Canada-U.S. Blog Trade Lawyers Cyndee Todgham Cherniak and Susan K. Ross

Category Archives: Customs Law

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The USMCA Rules of Origin: Changes Affecting Auto Manufacturers and Auto Parts Makers

Posted in Buy America, Canada's Federal Government, Cross-border trade, NAFTA, NAFTA Renegotiations, origin, Politics, Trade Agreeements, Transportation, U.S. Federal Government

Late in the evening on September 30, 2018, the United States, Canada and Mexico announced the conclusion of negotiations of the United States – Mexico – Canada Agreement (”USMCA”) (also known as NAFTA 2.0). While the text of USMCA remains to be finalized, formally signed and ratified by each of the three countries, a preliminary… Continue Reading

KORUS – Who Gets the Benefits?

Posted in Aerospace & Defence, Border Security, Corporate Counsel, Cross-border trade, Customs Law, Legal Developments, tariffs, Trade Agreeements, Trade Remedies

Published by the Journal of Commerce in September 2018. While we are all understandably caught up in the trade war with China and wait to see whether additional tariffs will be imposed on more Chinese-made goods, the Korea – U.S. Free Trade Agreement revisions have been made public by the U.S. Trade Representative. Those changes… Continue Reading

China 301 List 2 – Effective August 23, 2018 – in US and China

Posted in Border Security, Corporate Counsel, Countermeasures, Cross-border deals, Cross-border trade, Customs Law, Imports Restrictions, Legal Developments, tariffs, Transportation

USTR Lighthizer yesterday published notice that the 25% tariff on goods appearing on List 2 will become effective on August 23, 2018. For those who wonder if filing comments makes a difference, the answer is yes! In his announcement, USTR Lighthizer made the point the list dropped from 284 to 279 tariff items based on… Continue Reading

China 301 List 3 Products – New Schedule Published

Posted in Border Security, Countermeasures, Cross-border trade, Customs Law, Imports Restrictions, Legal Developments, Politics, tariffs, Trade Remedies

In the August 7, 2018 Federal Register, U.S. Trade Representative Lighthizer published the latest official timeline for those planning to participate in the China 301 List 3 proceedings. The relevant dates are: August 13, 2018 – due date for filing requests to be a witness and a summary of expected testimony; August 20-23, 2018 – public… Continue Reading

China 301 List 3 – 25% Duty ???

Posted in Aerospace & Defence, Border Security, Buy America, Corporate Counsel, Countermeasures, Customs Law, Imports Restrictions, Legal Developments, NAFTA, Trade Agreeements, Trade Remedies, World Trade Organization

On August 1, 2018, USTR Lighthizer issued a press release indicating he was following through with President Trump’s direction and will consider raising the rate of duty from 10% to 25% on those products on China 301 List 3. A formal notice in the Federal Register is expected soon. Mr. Lighthizer also announced the written… Continue Reading

China 301 – List 3 Now A Reality

Posted in Aerospace & Defence, Border Security, Corporate Counsel, Cross-border deals, Cross-border trade, Customs Law, Export Controls & Economic Sanctions, Exports, Imports Restrictions, Legal Developments, NAFTA, Trade Agreeements, Trade Remedies

Late on July 10, 2018, U.S. Trade Representative Lighthizer released a list of the next Chinese-made products targeted for additional duties, this time at a 10% rate and worth about $200 billion.  The statement in support of this action can be found here: USTR Statement Supporting China 301 List 3; and the list of affected… Continue Reading

China 301 Tariffs Took Effect – What Happens Next?

Posted in Aerospace & Defence, Agriculture, Border Security, Buy America, Corporate Counsel, Countermeasures, Cross-border deals, Cross-border trade, Customs Law, Exports, Legal Developments, tariffs, Trade Agreeements, Trade Remedies

The U.S. Trade Representative (“USTR”) issued a press release on July 6, 2018 in which the process companies can use to seek exclusion from the 25% tariff imposed on the same day on goods from China was announced. The timeline requires all original exclusion requests to be filed by October 9, 2018. Each will be… Continue Reading

How does the Canada-US trade war affect cross-border shoppers?

Posted in Canada's Federal Government, Countermeasures, Customs Law, GST/HST, tariffs

On July 1, 2018, Canada imposed countermeasures (that is, 10% duties) on a number of U.S. origin goods.  These new duties will apply to goods that are purchased by Canadians who shop in the United States.  Canadian cross border shoppers may be asked more questions at the Canada Border Services Agency (“CBSA”) Primary Inspection Booth… Continue Reading

Canada Retaliates

Posted in Aerospace & Defence, Antidumping, Border Security, Buy America, Corporate Counsel, Cross-border deals, Cross-border trade, Customs Law, Government Procurement, Imports Restrictions, Legal Developments, NAFTA

On June 29, 2018, Canada released its list of products on which retaliation will be taken against the 232 steel and aluminum tariffs imposed by the U.S. Table 1 products are subject to a 25% surcharge. While the products listed on Tables 2 and 3 are subject to a 10% surcharge. See Canada 232 Retaliation… Continue Reading

To Tariff or Not to Tariff – That Is The Question!

Posted in Aerospace & Defence, Agriculture, Border Security, Buy America, Controlled Goods Program, Corporate Counsel, Cross-border deals, Cross-border trade, Customs Law, Government Procurement, Legal Developments, NAFTA, Trade Agreeements, Trade Remedies

In the current tit for tat environment that overhangs international trade, below is an update regarding the 232 tariffs on steel and aluminum, the 301 tariffs related to China’s intellectual property rights and other business practices, and the 232 tariffs threatened on automobiles and parts. Steel and Aluminum Tariffs: As everyone by now knows, effective… Continue Reading

25% Tariff Imposed in Chinese Goods

Posted in Aerospace & Defence, Border Security, Buy America, Corporate Counsel, Cross-border deals, Cross-border trade, Customs Law, Intellectual Property, Legal Developments, Trade Agreeements, Trade Remedies

The U.S. Trade Representative (USTR) today issued two lists of products on which the U.S. seeks to impose tariffs on goods made in China at a 25% rate.  The lists together cover 1,102 tariff lines valued at approximately $50 billion.  According to the USTR’s release, the list of products settled on was intended to focus… Continue Reading

Poof Goes the Rule of Law!

Posted in Anti-Trust/Competition Law, Corporate Counsel, Cross-border deals, Cross-border trade, Customs Law, Export Controls & Economic Sanctions, Exports, Legal Developments, Trade Remedies

Originally published by the Journal of Commerce in June 2018. There was a strong temptation to title this column – What the Football!  President Trump has spent a good deal of his time recently excoriating professional football players about their actions when it comes to the nation anthem. He seems to have not spent even… Continue Reading

232 Auto Investigation Timeline Published

Posted in Anti-Trust/Competition Law, Corporate Counsel, Cross-border deals, Cross-border trade, Customs Law, Imports Restrictions, Legal Developments, NAFTA, Trade Agreeements, Trade Remedies

The Federal Register notice advising the timeline which applies to the Administration’s 232 investigation regarding automobiles and parts was published on May 30, 2018.  The relevant time frame requires that written comments are due by June 22, 2018 and rebuttal comments by July 6, 2018.  A public hearing will be held on July 19 and… Continue Reading

Which Way Is Up?

Posted in Aerospace & Defence, Agriculture, Antidumping, Border Security, Corporate Counsel, Cross-border deals, Cross-border trade, Customs Law, Imports Restrictions, Legal Developments, NAFTA, Trade Agreeements, Trade Remedies, World Trade Organization

This client alert was originally published on May 30, 2018, and now there is an update. Today, May 31st, President Trump announced a resolution with Argentina, Brazil and Australia regarding the 232 tariffs on steel (25%) and/or aluminum (10%), but as there is no similar agreement with Canada, Mexico or the EU, the tariffs on… Continue Reading

Canada Announced New Marking Rules for Steel and Aluminum

Posted in Antidumping, Border Security, Canada's Federal Government, Customs Law, origin, Trade Remedies, U.S. Federal Government

On May 30, 2018, Canada’s Minister of Finance announced new marking rules for steel and aluminum products.  In a News Release entitled “Canada Bolsters Prevention of Transshipment and Diversion of Steel and Aluminum Products Through Country of Origin Marking Regime“, the Department of Finance announced that Canada was aligning its marking rules with the United… Continue Reading

America First – America Alone?

Posted in Corporate Counsel, Customs Law, Export Controls & Economic Sanctions, Legal Developments, Politics, Trade Remedies

Originally published by the Journal of Commerce in May 2018 The White House website defines the foreign policy of the Trump Administration as follows: “President Trump is bolstering American influence by leading a coalition of strong and independent nations to promote security, prosperity, and peace both within America’s borders and beyond. The promise of a… Continue Reading

The Bumpy Ride Continues!

Posted in Antidumping, Border Security, Corporate Counsel, Cross-border deals, Cross-border litigation, Cross-border trade, Customs Law, Legal Developments, Politics, Trade Agreeements, Trade Remedies, World Trade Organization

Originally published by the Journal of Commerce in May 2018  as part of its 100 Top Importers and Exporters Edition Old movie buffs immediately recognize the inspiration for the title. There was a movie released in 1950 starring Bette Davis called All About Eve. Its most famous lines have bearing on current events impacting global… Continue Reading

The Canada Border Services Agency demands to be told of your prescriptions

Posted in Border Security, Canada's Federal Government, Customs Law, NEXUS, Personal Comments

Are Canadians, residents of Canada and visitors to Canada required to report prescription medications to the Canada Border Services Agency (“CBSA”)? The answer appears to be “YES”. The CBSA takes the position that you must declare all legally prescribed medications to them upon your return to or entry into Canada.  I am not kidding.  I… Continue Reading

Where Do Your Goods Originate?

Posted in Aerospace & Defence, Agriculture, Antidumping, Border Security, Buy America, Corporate Counsel, Cross-border deals, Cross-border trade, Customs Law, Exports, FCPA/Anti-Corruption, Government Procurement, Imports Restrictions, Legal Developments, origin, Trade Agreeements, Trade Remedies

Originally published by the Journal of Commerce in April 2018 The brewing trade war between the U.S. and China serves as a reminder to international traders that knowing where your goods are made and being able to prove it are two very different issues.  At a time when it remains common place for U.S. Customs… Continue Reading

What We Have is a Failure to Communicate: Computer Programmers Should Not be Expected to Know Customs and Trade Compliance

Posted in AMPs, Corporate Counsel, Cross-border deals, Cross-border trade, Customs Law, Export Controls & Economic Sanctions, Exports, GST/HST, Imports Restrictions, origin, Sales Taxes, tariff classification, Tax, valuation

This is a common problem – too common.  The people in the company responsible for customs and trade compliance do not work closely with the computer programmers as software is being developed — and mistakes are made.  The computer programmer does his or her job in preparing the code, but does not have any knowledge… Continue Reading

Schrödinger’s Cat: Can Goods Be Subject to Customs Duties and Not Subject Customs Duties At the Same Time?: Look in the Box before Shipping

Posted in Customs Law, NAFTA, origin

Anyone who watches “The Big Bang Theory” knows about Schrödinger’s cat.  The cat was both thought to be dead and thought to be not dead at the same time.  There is a similar paradox for Canadian companies who sell to the United States and/or China.  Canadian goods may be thought to be not subject to… Continue Reading

USTR Publishes 301 Product List / China Reacts

Posted in Aerospace & Defence, Agriculture, Antidumping, Corporate Counsel, Cross-border deals, Cross-border trade, Customs Law, Government Procurement, Imports Restrictions, Legal Developments, Trade Agreeements, Trade Remedies, World Trade Organization

Since this article was originally published by MSK, we have learned China filed a complaint at the WTO challenging imposition of the threatened 301 tariffs. This WTO challenge is in addition to the one previously filed challenging the 232 tariffs the U.S. imposed. The U.S. Trade Representative (“USTR”) has prepared for publication a Federal Register… Continue Reading