The National Retail Federation expects record imports through U.S. retail ports in August as consumer demand “continues to stretch supply chains and retailers shift from the back-to-school season to the peak shipping season for winter holiday merchandise,” reported the association Friday. U.S. ports handled 2.15 million 20-foot-long cargo containers in June, which was down 7.8% from May, but up 33.7% from a year earlier, when many stores were closed due to the pandemic, said NRF. It estimates July imports increased 15.7% from a year earlier to 2.22 million containers, and is forecasting 12.6% year-over-year growth in August volume to 2.37 million. That would top May’s 2.33 million “for the largest number of containers imported during a single month since NRF began tracking imports in 2002,” said the association. “Strong consumer demand has outpaced supply chain operations since late last year and could remain a challenge as the holidays approach,” said Jonathan Gold, vice president-supply chain and customs policy. “The continuing lack of labor, equipment and capacity has highlighted systemic issues and the need to create a truly 21st century supply chain to ensure resiliency against the next major disruption.”
The Biden administration should retroactively restore Section 301 tariff exclusions that expired last year, open a new exclusion application process and “continue negotiations with China to remove both nations’ counterproductive tariffs as soon as possible," nearly three dozen associations and business groups, including the National Retail Federation and Information Technology Industry Council, wrote Treasury Secretary Janet Yellen and U.S. Trade Representative Katherine Tai Thursday. Achieving “durable, concrete, meaningful results” with China to “level the playing field for American businesses” won’t be easy, said the groups. “Fully resolving tariffs is unlikely, absent substantially more progress by China on core issues.” U.S. importers pay about 18.5% more for Chinese products with Section 301 tariff exposure, they said. The administration “can take immediate steps to relieve increasing inflationary pressures and rising prices,” said the groups. “A worker-centered trade agenda should account for the costs that U.S. and Chinese tariffs impose on Americans here at home and remove tariffs that harm U.S. interests.” Treasury and USTR didn’t comment Friday.
The updated U.S. Xinjiang supply chain "business advisory" accusing Beijing of “horrific” human rights abuses against predominantly Muslim minorities in China spouts “the same old lies” in such reports issued by the U.S. government “one after another,” said a Chinese Foreign Affairs Ministry spokesperson. “The repetition of lies just lays bare its hypocrisy and hegemony on human rights,” the spokesperson told his regular daily news conference Wednesday. “The U.S. side should know that no matter how hard it tries to fabricate lies on Xinjiang, their sinister plot of containing China by using Xinjiang as an excuse is doomed to fail,” he said. U.S. businesses with “potential exposure” to supply chains in the Xinjiang region “should be aware of the significant reputational, economic, and legal risks of involvement with entities or individuals in or linked to Xinjiang that engage in human rights abuses, including but not limited to forced labor and intrusive surveillance,” said Tuesday 's 36-page advisory, released by the departments of State, Treasury, Commerce, Homeland Security and Labor, plus the Office of the U.S. Trade Representative.
The Commerce Department's Bureau of Industry and Security added 34 organizations to its entity list for tighter export restrictions, said Friday's final rule. Fourteen are based in China and “have enabled Beijing’s campaign of repression, mass detention, and high-technology surveillance against Uyghurs, Kazakhs, and members of other Muslim minority groups," said Commerce. Another five were “directly supporting" China's "military modernization programs," it said. A Chinese Foreign Affairs Ministry spokesperson, anticipating the BIS action, told a news conference Friday in Beijing that this list "is in essence a tool for suppressing specific companies and industries in China under the pretext of human rights."
Imports at the largest U.S. retail container ports are continuing to track double-digit year-over-year growth “as strong consumer demand keeps up its momentum,” reported the National Retail Federation Thursday. NRF estimates U.S. ports handled 2.33 million 20-foot-long containers in May, up 8.6% sequentially from April and up 52.2% from May 2020, it said. It was the highest monthly number of containers since NRF began tracking imports in 2002, topping the previous record of 2.27 million set in March. “The year-over-year growth we saw this spring was off the charts because the comparisons were against a time when most stores were shut down due to the pandemic,” said Jonathan Gold, NRF vice president-supply chain and customs policy. “We’re continuing to see strong growth even as we enter a point when stores had begun to reopen last year. That’s a sign of the tremendous demand from consumers. The challenge for retailers and supply chains is keeping shelves stocked as port congestion and other supply chain disruptions continue to impact the industry and the economy more broadly.”
The Court of International Trade extended to all unassigned cases a preliminary injunction halting liquidation of unliquidated entries subject to Lists 3 and 4A Section 301 China tariffs for plaintiffs in the massive litigation, said a Tuesday order. Cases challenging the tariffs continue to trickle in and, pursuant to an April 28 order, are automatically stayed. Chief Judge Mark Barnett penned the extension order shortly after dissenting from the preliminary injunction (see 2107060080).
The Commerce Department Bureau of Industry and Security added four Myanmar organizations to BIS' entity lists Tuesday for their support of the Ministry of Defense, including through providing telecom services. The companies “pose a significant risk of being or becoming involved” in activities contrary to U.S. national security and foreign policy interests, BIS said. BIS also added telecom company King Royal Technologies to the list for providing satellite communication services for the Myanmar military. King Royal didn't reply to an email sent to an address that has been associated with the company. The moves help bar the companies from doing business with U.S.-affiliated businesses.
The National Retail Federation seeks a meeting with President Joe Biden to address the congestion crisis at key U.S. maritime ports that’s “causing significant challenges for America’s retailers,” NRF CEO Matthew Shay wrote the White House Monday. The congestion has “added days and weeks to our supply chains,” leading to “inventory shortages impacting our ability to serve our customers,” said Shay. The delays also are raising "significant transportation and warehousing costs” that many larger retailers can absorb, but smaller retailers “may have no choice but to pass along these costs” to consumers, he said. Retailers continue to work with the ports and transportation providers to resolve the congestion, but “we need strong leadership from the administration to galvanize attention to the current situation as well as work to resolve long-standing issues that limit safe and efficient port operations,” said Shay. The White House didn’t comment Tuesday. Vizio was among suppliers bringing the ports congestion issue to light when it said last month that logistics delays were preventing the company from getting products “processed and out into the distribution hubs” (see 2105120064).
The U.S. Court of International Trade scheduled oral argument for 10 a.m. June 17 via Webex on the preliminary injunction Section 301 sample case plaintiffs HMTX Industries and Jasco Products seek to freeze the liquidation of unliquidated customs entries from China with Lists 3 and 4A tariff exposure. Akin Gump lawyers for HMTX and Jasco asked for oral argument last week (see 2106060001). They filed for the injunction April 23 after the government refused to stipulate that the plaintiffs will be entitled to refunds of liquidated entries if they win the litigation and the court declares the tariffs unlawful. DOJ opposes the injunction.
China urges the U.S. to “earnestly respect market economy principles and international economic and trade rules” and to stop “abusing state power to groundlessly suppress Chinese tech companies,” said a Foreign Affairs Ministry spokesperson Thursday. He was asked about President Joe Biden’s revocation Wednesday of ex-President Donald Trump’s bans on U.S. transactions with TikTok and other major Chinese apps (see 2106090076). The Chinese government “will continue to resolutely safeguard legitimate rights and interests of Chinese companies,” said the spokesperson. The White House didn’t comment.