The European Union's General Data Protection Regulation (GDPR) may limit the applications of blockchain within international trade, the Venable law firm said in an alert. "One unintended consequence of the GDPR, which became enforceable on May 25, is that it creates serious legal uncertainties for companies that are developing and/or considering whether to implement potential blockchain applications for the supply chain," it said. Because GDPR limits the use of personal data records and blockchain technology is inherently difficult to alter, the regulations raise "numerous legal questions regarding the possible use of blockchain for supply chain applications," Venable said. " For example, using blockchain to transmit bills of lading would help prevent fraudulent transactions; however, a bill of lading may contain personal data." There may be "opportunities to make the case to EU authorities that additional clarity and flexibility is needed to 'future proof' the GDPR so as to allow for the use of blockchain and other new technologies that have the potential to yield immense benefits to global supply chains and enhance global economic growth," the law firm said.
Imports at major U.S. retail container ports are expected to set record volumes this summer and fall, despite the Trump administration’s threat to impose tariffs on $50 million worth of goods from China, the National Retail Federation said in a news release. “Consumers are buying more and that means retailers are importing more,” the NRF said. “Imports continue to be the primary source of high-quality, mass-produced necessities at affordable prices and will be for the foreseeable future. If tariffs are imposed on consumer goods, that will only drive up prices for American families while doing little or nothing to punish those responsible for unfair trade practices.” The report estimates U.S. ports handled 1.63 million 20-foot-long cargo containers or their equivalents in April, which was down 5.8 percent sequentially from March and up 0.3 percent year-over-year. It estimates ports handled 1.77 million containers in May, up 1.3 percent year-over-year. It forecasts monthly year-over-year increases averaging nearly 4 percent from June through October.
The planned Section 301 tariffs on $50 billion in goods from China are "decades overdue," said Coalition for a Prosperous America Chairman Dan DiMicco in a news release on the White House announcement that the tariffs will go forward (see 1805290024). "We appreciate that President Trump is now making clear that the age of appeasement for China’s trade cheating is at an end," DiMicco said.
The U.S. Chamber of Commerce remains concerned for the ramifications of ending country exemptions to the Section 232 tariffs on steel and aluminum, the trade group said in a news release. "The U.S. must not expand tariffs or quotas on steel and aluminum imports to additional countries on June 1, as has been threatened," it said. Already, steel costs have increased, as has the volatility in aluminum prices, the Chamber said. "Extending the reach of these tariffs and quotas to additional countries is certain to provoke widespread retaliation from abroad and would put at risk the economic momentum achieved through the administration’s tax and regulatory reforms. We urge the administration to take this risk seriously.” The country exemptions for Canada, Mexico and the European Union are set to end on June 1 (see 1805040046).
The National Customs Brokers & Forwarders Association of America suggested that members review the new European Union privacy rules that took effect May 25 and consider developing a compliance policy. The General Data Protection Regulation (GDPR) is meant to protect the personal data of those in the EU. "The GDPR applies to all companies and organizations that offer services or products to EU residents," the NCBFAA said in an email to members. "Even if you have no offices in the EU, no members in the EU and no meetings in the EU, if you transact business there or send promotional materials to EU residents, you are probably covered by the GDPR."
Imports at major U.S. retail container ports are expected to grow “steadily” throughout the summer despite the Trump administration’s threat to impose 25 percent tariffs on goods from China, the National Retail Federation said May 9 in its monthly port-tracker report. “With proposed tariffs yet to be officially imposed, retailers are stocking up on merchandise that could soon cost considerably more,” NRF said. “If tariffs do take effect, there’s no quick or easy way to switch where these products come from.” U.S. ports handled 1.54 million 20-foot-long cargo containers or their equivalents in March, NRF said. Though that was down 8.6 percent from February and 0.7 percent lower year over year, April was estimated at 1.73 million containers, a 6.4 percent increase from the same month a year earlier. NRF also is forecasting monthly increases through September, including the possibility of record imports in July and August. The first half of 2018 is expected to total 10.4 million containers, an increase of 5.8 percent over the first half of 2017.
U.S. exports to China grew in 2017, the U.S.-China Business Council announced in a report released just before an American delegation travels to China to confront that country's intellectual property rights and other trade violations. The report says that the U.S. exported more than $127 billion in goods to China, its third largest market. Exports to China increased by 86 percent from 2006 to 2017, while exports to all other countries only increased 21 percent. "Despite trade barriers that frustrate full market access, US exports to China continue to contribute to US economic growth," USCBC President John Frisbie said. Although the business council has been concerned for years with Chinese government actions favoring domestic producers (see 1610050048), it has reacted with alarm to the tariff solution the administration is proposing (see 1804060033).
China, from which Intel drew more than 20 percent of its 2017 revenue, is “one of our fastest-growing segments,” and so “we're counting on our leaders and the leaders of the world to go resolve these issues,” CEO Brian Krzanich said on an April 26 earnings call of the looming threat of U.S. tariffs on Chinese imports and the retaliatory Chinese actions that might follow (see 1804060033). “We believe in fair trade,” Krzanich said. “We believe that countries and companies need to be able to play in markets fairly and compete, and we're counting on this getting worked out. That's very important to us.”
INLT, a new customs broker and “logistics tech start-up,” on April 10 announced “final U.S. government approval and launch of its cloud-based web application,” it said in a press release. The brokerage’s cloud-based software will save “importers and freight forwarders time and money” by connecting importers to their forwarders for classification of goods, submission of documents, tracking and transmission to CBP, the press release said. “INLT is freight agnostic, allowing importers to continue with their current partners while deriving operational, compliance, and cost benefits of INLT’s application,” the company said. INLT’s software will also allow forwarders to “connect their agents globally via INLT’s first of its kind cloud-based application reducing the need for calls, emails, and faxes in a heavily paper-driven industry,” it said.
Importers should keep an eye out for the effects new duties on steel and aluminum have on importer bond limits, said Liz Gant, a corporate regulatory compliance analyst at Samuel Shapiro & Company, in the company's monthly newsletter. CBP "uses duties, taxes and fees based on the previous 12 months to evaluate the sufficiency of your bond," she said. That means that if the Section 232 tariff duties remain in effect for an extended period, it could impact bond sufficiency. "While the additional tariffs are in place, bond sufficiency should be monitored by the importer closely," she said. "An importer does not want to be surprised if Customs deems their bond insufficient and a shipment is delayed while the importer gathers the information required for the surety."