The Trump administration recently took the first step to implement its plan to crack down on counterfeit goods online when it issued an executive order allocating more federal resources to the inspection and oversight of imports that are at risk for counterfeits and other illicit goods. The executive order was issued one week after the US Department of Homeland Security issued a plan setting out steps to combat counterfeit goods.
An importer of Giorgio Armani apparel recently secured a victory in the Court of International Trade in its dispute with US Customs and Border Protection (CBP). The case considered whether the importer was required under US customs laws to pay duties on advertising fees and trademark royalty fees as part of the value of the goods declared to CBP.
The United States and China recently signed a long-awaited trade agreement after nearly two years of a trade war that has resulted in crippling tariffs. This preliminary agreement requests China to purchase approximately $200 billion in certain US goods and services and provide better protection to US intellectual property and trade secrets. In exchange, President Trump has agreed to reduce the List 4A tariffs on $120 billion worth of goods and indefinitely suspend the imposition of a 15% tariff on List 4B products.
Fashion accessory and luxury goods importers of fine and costume jewellery containing gemstones or precious metals should be aware of a proposal being considered by Department of State (DOS) officials. According to the DOS, providing US consumers with information regarding the origin of raw materials used in jewellery is important in the fight against abusive regimes. In light of these developments, importers should begin to review their supply chains to understand how their goods could be affected.
Companies have been on high alert since hearing about a potential shutdown of the US-Mexico border. Although President Trump does not appear to be actively taking steps to close the border, the administration has taken actions to address the migrant situation on the southern border that is disrupting global supply chains. To avoid delays, importers should, among other things, have accurate documentation and check with local port directors for any developments.
Importers associated with industries where North Korean forced labour is known to be used must exert caution or be prepared to face the consequences. Failure to ensure that a company's supply chain is free from products resulting from North Korean forced labour will result in seizure and forfeiture of the prohibited merchandise, civil fines and possibly criminal prosecution.