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Richard Wortman will be speaking on Broker Surveys

Richard Wortman will be speaking on the topic of Broker Audits and Surveys on Thursday, September 21, 2017 for the Los Angeles Customs Brokers & Freight Forwarders Association.  In light of the fact that Customs in Los Angeles/Long Beach has recently announced that it will be performing “surveys” of brokers, Richard will speak about such topics as:

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Petitions for the Imposition of Antidumping and Countervailing Duties on Titanium Sponge from Japan and Kazakhstan

I.  Type of Action: Antidumping Duty (“AD”): Japan and Kazakhstan; Countervailing Duty (“CVD”): Kazakhstan

Product: The product covered by these investigations is all forms and grades of titanium sponge, except as specified below. Titanium sponge is unwrought titanium metal that has not been melted. Expressly excluded from the scope of this investigation are titanium powders, titanium sponge fines, titanium briquettes consisting of compacted titanium sponge fines and ultra-high purity titanium sponge. In ultra-high purity titanium sponge, metallic impurities do not exceed any of these amounts:

 

WT%

Aluminum

0.0005

Chromium

0.0001

Cobalt

0.0001

Copper

0.0002

Iron

0.0300

Manganese

0.0010

Nickel

0.0002

Vanadium

0.0002

Zirconium

0.0005

Carbon

0.0150

Hydrogen

0.0100

Nitrogen

0.0020

Oxygen

0.1000

II.  HTS classifications: Titanium sponge is currently classified under subheading 8108.20.0010 of the Harmonized Tariff Schedules of the United States (HTSUS). The HTS subheading is provided for convenience and customs purposes, the written description of the scope of this proceeding is dispositive.

III.  Date of Filing: August 24, 2017

IV.  Petitioners: Titanium Metals Corporation (“TIMET”)

V.  Foreign Producers/Exporters

Please contact our office for a list filed with the petition.

VI.  US Importers named.   

Please contact our office for a list filed with the petition.

VII.  Alleged Dumping Margins:

Japan: 31% - 69%

Kazakhstan: 33%

VIII.  Comments:

A.  Projected date of ITC Preliminary Conference: September 14, 2017

Please contact our office for a complete projected schedule for the AD investigation.

B.  The earliest theoretical date for retroactive suspension of liquidation for the antidumping duty is November 2, 2017; for countervailing duty is September 13, 2017.

Please contact our office for a complete projected schedule for the CVD Investigation.

C.  Volume and Value of Imports:

Please contact our office for a summary of the data filed with the petition.

If you have any questions regarding how this investigation may impact future imports of scope merchandise, or whether a particular product is within the scope of the investigation, please contact one of our attorneys.

   

Recent News Articles Linking China Production to North Korean Factories-- Additional Compliance Measures May be Required

Recent news articles have reported that Chinese apparel manufacturers are using North Korean factories to assist in the manufacture of garments sold for exportation to the United States.  Based on these recent articles, the difference in labor rates, which has traditionally moved Chinese production to lower wage rate countries like Vietnam, has inspired Chinese producers to transfer some production to North Korea.  Unlike Vietnam, however, the goods made in North Korea are contraband and cannot be imported into the United States.  As a result, to hide the fact that North Korean factories are being used, the finished goods will have to be transshipped through China or third countries to the United States and falsely claimed to be products of China or other countries.

Purchasing products from North Korea is against the law and violators may be subject to criminal punishment and civil fines.  (See E.O.13570; International Emergency Economic Powers Act (50 U.S.C. § 1701 et seq.) (IEEPA). In addition, the current administration has made it a point to stop Chinese trade violations and to impose strict enforcement of the recent economic sanctions that have been put in place against North Korea. Criminal penalties of up to $1,000,000, and/or imprisonment for up to 20 years may be imposed on any person who willfully violates this law.  Civil penalties of the greater of $284,582 or twice the amount of the underlying transaction may be imposed administratively against any person who violates this law.  Of course goods made in North Korea can always be seized and forfeited by U.S. Customs.

In the past, Chinese vendors were accused of transshipping goods to the United States through third countries claiming false country of origin in order to avoid the textile and apparel quota limits that had been imposed.  There have also been multiple allegations that Chinese vendors have transshipped goods to the United States through third countries to avoid the huge antidumping and countervailing duty deposits that must be paid on those goods.  These latest news stories indicate that China country of origin problems are continuing today.

Against this background, it is recommended that importers should review their due diligence programs.  Their programs may have to be enhanced to ensure that the claimed country of origin is correct.   Please feel free to contact our office if you should have questions.

   

Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Stainless Steel Flanges from the People’s Republic of China and India

I. Type of Action: Antidumping Duty (“AD”) and Countervailing Duty (“CVD”): PRC and India

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Richard Wortman will be speaking on duty savings strategies at the California Fashion Association Sourcing Seminar at MAGIC

Richard Wortman will be speaking on duty savings strategies at the California Fashion Association Sourcing Seminar at MAGIC

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