Nearly 50 business groups -- mostly not representing metals importers -- sent a letter to U.S. Trade Representative Robert Lighthizer and Commerce Secretary Wilbur Ross suggesting that the tariffs on aluminum and steel in the NAFTA region must be lifted in order for the groups to lobby Congress to approve the new NAFTA, known as the U.S.-Mexico-Canada Agreement. "For many farmers, ranchers and manufacturers, the damage from the reciprocal trade actions in the steel dispute far outweighs any benefit that may accrue to them from the USMCA," the Jan. 23 letter said. The groups -- including the U.S. Chamber of Commerce, the United States Council for International Business, the National Foreign Trade Council and more than a dozen agriculture advocacy organizations -- said the tariffs are hurting steel- and aluminum-consuming companies. They said they want the matter resolved so "we can turn our attention to working with you to gain prompt Congressional approval of the USMCA."
FedEx Trade Networks, the FedEx division that includes the company's customs brokerage and other services, is being rebranded as FedEx Logistics, the company said in a news release. “We’re adding tremendous value by bringing all of the specialty services we offer under the FedEx Logistics banner,” said Richard Smith, CEO of FedEx Logistics. “The global solutions we offer are dynamic and customizable, and the experience for our customers is more streamlined, more efficient and better represented as a collective competitive offering as FedEx Logistics."
More CBP scrutiny of first sale transactions has followed an increase in the use of first sale valuations in recent months, law firm Sandler Travis said in a blog post. The growth in first sale valuations, which allows importers to value goods at the price sold from a manufacturer to a middle man, is one result of the Section 301 tariffs on goods from China, the firm said. "At a time when volatility in trade policy has left some traditional methods of lowering costs unavailable and is threatening to eliminate others, importers are continuing to use the first sale rule to save millions of dollars in import duties each year," said the firm, which advertises its first sale services in the post.
U.S. Chamber of Commerce CEO Thomas Donohue said the same things on trade he's been saying for months -- the tariffs on Chinese goods are paid by businesses, not China; the steel and aluminum tariffs in the NAFTA region have to go; the new NAFTA should be approved -- during his annual State of American Business address. "Now that we’ve struck a deal with Canada and Mexico, the administration must make good on its repeated promise to remove the steel and aluminum tariffs that were imposed in the heat of negotiations," Donohue said in his speech Jan. 10. "This would be an encouraging sign for all of our partners, including those we’re pursuing new market-opening agreements with -- Japan, the EU, and the UK."
BDO is launching a new customs and international trade practice following its acquisition of Global Trade Strategies (GTS), it said in a Jan. 9 press release. The new practice “will help multinational companies navigate the complex rules governing the cross-border movement of goods and services, with the goal of minimizing duty, VAT and excise tax payments, while maximizing corporate customs and trade compliance,” the professional services firm said. Damon Pike, the customs lawyer that founded GTS, will join BDO as a principal and lead the practice. GTS employees have also joined BDO and will be based in its South Florida offices.
Seko Logistic acquired GoodShip International, a customs brokerage and compliance consultancy based in Chicago, Seko said in a news release. The purchase marks Seko's "first full acquisition of another independent freight forwarding specialist," it said. GoodShip provides "customs brokerage, compliance, air and ocean freight solutions to a broad diversity of clients with emphasis on the Trans-Pacific Eastbound cargo movements," Seko said. The acquisition is part of Seko's "program to accelerate its strategic vision by expanding its global footprint, establishing more strategic partnerships, and making strategic acquisitions in the forwarding and technology sectors," it said. Republic Partners investment bank initiated the deal and advised Seko on the transaction, Seko said. Terms of the acquisition weren't released.
A National Customs Brokers & Forwarders Association of America event focused on the Federal Maritime Commission that was planned for Jan. 16 will be postponed, the NCBFAA said in a notice. Two FMC commissioners were scheduled to speak at the event, which "will be rescheduled after the reopening of the Federal Government," the NCBFAA said. Full refunds will be issued for those that registered, the association said.
Slowed growth in China reduced Apple's revenue in its fiscal year 2019 first quarter, Apple CEO Tim Cook said in a letter to investors. "While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China," the company said. "In fact, most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad." The company believes the "economic environment in China has been further impacted by rising trade tensions with the United States," Cook said. The Information Technology Industry Council said Apple's news shows how the trade war can hurt U.S. interests. "Tariffs are a direct threat to American workers and companies, hindering economic growth and slowing hiring for tech and other sectors," said Josh Kallmer, executive vice president of policy at ITIC, in an emailed news release. "As long as tariffs are in place, companies of all sizes and their customers will continue to be hit with negative impacts. We urge the Trump administration to continue its critical negotiations with the Chinese government and work toward a long-term solution that rolls back tariffs, changes China’s unfair trade policies, and ends this mutually damaging trade war.”
The Fashion Jewelry & Accessories Trade Association (FJATA) and Fashion Accessories Shippers Association (FASA) will "merge operations to bring added benefits and value to their respective members," the groups said in a Dec. 31 news release. "FJATA will join FASA and Gemini Shippers Association as an independent organization within Gemini Shippers Group," the groups said. Brent Cleaveland, executive director of FJATA, will continue to head FJATA, "which will operate as an independent association." Cleaveland said "this formal joining of operations is a logical next step for both organizations." He said the change will allow for FJATA to "leverage the back-office operations and resources of Gemini Shippers Group, allowing for expanding services for the FJATA membership."
The trade conflict between the U.S. and China could benefit Vietnam, Malaysia, Taiwan and Thailand if purchasers shift to those countries should the conflict drag on or get worse, according to a recent paper by economists working at the Asian Development Bank.