Category Archives: Customs & Trade Updates

Gemini Shippers Group joined almost 200 Trade Associations  to urge the Office of the U.S.
Trade Representative (USTR) to move expeditiously to extend exclusions for products covered
by the Section 301 China tariffs before they expire on December 31, 2020.

A copy of the letter is noted below.

November 5, 2020

The Honorable Robert E. Lighthizer
United States Trade Representative
600 Seventeenth Street, N.W.
Washington, D.C. 20508

Dear Ambassador Lighthizer:

On behalf of the Americans for Free Trade coalition, we write to urge the Office of the U.S.
Trade Representative (USTR) to move expeditiously to extend exclusions for products covered
by the Section 301 China tariffs before they expire on December 31, 2020. Doing so would
provide certainty for American businesses already struggling with the economic fallout from
COVID-19 and avoid doing additional harm to the U.S. economy.

Our coalition represents every part of the U.S. economy including manufacturers, farmers and
agribusinesses, retailers, technology companies, service suppliers, natural gas and oil companies,
powersports manufacturers, importers, exporters, and other supply chain stakeholders.
Collectively, we support tens of millions of American jobs through our vast supply chains.
While we continue to advocate for the full elimination of the Section 301 tariffs, we recognize
the important role that the product exclusion process has played in alleviating the burden of
additional tariffs for some American businesses. So long as Section 301 tariffs remain in place,
having a predictable, fair, and transparent product exclusion process is vital to creating a
modicum of certainty for American businesses. That certainty, however, is in jeopardy as all
remaining product exclusions are set to expire at the end of this year. As American businesses
continue to recover from the COVID-19 pandemic, they should not have to face the uncertainty
of tax increases on January 1 because of a reimposition of tariffs on previously excluded
products. It remains unclear whether USTR intends to offer additional product exclusion
extension opportunities for the remaining exclusions. We believe it is crucial for USTR to do so.

More specifically, we urge USTR to automatically extend existing product exclusions for at least
six months. This move would be welcome news to the American businesses, workers,
consumers, and farmers who have paid nearly $60 billion in taxes to the federal government in
the form of tariffs since the trade war with China began. It would also provide certainty for
American businesses trying to recover from the economic harm caused by the COVID-19
pandemic. Alternatively, we urge USTR to issue a Federal Register Notice announcing a new
public comment period to extend expiring exclusions as soon as possible. This should also
include an opportunity to submit comments for products covered by exclusions that were not
extended by USTR earlier this year.

Extending product exclusions is a straightforward and efficient way for the administration to
provide certainty and relief to American businesses during this difficult economic time. Until the
Section 301 tariffs are fully eliminated, we urge USTR to maintain a robust, predictable, and
transparent product exclusion process.
Thank you for your consideration of this request.

Sincerely,
Accessories Council
ACT | The App Association
Agriculture Transportation Coalition (AgTC)
ALMA, International (Association of
Loudspeaker Manufacturing and Acoustics)
American Apparel & Footwear Association
(AAFA)
American Association of Exporters and
Importers (AAEI)
American Association of Port Authorities
American Bakers Association
American Bridal & Prom Industry Association
(ABPIA)
American Chemistry Council
American Coatings Association, Inc. (ACA)
American Down and Feather Council
American Fly Fishing Trade Association
American Home Furnishings Alliance
American Lighting Association
American Petroleum Institute
American Pyrotechnics Association
American Rental Association
American Specialty Toy Retailing Association
American Wind Energy Association
Arizona Technology Council
Arkansas Grocers and Retail Merchants
Association
Association For Creative Industries
Association for PRINT Technologies
Association of American Publishers
Association of Equipment Manufacturers
(AEM)
Association of Home Appliance Manufacturers
Auto Care Association
Beer Institute
BSA | The Software Alliance
California Retailers Association
Can Manufacturers Institute
Carolina Loggers Association
Chemical Industry Council of Delaware (CICD)
Coalition of New England Companies for Trade
(CONECT)
Coalition of Services Industries (CSI)
Colorado Retail Council
Columbia River Customs Brokers and Forwarders Assn.
Computer & Communications Industry
Association (CCIA)
Computing Technology Industry Association (CompTIA)
Consumer Brands Association
Consumer Technology Association
Council of Fashion Designers of America (CFDA)
CropLife America
Customs Brokers & Freight Forwarders Assn.
of Washington State
Customs Brokers & Freight Forwarders of
Northern California
Distilled Spirits Council of the United States
Electronic Transactions Association
Fashion Accessories Shippers Association (FASA)
Fashion Jewelry & Accessories Trade Association
Flexible Packaging Association
Florida Ports Council
Florida Retail Federation
Footwear Distributors and Retailers of America (FDRA)
Fragrance Creators Association
Game Manufacturers Association
Gemini Shippers Association
Georgia Retailers
Global Chamber®
Global Cold Chain Alliance
Greeting Card Association
Halloween Industry Association
Home Fashion Products Association
Home Furnishings Association
Household and Commercial Products
Association
Idaho Retailers Association
Illinois Retail Merchants Association
Independent Office Products & Furniture
Dealers Association (IOPFDA)
Indiana Retail Council
Information Technology Industry Council (ITI)
International Association of Amusement Parks
and Attractions (IAAPA)
International Bottled Water Association
(IBWA)
International Foodservice Distributors
Association
International Housewares Association
International Warehouse and Logistics
Association
International Wood Products Association
ISSA – The Worldwide Cleaning Industry
Association
Jeweler’s Vigilance Committee
Juice Products Association (JPA)
Juvenile Products Manufacturers Association
Leather and Hide Council of America
Licensing Industry Merchandisers’ Association
Los Angeles Customs Brokers and Freight
Forwarders Assn.
Louisiana Retailers Association
Maine Grocers & Food Producers Association
Maine Lobster Dealers’ Association
Maritime Exchange for the Delaware River
and Bay
Maryland Retailers Association
Methanol Institute
Michigan Chemistry Council
Michigan Retailers Association
Minnesota Retailers Association
Missouri Retailers Association
Motor & Equipment Manufacturers Association
Motorcycle Industry Council
NAPIM (National Association of Printing Ink
Manufacturers)
National Association of Chain Drug Stores (NACDS)
National Association of Chemical Distributors (NACD)
National Association of Foreign-Trade Zones (NAFTZ)
National Association of Home Builders
National Association of Music Merchants
National Association of Trailer Manufacturers (NATM)
National Confectioners Association
National Council of Chain Restaurants
National Customs Brokers and Freight
Forwarders Association of America
National Electrical Manufacturers Association (NEMA)
National Fisheries Institute
National Foreign Trade Council
National Grocers Association
National Lumber and Building Material Dealers
Association
National Marine Manufacturers Association
National Restaurant Association
National Retail Federation
National Ski & Snowboard Retailers Association
National Sporting Goods Association
Natural Products Association
New Jersey Retail Merchants Association
North American Association of Uniform Manufacturers
and Distributors (NAUMD)
North Carolina Retail Merchants Association
Ohio Council of Retail Merchants
Outdoor Industry Association
Pacific Coast Council of Customs Brokers and Freight
Forwarders Assns. Inc.
Pennsylvania Retailers’ Association
PeopleforBikes
Personal Care Products Council
Pet Industry Joint Advisory Council
Petroleum Equipment & Services Association
Plumbing Manufacturers International
Power Tool Institute (PTI)
Promotional Products Association International
Recreational Off-Highway Vehicle Association
Retail Association of Maine
Retail Council of New York State
Retail Industry Leaders Association
Retailers Association of Massachusetts
RISE (Responsible Industry for a Sound
Environment)
San Diego Customs Brokers and Forwarders
Assn.
SEMI
Snowsports Industries America
Society of Chemical Manufacturers &
Affiliates
Software & Information Industry Association
(SIIA)
South Dakota Retailers Association
Specialty Equipment Market Association
Specialty Vehicle Institute of America
Sports & Fitness Industry Association
TechNet
Telecommunications Industry Association
(TIA)
Texas Retailers Association
Texas Water Infrastructure Network
The Airforwarders Association
The Fertilizer Institute
The Hardwood Federation
The Toy Association
The Vinyl Institute
Travel Goods Association
Truck & Engine Manufacturers Association (EMA)
United States Council for International Business
United States Fashion Industry Association
US Global Value Chain Coalition
US-China Business Council
Virginia Retail Merchants Association
Virginia-DC District Export Council (VA-DC DEC)
Washington Retail Association
Window and Door Manufacturers Association
World Pet Association, Inc. (WPA)

CC: Secretary Steven Mnuchin, U.S. Department of Treasury
Secretary Wilbur Ross, U.S. Department of Commerce
Secretary Sonny Perdue, U.S. Department of Agriculture
Director Larry Kudlow, National Economic Council of the United States
Members of Congress

Gemini Shippers Group joined a number of associations in a letter to the USTR’s office regarding possible section 301 tariffs on Veitnam

The Honorable Robert E. Lighthizer

United States Trade Representative

600 17th Street, N.W.

Washington, D.C. 20508

Docket Number: USTR-2020-0037

Dear Ambassador Lighthizer:

On behalf of the undersigned organizations and companies below and the millions of American workers we employ, we are writing regarding the initiation of two Section 301 investigations on Vietnam’s acts, policies, and practices related to illegal timber and currency valuation. We agree that our trading partners must abide by global trade rules, and we support the administration’s efforts to address unfair trading practices. However, the administration has tools other than tariffs to address these concerns. The possible imposition of new punitive duties on U.S. imports from Vietnam will only cause further supply chain disruption during the COVID-19 pandemic. We believe the administration’s goal can be achieved without taxing American consumers and American workers.

Vietnam is the second largest supplier of apparel, footwear, and travel goods to the U.S. market and has experienced dramatic growth since 2016. Vietnam has become even more important as U.S. companies have implemented diversification strategies away from China. Imposing new punitive tariffs on U.S. imports from Vietnam would cause extreme disruption, directly threatening those investments and increasing prices for hard-working American families at the register or costs on the supply chains that directly support millions of American jobs.

We remain concerned about the escalation of tariff wars. We know firsthand from the experience with China over the last several years that additional tariffs will have a significant, negative, and long-term impact on American businesses, farmers, families, and the U.S. economy. Broadly applied tariffs are not an effective tool to change a trading partner’s unfair trade practices. Tariffs are taxes paid directly by American companies, including those listed below, their American workers, and American consumers.

We do not believe this is the time to impose new costs on U.S. supply chains, particularly on American job creators who are still recovering from the impacts of the COVID-19 pandemic. Further, new punitive tariffs could make it even harder to source the personal protective equipment (PPE) that our communities need to safely regrow the economy.

Therefore, we oppose the imposition of punitive tariffs on U.S. imports from Vietnam. It is time for the administration to take a different approach to trade policy, one that does not punish American consumers, American workers, and the American communities they support.

Thank you for your time and consideration in this matter.

Sincerely,

Gemini Shippers Group

Market trends in trade lanes serving the United States and actions taken by both individual ocean carriers and global alliances in response to COVID-19 and related impacts to the shipping industry were the topics of today’s non-public meeting of the Federal Maritime Commission.

The FMC regularly holds meetings to receive updates on international trade, the container shipping industry, and analysis of carrier agreement monitoring activities. The agency has heightened its scrutiny of markets, individual ocean carriers, and the three global carrier alliances in response to the unusual circumstances and challenges created by the COVID-19 pandemic.  Today’s meeting focused on those developments.

Specifically, the Commission received detailed reports that addressed trends in spot rates, longer term service contracts, utilization of equipment, blanked sailings, revenue trends, the policies of individual carriers and global alliances for service changes, and what notice must be provided to the FMC when there are blanked, cancelled, or amended voyages.

The FMC is actively monitoring for any potential effect on freight rates and transportation service levels, using a variety of sources and markers, including the exhaustive information that parties to a carrier agreement must file with the agency.

If there is any indication of carrier behavior that might violate the competition standards in section 6(g) of the Shipping Act, the Commission will immediately seek to address these concerns with the carriers.  If necessary, the FMC will go to federal court to seek an injunction to enjoin further operation of the non-compliant alliance agreement.

Gemini Shippers Group joined numerous association asking the administration to support for the establishment of an emergency, temporary federal commercial trade credit insurance backstop that will thwart an emerging credit crisis to enable and sustain the safe restart on which we and our members are working. A copy of the letter can be found here: Multi Association Sign On Letter Credit Crisis

Commissioner Dye Announces Findings of San Pedro Bay Discussions

Posted June 17, 2020

Following conversations with the port directors in Los Angeles and Long Beach, ocean carrier chief executive officers, Southern California marine terminal operators, longshore labor leaders, and FMC Innovation Teams, Commissioner Rebecca Dye has identified approaches to address the four critical operational challenges at the San Pedro Bay ports identified by Innovation Teams. The Teams also suggested one action the Commission could take to facilitate discussion.

1. Truckers should be directed to return empty containers to the terminal where they were picked up, allowing them to make dual moves and reduce the number of chassis required.
2. Notice of terminal gate closures should be given no less than three days, and preferably seven days, before gate closing. At no time should a closure occur mid-shift.
3. Notice of blank sailings should be given not only to beneficial cargo owners (BCOs), but also posted prominently on a carrier’s website, at least seven days in advance. Notice of bypassed ports should be posted at least 72 hours in advance.
4. Carriers and terminals should immediately seek to collaborate regarding Export Cargo Receiving Timelines with the goal of better coordinating their interaction.
5. That the Commission consider an Advisory Board consisting of ports, carriers, and MTOs in the interest of fostering and promoting greater collaboration across those three industry sectors.

Commissioner Dye added “I appreciate the willingness of our senior ocean carrier and marine terminal executives to address the four San Pedro supply chain operational challenges identified by the Innovation Teams. As we move into the third and fourth quarter of 2020, greater collaboration between ocean carriers and marine terminals will be critical to avoid cargo disruption and support a thriving American economy.”

Discussion Summary

Empty Container Returns: BCOs and their drayage trucking agents have expressed frustration with untimely notice when carriers’ empty containers are not being accepted at one terminal and truckers are directed to an alternative terminal. The complexity of the process is increased because carrier alliance members may call at multiple terminals at Los Angeles and Long Beach. Most parties agreed that the ideal approach would be to direct truckers to return empties to the terminal where they had picked up the loaded container, allowing them to make a dual move and reduce the number of chassis required.

With limited exceptions, suggestions included: (1) terminals refraining from cutoffs of empty returns mid-shift, (2) terminals adopting a goal of 7 days advance notice, but no less than 24 hours, for empty cutoffs, and (3) terminals allowing appointment-free returns during low use periods (such as night gates). Commissioner Dye noted that some San Pedro Bay terminals have already instituted these, or similar, practices.

Terminal Gate Closure Notification: Under current conditions, terminals may decide that expected cargo volumes may not financially justify maintaining full gate hours. But BCOs and drayage companies need timely notice of any gate closures. Participants have suggested that MTOs adopt a goal of 7 days advance notice, but no less than 3 days.

Commissioner Dye pointed out that BCOs and drayage companies could improve the situation by letting terminals know when they no longer need appointments. “Rapid cancellation of unneeded appointments can help the whole system run more smoothly, and reduce the chassis availability situation, too.”

Blank Sailing and Bypassed Port Notification: Until cargo volumes begin to increase substantially, carriers will respond with blanked sailings to keep vessel supply matched to vessel demand. It is important to both American exporters and importers, especially smaller shippers and their freight brokers, that adequate notification is given. Participants in the Fact Finding discussions have suggested that, at a minimum, shippers and truckers get 7 days notice for blanked sailings, and 72 hours notice for port bypass decisions.

It is vital that ocean carriers communicate their plans in a timely way to all parties who, in turn, coordinate their businesses around cargo availability. Notification should be made available on carrier websites, as well as direct notification to shipper customers, to accommodate truckers and other parties.

Export Cargo Receiving Timeline (ERDs and Cut-offs): With respect to export cargo, changes to ship arrivals (schedule integrity, blanked sailings, port bypass) can affect the cargo’s earliest receiving date (ERD) and cutoff date for loading the container – especially for inland-based rail users. Missed sailings and rolled cargo can have a profound effect on the exporters’ financial arrangements. Participants in the fact finding have suggested a minimum of 7 days notice of changed ERDs– but more notice, especially for inland-based exporters, would be better. In addition, carriers’ and terminals’ information on the exporter’s cargo receiving timeline needs to be closely coordinated to prevent conflicts.

Identifying these approaches is meant to assist stakeholders in addressing the operational challenges in San Pedro Bay, and is not intended to suggest that these approaches are required by the Shipping Act of 1984 or the Commission’s regulations.

FF29 Regional Approach to Continue

Commissioner Dye stated that FF29 will continue a regional approach recommended by the Innovation Teams because freight delivery challenges differ in different ports around the country.  She also noted that the Commission’s recently published guidance on demurrage and detention has been well-received and may already be contributing to better operational environment among affected parties.

Commissioner Dye will continue regional meetings to identify practical port operational goals that can improve the international supply chain.

Dye will soon engage with industry leaders operating through the Port of New York and New Jersey and the Port of New Orleans.