Michelle Schulz, women owned businesshttps://buywomenowned.com/ May 15, 2025 Schulz Trade Law PLLC is proud to announce our certification as a Women’s Business Enterprise (WBE) by the Women’s Business Enterprise National Council (WBENC), the preeminent authority on women-owned businesses in the United States. This milestone represents more than a formal recognition; it is a testament to our firm’s unwavering dedication to diversity, leadership, and excellence in the field of international trade law. As a woman-owned, operated, and controlled firm, we are honored to join the ranks of businesses certified by WBENC, an organization renowned for its rigorous standards and advocacy for women entrepreneurs. The Significance of WBE Certification The WBENC certification is a hallmark of credibility and achievement for women-owned businesses. As the largest certifier of women-owned enterprises in the United States, WBENC employs a meticulous evaluation process to verify that a business is at least 51% owned, controlled, operated, and managed by women. This certification is not merely a procedural accolade; it opens doors to meaningful opportunities, including access to supplier diversity programs and contracts with major corporations and government entities. For Schulz Trade Law PLLC, this certification affirms our position as a leader in fostering inclusivity within the legal profession. It enhances our ability to collaborate with organizations that prioritize diversity in their supply chains, enabling us to expand our impact while delivering exceptional legal services. Moreover, the certification aligns with our core values, reinforcing our commitment to creating a more equitable business landscape. A Distinctive Perspective in International Trade Law Founded and led by women, Schulz Trade Law PLLC brings a unique perspective to the complex and dynamic field of international trade law. Our practice encompasses a broad range of services, including compliance with U.S. export controls, customs regulations, trade sanctions, and anti-corruption laws. We advise clients across industries, from small businesses to multinational corporations, helping them navigate the intricacies of global trade with confidence and precision. Our woman-led approach is not only a point of pride but also a strategic advantage. Diverse perspectives foster innovative problem-solving, enabling us to craft tailored solutions that address the nuanced needs of our clients. The WBE certification amplifies our ability to connect with organizations that value such diversity, creating opportunities to forge new partnerships and expand our reach. Commitment to Excellence At Schulz Trade Law PLLC, excellence is the cornerstone of our practice. Our team combines deep legal expertise with a client-centric approach, ensuring that every engagement is marked by rigor, clarity, and integrity. The WBENC certification underscores this commitment, as it reflects our adherence to the highest standards of business operations and leadership. The certification process itself is a rigorous undertaking, requiring comprehensive documentation and verification of our ownership, management, and operational structures. Achieving this recognition demonstrates our firm’s organizational strength and our ability to meet the exacting standards set by WBENC. It is a validation of the hard work and dedication that define our practice, and we are deeply honored to carry this distinction. Advancing Diversity in the Legal Profession The legal profession has historically faced challenges in achieving equitable representation, particularly for women and underrepresented groups. While progress has been made, significant work remains to ensure that diverse voices are not only present but also empowered to lead. Schulz Trade Law PLLC is committed to advancing this cause, and our WBE certification is a meaningful step in that direction. By supporting women-owned businesses, organizations contribute to a more inclusive economy that drives innovation and growth. The WBENC certification enables us to engage with supplier diversity programs that prioritize such businesses, creating a ripple effect that extends beyond our firm. We believe that fostering diversity in the legal profession is not only a moral imperative but also a catalyst for transformative change, benefiting clients, communities, and the industry as a whole. Looking Ahead: Building a More Equitable Future Michelle Schulz The WBE certification marks a significant milestone for Schulz Trade Law PLLC, but it is also a starting point for new opportunities. We are eager to leverage this recognition to build strategic partnerships with organizations that share our commitment to diversity and excellence. These collaborations will enable us to expand our impact, delivering innovative legal solutions to a broader range of clients. As we move forward, we remain steadfast in our mission to provide exceptional trade law services while championing inclusivity. The certification empowers us to engage with government and corporate entities that prioritize supplier diversity, creating pathways to contracts that might otherwise be inaccessible. This, in turn, strengthens our ability to serve our clients with the resources and expertise they need to succeed in the global marketplace. We also recognize the broader implications of our certification. By thriving as a woman-owned business, we contribute to a more equitable business landscape, where diverse enterprises are celebrated and supported. This aligns with WBENC’s mission to advance women entrepreneurs, and we are proud to be part of this transformative movement. Gratitude and Vision We extend our heartfelt gratitude to https://buywomenowned.com/ for this prestigious certification and for their tireless advocacy on behalf of women-owned businesses. Their work creates opportunities for firms like ours to thrive, fostering a more inclusive and dynamic economy. We also thank our clients, partners, and team members, whose support and trust have been instrumental in our journey. Looking ahead, Schulz Trade Law PLLC is poised to build on this milestone, continuing to break barriers and set new standards of excellence in international trade law. We are excited to explore the possibilities that lie ahead, from forging new partnerships to delivering innovative solutions that empower our clients. Together, we can create a future where diversity is not only valued but celebrated as a driver of progress. In closing, we invite our colleagues, clients, and partners to join us in celebrating this achievement. The WBE certification is more than a recognition of our firm’s ownership; it is a reflection of our values, our vision, and our commitment to making a difference. We look forward to the opportunities this certification will bring and to continuing our work with integrity, excellence, and purpose. Trade Up

Commerce Seeks Comments on Statistical Test After Federal Circuit Ruling in Dumping Cases May 20, 2025 On May 19, 2025, The U.S. Department of Commerce (Commerce) published a notice on dumping cases asking for comments and alternatives on Commerce’s current use to the Cohen’s d test. Comments are due by May 30, 2025. The request for comments on this long controversial differential pricing analysis comes after the Court of Appeals for the Federal Circuit in Marmen v. United States (April 22, 2025) recently held that Commerce’s use of the current Cohen's d test is unreasonable when the test is applied to data that does not satisfy the statistical assumptions of normal distribution, equal variances, and sufficiently numerous data. Federal Circuit’s Ruling in Marmen v. United States In antidumping investigations, Commerce uses a method called “differential pricing analysis” to determine how to calculate a company’s dumping margin. One part of Commerce’s pricing analysis requires a Cohen’s d test, a statistical tool used to assess whether significant differences exist in the prices a company charges to different customers, regions, or during different time periods. The Cohen’s d test is not required under any statute or regulation, but instead is a method Commerce created as part of its internal approach to analyzing pricing differences. Federal Courts have upheld Commerce’s Cohen d practice largely until now. Role of Cohen’s d Test in Antidumping Investigations The Cohen’s d test helps Commerce to evaluate whether a company charged noticeably different prices to certain customers or in certain situations. If Commerce does find that a company charged noticeably different prices to certain customers, it can decide that the company’s pricing pattern justifies using a different calculation method (average-to-transaction method), which typically results in higher margins. This method also allows Commerce to apply “zeroing”, which increases a company’s exposure because Commerce will ignore sales where dumping did not occur in its dumping margin calculation. Implications of Differential Pricing Analysis Foreign producers often challenge the assumptions and groupings under Cohen’s d, especially around normal distribution assumptions and pooled standard deviations. U.S. domestic industry may advocate for the use of Cohen’s d if they believe that respondents are engaging in targeted dumping across purchasers, regions, or time. Key points Commerce’s Request for Comments On May 19, 2025, the U.S. Department of Commerce published a notice requesting comments and alternatives to its use of the Cohen’s d test in differential pricing analysis, with a deadline of May 30, 2025. Federal Circuit Ruling The Court of Appeals for the Federal Circuit, in Marmen v. United States (April 22, 2025), ruled that Commerce’s application of the Cohen’s d test is unreasonable when data does not meet statistical assumptions (normal distribution, equal variances, sufficient data). Cohen’s d Test Role Used in antidumping investigations to assess significant price differences across customers, regions, or time periods, though not mandated by statute or regulation. Impact on Dumping Margins If significant price differences are found, Commerce may use the average-to-transaction method with “zeroing,” increasing dumping margins by ignoring non-dumped sales. Stakeholder Perspectives Foreign producers challenge Cohen’s d assumptions (e.g., normal distribution, pooled standard deviations), while U.S. domestic industries may support it to address targeted dumping. Schulz Trade Law PLLC is here to help you navigate these complex issues affecting your business with confidence. Check our Tariff Tracker Reach out to Schulz Trade Law

May 16, 2025 On Friday, May 16, the International Trade Administration (ITA) published its final results in the countervailing administrative review (2022) of Certain Cold-Rolled Steel Flat Products from the Republic of Korea . The U.S. Department of Commerce (Commerce) continues to find that Hyundai Steel, POSCO, and producers/exporters of certain cold-rolled steel products received countervailable subsidies from the Korean government. The final subsidy rates were determined to be: Hyundai Steel Company: 2.21% (ad valorem) POSCO: 1.47% (ad valorem) KG Dongbu Steel Co., Ltd.: 1.73% (ad valorem) At this time, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect cash deposits of estimated countervailing duties in the amounts listed above for the companies listed on shipments of subject merchandise entered or withdrawn from warehouse for consumption on or after the date of the publication of its notice. For non-reviewed firms, Commerce will instruct CBP to collect duties in the amount of the “all-others” rate or specific entity rate. Additionally, CBP will assess duties on all appropriate entries of subject merchandise regardless of whether the importer was subject to the administrative review. Source Schulz Trade Law is here to help with any customs or countervailing duty questions arising from this recent administrative review. Check our Tariff Tracker Reach out to Schulz Trade Law

Free trade agreements (FTAs) are pivotal in today's interconnected world. They reduce or eliminate barriers to trade between participating countries, promoting smoother and more efficient commerce across borders. But how exactly do these agreements shape global commerce? The Role of Free Trade Agreements in Global Commerce The core purpose of FTAs is to foster trade by reducing tariffs and quotas on goods and services. This encourages countries to import and export freely without exorbitant duties hindering the flow of products. According to the World Trade Organization , FTAs can increase trade by an average of 20 percent between member countries. A bustling international trade port facilitating the movement of goods. Consider the North American Free Trade Agreement (NAFTA), which was enacted in 1994 and involved Canada, Mexico, and the United States. By eliminating tariffs on various goods, NAFTA increased trade volumes, with U.S. exports to Mexico and Canada growing rapidly after its implementation. In 1993, trade between these nations was around $297 billion ; by 2016, it had surged to over $1 trillion . How FTAs Enhance Economic Growth FTAs play a significant role in enhancing economic growth and development. Promoting trade, they help economies grow through increased production, job creation, and access to foreign markets. Studies show that countries engaged in FTAs typically see a rise in GDP due to greater export opportunities and increased competition. An international port receiving a container ship is vital to global trade. Countries also benefit from the integration of supply chains, which enables them to specialize in specific industries where they have a comparative advantage. This specialization can lead to lower production costs, increased efficiency, and ultimately better prices for consumers. For instance, the ASEAN Free Trade Area has fostered growth in Southeast Asia by encouraging collaboration and investment across member states. The Impact of FTAs on Trade Policies Free trade agreements often lead to the adoption of standardized trade policies among member countries. This creates a more predictable trade environment, benefiting both exporters and importers. One prominent example is the European Union , where a common trade policy has helped member nations to negotiate as a single unit, resulting in better trade deals with external countries. Furthermore, FTAs often contain provisions that promote transparency and legal frameworks, reducing the risk of disputes. This predictive clarity enhances business confidence, fostering an environment conducive to trade. A globe showing various trade routes around the world, highlighting global commerce. In addition, many FTAs include regulations regarding labor and environmental standards. These provisions ensure that trade fosters economic growth, social well-being, and environmental sustainability. Countries can address these critical areas while benefiting from trade advantages. Addressing Challenges of Free Trade Agreements While FTAs bring numerous benefits, they also pose challenges. One significant issue is the potential for job losses in specific sectors that cannot compete with cheaper imports. For instance, the textile industry in the U.S. faced significant job declines after the signing of agreements like NAFTA. To address these concerns, countries often implement training and workforce transition programs. These programs help workers develop new skills for industries that may benefit from increased trade. Policies must mitigate these adverse effects while promoting the broader economic gains from FTAs. The Future of Global Commerce and Free Trade Agreements As we move forward, the future of global commerce will likely be shaped by evolving FTAs. Trade agreements increasingly incorporate digital commerce provisions, addressing areas like e-commerce, data protection, and technology transfer. Digital FTAs , such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), streamline regulations for cross-border data flows and promote technology collaboration among member nations. This trend is critical as digital markets continue to grow exponentially. Governments must adapt to these shifts by embracing innovation and creating environments that encourage digital trade. By doing so, they can harness the full potential of FTAs to drive economic growth. Embracing the Benefits of FTAs for Businesses and Consumers For businesses, understanding and leveraging FTAs can unlock new opportunities. Companies can explore foreign markets, benefit from reduced tariffs, and collaborate with international partners. This can result in expansion, increased revenue, and improved competitiveness. Consumers also gain from FTAs through lower prices and more product choices. With fewer trade barriers, countries can access a wider variety of imported goods, often at reduced prices. This not only enhances consumer satisfaction but also fosters global cultural exchange. In summary, free trade agreements significantly shape global commerce by reducing trade barriers, promoting economic growth, standardizing trade policies, and potentially addressing challenges through workforce transition programs. The future of FTAs will likely incorporate modern issues, driving global trade towards more innovative avenues. Understanding these dynamics helps businesses and policymakers make informed decisions to foster sustainable growth and prosperity through global commerce.

In today’s global marketplace, the origin of a product plays a vital role in shaping consumer preferences, compliance regulations, and trade dynamics. With consumers becoming more socially aware and informed, understanding where products come from is essential—not just for ethical reasons, but also for financial gains, marketing strategies, and global competitiveness. Product Origin The concept of product origin refers to the geographical location where a product is manufactured or grown. Knowing the origin can significantly influence consumer choices. For instance , products from countries known for high quality, like Swiss chocolates or Italian leather, often command a premium price. In contrast, items associated with lower standards may struggle to gain consumer trust. The relevance of product origin extends beyond mere brand perception; it affects trade policies, tariffs, and international relations. Furthermore, various countries have different regulations concerning product labeling. Complying with these regulations is critical for businesses. Mislabeling a product's origin could lead to hefty fines and loss of consumer trust. Transparency in product origin bolsters brand integrity—consumers appreciate companies that are open about their sourcing practices. Trade market origin and options influence policy and trade. The Impact of Product Origin on Consumer Behavior Product origin can significantly influence purchasing decisions. A 2015 study by Nielsen revealed that 66% of consumers are willing to pay more for products from sustainable brands, which has only increased, as a survey from Supply Chain Brain in April 2024 found that 80% of consumers would pay more for sustainable products. This willingness heightens when the product aligns with the consumer's values regarding environmental and ethical considerations. For instance , consumers might choose organic cotton sourced from Turkey over non-organic cotton from a country with questionable labor practices. In sectors like food and beverages, origin can dictate taste expectations. Consumers often associate certain regions with specific flavor profiles—like French wines or Colombian coffee. This brand association helps drive purchasing decisions. A product's origin factor is increasingly becoming a part of the narrative that brands convey, thereby enhancing their marketing strategies. Additionally, geographical designation strengthens brand loyalty. Brands that communicate their product origins effectively are likely to foster stronger emotional connections with their customers. For example , brands showcasing artisanal or local craftsmanship can capitalize on the "shop local" movement. Stories of local origin resonate well, creating an emotional pull that transcends price considerations. Colombian coffee beans highlight their regional origin, influencing purchase behavior What is Your Country of Origin? Identifying your "country of origin" is essential not just for trade compliance but also for meaningful engagement with your customer base. Knowing where your products come from can inform strategic decisions related to supply chains, marketing, and branding. For instance, businesses that manufacture in countries with lower labor costs may think they have a competitive edge. However, competition is growing for brands focused on ethical sourcing. As such, adopting transparent practices about the countries involved in production is becoming increasingly vital. Moreover, investing in public relations campaigns that highlight the stories behind your product can yield significant returns. For example, a fashion brand could focus on sustainable fabrics sourced from local artisans, hence creating a compelling origin narrative that appeals to conscious consumers. Understanding your product’s lineage assists in identifying niche markets, which can provide new avenues for growth. To reflect the origin accurately, brands should consider the entire supply chain, including the location of raw materials and labor conditions. Regulatory Considerations and Trade Policies Navigating the complexities of international trade means staying informed on regulations regarding product origin labeling. Different countries have varying standards, and compliance is crucial for successful market entry. In the United States, the Federal Trade Commission (FTC) enforces regulations about country of origin claims. If a product is labeled as "Made in USA," it should meet specific requirements; for instance, a significant portion of its production, including labor, must occur in the U.S. Failure to comply can lead to legal ramifications, including penalties and product recalls. Additionally, international trade agreements like the North American Free Trade Agreement (NAFTA) and the European Union's Single Market can impact the treatment of product origin. Businesses operating in these regions should consult experts on trade laws to ensure compliance. Neglecting this aspect can jeopardize market access and sales opportunities. Product labels showing country of origin compliance Leveraging Product Origin in Marketing Strategies Marketers can use product origin as a powerful tool in creating brand narratives. By authenticating the heritage behind their products, companies can effectively communicate quality, craftsmanship, and ethical practices to their audience. For example , a brand focusing on sustainable textiles could showcase their sourcing from local farmers to engage eco-conscious consumers. Visual storytelling can communicate this message through social media, advertisements, and packaging. Brands that successfully integrate origin stories into their marketing often enjoy higher engagement rates. Additionally, collaborations with local artisans who produce authentic goods can add depth to marketing efforts. Highlighting these collaborations not only boosts the product's perceived value but also emphasizes a commitment to supporting local economies. Moreover, utilizing certifications—such as Fair Trade or organic labels—can reinforce the message of responsible sourcing. These designations can enhance brand credibility, thereby attracting a more dedicated customer base. Navigating the Future of Product Origin in Trade As the global market evolves, the significance of product origin will only grow. With the rise of digital shopping, consumers have more access to information about what they buy. This shift demands a greater focus on transparency from brands regarding where their products originate. In the future, companies that prioritize ethical sourcing and sustainability will likely experience a competitive advantage. The emphasis on corporate social responsibility is pushing brands to adopt transparent practices and engage with their consumers on different platforms. Investing in technology that enhances traceability can be a game-changer in demonstrating product origin. Brands could use blockchain to provide an unchangeable record of their supply chain, offering customers the assurance they seek. Ultimately, understanding and effectively communicating product origin will be essential for businesses looking to thrive in an increasingly complex global marketplace. Adapting to these trends and aligning business practices with consumer values will be the key to success. The Path Forward Recognizing the importance of product origin in trade is not merely an option—it is a necessity in today’s interconnected world. By embracing origin transparency, brands can foster trust, enhance competitive advantage, and ultimately drive sales. As consumers continue to seek authenticity, companies that prioritize ethical sourcing and compliance will lead the charge toward a more responsible global trade environment. The journey begins with awareness and leads to embracing product origin as a critical facet of business strategy. Products that tell a compelling origin story stand to resonate deeply with consumers, forging a lasting connection that goes beyond the transaction.

Webinar Doing business in the United States: What you need to know about import customs issues hosted by Enterprise Europe Network September 19, 2024 16:00 - 17:00 CET Embracing Global Markets Webinar Series The webinar series ‘Embracing global markets’ supports European small and medium sized enterprises and start-ups to innovate and expand in Asia, Africa and the Americas. The webinars are hosted by experts of various European Commission services and the 'Enterprise Europe Network', the world's largest business service provider. Who should attend? The webinar aims at European small and medium-sized enterprises (SMEs), start-ups (ready to scale internationally), beneficiaries or holders of the European Innovation Council's seals of excellence, European clusters and cluster managers, business advisers of the Enterprise Europe Network and other European business support organisations, and all stakeholders of the ‘Friends of EEN’ initiative. Objectives for import customs This webinar will be an update on the state of transatlantic trade import customs issues and what you need to know about recent trade policy changes, including topics like: joint EU & US efforts in the context of the Trade & Technology Council; legal impediments to transatlantic trade incl. An update on duty/and tariff regimens, increased customs enforcement, issues related to extraterritorial jurisdiction, sanctions update the current state of Supply chain, remaining challenges, new sourcing patterns (near-shoring / reshoring), congestion at ports, other bottlenecks such as the relocation of vessels and containers, the cost and lack of warehouses interplay, managing rate volatility, picking partners new developments in Trade Law, how trade agreements affect nearshoring trends, Trade restrictions, incl. what exporters need to know now about the Steel & Aluminum (232) and the Section 301 tariffs, along with complications that companies face by secondary sanctions tips and ways to manage trade compliance in common sectors (food, technology, chemicals, medical devices) things you need to know to ensure a smooth path through customs for specialty products About Us We are a dedicated team of trade law professionals, committed to helping businesses navigate the complexities of international regulations and tariffs. With deep industry knowledge and a client-first approach, we provide clear, actionable insights to protect your interests and drive success in a dynamic global market. Contact Us Stay ahead of trade law changes! Contact us today for guidance on tariffs and regulations to safeguard your business.

Managing Partner Michelle Schulz’s remarks are included in this two-part “Practice Innovations” blog series by Thomson Reuters that looks at the role law firms play in preparing their more senior partners for retirement and for a firm’s succession planning. Don't miss out on the second part of the series, where more insights and strategies will be unveiled. Read article now

When hiring an international law firm for your company, it's essential to consider several factors to ensure you choose the right one. In this article, we offer some steps and considerations to help you make an informed decision. 1. Understand the Difference Between International and Domestic Law Domestic law primarily deals with legal matters within the borders of a specific country, focusing on individuals, companies, or entities operating within that country. International law, on the other hand, involves behaviors and actions across borders, including interactions between different countries, states, or entities. International law considers not only domestic laws but also international treaties and customs. 2. Identify Your Specific Legal Needs Determine the specific areas of international law relevant to your company. These may include international business contracts, international real estate, international tax and business entities, international trade law, international human rights law, international environmental law, or international criminal law, to name a few. Knowing your legal needs will help you find a law firm with expertise in the relevant areas. 3. Choose Between Public and Private International Law Public international law covers sectors related to international relations, such as human rights, environmental law, and trade law. Private international law (also known as international business law) deals with legal issues between individuals, corporations, and organizations across multiple countries.   Consider which sphere aligns with your company's requirements. 4. Research and Evaluate Law Firms Look for law firms specializing in international law. Consider their expertise, reputation, and track record in handling international cases. 5. Ask the Right Questions Inquire about the following when evaluating law firms:   Previous clients:  Ask for references and case studies related to international matters. Industry knowledge: Assess how well the firm understands your industry and its specific challenges. Cross-border experience:  Check if the firm has successfully handled cases involving multiple countries. Other questions to ask: o   Does your firm practice import/customs law, export controls, or both? o   Does your law firm have international trade law experience in our industry specifically? o   Do you have experience in tariff classification? Communication:  Understand how they communicate with clients and keep them informed. Fees and billing:  Clarify their fee structure and billing practices. 6. Consider Cultural and Language Factors International law involves dealing with diverse cultures and languages. Ensure the law firm can effectively navigate these differences. If your company operates in specific regions, look for firms with local expertise and language proficiency. 7. Evaluate Compatibility and Trust Building a strong working relationship with your law firm is crucial. Consider:   Trust:  Can you trust the firm to handle your international legal matters? Compatibility:  Do their values align with your company's mission and goals? Remember that choosing the right international law firm is a critical decision that can have an impact on your company's success in global operations. Take the time to research, ask questions, and find a firm that meets your specific needs and expectations. About Us Schulz Trade Law PLLC is a woman-owned law firm with more than 20 years’ experience leading corporate clients through the regulatory challenges of international commerce. Our seasoned trade attorneys, analysts and advisors have a unique depth of experience and knowledge in export and import compliance and enforcement matters. Fortune 500 companies and other global organizations trust our team to handle a multitude of high-stakes international trade and customs matters that minimize legal risks while promoting growth. If you need further assistance or have any specific questions, feel free to contact us at 214-643-6150 or service@schulztradelaw.com .

China, a thriving global economic powerhouse, is a prime location for businesses looking to expand their horizons and tap into new markets. The potential for growth and profit is immense, as China is the world's largest consumer market. However, importing goods to China can be a complex process, especially for businesses that are new to international trade. This brief post aims to guide you through the crucial information you need to know about importing to China. Understanding China’s Import Regulations First and foremost, you need to familiarize yourself with China's import regulations. The country has strict rules and regulations regarding imports, and failure to comply with them can result in hefty fines, delays, or even confiscation of your goods. It's essential to understand the country's customs duties, import licenses, and documentation requirements. Identifying Your Products HS Code Every product that enters China needs to be classified under the Harmonized System (HS) Code. This international standard system of names and numbers is used to classify traded products, and it's crucial to get your product's HS code right, as it determines the import duties and regulations that will apply to your product. Choosing a Reliable Freight Forwarder Selecting a reliable freight forwarder can make your import process significantly smoother. They will handle all the logistics involved in transporting your goods from one place to another, reducing your workload and ensuring that your products reach their destination safely and promptly. Understanding Chinese Consumers Before you start importing, ensure you understand the Chinese consumers' needs and preferences. This is incredibly important because what sells well in your home country may not necessarily have the same appeal in China. Conducting market research can provide valuable insights into consumer behavior and popular trends in China. Labeling and Packaging China has specific requirements for the labeling and packaging of imported goods. Incorrect labeling or packaging can lead to your products being held at customs, causing delays and additional costs. Therefore, it's essential to ensure that your products meet all the necessary labeling and packaging requirements before they are shipped. Inspections and Customs Clearance Your products will need to pass through inspections and customs clearance before they can be sold in China. This process involves verifying the compliance of your goods with Chinese regulations and paying any necessary customs duties and taxes. It's crucial to be prepared for this process and have all the necessary documentation ready. Overall, while the process of importing to China can be complex and challenging, it can also be highly rewarding. With thorough preparation and understanding of the Chinese market and its regulations, businesses can tap into the immense opportunities that China offers and achieve significant growth and success.

December 1, 2022 - Following the G20 summit in Bali on Nov. 14, 2022, President Joe Biden reported that a new cold war with China can be avoided. This is certainly welcome news to global businesses, but day-to-day businesses continue to struggle with the chaos of unprecedented international trade regulations that have taken hold in the past six years. The Trump-era China tariffs, the Ukraine/Russia related sanctions, as well as other trade restrictions challenge U.S. companies with an international reach as they navigate a tumultuous geopolitical scene. It is also important to note the lasting impact of the U.S. withdrawal from the Trans-Pacific Partnership Agreement (TPP), which would have included 12 Pacific Rim economies. The agreement has moved forward without the U.S. as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP, or TPP11). So, amidst this global unrest, what are U.S. companies really struggling with today when it comes to international trade? It's understanding and navigating the technicalities. Below, we examine some of the major international trade issues facing U.S. companies. China As U.S. importers are aware, the China Section 301 tariffs impact certain products for certain periods of time, depending on the product's applicable classification under the Harmonized Tariff Schedule (HTS). Having an incorrect HTS classification can result in penalties and interest, with fees. If the Section 301 tariffs apply to a given product by HTS code, the importer must pay an additional 10-25% tariff to the U.S. Government to import the merchandise. As outside trade counsel looking in, we see first-hand through company sales data that many U.S. businesses cannot shoulder this additional burden. Some companies have shifted production to Mexico, where they may take advantage of the U.S.-Mexico-Canada Agreement (USMCA) as long as they meet the technical requirements for originating products. For others, China is the only feasible country from which to source a particular commodity — for example, due to limited product availability or the difficulty of relocation of manufacturing plants. Importers were allowed to request exclusions during specific windows of time, and such requests frequently involved proving severe economic harm to the U.S. requestor. Exclusions were granted for certain products, again for certain periods of time. The U.S. Trade Representative (USTR) extended 352 of 549 total eligible exclusions in March 2022 that were valid from Oct. 12, 2021, to Dec. 31, 2022. In addition, on May 27, 2022, the USTR extended 81 product-specific exclusions for COVID-related products. These exclusions are set to expire on Dec. 1, 2022, so importers are watching for new developments. USTR began a four-year review of Section 301 actions taken on May 3, 2022, but that review will take time. Congress also instructed the ITC to gather public comments on Section 301 economic impacts, but that report is not due to Congress until 2023. Much is up in the air. For assistance or questions with the four-year review or exclusion process, the USTR has a hotline for Section 301 at (202) 395-5725. In addition to the tariffs, compliance teams are working to document compliance with the Uyghur Forced Labor Prevention Act (UFLPA), which involves a rebuttable presumption that the importation of certain goods from China is prohibited. Add to that the complexity of denied party screening of entities that are state controlled even if they are not state OWNED per se. Tracking that ownership back is extremely difficult, and companies do not know how deep to dig in the due diligence process. Mexico The USMCA went into effect July 1, 2020, keeping in place the detailed content analysis required to substantiate country of origin product-by-product. To qualify for preferential tariff treatment, products must contain a minimum amount of North American content. Whether an import qualifies as originating depends on the percentage of content from the region or a substantial transformation within a USMCA country (e.g., a change in the essential character of the item as specified in the tariff code). Despite several updates in 2020, substantiating country of origin remains a technical and detailed process. The USMCA also adds new twists to the origin analysis of certain imports such as vehicles. For example, the article, "USMCA — Impact on the Automotive Industry," by The Descartes Systems Group, a trade software service provider, notes significant changes to the automotive industry. "To qualify for tariff-free entry, automakers must use an increased minimum of North America-made parts, from 62.5 percent from NAFTA to 75 percent. Additionally, increased worker compensation is now required." Specifically impacting manufacturers in Mexico, which under NAFTA saw wages accounting for one-eighth of costs, USMCA provisions now require companies "to produce 40-45 percent of their parts from factories paying an average wage of $16 USD per hour." Russia The Ukraine/Russia-related sanctions are not comprehensive. Rather than covering the entire country, the U.S. Department of Treasury Office of Foreign Assets Control (OFAC) has designed these sanctions to target specific entities and individuals. In our practical experience, targeted, complex sanctions regimes such as the Russia sanctions can give companies false hope. On its face, a proposed transaction may not appear to violate U.S. sanctions on Russia. In practice, however, transactions can wind up prohibited due to tangential aspects of the deal. Among other verifications needed to ensure a transaction is legal, vetting Russian entities requires knowing precisely how the ownership of an entity is structured and who the owners are. Corporate documents generally are not publicly available for China and Russia. Even if a proposed transaction passes screening initially, the bank or banks involved may be blocked so the seller cannot get paid. Conclusion Lingering COVID-19 supply chain issues and dynamic international relations have led to stricter regulatory controls in the U.S. Not only are certain imported goods subject to significant tariffs, but transportation and logistics are also more expensive because of supply chain shortages. As companies strive to expand, are they growing their trade compliance programs? The past six years have culminated in an extraordinary administrative burden on corporate trade compliance teams. And growth will not stop anytime soon. To grow in a healthy way, leading companies are reevaluating the regulatory landscape and scaling up trade compliance programs to meet demands in the coming year.

September 7, 2022 - With the pandemic, we saw an incredible demand for technology that consumers use in work and for entertainment. Unfortunately, that demand was coupled with worldwide shortages and significant supply chain issues, and these factors had a devastating effect on semiconductor production. With semiconductor chips in very short supply, there was a wide-ranging impact in many industries, from automobiles to gaming consoles, leaving consumers with few options for purchasing. This shortage has highlighted the fact that these chips that we rely on for so much of our technology are not widely made in America. According to a statement from Whitehouse.gov, while America invented the semiconductor, we currently only produce about 10 percent of the world's supply. All of this has led to the passage of the CHIPS and Science Act of 2022, designed to tackle the chip shortage with a new approach to bringing chip technology, manufacturing, and innovation to the United States. President Joe Biden signed this bill into law on Aug. 9, and we can now expect to see a boost in U.S. leadership in semiconductor research and design, innovation, and manufacturing. The CHIPS Act will have a broad impact, bolstering U.S. leadership in wireless technology, and CHIPS funding will benefit not only U.S. chip manufacturers, but also U.S. universities, K-12 STEM educational programs, and regional hubs among other advancements in innovation. To assist in securing the domestic chip supply, the CHIPS Act provides $52.7 billion for American semiconductor research, development, manufacturing, and workforce development, including: •$39 billion in manufacturing incentives, including $2 billion for the legacy chips used in automobiles and defense systems; •$13.2 billion in R&D and workforce development; •$500 million to provide for international information communications technology security and semiconductor supply chain activities, such as research and design, packaging, and distribution; •A 25 percent investment tax credit for capital expenses for manufacturing of semiconductors and related equipment. (See here https://bit.ly/3e9xqMg). The Bureau of Industry and Security (BIS) already controls exports of semiconductors and semiconductor technology strictly under Category 3 of the Export Administration Regulations (EAR) Commerce Control List (CCL). The reasons for control for Category 3 electronics include national security, regional stability, missile technology, nonproliferation, and antiterrorism. The U.S. government has not hesitated to enforce these controls, for example in the 2021 case of Vorago Technologies Inc., an Austin-based semiconductor manufacturer, charged with illegally exporting controlled wafers to Russia via Bulgaria. According to the BIS publication "Don't Let This Happen to You," on Sept. 28, 2021, Vorago Technologies agreed to a civil penalty of nearly $500,000, $247,00 of which was suspended, along with a two-year denial of export privileges. The BIS also added three Russian companies and four Russian individuals to the BIS Entity List in connection with this investigation. The Department of Justice (DOJ) also charged individuals criminally in this case. The Assistant Attorney General explained in a Dec. 18, 2020, press release, "Time and again, we find the Russians attempting to get access to sensitive American technology. The defendants here are charged with exporting radiation-hardened chips to Russia, knowing that it was illegal to do so and establishing a business in Bulgaria to circumvent U.S. enforcement authorities." (See here https://bit.ly/3AXzL5V). So, now that chip production will inevitably increase in the United States, what does that mean for export controls? The U.S. export controls on semiconductors are hardly new, but taking on a greater leadership role in this area will require the United States to protect even more carefully against unauthorized exports of controlled technology. For example, CHIPS funds will come with "guardrails" to help ensure subsidized entities do not build certain facilities in China or other countries of concern. This bill also comes at a time when the U.S. has been implementing stricter semiconductor export controls and licensing policies — and tougher export enforcement overall. For example, in June, the BIS announced heightened enforcement measures for export control, including for example the publicizing of administrative penalties. (https://bit.ly/3pXc07L). "Our enforcement tools have never been a better match for the global threat environment than they are right now, and today's changes will help to make sure that we are using those tools to their fullest potential to protect our national security," said Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod in a June 30, 2022, press release on the BIS website. Then, on Aug. 15 BIS announced a formal ban on the export of four technologies directly tied to semiconductor manufacturing. According to BIS, in a statement released on Aug. 12 on its website, the rule "establishes new export controls on four technologies that meet the criteria for emerging and foundational technologies under Section 1758 of the Export Control Reform Act (ECRA) and are essential to the national security of the United States." The four technologies include two substrates of ultra-wide bandgap semiconductors: Gallium Oxide (Ga2O3), and diamond; Electronic Computer-Aided Design (ECAD) software specially designed for the development of integrated circuits with Gate-All-Around Field-Effect Transistor (GAAFET) structure; and Pressure Gain Combustion (PGC) technology. (See here https://bit.ly/3CJ3Qra). All of this increased regulation in tandem with the CHIPS Act will have a direct impact on Chinese corporations, covering a wider range of Chinese end-uses and end-users. Recent "entity listings" cover certain public and private semiconductor-related entities, including chip designers and end-users (like Huawei), various Chinese supercomputing entities, and Chinese chipmakers (like Fujian Jinhua). These controls typically cover all semiconductor technologies. With the passage of the CHIPS Act, U.S. semiconductor manufacturers, technology developers, universities, educators, funded state and regional hubs, electronics distributors, and other leaders in semiconductor and telecom innovation must remain vigilant in protecting against unlawful releases to China, Russia, and any listed entities and individuals under U.S. export laws and regulations. For example, any CCL products, equipment, or technology classified under Export Control Classification Numbers in Category 3 or Category 5 will require a license for export to certain destinations. U.S. export controls are far-reaching, and enforcement is trending upward. U.S. export controls touch exports as well as re-exports to third countries, in-country re-transfers, and even releases of drawings, blueprints, formulas, and other technology to foreign nationals located in the United States. Fortunately, the BIS offers outreach on compliance in this complex area of law and technology. (See here https://bit.ly/3TrF3hm). As the semiconductor industry navigates the benefits of the CHIPS and Science Act, export controls will also require an increase in export compliance awareness. https://www.reuters.com/legal/legalindustry/passage-chips-science-act-what-does-this-mean-us-export-controls-2022-09-07/

Dallas-Based Boutique Law Firm Dedicated Exclusively to Complex International Trade, Customs Compliance and Enforcement Matters Dallas, TX – With over 22 years of in-depth experience focusing on international trade matters at some of the country’s largest law firms and a leading trade firm, Michelle Schulz has now launched Schulz Trade Law PLLC, a boutique, Dallas-based law firm dedicated exclusively to assisting clients in international trade, customs compliance, and enforcement matters. Michelle is joined by a team of seasoned international trade attorneys and trade advisors with the extensive knowledge and skill sets needed to assist clients in navigating the highly complicated issues associated with fast-changing international trade issues. Michelle and her team represent clients in export and import disclosures, investigations, audits, penalties, encryption controls, and other complex areas of international trade law. As the founding partner of Schulz Trade Law, Michelle leads her team in the representation of clients in a variety of industries such as oil and gas, aerospace, electronics, health care, food and beverage, and automotive. She has served as outside trade counsel for clients including Fortune 500 manufacturers, distributors, and defense contractors, and she is well-known for negotiating with enforcement, leveraging an unparalleled understanding of government requirements and expectations. Michelle and her team are well-versed in defense exports under the International Traffic in Arms Regulations (ITAR) as well as dual-use exports under Export Administration Regulations (EAR). They are also highly experienced in the US Customs Regulations, Foreign Corrupt Practices Act (FCPA), Foreign Trade Regulations (FTR), and Committee on Foreign Trade Investment in the U.S. (CFIUS) regulations and routinely navigate compliance issues in sanctions, embargoes, Foreign-Trade Zones (FTZs), free trade agreements, country of origin, valuation, and trade data reporting to the U.S. Census Bureau (Census). The team at Schulz Trade Law includes Senior Associate Attorney Lindsay Forbes, Associate Attorney Marina Mekheil, Of Counsel Ogbo Ossai, Of Counsel Adrienne Braumiller, Senior Trade Analyst Kelly McCorkle, Trade Analyst Matt Savage, Paralegal Matthew Regner, and Chief Operating Officer Brian Lawrence. About Schulz Trade Law, PLLC Schulz Trade Law PLLC is a boutique Dallas-based law firm dedicated to assisting our clients with all of their international trade concerns. We represent clients across a variety of industries, including Aerospace, Healthcare, Technology, Oil & Gas, Manufacturing, and Transportation, offering a broad range of legal services such as ITAR & EAR Compliance, Export, Licensing and Agreements, Voluntary Disclosures, Compliance Programs, Auditing, and Customs Regulations. Learn more at https://www.schulztradelaw.com ###