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Jabil's Global Category Intelligence Archive
Q1 2022
Jabil's Global Category Intelligence Archive
Q1 2022
GLOBAL TRADE COMPLIANCE
SITUATION ANALYSIS
WTO Launches Trade4SMSEs Platform
- It is imperative to maintain good relationships with suppliers globally to anticipate these delays.
2022 HTS US Update
- The US government will update the Harmonized Tariff Schedule (USHTS or HTS) on January 1, 2022. The new tariff provisions, modified product descriptions, and revised legal notes are intended to account for advances in technology, environmental, and health / safety considerations.
- Changes include new classifications for flat panel display modules (8524), smartphones (8517), 3D printers (8485), and drones (8806).
- Jabil’s Global Trade Compliance (GTC) team is reviewing the changes to the HTS to determine the impact(s) on Jabil’s product classifications. Please note that the HTS changes may affect duty rates and trade agreements.
- If you have any concerns, please contact Jabil’s GTC team.
Commerce to Deploy New AES Warning Message in January
- Effective January 13, 2022, the US Census Bureau will launch a new feature to automatically warn AES EEI filers for export shipments out of the US that incorrectly try to declare License Exception NLR (No License Required) for shipments that require a license or a different License Exception per US Export Regulations.
- When Jabil's shipping team attempts to submit the EEI, ACE will present a message with a response code “66Q - ECCN & CTRY OF DEST NOT ALLOWED FOR C33 (NLR)”. If not corrected immediately, the user will receive a “fatal error”, which will prevent the user from completing the filing, receive the ITN, and Jabil will not be able to export the shipment. If the Jabil shipping team at the sites proceed with any shipment without correcting the issue AND receiving an ITN, Jabil will be fined and penalized.
- If you have any concerns or receive this error while attempting to file an AES EEI, you must hold the shipment and contact Jabil’s GTC team immediately.
BIS Adds Entities to the Entity List and 1 Entity to the MEU List
- On November 26, 2021, the US Bureau of Industry and Security (BIS) added entities located in China, Japan, and Singapore to the Entity List for engaging in activities that are contrary to the national security of the US. These entities are as follows:
- Corad Technology
- Hangzhou Zhongke Microelectronics
- Hunan Goke Microelectronics
- New H3C Semiconductor Technologies
- Xi’an Aerospace Huaxun Technology
- Yunchip Microelectronics
- Hefei National Laboratory for Physical Sciences at Microscale
- QuantumCTek
- Shanghai QuantumCTeck
- Shaanxi Zhi En Electromechanical Technology
- Poly Asia Pacific Ltd. (PAPL)
- Peaktek Company
- Q&N Traders
- U.H.L. Company
- Jiuding Refrigeration & Air-conditioning Equipment Co
- K–SOFT Enterprises
- Seljuk Traders (SMC-Private)
- Global Tech Engineers
- Asay Trade & Supplies
- Jade Machinery
- Al-Qertas
- Additionally, BIS added the Moscow Institute of Physics and Technology to the Military End User (MEU) List.
- As a reminder, placement on the Entity or MEU list means that all exports, re-exports, or transfers of items subject to US Export Administration Regulations (EAR) require a license from BIS, regardless of where in the world the transaction occurs. BIS has also imposed “presumption of denial” policy which means Jabil cannot continue to engage in business with them.
- Please review the list to see if your organization engages in any business with these entities, its parents or subsidiaries and contact the Jabil GTC for direction and guidance.
There continues to be significant issues relating to transportation into and out of the UK due to Brexit
- There are still trucking queues into and out of the UK; average is still around 2-3 days.
- There are minimal delays of non-EU imports into the UK.
Recent Studies and Publications
- A recent report by the French Chamber of Commerce in Great Britain in 2021 Q3 report shows that UK-based organizations are still facing considerable challenges including rising transportation costs from earlier in 2021 and delays in import and export of goods from the EU. 79% of companies state they are still experiencing delays when importing or exporting goods, 8% more than in Q1.
- Our logistics UK teams have stated that Brexit and Covid still plays a large role in decline of transportation personnel.
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