Trade Publications

Simplifying Incoterms 2020

Posted on December 10, 2019. Category: Logistics Publications, Trade Publications

International commercial terms (incoterms), are the guidelines for global trade around the world. To provide clarity in the contractual flow, we must understand the incoterms that are being used in the contract between the buyer and the seller for each transaction. Correctly understood incoterms ensure a smoother and effective process. The most recent edition was presented by the International Chamber of Commerce, Incoterms 2020. This is the ninth version of incoterms since they were first introduced in 1936. One major change is Delivered At Place (DAP, 2010) was renamed Delivered at Place Unloaded (DPU, 2020). DAP was renamed to DPU to make it distinctly...

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Latest Tariff News

Posted on December 05, 2019. Category: Logistics Publications, Trade Publications

On Monday December 2, President Trump advised that his administration is considering tariffs as high as 100% on French goods in retaliation for a new Tax on digital services, greatly impacting U.S technology companies. The office of the U.S. Trade Representative deemed the tax discriminatory against U.S. companies. The estimated value of imported goods impacted could be up to $2.4 Billion U.S. and includes cheese, beauty products, handbags and certain wines.Trump also advised new tariffs on steel (25%) and aluminum (10%) from Brazil and Argentina, in retaliation for what he claims is currency devaluation on their part. These tariffs will...

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Section 301 News: Progress on Trade Talks

Posted on October 14, 2019. Category: Trade Publications

After negotiations last, week the U.S. and China have agreed on the first steps to de-escalate the trade war. The results of this talks are the following:Lists 1, 2, and 3 will not increase to 30% on October 15th, 2019 but will stay at 25%. As of right now, list 4B is still scheduled to go into effect on December 15th, 2019. China has committed to buying $40 to $50 billion worth of U.S. agriculture annually. There was also reported progress on intellectual property, currency manipulation and tech transfer, among other things, but the details have not yet been provided.Latest Tariff Increase Schedule...

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MPF Increase in 2019

Posted on October 10, 2019. Category: Trade Publications

To account for inflation, US Customs and Border Protection (CBP) adjusted certain user fees on October 1, 2019. The minimum merchandise processing fee (MPF) will be increased to $26.79 from $25 and the maximum will be raised to $519.76 from $485. MPF is assessed by CPB for most imports into the US on an ad valorem basis, with the percentage being used to calculate MPF remaining at .3464%. MPF will be waived for goods that qualify for certain free trade agreements, such as NAFTA. The MPF for entries under $2,500 will remain at the $2 flat rate.Contributor: Matt Dreckman About Allyn International Allyn International...

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A Global HTS Solution

Posted on September 12, 2019. Category: Trade Publications

The World Customs Organization is represented by 183 customs administrations and represents 98% of the world’s trade. When goods are shipped internationally, they must be classified for customs purposes using a Harmonized Tariff Schedule Number (HTS). Each separate product is assigned a classification code and amongst other things, the HTS number is used to determine the applicable duty rates. One of Allyn International’s core competencies is HTS classification, with services offered on a local or global level. Regardless of country of import, Allyn can provide correct HTS number(s) for your products to ensure compliance with applicable...

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Incoterms 2020

Posted on September 11, 2019. Category: Trade Publications

On September 10, 2019 the International Chamber of Commerce launched Incoterms® 2020. Incoterms® rules on the use of domestic and international trade terms and facilite the conduct of global trade.In order to be effective, contracts will have to specify that Incoterms® 2020 are being used. This updated edition of trade terms seeks to provide clarity to companies in several areas:Key Changes for 2020Change in the three-letter name from DAT to DPUIncoterms® 2020 replaces DAT (Delivered at Terminal) with DPU (Delivered at Place Unloaded). This broadens delivery to places other than a terminal. DPU is the only...

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EPA Import Changes

Posted on September 09, 2019. Category: Trade Publications

It is more important than ever for a company to exercise reasonable care and ensure compliance with all Environmental Protection Agency (EPA) importing requirements.  Numerous new regulations have been put in place and enforcement of these new regulations has begun.Formaldehyde Emission StandardsIn December 2016, new formaldehyde emission standards affecting hardwood plywood, particleboard, and fiberboard were put in place to ensure only compliant materials are sold or further incorporated into finished goods. This will greatly affect the furniture and construction industries as well as any importer who imports any applicable wood items.Recently, the EPA levied a $500,000 fine on...

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Section 301 News: Trump Raises Tariffs to 30%

Posted on August 27, 2019. Category: Trade Publications

On August 23rd, President Trump announced that he will continue to increase tariffs on goods from China. Subsequently, the USTR announced that the tariffs currently in place will be raised to 30% effective October 1. As for lists 4A and 4B, they will now be increased to 15% effective Sept 1 and Dec 15 respectively.Latest Tariff Increase Schedule List  Current Rate  New Proposed Rate  Effective Date  1 25% 30% October 1, 2019 2 25% 30% October 1, 2019 3 25% 30% October 1, 2019  4A6 10% 15% September 1, 2019 4B 10% 15% December 15, 2019This is widely viewed as the President’s response to Beijing increasing its own tariffs on more goods from the U.S.  Aside...

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Section 301 News: Some Tariffs Removed, Others Delayed

Posted on August 13, 2019. Category: Trade Publications

On August 13th, the USTR announced certain items were being removed from the newest China Tariff List (List 4).  These products are being removed from the list based on health, safety, national security and other factors and will not face the additional tariffs of 10 percent. The specific items have not yet been identified.Additionally, it was announced that other items including cell phones, laptops, gaming consoles, computer monitors, certain footwear, and clothing would have their additional tariffs delayed until December 15th.These changes will be published in the Federal Register as soon as possible.If you would like more information...

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10% Tariff 100% Impact

Posted on August 01, 2019. Category: Trade Publications

On August 1st around 1:30 pm, President Donald J. Trump tweeted that List 4 will go into effect beginning September 1st, 2019.What was originally proposed at 25% will now be implemented at 10%. The push to move forward with implementing list 4 comes at the close of the latest trade talks which took place in China early this week.As a result of failed promises regarding the large purchase of U.S agricultural goods in addition to the continued sale of Fentanyl, the Trump administration has decided to move forward with the list.Trade talks are scheduled to continue with the Chinese Government at the...

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