A monthly roundup of our Industry Updates, Blogs and Market Information
Recent Developments in China Tariffs
On June 14, the Office of the US Trade Representative (USTR) issued a notification that public hearings regarding the Section 301 proposed tariffs on approximately $300 billion worth of Chinese products will begin on June 17, 2019. The full press release can be viewed HERE.
The Office of the U.S. Trade Representative (USTR) will hold public hearings from June 17 to June 21, 2019 and, the following week, from June 24 to June 25, 2019, regarding proposed tariffs on approximately $300 billion worth of Chinese products.
The hearings will take place at the U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.
The proposed tariffs are a supplemental action in response to China’s unfair trade practices related to technology transfer, intellectual property, and innovation, based on the findings in USTR’s investigation of China under Section 301 of the Trade Act of 1974. Tariffs on $250 billion in goods from China are currently in effect under Section 301 trade action.
The Federal Register notice publishing the proposed tariff list and soliciting public comment can be viewed here.
The public hearings will be held at the following times:
- Monday, June 17, 2019 from 9:30 AM – 6:00 PM EDT
- Tuesday, June 18, 2019 from 9:30 AM – 6:00 PM EDT
- Wednesday, June 19, 2019 from 9:30 AM – 6:00 PM EDT
- Thursday, June 20, 2019 from 9:30 AM – 6:00 PM EDT
- Friday, June 21, 2019 from 9:30 AM – 6:00 PM EDT
- Monday, June 24, 2019 from 9:30 AM – 6:00 PM EDT
- Tuesday, June 25, 2019 from 9:30 AM – 4:00 PM EDT
We will continue to monitor Section 301 tariff developments and will provide updates as new information becomes available. Meanwhile, we invite you to visit our "Section 301 Tariff FAQ's" for more information.
USTR Announces Opening of a New Portal for Third Trance Exclusion Requests on June 30
The Office of the US Trade Representative issued an agency notice informing they will begin accepting exclusion requests for the third trance of Section tariffs at 12:00 pm on June 30, 2019. Full instructions for submitting an exclusion request can be found within the agency notice.
The following is an excerpt from that notice:
".....To submit an exclusion request, requesters must first register on the portal at http://exclusions.USTR.gov. As noted above, the portal will open at noon EDT on June 30, 2019."
Update on Tariff Actions on Imports from Mexico
On Friday, June 7th, President Trump announced the 5% tariff action scheduled to go into effect Monday, June 10th, 2019 on goods imported from Mexico has been "indefinitely suspended".
According to the statement, the US signed an agreement with Mexico, in which Mexico agreed to take "strong measures to stem the tide of Migration through Mexico, and to our Southern Border." The State Department will release a statement shortly with further details of the agreement.
Proposed changes to the Panama Canal tolls could benefit container ships
According to FreightWAVES, proposed changes to the Panama Canal transit tolls would provide further incentives for container ships and hike prices for other vessel types.
The consequences could ripple beyond ocean shipping – the more container lines are convinced to bring Asian exports to the U.S. East Coast via the Panama Canal instead of unloading in California, the worse for intermodal rail and the better for trucking.
The Panama Canal Authority (ACP) is proposing toll changes to be effective January 1, 2020. It announced its preferred changes on June 14, with a public comment period to extend until July 15, after which a decision will be finalized.
Panama Canal locks cater to two different vessel sizes. The original ‘Panamax’ locks can handle container ships up to a maximum capacity of around 4,500 twenty-foot equivalent units (TEU), as well as smaller and medium-sized dry and liquid bulk ships.
MSC Gayane drug seizure results in Carrier C-TPAT suspension
The carrier confirmed in a statement their CTPAT certification has been suspended after over 16 tons of cocaine were found in 7 containers onboard the MSC Gayane on June 17th. The drug seizure happened at the Port of Philadelphia
On June 18th the carrier issued a statement reassuring customers should expect only "minimal disruption" as a result of the suspension. “For example, there could possibly be additional inspections on certain containers coming from South and Central America to the USA. There will be no impact on customs clearance for cargo, which is flowing regularly in and out of the USA.”
India Terminated from GSP Effective June 5th
In previous Industry Updates and Newsletters, we notified you of a March 3, 2019 statement made by US Trade Representative Robert Lighthizer announcing the US intention to terminate India and Turkey's Generalized System of Preferences (GSP) program because "they no longer comply with the statutory eligibility criteria.". On May 31, 2019 President Trump issued a Proclamation stating that India's designation as a beneficiary developing country would be terminated effective June 5, 2019.
An excerpt of the May 31, 2019 Proclamation follows:
4. Consistent with section 502(d)(1) of the 1974 Act, and having considered the factors set forth in sections 501 and 502(c), I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets. Accordingly, it is appropriate to terminate India’s designation as a beneficiary developing country effective June 5, 2019.
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