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New Executive Orders Highlight Trade Enforcement

As alluded to in the earliest days of the Trump Administration, foreign trade is high on the presidential agenda. On Friday, March 31st, President Trump signed two Executive Orders that set into motion trade data collection initiatives within the next 90 days. The first Order authorizes the creation of a Trade Deficit Omnibus Report and the second Order intensifies customs law enforcement and collection efforts for Antidumping and Countervailing duties. 

Trade Deficit Omnibus Report

Simply defined, the trade deficit is the amount by which a country’s imports exceeds the value of its exports.  Over the last several decades the U.S. trade deficit has grown from approximately $153 million in 1987 to $500 billion in 2016.  While there may be many reasons why the deficit has increased over the years, the Trade Deficit Omnibus Report is aimed at uncovering unfair and discriminatory trade practices by U.S. trading partners. Specifically, the report will identify the trade partners with which the U.S. has a significant trade deficit in goods and will assess the major causes of the deficit, any injurious or discriminatory practices engaged in by these foreign partners and the effects these practices have on the U.S. domestic economy.

Antidumping and Countervailing Duties Collection

The enhanced collection and enforcement of Antidumping and Countervailing duties order sets out to accomplish three specific tasks. First, the order authorizes the Secretary of Homeland Security, Secretary of the Treasury, the Secretary of Commerce and the U.S. Trade Representative to create a plan that would require identified high risk importers to “provide security for antidumping and countervailing duty liability through bonds and other legal measures.” Second, the Order authorizes the strengthening of IPR infringement enforcement and enables the Secretary of Homeland Security through the Commissioner of CBP, to develop and implement a strategy to combat violations of U.S. Customs Laws above and beyond seizure. Third, the Order authorizes the Attorney General and Secretary of Homeland Security to allocate resources and develop prosecution practices for significant trade law violations.

Looking Forward

While neither Executive Order is likely to have an immediate impact on U.S. importers, it is clear that importers will need to tighten their trade compliance controls and programs. Given the focus on Antidumping and Countervailing Duties and IPR enforcement, U.S. importers may consider auditing their supply chain for irregularities and high risk suppliers, as well as implementing strong SOP’s to direct broker performance in anticipation of tightened regulatory requirements. 

Allyn Contributor: Danielle Brazil Hudson, LCB

 

About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance.  Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, FL U.S.A, Shanghai, P.R. China and Prague, Czech Republic. For more information, log on to www.allynintl.com.

 

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