China

Yesterday, our Beau Jackson, Robert Stang and Linda Tiller joined manufacturers, distributors and service providers in Kansas City for a discussion about the impact of tariffs on the business community. This insightful program included economic, industry and legal perspectives on current trade conditions and the various implications of recently-imposed tariffs. Pictured at right, Beau…

On March 31, 2017, Petitioners North American Steel & Wire, Inc./ISM Enterprises filed a petition for the imposition of antidumping duties on imports of Carton-Closing Staples from the People’s Republic of China.

SCOPE OF THE INVESTIGATION

The scope of this investigation is carton-closing staples. Carton-closing staples are fastening devices used to secure or close the flaps of corrugated and solid paperboard cartons and boxes. Carton-closing staples are manufactured from steel wire, and commonly have a copper-coating or a zinc (galvanized) coating. Carton-closing staples manufactured from stainless steel wire are also covered.

On Wednesday, Judge Richard Sullivan of the Southern District of New York relieved the Bank of China from an order issuing $50,000 of daily fines for failing to comply with two subpoenas for information on account holders accused of selling goods counterfeit “Gucci” goods. The matter provides an interesting case study of at least one dilemma facing foreign companies doing business in the United States – whether to comply with a US-issued subpoena knowing that compliance  would break foreign law.

On Sunday, March 1, 2015, CBS newsmagazine “60 Minutes” ran a lengthy piece reported by Anderson Cooper regarding accusations that Lumber Liquidators imported laminated flooring products that did not meet the standards set by the California Air Resources Board (CARB) for levels of formaldehyde. The focus of the story was on Lumber Liquidators, but the issue is likely to affect almost every importer of flooring and other wood products from China.

During the segment, Cooper referenced various lawsuits that are pending against Lumber Liquidators alleging that the company failed to meet CARB standards in California for formaldehyde. Cooper interviewed the CEO of Lumber Liquidators, Robert Lynch. Lynch said the company has a good system in place and checks carefully to make sure that CARB standards are met.

After making this statement, Lynch was shown a video interview of the plant manager of a Chinese plant that manufactures products for Lumber Liquidators. In the video, the plant manager plainly states that the flooring did not meet CARB standards. The journalist narrating the video adds that visits made to two other plants that manufacture flooring for the company revealed that the company’s flooring failed to meet the standards.

There was a time when the decision to offshore manufacturing operations to an emerging market was an easy business decision.  However, the past decade has many companies questioning that business model.  Rising labor costs, uncertain supply chains, labor unrest and the costly and lengthy delivery time for manufactured goods coming from Asia has exponentially increased the cost to offshore manufacturing.