Say Goodbye to "Made in Hong Kong" and Hello to "Made in China" Sure, it might seem like a cosmetic change, but "Made in Hong Kong" has been part of the American psyche for a long time and replacing the label with "Made in China" signals an uncomfortable change in a year of jarring changes. Importers must comply with this requirement by September 25, 2020. Click here to read the Federal Register Notice or go to https://bit.ly/2QccV2z. The ITA Proposes Overhauling Antidumping Enforcement On August 13, 2020, The International Trade Administration rolled out its proposed overhaul of antidumping enforcement regulations. In ITA’s own words, these are the proposed regulations, “Commerce proposes to modify its regulation concerning the time for submission of comments pertaining to industry support in AD and CVD proceedings; to modify its regulation regarding new shipper reviews; to modify its regulation concerning scope matters in AD and CVD proceedings; to promulgate a new regulation concerning circumvention of AD and CVD orders; to promulgate a new regulation concerning covered merchandise referrals received from U.S. Customs and Border Protection (CBP); to promulgate a new regulation pertaining to Commerce requests for certifications from interested parties to establish whether merchandise is subject to an AD or CVD order; and to modify its regulation regarding importer reimbursement certifications filed with CBP. Finally, Commerce proposes to modify its regulations regarding letters of appearance in AD and CVD proceedings and importer filing requirements for access to business proprietary information. Commerce is seeking public comments on this proposed rule.” You have until September 14, 2020 to submit your comments opposing, support, or request clarification about the proposed changes. Read the Federal Register Notice at https://bit.ly/2YjWTYV . The Latest on Exporting PPE Thanks to the pandemic, Personal Protective Equipment (PPE), including masks/respirators and surgical gloves and gowns, are extremely scarce. Demand far exceeds supply, hindering the ability of nations to protect further spread of the virus. Our country is trying to make sure that domestic needs are first met before exports are allowed. On August 10, 2020, FEMA and CBP further clarified what actions these agencies may take in regards to PPE destined for export. CBP and FEMA may detain your shipment pursuit to the executive order signed earlier in the year by President Trump (Allocation Order). The likelihood of this happening is unknown, although FEMA claims “not every shipment of covered materials will be detained for FEMA determination, and not every shipment that is detained for FEMA determination will be prohibited from export.” If your shipment is detained, FEMA will take one of three actions: allow the shipment to be exported, order that shipment be distributed domestically, or purchase the shipment from you. Some PPE are exempted from the Allocation Order. FEMA describes in detail the exemptions, both old and new, and requirements for drafting a Letter of Attestation that is needed for an exemption. For additional information, go to https://bit.ly/3hhP1yj . Fate of Endangered Dolphins Is In The Hands of the US Court of International Trade The best estimates are that there are only fifty-five Maui Dolphins left alive in the waters off the coast of New Zealand, which means that they are critically endangered and are at the cusp of extinction. The Marine Mammal Protection Act (“MMPA”) was passed to require the US Department of Commerce to impose an import ban in this kind of situation, but it has refused to do so. Thus, the Sea Shepherd New Zealand and the Sea Shepherd Conservation Society sued the US Department of Commerce in the US Court of International Trade to force the Department to implement an import ban on fish and fish products caught with nets that threaten the Maui Dolphin. Sea Shepherd New Zealand and Sea Shepherd Conservation Society v Ross, No. 20-00112, Slip Op. 20-116 (August 13, 2020) . This lawsuit came on the heels of another lawsuit filed in the US Court of International Trade that successfully sued to force an import ban to protect the Vaquita, the world’s smallest porpoise which is also on the verge of extinction. See Natural Resources Defense Council v US, No. 18-0055, Slip Op 20-53 (April 22, 2020 ). Unfortunately, the lawsuit to help the Maui Dolphin hasn’t been as successful…yet. The Department of Commerce convinced the court not to order an import ban while the Department of Commerce reviewed new policies that New Zealand adopted to protect the Maul Dolphins and that would make a ban superfluous. However, the Court cut the Department only the slightest slack because it will order an import ban if it is not satisfied by October 30, 2020 that the New Zealand’s policies are up to snuff. Two Important Deadlines Ahead If You Are Taking The Customs Broker Exam Important deadlines that you should not miss are coming up in September if you are taking the October 8, 2020 customs broker exam. CBP brutally enforces these deadlines. If you miss them, you miss them. The first deadline is the September 8, 2020, 8:30 AM Eastern (that's correct. The deadline is very early in the morning) deadline to register for the exam. The second deadline is actually a window. Because of the pandemic, CBP is spacing out the exam. Half of the applicants will take exam on the morning of October 8 and the other half will take the exam in the afternoon on the same day. In CBP's own words: "Self-site selection begins on Tuesday, September 15, 2020, 12:01 AM (EST) through Friday, September 18, 2020, 11:59 PM (EST). Site selection is on a FIRST COME FIRST SERVE basis. Failing to self-site select early could mean that you do not get your desired site due to the desired site being at full capacity." More information can be found on CBP's Notice of Examination at https://bit.ly/32bJFhL . Federal Enforcement Agencies Warn Companies To Avoid Chinese Forced Labor Products and Manufacturing In a show of unity, commitment, and intimidation, the Departments of State, Treasury, Commerce, and Homeland Security issued an advisory warning individuals and businesses to keep their supply chains free from forced labor, especially as applied to Xinjiang Uyghur Autonomous Region (Xinjiang). Violators may lose their shipments and be subject to civil and criminal penalties. For further information, go to: www.state.gov/xinjiang-supply-chain-business-advisory . BIS Cracks Down Further on Huawai The following is verbatim from the BIS's August 17, 2020 press release: The Bureau of Industry and Security (BIS) in the Department of Commerce (Commerce) today further restricted access by Huawei Technologies (Huawei) and its non-U.S. affiliates on the Entity List to items produced domestically and abroad from U.S. technolaogy and software. In addition, BIS added another 38 Huawei affiliates to the Entity List, which imposes a license requirement for all items subject to the Export Administration Regulations (EAR) and modified four existing Huawei Entity List entries. BIS also imposed license requirements on any transaction involving items subject to Commerce export control jurisdiction where a party on the Entity List is involved, such as when Huawei (or other Entity List entities) acts as a purchaser, intermediate, or end user. These actions, effective immediately, prevent Huawei’s attempts to circumvent U.S. export controls to obtain electronic components developed or produced using U.S. technology. In May 2020, BIS amended the longstanding foreign-produced direct product (FDP) rule to target Huawei’s acquisition of semiconductors that are the direct product of certain U.S. software and technology. Today’s amendment further refines the FDP rule by applying the control to transactions: 1) where U.S. software or technology is the basis for a foreign-produced item that will be incorporated into, or will be used in the “production” or “development” of any “part,” “component,” or “equipment” produced, purchased, or ordered by any Huawei entity on the Entity List; or 2) when any Huawei entity on the Entity List is a party to such a transaction, such as a “purchaser,” “intermediate consignee,” “ultimate consignee,” or “end-user.” This amendment further restricts Huawei from obtaining foreign made chips developed or produced from U.S. software or technology to the same degree as comparable U.S. chips. “Huawei and its foreign affiliates have extended their efforts to obtain advanced semiconductors developed or produced from U.S. software and technology in order to fulfill the policy objectives of the Chinese Communist Party,” said Commerce Secretary Wilbur Ross . “As we have restricted its access to U.S. technology, Huawei and its affiliates have worked through third parties to harness U.S. technology in a manner that undermines U.S. national security and foreign policy interests. This multi-pronged action demonstrates our continuing commitment to impede Huawei’s ability to do so.” The following 38 new Huawei affiliates across 21 countries were added to the Entity List because they present a significant risk of acting on Huawei’s behalf contrary to the national security or foreign policy interests of the United States. There is reasonable cause to believe that Huawei otherwise would seek to use them to evade the restrictions imposed by the Entity List. Huawei Cloud Computing Technology; Huawei Cloud Beijing; Huawei Cloud Dalian; Huawei Cloud Guangzhou; Huawei Cloud Guiyang; Huawei Cloud Hong Kong; Huawei Cloud Shanghai; Huawei Cloud Shenzhen; Huawei OpenLab Suzhou; Wulanchabu Huawei Cloud Computing Technology; Huawei Cloud Argentina; Huawei Cloud Brazil; Huawei Cloud Chile; Huawei OpenLab Cairo; Huawei Cloud France; Huawei OpenLab Paris; Huawei Cloud Berlin; Huawei OpenLab Munich; Huawei Technologies |
Say Goodbye to "Made in Hong Kong" and Hello to "Made in China"
Sure, it might seem like a cosmetic change, but "Made in Hong Kong" has been part of the American psyche for a long time and replacing the label with "Made in China" signals an uncomfortable change in a year of jarring changes. Importers must comply with this requirement by September 25, 2020. Click here to read the Federal Register Notice or go to https://bit.ly/2QccV2z.
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The ITA Proposes Overhauling Antidumping Enforcement
On August 13, 2020, The International Trade Administration rolled out its proposed overhaul of antidumping enforcement regulations. In ITA’s own words, these are the proposed regulations, “Commerce proposes to modify its regulation concerning the time for submission of comments pertaining to industry support in AD and CVD proceedings; to modify its regulation regarding new shipper reviews; to modify its regulation concerning scope matters in AD and CVD proceedings; to promulgate a new regulation concerning circumvention of AD and CVD orders; to promulgate a new regulation concerning covered merchandise referrals received from U.S. Customs and Border Protection (CBP); to promulgate a new regulation pertaining to Commerce requests for certifications from interested parties to establish whether merchandise is subject to an AD or CVD order; and to modify its regulation regarding importer reimbursement certifications filed with CBP. Finally, Commerce proposes to modify its regulations regarding letters of appearance in AD and CVD proceedings and importer filing requirements for access to business proprietary information. Commerce is seeking public comments on this proposed rule.” You have until September 14, 2020 to submit your comments opposing, support, or request clarification about the proposed changes. Read the Federal Register Notice at https://bit.ly/2YjWTYV.
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The Latest on Exporting PPE
Thanks to the pandemic, Personal Protective Equipment (PPE), including masks/respirators and surgical gloves and gowns, are extremely scarce. Demand far exceeds supply, hindering the ability of nations to protect further spread of the virus. Our country is trying to make sure that domestic needs are first met before exports are allowed. On August 10, 2020, FEMA and CBP further clarified what actions these agencies may take in regards to PPE destined for export. CBP and FEMA may detain your shipment pursuit to the executive order signed earlier in the year by President Trump (Allocation Order). The likelihood of this happening is unknown, although FEMA claims “not every shipment of covered materials will be detained for FEMA determination, and not every shipment that is detained for FEMA determination will be prohibited from export.” If your shipment is detained, FEMA will take one of three actions: allow the shipment to be exported, order that shipment be distributed domestically, or purchase the shipment from you. Some PPE are exempted from the Allocation Order. FEMA describes in detail the exemptions, both old and new, and requirements for drafting a Letter of Attestation that is needed for an exemption. For additional information, go to https://bit.ly/3hhP1yj.
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Fate of Endangered Dolphins Is In The Hands of the US Court of International Trade
The best estimates are that there are only fifty-five Maui Dolphins left alive in the waters off the coast of New Zealand, which means that they are critically endangered and are at the cusp of extinction. The Marine Mammal Protection Act (“MMPA”) was passed to require the US Department of Commerce to impose an import ban in this kind of situation, but it has refused to do so. Thus, the Sea Shepherd New Zealand and the Sea Shepherd Conservation Society sued the US Department of Commerce in the US Court of International Trade to force the Department to implement an import ban on fish and fish products caught with nets that threaten the Maui Dolphin. Sea Shepherd New Zealand and Sea Shepherd Conservation Society v Ross, No. 20-00112, Slip Op. 20-116 (August 13, 2020). This lawsuit came on the heels of another lawsuit filed in the US Court of International Trade that successfully sued to force an import ban to protect the Vaquita, the world’s smallest porpoise which is also on the verge of extinction. See Natural Resources Defense Council v US, No. 18-0055, Slip Op 20-53 (April 22, 2020). Unfortunately, the lawsuit to help the Maui Dolphin hasn’t been as successful…yet. The Department of Commerce convinced the court not to order an import ban while the Department of Commerce reviewed new policies that New Zealand adopted to protect the Maul Dolphins and that would make a ban superfluous. However, the Court cut the Department only the slightest slack because it will order an import ban if it is not satisfied by October 30, 2020 that the New Zealand’s policies are up to snuff.
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Two Important Deadlines Ahead If You Are Taking The Customs Broker Exam
Important deadlines that you should not miss are coming up in September if you are taking the October 8, 2020 customs broker exam. CBP brutally enforces these deadlines. If you miss them, you miss them.
The first deadline is the September 8, 2020, 8:30 AM Eastern (that's correct. The deadline is very early in the morning) deadline to register for the exam. The second deadline is actually a window. Because of the pandemic, CBP is spacing out the exam. Half of the applicants will take exam on the morning of October 8 and the other half will take the exam in the afternoon on the same day. In CBP's own words: "Self-site selection begins on Tuesday, September 15, 2020, 12:01 AM (EST) through Friday, September 18, 2020, 11:59 PM (EST). Site selection is on a FIRST COME FIRST SERVE basis. Failing to self-site select early could mean that you do not get your desired site due to the desired site being at full capacity." More information can be found on CBP's Notice of Examination at https://bit.ly/32bJFhL.
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Federal Enforcement Agencies Warn Companies To Avoid Chinese Forced Labor Products and Manufacturing
In a show of unity, commitment, and intimidation, the Departments of State, Treasury, Commerce, and Homeland Security issued an advisory warning individuals and businesses to keep their supply chains free from forced labor, especially as applied to Xinjiang Uyghur Autonomous Region (Xinjiang). Violators may lose their shipments and be subject to civil and criminal penalties. For further information, go to: www.state.gov/xinjiang-supply-chain-business-advisory.
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BIS Cracks Down Further on Huawai
The following is verbatim from the BIS's August 17, 2020 press release:
The Bureau of Industry and Security (BIS) in the Department of Commerce (Commerce) today further restricted access by Huawei Technologies (Huawei) and its non-U.S. affiliates on the Entity List to items produced domestically and abroad from U.S. technolaogy and software. In addition, BIS added another 38 Huawei affiliates to the Entity List, which imposes a license requirement for all items subject to the Export Administration Regulations (EAR) and modified four existing Huawei Entity List entries. BIS also imposed license requirements on any transaction involving items subject to Commerce export control jurisdiction where a party on the Entity List is involved, such as when Huawei (or other Entity List entities) acts as a purchaser, intermediate, or end user. These actions, effective immediately, prevent Huawei’s attempts to circumvent U.S. export controls to obtain electronic components developed or produced using U.S. technology.
In May 2020, BIS amended the longstanding foreign-produced direct product (FDP) rule to target Huawei’s acquisition of semiconductors that are the direct product of certain U.S. software and technology. Today’s amendment further refines the FDP rule by applying the control to transactions: 1) where U.S. software or technology is the basis for a foreign-produced item that will be incorporated into, or will be used in the “production” or “development” of any “part,” “component,” or “equipment” produced, purchased, or ordered by any Huawei entity on the Entity List; or 2) when any Huawei entity on the Entity List is a party to such a transaction, such as a “purchaser,” “intermediate consignee,” “ultimate consignee,” or “end-user.”
This amendment further restricts Huawei from obtaining foreign made chips developed or produced from U.S. software or technology to the same degree as comparable U.S. chips.
“Huawei and its foreign affiliates have extended their efforts to obtain advanced semiconductors developed or produced from U.S. software and technology in order to fulfill the policy objectives of the Chinese Communist Party,” said Commerce Secretary Wilbur Ross. “As we have restricted its access to U.S. technology, Huawei and its affiliates have worked through third parties to harness U.S. technology in a manner that undermines U.S. national security and foreign policy interests. This multi-pronged action demonstrates our continuing commitment to impede Huawei’s ability to do so.”
The following 38 new Huawei affiliates across 21 countries were added to the Entity List because they present a significant risk of acting on Huawei’s behalf contrary to the national security or foreign policy interests of the United States. There is reasonable cause to believe that Huawei otherwise would seek to use them to evade the restrictions imposed by the Entity List.
- Huawei Cloud Computing Technology; Huawei Cloud Beijing; Huawei Cloud Dalian; Huawei Cloud Guangzhou; Huawei Cloud Guiyang; Huawei Cloud Hong Kong; Huawei Cloud Shanghai; Huawei Cloud Shenzhen; Huawei OpenLab Suzhou; Wulanchabu Huawei Cloud Computing Technology; Huawei Cloud Argentina; Huawei Cloud Brazil; Huawei Cloud Chile; Huawei OpenLab Cairo; Huawei Cloud France; Huawei OpenLab Paris; Huawei Cloud Berlin; Huawei OpenLab Munich; Huawei Technologies Dusseldorf GmbH; Huawei OpenLab Delhi; Toga Networks; Huawei Cloud Mexico; Huawei OpenLab Mexico City; Huawei Technologies Morocco; Huawei Cloud Netherlands; Huawei Cloud Peru; Huawei Cloud Russia; Huawei OpenLab Moscow; Huawei Cloud Singapore; Huawei OpenLab Singapore; Huawei Cloud South Africa; Huawei OpenLab Johannesburg; Huawei Cloud Switzerland; Huawei Cloud Thailand; Huawei OpenLab Bangkok; Huawei OpenLab Istanbul; Huawei OpenLab Dubai; and Huawei Technologies R&D UK
The Temporary General License (TGL) has now expired. This rule further protects U.S. national security and foreign policy interests by making a limited permanent authorization for the Huawei entities on the Entity List. This limited authorization is for the sole purpose of providing ongoing security research critical to maintaining the integrity and reliability of existing and currently “fully operational networks” and equipment.
In a concurrent rule, BIS revised the Entity List to require a license when a party on the Entity List acts as a purchaser, intermediate consignee, ultimate consignee, or end user to an EAR transaction. This aligns with the additional restrictions imposed in the revisions to the FDP, when any of the Huawei entities on the Entity List are a party to the transaction, such as by acting as purchaser, intermediate consignee, ultimate consignee, or end user.
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