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Event Recap

SELECTUSA 2024

The best thing in having an extensive network of alliance partners is that even though we were not able to attend SelectUSA 2024 we were still able to make meetings and expand our reach. Our trusted colleague Jamie Newell, a Strategic Development Consultant at Eastward H2, was able to meet many long-standing clients, consultants and Economic Development Organizations on our behalf. 

We look forward to supporting next year's event: 2025 SelectUSA Investment Summit – May 11–14, 2025 at the National Harbor, Maryland.

BIG CHANGES TO CHINA TARIFFS: RISK MITIGATION TOOLS

Photo CTTo: ITA/GC

Founded in 1977, the International Trade Association of Greater Chicago (ITA/GC) has attracted a diverse membership from all over Illinois, the Midwest, the nation as a whole, and six other countries. 

The ITA/GC’s focus is on practicality: on building knowledge and enabling relationships that help people do international business. While the scope of interest is diverse – all aspects of trading and commercial activity across all geographies and all industries—our work is simple: to help others gain an understanding that is personal, current, and actionable.

The National Security ("Section 301") tariffs imposed on Chinese imports beginning in 2018 will continue in effect for at least another four years. As a result, many firms are searching for methods to decrease or eliminate fees altogether. Now, businesses need to know a few things:

• What are Section 301 duties?

• What recent changes to Section 301 duties have been made?

• What strategies work to mitigate or avoid Section 301 duties?

• What strategies do not work to mitigate or avoid Section 301 duties?

David Forgue from Barnes, Richardson & Colburn, LLP, a global trade law firm based in Chicago, presented on the topic of "Ultimate Risk Mitigation." The presentation slide highlights key points such as customs binding rulings, their binding nature on customs and importers 60 days after issuance, the importance of presenting accurate facts, and the requirements for revoking or modifying rulings.

Section 301 Duties

Section 301 of the Trade Act of 1974 authorizes the United States to enforce trade agreements and resolve unfair foreign trade practices. The charges, which were levied for the first time in 2018, target a variety of Chinese products in response to what the US government considers unfair practices.

Recent Changes in Section 301 Duties

These obligations will be extended for at least another four years. This expansion has pushed businesses to look at other risk mitigation techniques more actively. 

The session featured practical guidance and real-world case studies showcasing the effective application of these tactics. The following were presented inefficient and successful ways of mitigating Section 301 duties:

Ineffective Strategies:

1. Misclassification: Attempting to intentionally misclassify things in order to avoid paying higher duties is prohibited and can result in harsh fines.
   
   

2. Omission of Facts: Providing incomplete or misleading information throughout the import procedure may result in penalties and heightened scrutiny.
   
   

3. Non-compliance: Ignoring the rules and attempting to evade detection is a risky tactic that seldom works and can result in large fines and penalties.

Effective Strategies for Mitigating or Avoiding Section 301 Duties:

1. Customs Binding Ruling: Importers can use a customs binding ruling as their ultimate risk mitigation option.
   
   

2. Tariff engineering is the process of modifying items so that they are classified with a reduced tariff rate.
   
   

3. Duty Drawback Programs: Programs that allow for the return of tariffs paid on imported products that are thereafter exported.
   
   

4. Free Trade Zones: Using free trade zones to postpone, cut, or abolish tariffs.

By using these practical techniques and learning from the case studies given, businesses may effectively negotiate the intricacies of Section 301 obligations and limit their impact. 

Nanjing - Chicago

Industrial Cooperation Exchange Conference

China General Chamber of Commerce Chicago (CGCC Chicago) is a non-profit member-based organization representing the Chinese companies in the Midwest. Its mission is to promote the bilateral trade and Chinese investments between the nine states in the Midwest including Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, and Wisconsin.

Nanjing, situated in eastern China along the Yangtze River, serves as the capital of Jiangsu Province and holds significant historical and cultural importance. With a population exceeding 8 million residents, Nanjing ranks among China's major cities, blending modernity with a rich heritage dating back over 2,500 years. Its economy, buoyed by sectors such as electronics, automobiles, and petrochemicals, boasts a GDP surpassing $600 billion yuan (approximately $95 billion USD). The city is renowned for landmarks like the Sun Yat-sen Mausoleum and the ancient city walls, offering a glimpse into its imperial past. Nanjing also hosts prestigious educational institutions like Nanjing University, contributing to its reputation as a center for academic excellence. Its strategic location and well-developed infrastructure further solidify Nanjing's role as a pivotal hub in China's economic and cultural landscape.

On July 10, 2024, the GCCC-Chicago signed an MOU with the Nanjing Municipal Investment Promotion Bureau (INJ) to cross-promote economic development and investment between the two regions.

Upcoming Events and Conferences

SiteLink Forum

UPDATE ON THE EXPORT IMPORT BANK OF THE UNITED STATES

UPDATE ON THE EXPORT IMPORT BANK OF THE UNITED STATES. Special Luncheon and Executive Briefing sponsored by the International Trade Association of Greater Chicago. 

Presentation by Judith Pryor, First Vice President and Vice Chair, Board of Directors, Export Import Bank of the United States who will provide a briefing on EXIM, its service offerings and how it accomplishes its mission of job growth through exports. She will also discuss EXIM’s newer initiatives including its new domestic finance initiative which now enables EXIM to support the full life cycle of an export by financing build out here in the U.S. for manufacturers as long as a portion of what’s produced is for export (25% and only 15% to be exported if you’re a small business). 
11:45 a.m. – 2:00 p.m.,

Carlucci Rosemont: 6111 North River Road, Rosemont, IL. 

ITA/GC Members - $50; Non-members - $75. 

For further information & to register, please see:  

Update on the Export Import Bank of the United States Tickets, Wed, Aug 21, 2024 at 11:30 AM | Eventbrite

Why SelectGlobal

SelectGlobal, LLC provides foreign direct investment (FDI) solutions.

Our mission is to bring together all parties to assemble new ventures, projects, and foreign direct investment to help rebuild and redevelop communities. Our vertically integrated FDI platform helps businesses identify and take advantage of global market opportunities and helps local municipalities attract foreign direct investment.

If you were forwarded this newsletter from a friend and would like to formally opt in to SelectGlobal, LLC and be a part of the process in bringing together businesses, municipalities, and capital to assemble new ventures, projects, and foreign direct investment to help rebuild and redevelop communities, join us!

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