Trade Day 2019: Three Takeaways for Your Business
On August 13th, our Director of Administration, Matt, and our Supplier Development Manager, Zach, attended the 8th Annual Trade Day in Detroit, Michigan. It was here that they were able to sit down and meet with representatives from U.S. Customs and Border Protection, as well as learn more about importing and exporting merchandise through presentations and demonstrations. Check out the post below, written by Matt, on some of the key takeaways from this event that affect your supply chain.
Trade Day 2019 provides the trade community a platform to communicate one-on-one with government representatives who are responsible for enforcing trade laws while still processing and facilitating trade. Mobile Defenders attended Trade Days 2019 at Cobo Hall in Detroit, Michigan, hosted by the U.S. Customs and Border Protection’s Detroit Field Office. The goal was to foster conversations with customs officials that are on the front lines of international trade, as well as ensure that all of our import programs are in compliance.
CTPAT Certification
As part of our compliance program, Mobile Defenders is CTPAT certified. Customs Trade Partnership Against Terrorism (CTPAT) is one layer in the U.S. Customs and Border Protection’s (CBP) multi-layered cargo enforcement strategy. CTPAT is a voluntary public-private sector partnership program which recognizes that CBP can provide the highest level of cargo security only through close cooperation with the principal stakeholders of the international supply chain, such as importers, carriers, consolidators, licensed customs brokers, and manufacturers. Importers are required to meet certain criteria to ensure that the integrity and security of imports are ensured through the entire supply chain.
Complying with Import Rules
One component of compliance that Mobile Defenders has focused on specifically is Intellectual Property Rights (IPR) violations. We had the privilege of meeting with the IPR division of CBP while at Trade Days.
We were able to get clarification on the import rules for some common products that impact the phone repair industry:
- Samsung Products: It’s legal to sell Samsung products with logos if you have a chain of custody for these products. Mobile Defenders ensures that all of our screens have a verified and authentic chain of custody.
- Refurbished Goods: These products are eligible to be sold, but are at a high risk of seizure if a logo is still present. Even if the logo hasn’t been altered, the part can still be seized, since the trademark holder hasn’t given permission to use the logo on a refurbished good.
How Tariffs Will Affect the Phone Part Industry
Another large discussion at Trade Days was the upcoming Section 301 tariffs. On September 1, 2019, a new list of HTS (Harmonized Tariff Schedule) codes are set to take effect which includes those on cell phone parts. The new round of tariffs will be scheduled at 15% - these tariffs apply to any product that is manufactured in China, regardless of where its exported from. Mobile Defenders will be watching for any updates related to tariffs and sharing them as soon as they’re official.
What does this mean for your business? The supply chain is evolving, and products are going to become more regulated against IPR violations. Mobile Defenders has and will continue leading the way on ensuring that the products with IPR violations don’t make it to your supply chain. Tariffs are likely to impact your cost of goods sold, but Mobile Defenders will be sure to inform you of any changes related to the upcoming section 301 tariffs.
