USTR Announces ‘List 3’ Exclusion Process | ILWU Canada Approves Contract | HMM Joins THE Alliance

USTR Announces ‘List 3’ Exclusion Process

A recent release from The Office of the U.S. Trade Representative (USTR), announced June 19, 2019, offers an exclusion process for product exclusions from the tariffs on $200 billion of Chinese products (“List 3”). This exclusion process opened at noon (EDT) on June 30th.

According to the report, The exclusion process for List 3 will be different from List 1 and 2 exclusions. The USTR is opening a portal through the link below to streamline the process:

If you have any questions regarding applying for an exclusion, please reach out to our team.

Please keep the following dates in mind:

Exclusion process opened: June 30, 2019
Last day to file: September 30, 2019

New Section 232 Steel and Aluminum Additional Duty Exclusion Request Portal Effective June 13, 2019

The U.S. Department of Commerce developed a portal (the “232 Exclusions Portal”) for submissions of exclusion requests, objections to exclusion requests, rebuttals, and sur-rebuttals. The 232 Exclusion Portal was developed to streamline the exclusions process. The portal allows “232 submitter’s” to view all exclusion request, objection, rebuttal, and sub-rebuttal documents in one, web-based system.

Submitter’s must complete a web-based registration prior to submitting any documents and is effective as of June 13, 2019, to use the portal.

Please access the portal here.

ILWU Canada Approves Contract; Employer Vote Remains

According to JOC, “ILWU Canada membership voted 77.18 percent in favor of the new contract on June 21st; which now must be ratified by the British Columbia Maritime Employers Association (BCMEA). According to the JOC, neither the union nor BCMEA will release details of the new contract pending ratification by both sides, meaning the length of the agreement, wage and benefits terms, and possibly of greatest importance, the structure for addressing automation at Canada’s West Coast ports, is still publicly unknown.”

USTR Seeks Comments for 2020 AGOA Eligibility Review

The Office of the U.S. Trade Representative seeks comments in connection with its annual review of the eligibility of countries for benefits under the African Growth and Opportunity Act (AGOA), USTR said. The agency will consider, among other things, whether to restore or revoke eligibility for sub-Saharan African countries covered by AGOA. Countries found ineligible for AGOA in 2019 include Burundi; Democratic Republic of Congo; Equatorial Guinea (graduated from GSP); Eritrea; Mauritania; Seychelles (graduated from GSP); Somalia; South Sudan; Sudan; and Zimbabwe. USTR will hold a public hearing on Aug. 27, and the deadline to file requests to testify there or to file any prehearing comments is noon on Aug. 14. Sept. 3 is the final deadline for comments. – this according to The Daily Journal of the United States Government

US Agrees to Hold Off on More China Tariffs, Soften Huawei Restrictions

According to CNN, President Donald Trump said he won’t lift current U.S. tariffs, but also won’t add tariffs on any more Chinese imports “for at least the time being.” He said during a press conference at the G20 Summit in Japan that negotiations will resume “where we left off to see if we can make a deal.”

Trump said while the issues around Huawei will have to be saved “for the very end,” U.S. companies will be allowed to sell to Huawei in the meantime. And Trump said China is going to start buying farm products almost immediately. “We’re going to give them lists of things we would like them to buy.”

When Asking for Tariff Exclusions, More Information Is Better, Trade Lawyers Say

While the reasons that Section 301 tariff exclusions were granted are murky to trade lawyers, in general, more information is better when submitting requests, trade lawyers said during a panel at the American Association of Exporters and Importers Annual Conference June 28. Pictures of your product, emails from domestic companies saying they can’t provide the quantity you’re looking for, and the number of U.S. jobs that are imperiled if you have to pay 25 percent more for this product are all good pieces of information to provide, they said.

HMM to Join THE Alliance

Per a press release, HMM, the South Korean container liner shipper company Hyundai Merchant Marine (HMM) will join THE Alliance in the near term. Joining Hapag-Lloyd, Ocean Network Express (ONE) and Yang Ming.

The corresponding documents were endorsed in Taipei on June 19th, 2019. Subject to the necessary regulatory approvals, the new contract between the four Lines will officially start on April 1st, 2020.

“HMM is a great fit for THE Alliance as they will provide a number of new and modern vessels, which will help us to deliver better quality and be more efficient – and it will help us also to further reduce our emissions”, says Rolf Habben Jansen, CEO of Hapag-Lloyd.

HMM has ordered twelve 23,000 TEU vessels which will be delivered in the second quarter of 2020. Additionally, eight 15,000 TEU newbuilding’s will join HMM’s fleet in the second quarter of 2021. HMM’s 23,000 TEU newbuilding’s will be deployed in the Far East – North Europe trade and will further strengthen THE Alliance’s service portfolio.

“We are very happy to see HMM join THE Alliance, as their membership will allow us to offer enhanced services to our customers due to a wider port coverage, expansion of our product offerings, more sailing frequencies and a better balance of our cargo flows”, commented Jeremy Nixon, CEO of Ocean Network Express.

HMM’s membership will significantly strengthen the competitiveness of THE Alliance towards the other two alliances – especially on the Trans-Pacific trades.