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Section 301 tariffs set to be permanent feature of US trade policy

US importers should prepare for a prolonged era of Section 301 tariffs, stricter customs enforcement, and fewer opportunities to reduce penalties, according to trade consultancy CargoTrans. During a recent webinar, the company said Section 301 had evolved far beyond its original use against China, becoming the administration's preferred legal mechanism for imposing tariffs on a growing range of imports. The latest measures include 25% on selected goods from Brazil, while further tariffs affecting China, the EU, Vietnam, India, and Mexico remain under consideration. CargoTrans said businesses should no longer think of Section 301 as a single-tariff programme. "301 is a broad-based platform. We can't stop 301 because this is not 'China 301', it is a platform they are using to implement additional tariffs for many different reasons. So you are going to see a variation of 301s from here on," said licensed customs broker and trade advisor Rennie Alston. He also argued that the legal authority effectively allowed the administration to impose tariffs across a range of policy objectives, adding that while the underlying subject matter may differ, "the strength behind the 'just because' is the authorisation to tax." The expansion of Section 301 comes despite legal challenges from 25 US states, which have questioned the administration's use of the tariffs. However, co-CEO of CargoTrans Nunzio DeFilippis believes those cases face "a lot bigger hill to climb" in challenging the administration. "Recalculate landing costs," he advised. "Don't treat Flip 301 as another temporary tariff. Yes, it's being challenged, but this 301s are generally much more stickier than others in the past." Alongside the new tariff regime, CargoTrans warned that the Customs and Border Protection (CBP) agency was entering a far more aggressive enforcement phase. "The customs position is that enforcement escalation is here to generate revenue," said Mr Alston. According to him, the long-standing practice of reducing customs penalties by as much as 90% is disappearing. Instead, mitigation is now limited, with reductions of up to 50% available only to trusted traders and companies able to demonstrate written controls and robust compliance systems. CargoTrans also warned that CBP had adopted a "zero tolerance" approach. "Customs have said 'no more warnings'," Mr Alston urged, adding that enforcement was increasingly focused on recovering duties and penalties. The company urged importers to strengthen governance around tariff classification, customs valuation, and country-of-origin declarations, warning that errors in any of the three could expose businesses to allegations of tariff evasion. "Compliance is not a luxury, right? It is a requirement of demonstration," Mr Alston underscored.. "No longer is it a best practice to have a compliance manual and the appearance of compliance. Appearance is nowhere in these enforcement escalations." Beyond compliance, the speakers urged procurement teams to revisit supplier contracts, clearly allocating responsibility for future tariff increases and considering exit clauses covering actions by the US government. They also recommended that companies reassess sourcing decisions based on total landed cost rather than manufacturing price alone, taking into account transit times, supplier reliability, inventory costs, and tariff exposure. Looking ahead, CargoTrans warned, expect further Section 301 investigations before the end of the summer. "I think we're going to see more," concluded Mr Alston, adding: "I think tariffs are here to stay, in one form or another."

New Jersey fires a monopsony shot at Amazon's last-mile empire

Drum roll: the state's first-of-its-kind antitrust lawsuit arrives at the worst possible moment for the DSP model. Amazon's Delivery Service Partner (DSP) program was built on a simple proposition: you run the small business, we supply the packages, the vans, the uniforms, the routes, the software, and the AI-powered cameras watching your drivers' every move. What could go wrong? Quite a lot, according to New Jersey Attorney General Jennifer Davenport, who on Tuesday filed what her office calls the ...

Panstar purchases box ship for NSR maiden voyage

South Korean ferry operator Panstar Line has purchased a containership from HMM for its maiden voyage through the Northern Sea Route (NSR). Panstar took delivery of the 2011-built 2,700 teu HMM Mombasa (pictured) on Sunday, and is working with the Korean Register of Shipping to certify the renamed Panstar Acro for polar navigation by 15 August. It was widely believed that Panstar would charter a ship for the 22 August voyage, and it demonstrates the company's commitment to expand its container shipping business and its optimism that the NSR will become an alternative shipping lane. The purchase price was not disclosed, but is estimated at $26m. After arriving at Busan, the ship is undergoing supplementary work to make it resilient to icy conditions. The first voyage will see Panstar Acro set out from Busan for Hamburg, Gdansk, and Rotterdam with a 20-strong crew, including one with experience of navigating the NSR. Both China and South Korea are interested in exploiting the NSR as a shorter alternative pathway between Asia and Europe, especially as mainline operators are primarily detouring round the Cape of Good Hope to avoid geopolitical tensions around the Suez Canal. Sailing from Asia to Europe via the NSR is around 36% quicker than traditional routes, although the route is currently only viable during the Northern Hemisphere summer when ice caps melt sufficiently to allow safe passage. Panstar, which also operates South Korea-Japan liner services, has said shipper response to the service has been encouraging, and is confident of filling at least half the vessel's slots for the maiden voyage. Meanwhile, newbuilding deliveries and ship sales tend to slow during the summer, but in the past week, MSC has taken delivery of two 10,000 teu ships, MSC Maria Marilyn X and MSC Stella MX, from Zhoushan Changhong International Shipyard, which will be deployed on the Far East-South America service. Linerlytica also reported that MSC has purchased Bernhard Schulte Group's 2006-built 3,534 teu Gerhard Schulte for $34m, continuing its fleet expansion drive. Maersk has also dipped into the resale market, acquiring JP Morgan's 2013-built 8,704 teu Toconao for an undisclosed price.