Customs & Logistics News
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U.S.
January 15, 2018
General System of Preferences (GSP) Expiration Costing U.S. Companies
Congress’ failure to extend GSP beyond December 31 means U.S. companies must now pay tariffs on previously GSP-eligible, duty-free imports. It is estimated that expiration will cost American companies $2.5-$3.0 million in extra duties for each day GSP remains expired. Trans American continues to flag entries for GSP, this should facilitate refund of duties paid if and when GSP is renewed retroactively.
This document is CONFIDENTIAL and contains PROPRIETARY information. It is solely for the use of the recipient. Any further review, disclosure, copying, dissemination, distribution, or use of any of the information contained in this document is strictly prohibited. The recipient shall be liable for damages resulting from any disclosure of this information to any third party. ©2018 Trans American Companies.
East-West Rates Rise Ahead of Lunar New Year
Spot market rates on the major east-west trade continues to rise in the run up to the Lunar New Year in advance of a sweeping set of rate increases scheduled for early February, mostly on the trans-Pacific. As reported in the Journal of Commerce: https://www.joc.com/maritime-news/east-west-rates-rise-ahead-peak-lunar-new-year-shipping-period_20180112.html
This document is CONFIDENTIAL and contains PROPRIETARY information. It is solely for the use of the recipient. Any further review, disclosure, copying, dissemination, distribution, or use of any of the information contained in this document is strictly prohibited. The recipient shall be liable for damages resulting from any disclosure of this information to any third party. ©2018 Trans American Companies.
NAFTA Negotiations
As reported in Reuters on January 10, two Canadian government sources said that Canada is increasingly convinced that President Trump will soon announce that the U.S. intends to pull out of NAFTA. A sixth round of negotiations is to take place in Montreal from January 23 – 28. One of the sources, who asked to remain anonymous because of the sensitivity of the situation, said that the “The government is increasingly sure about this … it is now planning for Trump to announce a withdrawal”. The Reuter article is available at the following link: https://www.reuters.com/article/us-trade-nafta-canada-exclusive/exclusive-canada-increasingly-convinced-trump-will-pull-out-of-nafta-idUSKBN1EZ2K4?feedType=RSS&feedName=newsOne
This document is CONFIDENTIAL and contains PROPRIETARY information. It is solely for the use of the recipient. Any further review, disclosure, copying, dissemination, distribution, or use of any of the information contained in this document is strictly prohibited. The recipient shall be liable for damages resulting from any disclosure of this information to any third party. ©2018 Trans American Companies.
U.S. Spot Truck Rates Soar on 2018 Frigid Start
The weather was frightful the first week of 2018, and for shippers looking to move freight by truck on the US spot market, rates were too. Extreme cold blanketed most of the northern United States, compounded by Winter Storm Grayson, which swept up the East Coast Jan. 3 to 4, lit a fire under the truckload spot market as disruption squeezed an already tight truck capacity. As reported in the Journal of Commerce: https://www.joc.com/trucking-logistics/us-spot-truck-rates-soar-2018%E2%80%99s-frigid-start_20180110.html
This document is CONFIDENTIAL and contains PROPRIETARY information. It is solely for the use of the recipient. Any further review, disclosure, copying, dissemination, distribution, or use of any of the information contained in this document is strictly prohibited. The recipient shall be liable for damages resulting from any disclosure of this information to any third party. ©2018 Trans American Companies.
FDA Not to Enforce FSVP Requirement of Written Assurances from Downstream Customers
The Food and Drug Administration (FDA) issued a guidance document that provides advice that they will not enforce the requirement that importers obtain written assurances from downstream customers that control food safety hazards until it issues new regulations on the requirement. The FDA has waived enforcement as a result of feedback that some supply chains “would require vastly more written assurance and resources to comply than what was anticipated by FDA during the rulemaking process”. FDA Guidance document and Fact Sheet are available at: https://www.fda.gov/Food/GuidanceRegulation/GuidanceDocumentsRegulatoryInformation/ucm590646.htm
This document is CONFIDENTIAL and contains PROPRIETARY information. It is solely for the use of the recipient. Any further review, disclosure, copying, dissemination, distribution, or use of any of the information contained in this document is strictly prohibited. The recipient shall be liable for damages resulting from any disclosure of this information to any third party. ©2018 Trans American Companies.
Canada
January 15, 2018
Canada Files WTO (World Trade Organization) Complaint Over U.S. Trade Remedy Measures
Canada has requested WTO consultations with the U.S. concerning certain laws, regulations and other measures maintained by the U.S. with respect to anti-dumping and countervailing duty proceedings. The request was circulated to WTO members on January 10. Canada considers the measures relating to U.S. anti-dumping or countervailing duty investigations, reviews or other proceedings are inconsistent with U.S. obligations under the WTO’s Anti-Dumping Agreement, the Agreement on Subsidies and Countervailing Measures, the General Agreement on Tariffs and Trade 1994 and the Understanding on Rules and Procedures Governing the Settlement of Disputes. WTO Notice with full details: https://www.wto.org/english/news_e/news18_e/ds535rfc_10jan18_e.htm
This document is CONFIDENTIAL and contains PROPRIETARY information. It is solely for the use of the recipient. Any further review, disclosure, copying, dissemination, distribution, or use of any of the information contained in this document is strictly prohibited. The recipient shall be liable for damages resulting from any disclosure of this information to any third party. ©2018 Trans American Companies.
