Exporters that produce and send goods from Puerto Rico to China may be able to avoid some of the tariffs on U.S. goods by using the U.S. territory as the origin, said Susie Hoeger, director of Global Trade Compliance and Policy at Abbott Laboratories. Hoeger mentioned the tip while speaking at the American Association of Exporters and Importers Annual Conference in Washington on June 27. "Chinese Customs has chosen to treat Puerto Rico differently than the U.S.," she said. "So if you don't know this and make things in Puerto Rico, declaring that as Puerto Rico origin instead of U.S., which is all the same for us, the tariffs don't hit. They've chosen to carve that out for some reason." Census Bureau statistics seem to show a recent uptick in exports to China from Puerto Rico. According to Census, the value of goods exported from the territory to China increased by 53.6 percent from 2017 to 2018.
The Treasury Department's Office of Foreign Assets Control sanctioned Cubametales, Cuba’s state-run oil import-export company, for importing oil from Venezuela, Treasury said in a July 3 press release. In exchange for the oil, Treasury said, Cubametales provides Venezuela and the Nicolas Maduro regime with “defense, intelligence and security assistance.”
Instex, the European payment system designed to allow countries to trade with Iran despite U.S. sanctions, is mostly symbolic, several trade lawyers said. The system is a potentially useful tool to appease Iran’s demands for greater cooperation with Europe, lawyers said, but likely an insignificant mechanism in brokering major trade.
If the Iran nuclear deal collapses and Europe imposes a set of automatic snapback sanctions, the U.S. would likely follow with its own set of additional Iran sanctions, including greater enforcement on non-U.S. entities and sanctions on Iran’s trading partners, said Inessa Owens, a trade lawyer with Baker McKenzie.
The Commerce Department will continue its presumption of denial policy for license applications for exports to Huawei, a Commerce spokesperson said July 3, adding that the China tech company remains on Commerce’s Entity List. Commerce will review export license applications for “their national security impacts” and plans to review licenses “under the highest national security scrutiny,” the spokesperson said.
E2open finalized its acquisition of Amber Road, the company said in a July 2 news release. The companies announced the deal in May (see 1905130057). "The combination of E2open and Amber Road brings together two complementary platforms to create a premier global trade management network solution, enhancing customers’ ability to operate their entire end-to-end supply chains from one place in the cloud," E2open said.
The World Trade Organization published on July 2 its update to tariff and non-tariff measures imposed by more than 170 countries and customs territories. The publication also provides statistics about exports. For example, the European Union is the top destination for American industrial exports, and 22 percent of those exports are duty free. Those exports account for two-thirds of the value of exports from the U.S. to the EU. Japan is the fourth-largest export market for U.S. agriculture, and the average Most Favored Nation tariff for those exports is 23 percent. About two-thirds of ag exports to Japan from the U.S. face duties.
The U.S. and Tunisia signed a Customs Mutual Assistance Agreement meant to help prevent and detect customs violations, CBP said in a July 2 news release. Such agreements "allow for the exchange of information that is vital to our national and economic security,” Deputy CBP Commissioner Robert Perez said. "We value our partnership with Tunisia in pursuing our mutual goals of stronger law enforcement and a more resilient and secure supply chain. These agreements form sound legal frameworks on a wide range of issues, including securing our borders against terrorists and combatting drug traffickers. This collaboration and cooperation will enable us -- and generations after us -- to work more effectively to prevent, detect, and investigate customs offenses.” The U.S. now has CMAAs with 81 countries, it said.
In the July 2 edition of the Official Journal of the European Union the following trade-related notices were posted:
Recent editions of Mexico's Diario Oficial list trade-related notices as follows: