Section 301 Tariffs Phase Two

The Office of the United States Trade Representative (USTR) published a list earlier this month of approximately $16 billion worth of imports from China that will be subject to a 25 percent additional tariff as part of the U.S. response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property. This second tranche of additional tariffs under Section 301 follows the first tranche of tariffs on approximately $34 billion of imports from China, which went into effect on July 6.

Customs and Border Protection will begin to collect the additional duties on Chinese imports on Thursday August 23, 2018. The second tranche (portion) of products can be accessed here.

In March 2018, USTR released the findings of its exhaustive Section 301 investigation that found China’s acts, policies and practices related to technology transfer, intellectual property and innovation are unreasonable and discriminatory and burden U.S. commerce.

Specifically, the Section 301 investigation revealed:

·     China uses joint venture requirements, foreign investment restrictions, and administrative review and licensing processes to require or pressure technology transfer from U.S. companies.

·     China deprives U.S. companies of the ability to set market-based terms in licensing and other technology-related negotiations.

·     China directs and unfairly facilitates the systematic investment in, and acquisition of, U.S. companies and assets to generate large-scale technology transfer.

·     China conducts and supports cyber intrusions into U.S. commercial computer networks to gain unauthorized access to commercially valuable business information.

A third list has been published and these may go into effect sometime in September. You can see the list of tariff numbers possibly impacted here.

Please contact your Import Coordinator if you have any questions.

Thank you!

Sincerely,

Jim Shapiro/Stu Tobin

Thunderbolt Global Logistics LLC

https://thunderboltglobal.com/

410-633-2722

Section 301 Tariffs from China go into effect today

Dear Valued Customer,

Section 301 Tariffs from China go into effect today, Friday July 6,2018.

Following a Memorandum from President Trump, on August 18, 2017, the U.S. Trade Representative (USTR) initiated an investigation under Section 301 of the Trade Act of 1974 into the government of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.

Following USTR’s Section 301 investigation, President Trump announced in March that the United States will impose tariffs on approximately $50 billion worth of Chinese imports and take other actions in response to China’s policies that coerce American companies into transferring their technology and intellectual property to domestic Chinese enterprises. These policies bolster China’s stated intention of seizing economic leadership in advanced technology as set forth in its industrial plans, such as “Made in China 2025.” 

In June President Trump announced that the tariffs would go into effect Friday July 6th.

That day has arrived and an additional 25% tariff will now go into effect on 818 Chinese Products. There are 284 additional products scheduled to be impacted by the additional 25% tariff but no date has been announced for the implementation on those products.

The first list comprises 818 products with a total import value of $34 billion, down from the 1,300 goods valued at $50 billion that had originally been proposed. A large percentage of the items on this list are from HTSUS Chapters 84, 85, 87, 88, and 90, such as engines and motors; construction, drilling, and agricultural machinery; machines for working minerals, glass, rubber, or plastic; rail locomotives and rolling stock; motor vehicles and motorcycles; helicopters and airplanes; and testing, measuring, and diagnostic instruments and devices.

The second list comprises 284 tariff lines with a total import value of about $16 billion. Many of these products are also classified in Chapters 84, 85, 87, and 90, but various products in chapters 27, 34, 38, 39, 70, 73, 76, and 89 are also included. Affected goods include plastics and plastic products; industrial machinery; machinery for working stone, ceramics, concrete, wood, hard rubber or plastic, and glass; cargo containers; tractors; and optical fibers.

We will continue to monitor the actions of the U.S. Government.  An all out trade war is imminent as China will impose similar tariffs on products that are exported from the United States, particularly in the agricultural sector. 

Thank you!

Sincerely,

Jim Shapiro/Stu Tobin

Thunderbolt Global Logistics LLC

https://thunderboltglobal.com/

410-633-2722

Video: Thunderbolt moves lower bed of an industrial press for Sparber Group of Spain

The video is of a shipment that Thunderbolt Global Logistics arranged from the Port of Portsmouth, VA to Union SC.  It’s a lower bed of an industrial press. The gross weight was 113,000 kgs/249,120# and dimensions 8.20 x 3.95 x 3.96 meters/26’11” x 13’  x 13’ (LxWxH).

We did this for the Project Cargo Division of Sparber Group in Barcelona, Spain.

We used a trucking company called Wolfe House Movers to handle the transport. It took months of planning and was picked up at the Port of Portsmouth, VA on Wednesday Nov. 29th and delivered to Union, SC on Saturday Dec. 2’nd

A special shore crane was hired used to lift on to the truck. Wolfe House Movers was excellent to work with and provided a high level of communication during the journey to Union. It could only move during daylight hours and required police escorts all the way to destination.  The cargo arrived in perfect condition.

 

ALFA Logistics Family Alliance Member of the Year

Thunderbolt Global Logistics was named ALFA Logistics Family Alliance Member of the Year for 2017 at their annual meeting held In Penang Malaysia in October 2017.     Jim Shapiro attended the meeting and was presented the award by Luc Huysmans Founding Father of the ALFA Logistics Family Alliance.

Thunderbolt moves 2 steel mill rolls weighing 15,783 kgs each

Two steel mill rolls weighing 15,783 kgs each arrived at The Port of Baltimore on a 40’ flat rack.  The Thunderbolt team arranged to have it picked up, all wrapping removed and loaded on 2 flat bed trucks fully tarped and delivered them to Mansfield, OH.

Thunderbolt Global routinely handles the transportation of steel mill rolls throughout the United States. This is business has grown for us and has become an area of specialization.

 

2017 Propeller Club Crab Feast attended by Thunderbolt

The Crab Feast is organized and run almost exclusively by volunteers – by Propeller Club members like Thunderbolt Global. The Crab Feast is a fun event, great for networking in the Greater Baltimore community. A good time was had by the Thunderbolt Global team.

Thunderbolt Global attends The CLC Project Network Conference in Panama City

 

Jim Shapiro & Chris Osborne attended the CLC Project Network conference in Panama City, Panama in October.   As part of the conference they visited the new Panama Canal locks in Colon that opened on June 26th that allow post Panamax size vessels to transit the canal.

The photo shows the MSC Silvia transiting the Agua Clara locks in Colon coming from the Atlantic Side and heading toward the Pacific side   Total time to go through the new locks shown is approximately 4 hours.

 

 

Thunderbolt sends Indy Race Car to 2016 Paris Auto Show

Thunderbolt exported this Indy race car to the 2016 Paris Auto show under an ATA carnet. This was sent from Indianapolis to Le Havre, France.

As with all Thunderbolt shipments of a sensitive nature, great care was taken by our team to ensure arrival in perfect condition. Images of the vehicle can be seen below.

The car is currently being imported back to the U.S. and upon arrival will be sent back to Indianapolis.  To learn more about our process of delivering excellence, call us at 410-633-2722, or email an inquiry using our contact form.

indy_car

SOLAS Updated Information

Effective July 1st, 2016, a new regulation from SOLAS (Safety of Life at Sea) takes effect requiring shippers whose name appears on the bill of lading to verify the gross mass (VGM) of a container carrying cargo.

 

This declaration (see attached) must be received before in gating the container or containers. Such declaration must be submitted to the carrier via web portal, EDI, or manual submission prior to the VGM cut off, with the electronic submission widely regarded as the most efficient. VGM cutoff times will vary by port & carrier. Many carriers have advised they will apply a “no VGM, no load” policy from July 1st, 2016.

 

Submission of VGM can be done by the shipper or freight forwarder. Thunderbolt can submit on your behalf, however we would require the completion of the attached VGM declaration once the cargo loading process has been completed. Applicable fees may be associated with this submission.

 

For further information regarding SOLAS guidelines & requirements refer to our May 24th, 2016 post below.


 

New SOLAS container requirements taking effect July 1st, 2016

SOLAS CONTAINER REQUIREMENTS

What is SOLAS– IMO’s- International Convention for the Safety of Life at Sea (SOLAS) requires that every containers Gross Mass is verified(with a signature) prior to stowage aboard the ship/vessel.

Who is Responsible– The shipper is responsible for the Verification of the Gross Mass of a container. They are also responsible for ensuring that the Verified Gross Mass is communicated in the shipping documents sufficiently in advance so it can be used in the ship’s stowage plan.

Why SOLAS– To ensure the safety of the ship, the safety of workers both aboard ships and ashore, the safety of cargo and overall safety at sea.

When– The new regulation is effective on July, 1 2016.

Where– There are 171 International Maritime Organization (IMO) member countries and 3 associate members.

http://www.imo.org/en/About/Membership/Pages/MemberStates.aspx

How– There are 2 methods by which the shipper may obtain the Verified Gross Mass (VGM) of a container:

Method 1: Upon the conclusion of packing & sealing the container, the shipper may weigh, or have arranged for a 3rd party to weigh the packed container.

Method 2: The shipper/3rd party may weigh all packages and cargo items, including the mass of pallets, dunnage and other packing and securing material to be packed in the container and add the tare weight of the container.

International Maritime Organization link:

https://www.cma-cgm.com/static/News/Attachments/Guidelines%20and%20additional%20details.pdf

GETTING STARTED/HOW TO PREPARE FOR THE JULY 1ST 2016 SOLAS REQUIREMENTS:

  • Select the best weighing method (1 or 2) to determine VGM (verified gross mass-which is the gross weight) for your business.
  • Method 1- Shipper or a 3rd party may weigh the container after it is packed and sealed using certified equipment.
  • Method 2- Weigh all packages and cargo items to include pallets, dunnage, securing material to be packed in the container plus the tare weight =VGM.

Cargo weight + Container Tare Weight = VGM

Collecting Tare Weight:

1) Check the weight marked on the container/door.

2) Contact Container Carriers Customer Service to verify container tare weight.

3) Check Carrier Websites.

Once the above is determined, forward verified data with shipping documentation to carrier for
submission at the terminal. Some terminals may not permit entry of the unit without a declared
VGM(whether arriving by road or rail), some port terminals will offer weighing services for a fee.
Amounts will be dependent on the port/terminal. VGM cut off times will vary by port, terminal.

We are working collectively with the various Ports, Truckers & Steamship lines for best practices.
We are pending further direction from the International Maritime Organization(IMO) regarding
acceptable documentation etc. Such matters have not been decided or settled at this time. Should you
have any inquiries please do not hesitate to contact us.

Stay tuned to the Thunderbolt Global website for more information about industry changes.

(View and download our PDF for full report)