US Importers of Chinese Tires Get Flattened

The cheapest tires you can find for your 18-wheeler are being made in China. In fact, the US Department of Commerce has determined that the Chinese government assistance given to its Chinese tire manufacturers gives these tire importers an average of 20% advantage over their US competitors. To offset this unfair advantage, the United States Government is enforcing an average 20% additional duty (called a Countervailing Duty) to all tires being imported into the United States effective July 7th 2016.  Here is the official notice.

If you are currently importing heavy truck tires, life as you know it will change in a big way! You’ll be paying more for your Chinese tires, that is true. But that’s just the beginning. You need a new Importer Customs Bond and you will be required to post a security deposit of its face value.  And there’s more! The CVD duty rate may change because it is just an estimated duty rate. Some cases are open for three to five years before a final rate is determined.

Keep in mind that we are only talking about countervailing duty right now. With the antidumping duty investigation still pending, there are whispers of an affirmative determination for antidumping duty being signed off on at the end of August 2016.  Those rates are unknown at this time.

Every country has Anti Dumping Duties and Countervailing Duties (ADD/CVD) to protect its local manufacturers from foreign predatory pricing, but the United States is the only country in the world that postpones the final assessment of the amount for many years.

John Heimsath – President & CEO ACM Logistics & Consulting Inc.

Your Supply Chain Secrets are Not as Secret as You Thought!

Importers and Exporters struggle to keep their most closely guarded secrets.

Did you know that every piece of information on an ocean bill of lading is available to your competitor?

As an importer or exporter of merchandise, companies involved in international commerce are required to transmit business sensitive information to the United States Government.  Every time your supplier ships your product (via ocean freight) from their factory to you in the United States, all of the information on the ocean Bill of Lading is collected and recorded by the Federal Government.  This data is a key component of the trade statistics that the Federal Government generates.  It tells us things like how our economy is doing, and if we’re importing more than exporting.

But, did you know that the specific information on each and every Bill of Lading is subject to public disclosure thanks to the Freedom of Information Act?  That’s right, all of the information that you find on an ocean Bill of Lading is available to the public!

This information includes:

  • Shipper
  • Consignee
  • Notify Party
  • Commodity Description
  • Marks
  • Date
  • Origin
  • Destination
  • and more.

The first company that began collecting and selling this trade information was PIERS: The Port Import/Export Reporting Service  In the past several years, others have also entered this market (IG Import Genius, Zepol:, and there are probably several more).

This means that if you want to snoop on your competitor and find out who they’re buying from or who they’re selling to, then this information is very valuable.  On the flip side, if you are trying to keep your competitors from finding out how you are able to buy such high quality items at such great prices, then you really don’t want this information out there for the world to see.

So, is there a solution?  Can you prevent your information from showing up on these different trade data sites?  The good news is that there is a solution, and the answer is quite straight forward.  The key to keeping your sourcing information confidential is to prevent it from being released to companies like PIERS in the first place.   Once the request is received and updated in CBP’s (Customs & Border Protection’s) system, your manifest information will not be released for a period of two years.

A subsequent request must be filed at least 60 days prior to the end of the two year period to assure there is no gap.  Here is a link to the Federal Regulations specific to FOIA (Freedom of Information Act) as it applies to Import and Export manifest information.  Title 19 Customs Duties Part 103 Availability of Information.

If you would like ACM Logistics & Consulting Inc to help you with this request, please complete the ‘Contact Us’ link on our website and we’ll be happy to assist you!

Remember, ACM Logistics & Consulting Inc specializes in helping importers and exporters make sense of all this, and your supply chain secrets really can be secret!