Latest news with #importing
Free Malaysia Today
21-05-2025
- Business
- Free Malaysia Today
Importers race to turn US warehouses into tariff-free zones
The US has had more than 1,700 bonded warehouses, facilities where imported goods can be held without immediate payment of customs duties such as tariffs. (EPA Images pic) LONDON : Companies importing goods into the US from China are rushing to convert warehouses into facilities that are exempt from President Donald Trump's tariffs until they are ready to sell the merchandise. The US has more than 1,700 bonded warehouses, facilities where imported goods can be held without immediate payment of customs duties such as tariffs, currently 30% for shipments from China. Such fees are only paid when the goods leave the bonded warehouse, allowing businesses to manage funds more effectively at a time of extreme trade policy volatility. The rush to bond US warehouses for goods ranging from clothing to auto parts is a bet for some that raised US tariffs will be only a short-term policy by the Trump administration. Due to Trump's tariff war, many of these bonded warehouses are now at full capacity, and prices for space in them have skyrocketed, four industry sources told Reuters, prompting companies to apply to US customs and border protection to expand bonded space. Utah-based fulfillment firm LVK Logistics, for instance, is in the process of making one of its warehouses bonded 'in response to the tariffs,' CEO Maggie Barnett told Reuters, adding she expects the process to take three to four months. 'You can bond more or less anywhere,' said Chris Rogers, who manages the supply chain research team at consultancy S&P Global Market Intelligence. 'It involves money and it takes time, but if you are a big company and expect tariffs are going to remain elevated for an extended period, you can convert (existing) spaces into bonded warehousing,' Rogers said. Other companies and logistics firms are seeing their applications with the CBP backlogged in some cases by over six months, said Chris Huwaldt, vice president of solutions at WarehouseQuote, a logistics research firm. 'Last year, the process would have taken a couple of months,' he added. Huwaldt said getting storage space certified as bonded 'could cost thousands of dollars or it could cost six figures,' depending on the state the warehouse is based in, the financial status of the company and the additional security measures required by the CBP for a specific location. Trump's on-again, off-again tariff policy – which pushed duties on Chinese goods to as much as 145% in April before lowering them – makes the flexibility afforded by bonded warehouses appealing to companies. 'A lot of companies importing from China – not just China-based, but US importers as well – are taking advantage of bonded warehouses to assist with cash flow,' said Cindy Allen, shipping consultant at Trade Force Multiplier and a former FedEx Logistics executive. 'It doesn't necessarily save them money as the tariffs have to be paid when the goods are withdrawn from the warehouse. 'But it allows companies to pay duties in smaller increments as they are sold,' she said. The CBP said it has noticed an increased interest in the use of bonded warehouses for continued compliance with new regulations and executive orders. The White House did not immediately respond to a request for comment. 'Unprecedented' warehouse rush In early 2024, bonded storage space was rented at approximately twice the cost of standard storage rates, but since the start of 2025, it has risen to four times the price to rent non-bonded space, according to WarehouseQuote data. 'This rush to bonded warehouses to ease cash flow is unprecedented,' Allen said. During the first Trump administration, many companies simply accepted the levies on China. However, this meant firms paid more over a prolonged period of time while also being forced to invest in alternative sources to China. 'Importers 'don't want to repeat the past mistakes',' Allen said. Setting up new bonded warehouses could be risky, because the US may go back to higher tariffs once its 90-day reprieve ends. Vladimir Durshpek, co-founder of Venice, Florida-based warehousing and storage company CargoNest, said he is weighing adding a third bonded warehouse to his assets until US tariff negotiations are completed. 'What we don't want to do is rush into providing more capacity, and then things change,' he said. Fremont, California-based storage company DCL Logistics has not made definitive plans for bonded space because 'it's unclear if the demand will stay this high,' chief revenue officer Brian Tu said. 'By the time a lot of warehouses would be able to achieve bonded status right now, these additional tariffs might be gone, and the demand for bonded space might not be there,' said Jacob Roseburrough, director of marketing at WarehouseQuote.
Daily Mail
16-05-2025
- Health
- Daily Mail
Shocking report reveals the foods that are most likely to be laced with nasty pesticides - and it's not all fruit and veg
Common cupboard staples have been found to be laced with banned pesticides, a new report has revealed. Traces of the chemicals were found in herbs and spices such as dried basil, parsley and cumin, as well as dried beans, chilli and honey. High levels of the substances detected can cause digestive issues, while long term exposure has been linked to cancer. The European Food Safety Report report analysed data from 132,793 samples of a range of foods imported to Europe, including fruit and vegetables, and found that two per cent of those tested breached legal limits, which equated to 3000 products. They found that 42 per cent of products contained some residual pesticide traces but these were deemed safe. The European Union has strict rules on pesticides with just 0.1 micrograms per kilo of produce allowed. The analysis found that the chemicals were found at unsafe levels in unprocessed products like, chillies, dragon fruit, cumin seeds and grape leaves. Some foods, like chilli peppers, were found to contain shocking numbers of different pesticides — up to 37. Processed products like dried beans and spices made up 10 per cent of unsafe products, the analysis found. Ethylene oxide, a pesticide not approved in Europe, was detected in 40 samples. The chemical can cause headaches, nausea, diarrhea and difficulty breathing. Long term exposure has also been linked to cancer. The report found that the biggest risk came from importing food from countries outside the EU. The main countries from which non-compliant products were found were Turkey, India and Egypt. Although most of these consignments were stopped at the border. Levels of pesticides on produce from these countries were found to be three times higher than in the Union. The report also found a number of breaches in honey and rice products imported from outside the EU. Testing of brown rice revealed that some products contained tricyclazole, propiconazole, imidacloprid, and chlormequat chloride—all of which are banned in the EU. A 2024 systematic review published in the journal of Toxicology Reports found that high exposure to pesticides may be linked to increased risk of cancer, infertility and respiratory problems, but the effect is most likely in agricultural workers. Pesticides used in agriculture can often leave detectable traces of chemicals in, or on, our food known as 'residues'. According to the World Health Organisation (WHO), more than 1,000 different pesticides are used globally. They are used in agriculture to control weeds, insect infestation and disease carriers like mosquitoes, ticks, rats and mice. They also enable farmers to protect crop quantity and quality. Pesticide consumption has grown almost 60 per cent since 1990 reaching 2.66bn kg (5.86bn lbs) by 2020. But the elderly, children and unborn babies are especially susceptible to the adverse effects of pesticides. Late last year campaign group Pesticide Action Network UK (PAN UK) used Government testing data to show 46 pesticides with links to cancer had been detected on produce imports to Britain as of the end of last year. They say that washing or peeling fruit and vegetables can potentially reduce exposure to pesticides as some residues that appear on the surface will be eliminated, particularly traces of soil which may contain harmful bacteria. However they warn that this will not remove all pesticides used as some are 'systemic', meaning that they are actually absorbed by a plant when applied to seeds, soil, or leaves and the residues are therefore contained within the body of the produce itself.
