Yesterday, our Beau Jackson, Robert Stang and Linda Tiller joined manufacturers, distributors and service providers in Kansas City for a discussion about the impact of tariffs on the business community. This insightful program included economic, industry and legal perspectives on current trade conditions and the various implications of recently-imposed tariffs. Pictured at right, Beau Jackson closed the event with these key takeaways:

  1. The United States is 80% a “consumer” economy – compared to a global average of approximately 40% (and 60% in Germany). Yet, U.S. trade policy seems to focus on raw materials and industrial manufacturing, rather than consumer-driven considerations.
  2. Finding qualified labor is a much more pressing and difficult issue for manufacturers than tariffs or trade policy
  3. Rising logistics and supply chain costs have become just as troublesome to companies as tariffs
  4. Carrier consolidation and new alliances in the shipping industry continue to adversely impact companies that import and export, and is complicating matters at U.S. ports of entry
  5. Tariff avoidance led to an import surge in late 2018, which furthered port congestion, inflated storage costs and has created large inventory surpluses that could soon have macroeconomic implications
  6. Supply Chain “Recalibration” – companies  and sourcing agents are trying to avoid China by finding new sources in Southeast Asia (particularly Vietnam and the Philippines)
  7. The recent government shutdown had a tangible impact on the day-to-day fundamentals of trade
  8. Good infrastructure, just like product quality and reputation, has been instrumental in fostering a robust U.S. economy.  Modernizing infrastructure is a must for the U.S. to remain competitive.

 

Scope of the Investigation

The merchandise covered by this investigation is Laminated woven sacks or bags consisting of one or more plies of fabric consisting of woven polypropylene strip and/or woven polyethylene strip, regardless of the width of the strip; with or without an extrusion coating of polypropylene and/or polyethylene on one or both sides of the fabric; laminated by any method either to an exterior ply of plastic film such as biaxiallyoriented polypropylene (“BOPP”) or to an exterior ply of paper that is suitable for high-quality print graphics (i.e., it has an ISO brightness of 82 or higher and a Sheffield Smoothness of 250 or less); printed; displaying, containing, or comprising three or more colors, regardless of the type of printing process used; with or without lining; whether finished or unfinished; whether or not closed on one end; whether or not in roll form (including, but not limited to, sheets, lay-flat tubing, and sleeves); with or without handles; with or without special closing features; not exceeding one kilogram in weight. Laminated woven sacks subject to the scope are typically used for retail packaging of consumer goods such as pet foods and bird seed. Laminated woven sacks produced in Vietnam are subject to the scope regardless of the country of origin of the fabric used to make the sack.

Continue Reading Petition Summary: Laminated Woven Sacks From the Socialist Republic of Vietnam, filed March 2018

cargo ship

The Department of Commerce released its reports recommending remedies with respect to the Section 232 investigations of steel and aluminum today, February 16. The steel report was submitted to the White House on January 11, 2018 and started a statutory 90-day clock for the President to make a decision on a course of action. The aluminum report was submitted on January 19, 2018 and similarly started the statutory 90 days for the decision. Continue Reading Commerce Releases Steel and Aluminum Section 232 Reports

shipping containersOn May 31, 2017, Petitioners DAK Americas LLC, Nan Ya Plastics Corporation, America, and Auriga polymers Inc. filed a petition for the imposition of antidumping duties and countervailing duties on imports of Fine Denier Polyester Staple Fiber from China, India, Korea, Taiwan, and Vietnam. Continue Reading Petition Summary: Fine Denier Polyester Staple Fiber from China, India, Korea, Taiwan, and Vietnam

flagsOn April 11, 2017, Petitioners Waterloo Industries Inc. filed a petition for the imposition of antidumping duties and countervailing duties on imports of Certain Tool Chests and Cabinets from the People’s Republic of China and the Socialist Republic of Vietnam.

SCOPE OF THE INVESTIGATION

The scope of this petition covers certain metal tool chests and tool cabinets with drawers (“tool chests and cabinets”) from the People’s Republic of China and the Socialist Republic of Vietnam. The scope covers all metal tool chests and cabinets, including top chests, intermediate chests, tool cabinets and side cabinets, storage units, mobile work benches, and work stations and that have the following physical characteristics:

Continue Reading Petition Summary: Tool Chests and Cabinets From China And Vietnam

flagsEffective May 23, 2016, the U.S. State Department revised its policy and terminated the embargo that had previously prohibited any exports to and imports of lethal arms and related material from Vietnam. President Obama announced this change in policy during a visit to Hanoi, Vietnam. Under the new policy, U.S. persons and other individuals or business entities subject to the Arms Export Control Act (AECA) may now apply for a license to export lethal defense articles and defense services to Vietnam or temporarily import the same from Vietnam. The Directorate of Defense Trade Controls will then review any license applications on a case-by-case basis.

Continue Reading U.S. Secretary of State Adjusts Policy on Sale of Defense Items to Vietnam