BOC’S ANNUAL INNOVATIVE · 2017. “Trade growth is slowing sharply” –IHS Markit chief...
Transcript of BOC’S ANNUAL INNOVATIVE · 2017. “Trade growth is slowing sharply” –IHS Markit chief...
WELCOME TO
BOC’S ANNUAL INNOVATIVE
SUPPLY CHAIN SUMMIT
w w w . b o c i n t l . c o m
BOC’S ANNUAL INNOVATIVE SUPPLY CHAIN SUMMIT AGENDA
9:00 9:20 Welcome Remarks: BOC Leadership and Massport Port Director Lisa Wieland
9:20 10:05 Keynote Address: Peter Tirschwell
10:05 10:35 General Average, Vessel Fires and Preparedness: Rick Bridges
10:35 10:50 Networking Break
10:50 11:50 Trade Innovation 2019: Paula Connelly
11:50 12:40 Lunch and Entertainment
12:40 1:40 View from the Top: A Roundtable Discussion Lead by Peter Tirschwell
2:00 5:30 Post Summit Reception at BOC’s Office
BOC’S ANNUAL INNOVATIVE SUPPLY CHAIN SUMMIT
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Peter Tirschwell
© 2018 IHS Markit. All Rights Reserved.
Big themes in international
logistics
Presented by:
Peter TirschwellBOC’s Annual Innovative Supply Chain Summit
March 15, 2019, Boston, Mass.
© 2018 IHS Markit. All Rights Reserved.
Tension between polar opposites
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Money pours into startups, but to what end?
• This deluge of money is not by itself changing the industry – Flexport is not yet a disruptor for example.
• But it’s making everyone more open to the reality and potential for technology to create value
• And even without money, headway is being made by smart innovators
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© 2018 IHS Markit. All Rights Reserved.
Tech driving major industry wagers
• Technology is a driving force behind one of the major restructurings and strategies being implemented in the market today
• Idea is that controlling assets and linking assets to data can deliver untapped value to customers and to themselves
• Moving into traditional 3PL space, influencing other carriers, and combined with carrier consolidation, is this helping drive 3PL consolidation?
• But the existential question remains: Can Maersk, CMA CGM, others outrun commoditization?
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The ultimate disruptor spots international logistics
• Huge and growing DC footprint, over 160 sorting and logistics centers, 135 million square feet
• 40 Boeing 767 aircraft in Amazon Air currently
• Marketplace, i.e. non-Amazon products, make up over half of sales; shows Amazon is, among other things, a large and rapidly growing 3PL
• Big moves to take logistics in-house; XPO’s “largest customer” withdrew $600 million of postal injection, brokerage, intermodal, and contract logistics
• “Transportation and logistics” is now deemed a competitor
• Will Amazon seek to create a full-fledged 3PL product?
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But the Amazon story has not yet played out
• Amazon is opaque by design; its strategy is intentionally disguised
• All 3PLs manage through lack of control of assets and unless it buys ships and terminals, Amazon would be no different from K+N, DHL, DSV etc.
• But Amazon essentially created cloud computing with AWS; they are visionary and must be taken seriously
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Going back to the basics
• Improving core data quality is becoming a key area of technology development
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Is blockchain making headway?
• Blockchain is making headway in finance, food supply chains but is it transformational?
• But it has fragmented and it’s unclear who is friend and foe among the current players
• Big questions remain about data quality, security, cost, adaptation, interoperability
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The debate on Blockchain rages on
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How IMO could play out in the container sector
• In the container sector (60% of waterborne trade by value) there is concern that as the industry is intensely competitive it may fail to pass along $13-15 billion in annual fuel cost increases to customers as of Jan. 1 2020
• Containers is competitive and asset-driven with a priority on filling ships; over the 20 years from 1995-2016, average ROIC for container carriers was 2.6 percent
• Container lines have a credibility issue in proposing fuel surcharges; there is a history of formulas being vague and suspected revenue sources, not pass throughs
• Carriers also have a poor record of passing along fuel cost increases; 2018 was the latest example:
> CMA CGM, #4 carrier in capacity deployed (11% market share), saw a 91% drop in 2018 profits due to 41% increase in bunkers (to $3.61 billion)
> “The data we have does not give a huge amount of confidence about higher fuel prices being passed along” Neil Glynn, Credit Suisse at TPM last week
• “My sense is if the carriers don't get a satisfactory outcome with regard to mechanisms that allow them to recover all or part of their fuel surcharge, they're going to take a very hard look at deployed capacity.” Matt Cox, CEO, Matson
• This harkens back to 2010, when faced with $20 billion in losses, leading to 12% of capacity being idled as of early 2010 which caused massive supply chain disruption
• 2019 is a year when global trade is slowing; Maersk made this point during its last earnings call in February. Thus, could a meltdown happen again? We think yes
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2019-2020 will be a moment of truth for carriers
• Carriers have significantly consolidated, 8 major carriers taken out of the market as independent entities or via bankruptcy, leaving 12 operating in the East-West trades
• The question is what impact that will have on the ability of the remaining carriers to exert greater control over the market
• Last year saw significantly increased discipline around capacity management in terms of withdrawing of individual sailings
• “We are seeing the strongest sign of discipline among the carriers since 2010.” Drewry at TPM last week
• Carriers were unified at TPM that they will demand that fuel be broken out in surcharges rather than being folded into an all-inclusive rate
• But with carriers having a history of undercutting each other in pursuit of volumes and market share, this year will be a moment of truth for the industry
• If they aren’t able to pull this off, large scale capacity withdrawals and possible further consolidation may be what comes next. This year will thus be a moment of truth for the container shipping industry.
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Fear that US might try to interfere with IMO 2020 implementation
• Group supported by big energy: ExxonMobile, Marathon, BP
• FT: Impetus is that US energy groups “stand to dominate the low-sulfur business”
• FT: IMO 2020 “represents a significant competitive advantage for the American energy sector”
• Dan Yergin at TPM said: “IMO 2020 is going to happen, but I have one caveat."
• “I’ve seen firsthand the immediate impact of his tweets on wanting low oil prices has had around the world."
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In general what does 2019 look like?
• It’s a muddled picture, with both positives and negatives for carriers
• More frequent instances of blanked sailings last year, indicating growing capacity discipline by carriers
• Drewry at TPM said: “the era of double digit rate reductions is probably over. Now the balance the momentum is shifting the other way.”
• Drewry: “In nearly all cases we have seen double digit increases so far.”
• But these are still early rounds in negotiations, not the final numbers
• Outlook is more conservative this year
• Maersk said it expects global container growth of 1-3% this year, down from just under 4 percent in 2018 and much weaker than the near 6 percent growth seen in 2017. “Trade growth is slowing sharply” – IHS Markit chief economist Nariman Behravesh.
• “The container industry is suffering at the moment and prospects of recovery are far away,” said Sydbank analyst Morten Imsgard, told Reuters
• IHS Markit sees global GDP growth falling: 2019 forecast is 2.8%, versus 3.2% in 2018 and 3.3% in 2017
• The IHS Markit PMI for new exports has been falling for six months in a row
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© 2018 IHS Markit. All Rights Reserved.
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Thank you!
BOC’S ANNUAL INNOVATIVE SUPPLY CHAIN SUMMIT
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Rick Bridges
General Average, Vessel Fires and Preparedness
Presented by:
Richard W. Bridges, Vice President
Roanoke Trade
Fire!
• Hapag-Lloyd Yantian Express - January 2019
• Sincerity Ace - January 2019
• Maersk Honam - March 2018
• Maersk Kensington - March 2018
• Barcelona Ferry Excellent - October 2018
• Hyundai Auto Banner - May 2018
• MOL Prestige - February 2018
• Caribbean Fantasy - June 2018
2019
So far this year – to date – there are a number
of notable fire cases with most resulting
General Average!
Yantian Express
Year built 2002, 100,003 dwt
Date of loss: 1/3/19
Part loaded with 4,000 teu (capacity 7,551 teu.)
198 total loss, 462 damaged required survey
LOF salvage - security 32.5%
GA - security estimate 28%
ER KOBE
Year built 2001, 68,196 dwt
Date of loss: 2/24/19
GA declaration on
March 12, 2019
NO SEPARATE SALVAGE CLAIM
GA – security estimate 10%
APL Vancouver
Year built 2013, 115,060 dwt
Date of loss: 1/31/19
Part loaded with (capacity 9,200 teu.)
947 containers affected
LOF salvage - security 15-20%
GA - security
General Average – An Introduction
Think of it this way… an airplane you are traveling on incurs some
damage, luckily no one was hurt but the destruction is evident.
Before exiting the aircraft, the captain announces that no one can
leave the plane until they’ve paid for a percentage of the damage
based on their net worth, and if you can’t pay, the airline will sell
you to the highest bidder..
General Average - The Concept
• Origin first formulated by the Ancient Greeks to deal with
situations where cargo has been jettisoned.
• Basic principle – that which has been sacrificed for the benefit
of all shall be made good by the contribution of all.
• Applies to maritime claims only.
• Is declared by the captain when there is imminent danger to the
vessel, voyage or crew.
• You are contractually obligated to it via the Bill of Lading for
unknown and undetermined costs.
General Average – How Does it Work?
• All freight is seized!
• Value of the voyage is determined (vessel value plus value of all cargo on
the vessel.)
• Participation is determined (the percentage that the value of your cargo
bears to the value of the voyage.)
• The loss amount is determined.
• Participation percentage is applied to the loss amount to determine
security deposit.
• Shipper or their cargo insurer pay twice, for the initial contribution then for
a bond covering future adjustments to that estimate.
General Average – Hidden costs
• The great unknown (is my cargo OK?)
• Delay - finding a port, unloading & sorting.
• LCL Freight - has everyone in my container paid?
• More delay - has my shipment missed delivery deadlines?
• Lost profit, lost opportunity - is my profit covered?
Containership Fires - Problems Facing the Industry
• Recent cases have reopened the conversation about the difficulties of preventing and extinguishing fires on the open sea.
• Ships are larger with more varied cargo.
• Crew are ill equipped to deal with these fires.
• Fire-fighting tugs are often days or weeks away.
• Prevention is difficult, with rising problems with misdeclared cargo.
• IMDG Code is evolving to impose stricter rules on dangerous goods (DG.)
Containership fires - Problems Facing the Industry
• Stricter rules on DG will lead to higher costs and more incentive
on the part of shippers to avoid proper declarations
• Ship owners and shipbuilders need to improve fire-fighting capabilities with CO² systems being shown to be inadequate.
Cost benefit analysis – are potential losses greater than the
prevention costs?
• National Cargo Bureau in NY found in 2017 that of 1,721
stowage plans inspected, 20% showed errors with DG
Major Fire Cases in Recent Years
No. Vessel DWT TEU Date of Loss Region
1 MSC Flaminia 85,823 6,750 14-Jul-12 North Atlantic
2 Amsterdam Bridge 54,405 4,380 09-Sep-12 Arabian Gulf and approaches
3 Hansa Brandenburg 23,493 1,740 15-Jul-13 Indian Ocean
4 Zim Rotterdam 116,499 10,062 23-Aug-13 Red Sea
5 Maersk Kampala 93,617 6,802 28-Aug-13 Red Sea
6 Northern Guard 53,860 4,319 06-Apr-14 Arabian Gulf and approaches
7 Maersk Londrina 99,778 8,700 25-Apr-15 Indian Ocean
8 Hanjin Green Earth 140,973 13,092 01-May-15 Suez Canal
9 Maersk Karachi 94,769 6,690 14-May-15 British Isles, North Sea, English Channel, Bay of Biscay
10 Kamala 29,277 2,011 11-Jul-15 Japan, Korea and North China
11 Maersk Seoul 108,344 8,401 19-Jul-15 Arabian Gulf and approaches
12 Cape Moreton 37,883 2,742 12-Sep-15 South China, Indo China, Indonesia and Philippines
13 Safmarine Meru 61,392 4,154 08-May-16 Japan, Korea and North China
14 CMA CGM Rossini 73,235 5,782 15-Jun-16 Arabian Gulf and approaches
15 CCNI Arauco 113,174 9,000 01-Sep-16 British Isles, North Sea, English Channel, Bay of Biscay
16 APL Austria 72,807 6,350 13-Feb-17 East African Coast
17 MSC Daniela 162,867 13,798 04-Apr-17 Arabian Gulf and approaches
18 Maersk Honam 162,051 15,226 06-Mar-18 Arabian Gulf and approaches
19 SSL Kolkata 13,784 1,118 13-Jun-18 Bay of Bengal
20 Yantian Express 100,003 7,506 03-Jan-19 United States eastern seaboard
21 APL Vancouver 115,050 9,200 31-Jan-19 South China, Indo China, Indonesia and Philippines
22 ER Kobe 68,196 5,762 24-Feb-19 Hong Kong and China
NO. VESSEL DWT TEU LOSS - DATE REGION
What’s the Solution?
• Self regulation by the industry? Maersk is already doing it.
• Government regulation? Think SOLAS VGM or 24hr Rule!!
• Further DG restrictions?
General Average will never go away, so how do we make that less painful?
• Awareness across all business units that losses & delays are part of any
supply chain. Mission critical shipments need more risk analysis to
determine transport mode.
• Understanding of what to do when General Average occurs. This is best
led by your cargo insurance provider meeting with your ‘team,’ not just the
risk manager or CFO. BTW, when was the last time your insurance
provider did this for you? Do they know how to handle a GA claim?
• Have a contingency plan or at least an understanding of how the event will
unfold.
Questions?
BOC’S ANNUAL INNOVATIVE SUPPLY CHAIN SUMMIT
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Networking Break
BOC’S ANNUAL INNOVATIVE SUPPLY CHAIN SUMMIT
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Paula Connelly
Trade Innovation 2019
An Overview for BOC InternationalMarch 15, 2019
Law Offices of Paula M. Connelly
100 Trade Center, Ste. 660
Woburn, MA 01801
781-897-1771
What’s new
China Tariffs – where we stand now.
GSP – India and Turkey.
Section 232 Actions.
Enforce and Protect Act cases/antidumping and countervailing
duty update.
Increase in CBP enforcement.
Copyright 2019 Law Offices of Paula M. Connelly 36
What is NOT new
Importer’s responsibility to use reasonable care in its dealings
with Customs.
Internal controls – risk management.
Informed Compliance.
Establishing written import procedures.
Having a good working relationship with your Customs broker.
Copyright 2019 Law Offices of Paula M. Connelly 37
Centers for Excellence and Expertise
Currently all Import Specialists are assigned to a specific CEE
and report directly to the CEE and no longer report to the port.
All entries will be assigned/processed through the CEE based
upon the commodity.
This is a change from traditional filing/processing at the port level.
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Copyright 2019 Law Offices of Paula M. Connelly 39
How does this affect trade community?
Traditional interaction with local import specialists may no longer
be an option.
CEE’s will respond to inquiries, etc. but the established
relationship may no longer exist.
CEE’s should ensure that all import specialists are very
knowledgeable with the commodity involved.
Should also reduce possible issues with differing opinions among
ports and redundant inquiries from different ports.
Copyright 2019 Law Offices of Paula M. Connelly 40
Section 301 Investigation – China products
USTR investigates and finds that China is conducting unfair trade practices
related to technology transfer, intellectual property, and innovation.
7/2018 –List 1: $34 billion of imports (mostly machinery, mechanical
appliances, and electrical equipment) subject to 25% tariff.
8/2018 – List 2: $16 billion of imports subject to 25% tariff.
9/2018 – List 3: $200 billion of imports subject to 10% tariff (increase to 25%
delayed until further notice)
Copyright 2019 Law Offices of Paula M. Connelly 41
Section 301 Exclusions
Currently two deadlines for submission of exclusion requests have closed.
List 1 – deadline was October 9, 2018
List 2 – deadline was December 18,2018
List 3 – Congress has told the USTR office that they must initiate an
exclusion process for List 3 items. This was included in the appropriations
bill. The process is supposed to be announced within 30 days of the bill’s
implementation.
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Section 301 – China product Exclusion
requests
Requests must address the following:
Whether product is available only from China and, if so, whether a
comparable product is available from sources in the United States
and/or in third countries;
Whether the imposition of additional duties on the product would
cause severe economic harm to the requester or other U.S.
interests; and
Whether the product is strategically important or related to “Made in
China 2025” or other Chinese industrial programs.
Copyright 2019 Law Offices of Paula M. Connelly 43
China Exclusions, cont.
Following public posting of a request on Regulations.gov docket, public will
have 14 days to comment on a product exclusion request.
After the close of the 14-day response period, interested persons will have an
additional 7 days to reply to any responses received in support of or
opposition to the request.
If granted, valid for one year, retroactive to date of implementation of specific
List, and refunds are available.
Copyright 2019 Law Offices of Paula M. Connelly 44
Section 301 Exclusions Granted
On December 28, 2018, 984 exclusion requests were granted.
Exclusions are retroactive to July 6, 2018 which allows importers to file Post
Summary Corrections to obtain refunds – NOTE: During government
furlough, ACE was not updated to allow for the reporting of exclusions on
entry documents nor to process refunds.
These exclusions involved specific products as well as specific HTS
provisions.
NOTE: These exclusions are NOT specific to the importer and can be used
by anyone importing the item.
Copyright 2019 Law Offices of Paula M. Connelly 45
Excluded HTS provisions
HTSUS 8412.21.0075
HTSUS 8418.69.0120
HTSUS 8480.71.8045
HTSUS 8482.10.5044
HTSUS 8482.10.5048
HTSUS 8482.10.5052
HTSUS 8525.60.1010
Copyright 2019 Law Offices of Paula M. Connelly 46
Exclusion Process Continued
The USTR’s office will continue to review and process exclusion requests.
List 1 covers over 10,000 items with 1200 denied and 984 granted.
List 2 covers approximately 2500 items with none granted to date.
USTR was closed briefly during the furlough and this may delay processing
and potential granting of additional exclusions.
Keep in mind, even importers who did not file an exclusion request for a
specific item can use a granted exclusion.
Copyright 2019 Law Offices of Paula M. Connelly 47
Potential Mitigation Options
There are generally four areas of opportunity for mitigating Customs
duties and tariffs:
1. Classification
2. Valuation
3. Country of Origin
4. Duty relief (Duty Drawback, Foreign Trade Zones, Bonded
Warehouses, Temporary Importation under Bond and ATA
Carnet)
Copyright 2019 Law Offices of Paula M. Connelly 48
Classification-Tariff Engineering
Adding/modifying a specific item to change its classification.
This is acceptable by CBP as long as it is not a “disguise or artifice”
Many footwear importers will add flocking to the sole to help reduce the duty
rate.
Apparel importers may use different percentages of textiles for lower rates –
cotton generally has a lower rate of duty than manmade fibers.
Copyright 2019 Law Offices of Paula M. Connelly 49
Country of Origin – Section 301 China
Tariffs
Many companies are looking to shift all production or some production to a
third country to avoid a product being determined as “Chinese origin”.
It is important to ensure that goods are actually manufactured in the third
country and not merely being transshipped after Chinese production.
When production occurs in more than one country, the origin will be based
upon the country in which a substantial transformation takes place.
Substantial transformation is not simple assembly.
Copyright 2019 Law Offices of Paula M. Connelly 50
Substantial Transformation
Extent of operations performed and do the components lose their identity and
become integral part of the new article.
Resources spent on product design and development.
Extent & nature of post assembly testing and inspection.
Worker skill required during manufacturing.
This can be a very subjective determination.
May want to consider obtaining a binding ruling from U.S. Customs.
Copyright 2019 Law Offices of Paula M. Connelly 51
Recent Case
Client importing cable assemblies from China wanted to shift some
production to Vietnam and also include a significant component that is U.S.
origin.
U.S. Customs determined that the additional work performed in both China
and Vietnam was not considered a substantial transformation.
Origin of the product, upon reimportation from China, is U.S.
Product is not subject to the China tariffs.
Copyright 2019 Law Offices of Paula M. Connelly 52
Caveats for Origin
Determination/Declaration
Do not rely on your supplier in China to make origin determination or to set up new
production outside of China.
Review bill of material, components, pricing to determine if it is feasible to move production.
Be prepared to support the “new” country of origin claim if questioned by U.S. Customs.
Do your homework – visit new facility to ensure production is being done there.
Seek guidance from expert and/or obtain a binding ruling from U.S. Customs.
Customs will be reviewing import records for changes.
Copyright 2019 Law Offices of Paula M. Connelly 53
Final Thoughts on China Tariffs
Retaliatory Duty collection is a priority area for CBP.
CBP has hired 60 additional auditors to focus on duty
collection.
Import Specialists will be looking for anomalies to
importers’ entry data.
China has lowered some tariffs on U.S. products, easing
concerns for some exporters.
Always use reasonable care when looking to change
classification, origin, value.
Copyright 2019 Law Offices of Paula M. Connelly 54
Section 232 – Aluminum/Steel
No changes to the current additional tariffs on the aluminum and
steel products.
Exclusion process is available – exclusion requests are still being
processed slowly.
Exclusion order is limited to party filing the request.
Copyright 2019 Law Offices of Paula M. Connelly 55
Additional Section 232 Actions
Autos and auto parts – currently under review by President
Trump.
Uranium and titanium sponge are under investigation.
According to government, there may be 8-10 more investigations
during President Trump’s tenure in office.
Copyright 2019 Law Offices of Paula M. Connelly 56
GSP - India
The United States launched an eligibility review of India’s
compliance with the GSP market access criterion in April
2018. India has implemented a wide array of trade barriers that
create serious negative effects on United States
commerce. Despite intensive engagement, India has failed to
take the necessary steps to meet the GSP criterion.
Copyright 2019 Law Offices of Paula M. Connelly 57
GSP - India
“GSP withdrawal will not have a significant impact on India's
exports to the US. The benefits in the absolute sense and a
percentage of trade involved are very minimal and moderate.
India mainly exports raw materials and intermediate goods such
as organic chemicals to the US", said Commerce Secretary Anup
Wadhawan in New Delhi. (India Times)
Copyright 2019 Law Offices of Paula M. Connelly 58
GSP - Turkey
The United States designated Turkey as a GSP beneficiary
developing country in 1975. An increase in Gross National
Income (GNI) per capita, declining poverty rates, and export
diversification, by trading partner and by sector, are evidence of
Turkey’s higher level of economic development.
Copyright 2019 Law Offices of Paula M. Connelly 59
GSP, cont.
By statute, these changes may not take effect until at least 60
days after the notifications to Congress and the governments of
India and Turkey, and will be enacted by a Presidential
Proclamation.
Possibility remains that the countries may be able to come to
some type of agreement to allow GSP to continue.
Copyright 2019Law Offices of Paula M. Connelly
60
Special 301 Process
Congress mandated this report in which USTR must designate as
Priority Foreign countries those with the most “onerous or
egregious acts, policies, or practices and whose acts, policies, or
practices have the greatest adverse impact (actual or potential) on
the relevant U.S. products.”
Copyright 2019 Law Offices of Paula M. Connelly 61
301 Process, cont.
Current focus is on IP protection and enforcement.
Also looks at market access issues affecting IP sensitive
industries.
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Priority Watch List1. Algeria
2. Argentina
3. Canada
4. Chile
5. China
6. Colombia
7. India
8. Indonesia
9. Kuwait
10. Russia
11. Ukraine
12. Venezuela Copyright 2019 Law Offices of Paula M. Connelly 63
301 Process, cont.
The Trade Facilitation and Trade Enforcement Act of 2015 requires USTR to
develop “action plans” for each foreign country that USTR has identified for
placement on the Priority Watch List and that has remained on the list for at
least one year.
USTR may apply sanctions if a country fails to implement such measures
satisfactorily.
There could be more Section 301 cases similar to the China situation in the
future.
Copyright 2019 Law Offices of Paula M. Connelly 64
USMCA
Signed by 3 parties on Nov. 30.
Trade Promotion Authority requires the USITC to analyze the potential
effects on the U.S. economy.
There are reports that President Trump has indicated that he will soon be
presenting Congress with a draft of implementing legislation for
consideration.
Enters into force on the first day of the third month after the last of the 3
countries notifies the others that they have completed their domestic
legislative approval process.
Copyright 2019 Law Offices of Paula M. Connelly 65
USMCA, cont.
Biggest changes are in rules of origin for automobiles – must be
75% originating components (up from 62.5%)
Section 232 tariffs remain in place for steel and aluminum from
Mexico and Canada.
Democrats still object to certain parts of the agreement (labor,
enforcement, drug pricing, and environmental issues)which may
be a problem getting it approved.
Copyright 2019 Law Offices of Paula M. Connelly 66
Antidumping & Countervailing Duties
According to President Trump’s recently issued trade report, there
were 84 new investigations initiated in the first year of his
administration.
This is a 59% increase from the last year of President Obama’s
administration.
High priority area for the government, including CBP.
Copyright 2019 Law Offices of Paula M. Connelly 67
Antidumping, cont.
Administration is receptive to petitions filed by U.S. industries who
are being harmed by foreign producers.
In addition, the Dept of Commerce initiated its own investigation in
one case.
Importers need to be aware of new cases early in the process.
Copyright 2019 Law Offices of Paula M. Connelly 68
Enforce and Protect Act
19 CFR Part 165 describes the nature of EAPA investigations
Investigations are conducted by CBP’s Trade Remedy Law Enforcement
Directorate (TRLED)
New administrative proceeding to investigate allegations of evasion by
importers of the antidumping duty and countervailing duty laws
CBP can investigate allegations by the public or requests by other
Federal agencies with respect to the evasion of AD/CVD orders
Copyright 2019 Law Offices of Paula M. Connelly 69
EAPA, cont.
Multi-party proceeding: “parties to the investigation”
the interested party who filed the allegation of evasion
the importer who allegedly engaged in evasion
“On the record” proceeding
Both business confidential and public versions of documents
Adverse inferences
Established deadlines
Copyright 2019 Law Offices of Paula M. Connelly 70
EAPA, cont.
Interim measures can be initiated against the importer which can
result in ADD/CVD duties being assessed on all unliquidated
entries.
This can have devastating affects on a business who is
unprepared for the financial implications.
Many of these investigations begin with a CF 28 Request for
Information.
Copyright 2019 Law Offices of Paula M. Connelly 71
Best Practices
Keep informed of changes, updates.
Visit the CBP website – www.cbp.gov
Keep open line of communication with your foreign suppliers.
Document your import procedures.
Keep open line of communications with your Customs broker.
Review your entry documents.
Copyright 2019 Law Offices of Paula M. Connelly 72
QUESTIONS?
Copyright 2019 Law Offices of Paula M. Connelly 73
BOC’S ANNUAL INNOVATIVE SUPPLY CHAIN SUMMIT
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Lunch with entertainment provided by:
Goulding School of Irish Dance
BOC’S ANNUAL INNOVATIVE SUPPLY CHAIN SUMMIT
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Panel Discussion
Moderator: Peter Tirschwell/ JOC/HIS
Panel Members:
•Kevin Laffey- Director of Cargo Marketing, Massport
•David McLaughlin- COO & CFO, RoadOne
•Michelle Darling- Director International Transportation, BJ’s
•Richard Higgins- Head of Logistics, 1A Auto
•Stephen Aborn- Director, Aborn & Co.
•Richard Bulman-Global Business Development Manager, BOC
BREAKING THROUGH WITH INNOVATIVE
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SOLUTIONS