China-US Trade Alert for Invoice Factoring & Trade Finance for Electronic Productsby Stephen Perl invoice factoring company
As we all know, China and US are major trade partners, and there is a large amount of related trade finance and invoice factoring that follows this path of trade. Just last month, US Trade deficit showed a 7% increase in imported goods. Much of these goods are financed by US or Chinese banks or commercial factoring companies.
Based on several current factoring companies’ reports such, it appears that Customs Boarder Patrol (CBP) is detaining and seizing a much higher percentage of the electronics trade. PMF Bancorp reported that they have noticed through financed clients that US Customs or Custom Border Patrol (CBP) has recently raised their internal requirements for documentation on electronic importers. For instance, normally, US Customs requires for tablet computers with Google software to be authorized by Google which makes sense for use of their logos, etc. However, PMF Bancorp observed through Custom’s notices that having Googles approval for use of logos is no longer sufficient documentation for US Customs. They must have a Letter from Google authorizing the electronics company to be able to “import” their goods. This appears to be over reaching because if Google gave the approval and certification to the tablet or electronic makers to use their name and logos, then it should be assumed they have the right to import and to sell the same product. Why else would an electronics company seek these approvals and Google’s approval, if it were not for the reason to import and sell these same electronic products.
Electronic companies, Invoice factoring and Trade Finance companies bringing in electronic goods from China, especially with Intellectual Property markings (IP) on the box or even embedded in the tablet or other electronic devices need to be on high alert to review their documentation to make sure that there are no issues upon importation.
If your collateral is detained or seized by US Customs, then what?
Where does one appeal a US Customs decision or go to expedite the correction of an error? The answer, is that one must appeal through the US Customs…there should be an outside judicial remedy to check this government agency, but there is not and most decisions on seized goods take more than 12 months to respond with a decision on an IPR issue. Electronic companies need to be on alert that US Customs has changed their requirements and more importantly, free reign to make unilateral decisions and change guide lines as described above.
Stephen Perl, CEOAuthor: Secrets of Doing Business with China: Dancingwith the Dragon
Created on Dec 31st 1969 18:00. Viewed 0 times.