury furniture company said in an Aug. 1 news release. "The impacted product categories represent less than 1% of total inventory receipts for fiscal 2019 and less than 2% of anticipated total inventory receipts for fiscal 2020," it said. Also, "since the vast majority of the impacted product categories are textile based, we have multiple sourcing alternatives outside of China that the Company has been evaluating."
George Mason University will open a new Anti-Illicit Trade Institute within the existing Terrorism, Transnational Crime and Corruption Center, the university said in a news release. David Luna, CEO of Luna Global Networks and a former U.S. diplomat, will help lead the program, GMU said. The new institute will also be led by Louise Shelley, a GMU professor, it said. "Beginning in 2020, the AITI will include a core of anti-illicit trade executive-tailored courses and online instruction related to developing effective strategies for fighting illicit markets; investigating and prosecuting illicit trade (the importance of intelligence -- and information-sharing across borders); targeting webs of corruption and criminality by following the money and 'value' (money-laundering/trade-based money-laundering); tackling cybercrime and dismantling online markets related to Intellectual Property (IP) crime including counterfeit and pirated goods; and other important anti-crime and criminal justice areas," it said.
At a press conference attended by dozens of pro-USMCA trade groups, U.S. Chamber of Commerce CEO Thomas Donohue said his group is optimistic that the trade pact will get a vote in September. Donohue held his fingers an inch apart and said, "Lighthizer and Nancy Pelosi are this close," he said, referring to negotiations on changes to the U.S.-Mexico-Canada Agreement between U.S. Trade Representative Robert Lighthizer and the Speaker of the House. Donohue said the Chamber is "very, very willing to move forward" with small fixes, which he characterized as "ornaments on the tree."
Hundreds of business groups, led by the U.S. Chamber of Commerce, urged Congress to pass the new NAFTA, known as the U.S.-Mexico-Canada Agreement, "as soon as possible," in a letter sent July 23. The letter was signed by trade groups from many sectors, goods and services, importers and exporters and sectors that rely on both, as well as local chambers of commerce from every state. "U.S. manufacturers export more made-in-America manufactured goods to our North American neighbors than they do to the next 11 largest export markets combined, and the two countries account for nearly one-third of U.S. agricultural exports," the groups wrote. "They are also the top two export destinations for U.S. small and medium-size businesses, more than 120,000 of which sell their goods and services to Canada and Mexico."