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Catastrophe looms at ports after Brexit, shipping industry warns

Tuesday, April 18th, 2017
Trucks entering Dover, the busiest truck port in the UK. Photograph: Graham Mitchell/Barcroft Images

Trucks entering Dover, the busiest truck port in the UK. Photograph: Graham Mitchell/Barcroft Images

 

From The Guardian:

  • The UK is facing an “absolute catastrophe” if it does not sort out a “frictionless and seamless” border at Dover and other ports, the shipping industry has warned.
  • The UK Chamber of Shipping, which represents more than 170 freight ship, tanker and cruise liner companies, has called on governments across Europe to urgently grasp the challenge, arguing that a problem for the UK will also be a problem for ports in Holland, Belgium, France and Ireland.

Read full article.

 

 

Retail industry undergoing sea change; direct filing with CustomsNow™ can help weather the storm

Wednesday, April 12th, 2017

retailstoresclosing2017The US retail landscape is rapidly changing. Pundits cite numerous reasons — Amazon, oversupply of brick-and-mortar stores, changing consumer shopping habits, etc. — but this chart says it all.  Combined with closings in recent years, and more predicted, it’s clear that retailers who want to survive need to rethink their strategies.

For those retailers who are looking to cut significant costs out of their import supply chain, consider direct filing with CustomsNow.  In a time where companies are looking to outsource processes to save money, direct filing is the one process that every importer should perform in-house:

  • Realize cost savings of up to 90% off third-party filing fees, an estimated savings of $100,000 per 1,000 entries
  • Eliminate “extra” fees — lines, invoices, handling
  • Gain soft-dollar savings from reduced errors and post-entry workload

Self-filers also see improved compliance rates and gain valuable control over their supply chain.  And CustomsNow offers free support by Licesned Customs Brokers, who have decades of experience working for large retail importers.  Learn more.

 

Kevin K. McAleenan nominated for CBP Commissioner post

Thursday, April 6th, 2017

Kevin-McAleenan

 

 

President Trump has nominated Kevin K. McAleenan to serve as Commissioner of U.S. Customs and Border Protection at the Department of Homeland Security. Mr. McAleenan has served as the Deputy Commissioner since 2014 and currently functions as the agency’s Chief Operating Officer and senior career official.

Under Mr. McAleenan’s leadership, U.S. Customs and Border Protection (CBP) has developed strategies that protect the Nation’s borders from terrorism, and attack transnational criminal networks, while ensuring the flow of legal commerce and travel.

Mr. McAleenan previously held several leadership positions at CBP—including launching its Office of Antiterrorism—and one of its legacy agencies.

In 2015, Mr. McAleenan received a Presidential Rank Award, which is the Nation’s highest civil service award.

He received his Juris Doctor degree from the University of Chicago Law School and a Bachelor of Arts from Amherst College.

New executive orders on trade — ADD, CVD and more

Monday, April 3rd, 2017

Seal_of_the_President_of_the_United_States.svgOn Friday, March 31, President Trump signed two executive orders related to trade.

1. The Presidential Executive Order on Establishing Enhanced Collection and Enforcement of Antidumping and Countervailing Duties and Violations of Trade and Customs Laws seeks to address uncollected antidumping and countervailing duties which were estimated to be $2.3 billion not collected in 2015.

  • This will done primarily “through bonds and other legal measures, and also would identify other appropriate enforcement measures.”
  • The Order also seeks to “ensure the timely and efficient enforcement of laws protecting Intellectual Property Rights (IPR) holders from the importation of counterfeit goods.”
  • Finally, the Order directs the “Attorney General, in consultation with the Secretary of Homeland Security, (to) develop recommended prosecution practices and allocate appropriate resources to ensure that Federal prosecutors accord a high priority to prosecuting significant offenses related to violations of trade laws.”

2. The Presidential Executive Order Regarding the Omnibus Report on Significant Trade Deficits seeks to identify factors that result in a trade deficit in goods which exceeds $700 billion annually.  Within 90 days of the date of the order, the Secretary of Commerce and the United States Trade Representative (USTR), in consultation with numerous other agencies, “shall prepare and submit to the President an Omnibus Report on Significant Trade Deficits (Report).”

The purpose of the report is to:

  • (a)  assess the major causes of the trade deficit, including, as applicable, differential tariffs, non-tariff barriers, injurious dumping, injurious government subsidization, intellectual property theft, forced technology transfer, denial of worker rights and labor standards, and any other form of discrimination against the commerce of the United States or other factors contributing to the deficit;
  • (b)  assess whether the trading partner is, directly or indirectly, imposing unequal burdens on, or unfairly discriminating in fact against, the commerce of the United States by law, regulation, or practice and thereby placing the commerce of the United States at an unfair disadvantage;
  • (c)  assess the effects of the trade relationship on the production capacity and strength of the manufacturing and defense industrial bases of the United States;
  • (d)  assess the effects of the trade relationship on employment and wage growth in the United States; and
  • (e)  identify imports and trade practices that may be impairing the national security of the United States.

Many in the Trade recognized Brenda Brockman Smith witnessing the signing of the Orders.

trumptrade

Amazon drone makes a delivery!

Wednesday, March 29th, 2017

 

amazondrone

 

 

From recode.net:

Amazon completed its first public demonstration of a Prime Air drone delivery in the U.S. earlier this week, ferrying sunscreen to attendees at an Amazon-hosted conference in Palm Springs, Calif.

See full story and video.

 

The Hill: Apparel, footwear and retail will greatly suffer if US border tax enacted

Monday, March 20th, 2017

OLYMPUS DIGITAL CAMERAFrom The Hill:

  • “House Republicans continue to aggressively push their border adjustment tax (BAT) and, if successful, Americans will soon find it hard to get affordable clothing.”
  • “In general, the House Republican “A Better Way” tax blueprint has many excellent attributes. The problem is that the “pay for” is a direct hit on the apparel, footwear and retail industry. It is also a direct hit on the American consumer.”
  • Prices on affected goods (98 percent of all apparel and footwear is imported) are projected to rise 20% or more.  And will the struggling retailer sector be able to survive?

Read the full story.

Retailers try to stay ahead of “seismic shift” in industry

Friday, March 10th, 2017
(Andrew Gombert / EPA)

(Andrew Gombert / EPA)

 

Target is taking extraordinary steps — such as slashing prices and updating its stores’ assortments —  to address a “seismic shift” in the retail industry as customers spend more on experiences and demand quicker, more convenient ways to shop.

According to the Chicago Tribune, “sales also are moving online, and even when customers pick Target over an online competitor like Amazon, they shop differently.”  Those trends have hit all traditional retailers, such as Nordstrom, Macy’s, J.C. Penny and Kohl’s.  Learn more.

Product classification news: Snuggie is a blanket, not a garment!

Friday, February 17th, 2017

 

snuggie

From law.com:

Since bursting onto the infomercial scene in 2008, one question has confounded the nation about the Snuggie: Is it a blanket or a garment? Nearly ten years later, we finally have our answer.

The U.S. Customs and Border Protection had categorized the Snuggie as a garment. This made it subject to a 14.9 percent tariff, whereas blankets get hit at 8.5%. AllStar Marketing, which sells Snuggies, balked at that classification. This led to a showdown between AllStar and the Justice Department at the U.S. Court of International Trade, where Judge Mark Allen Barnett settled the question.

Barnett ruled that Customs and Border Protection was wrong to classify Snuggies as garments, according to Bloomberg. In a 32-page decision, he noted that not only is the product marketed as a blanket, depicting consumers “in the types of situations one might use a blanket,” but also that the addition of sleeves alone does not transform the blanket into clothing. Moreover, Barnett rejected the Justice Department’s argument that the item is similar to robes and priestly vestments; unlike those garments, he explained, the Snuggie opens in the back and has no closures.

The decision also referenced the Slanket and the Freedom Blanket, both of which were Snuggie precursors and classified as blankets.

US apparel, footwear industries fear Trump trade plan

Thursday, January 19th, 2017

aafaFrom our friends at the American Apparel & Footwear Association:

January 15: The United States is one of the world’s largest apparel markets, but 97 percent of the garments sold here are made elsewhere. So it will come as no surprise if fashion is the first industry to be affected when President-elect Donald Trump launches his trade strategy after taking office on Friday.

… Corporations are currently taxed upwards of 35 percent on worldwide revenues. The border tax would lower the rate and create a taxation on U.S. operations and consumption. Simply stated, when a product is imported, it would be taxed, and when exported, it would be exempt. …

“This could be devastating for the apparel and footwear industry,” said Stephen Lamar, executive vice president of the American Apparel & Footwear Association. “This increased tax burden would translate into higher shoe and clothing prices for American consumers and fewer jobs for American workers.” (Source: LA Daily News)

US shippers forced to look inland for warehouse space

Monday, January 16th, 2017

joc whseContinuing a trend that ran through 2016, demand for industrial space is expected outpace supply, leaving importers and exporters competing for a scant supply of prime warehouse and distribution space close to major seaports and transportation hubs.  According to the Journal of Commerce, shippers may be relegated to secondary markets, such as the Inland Empire (LA) and the Lehigh Valley (Central NJ).  Read full article.*

 

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