Light-emitting diode lamps imported by Grakon for incorporation into automobiles originate in the country where the lights inside the lamps were assembled, Mexico, rather than the country of the lamps’ final assembly, and are not subject to Section 301 tariffs on products from China, CBP said in a recent ruling.
More than 300 exclusions from lists 1 and 2 Section 301 China tariffs are set to expire Sept. 20, after the Office of the U.S. Trade Representative declined to extend them in the run-up to their expiration.
Importers that want to benefit from a lawsuit challenging list 3 and list 4A Section 301 tariffs on goods from China may face a tight deadline for filing their own cases at the Court of International Trade, law firms said in recent days. “This lawsuit, if successful, could result in the refund of all Section 301 tariffs levied on List 3 and List 4A goods from China,” the National Customs Brokers & Forwarders Association of America said in an emailed alert. “However, importers must file their own independent claims to preserve their potential refunds by Friday, Sept. 18.”
The Commerce Department will expand steel import licensing requirements to cover more steel products and require more information to be submitted to obtain the licenses, it said in a final rule released Sept. 10. The rule also indefinitely extends the expiration date of the Steel Import Monitoring and Analysis (SIMA) system, which had previously been renewed every four years and was set to expire in 2022, by removing provisions on the program’s expiration from the regulations. The rule takes effect Oct. 13.
The flurry of forced labor investigations and withhold release orders from CBP in recent years is starting to have an impact in countries with reported violations, in particular in Malaysia, Sarah Bessell, deputy director of Washington, D.C.-based The Human Trafficking Legal Center, said during an online panel discussion at CBP’s Virtual Trade Week on Sept. 9.
The Commerce Department will allow time for rebuttal comments on its proposed overhaul of its regulations on antidumping and countervailing duties, it said in a notice released Sept. 9. Issued Aug. 13, the proposed rule is intended “to strengthen the administration of enforcement of AD/CVD laws, make such administration and enforcement more efficient, and create new enforcement tools for Commerce to address circumvention and evasion of trade remedies” (see 2008120037). One key change would allow Commerce to retroactively suspend liquidation and require AD/CVD cash deposits as a result of scope rulings. Comments are still due Sept. 14, but the notice allows for rebuttals to comments submitted by the deadline. Rebuttals will be allowed until Sept. 28, and will be accepted electronically only.
An importer of caulk guns is entitled to monetary damages from a competitor that claimed its caulk guns were made in the U.S. when substantial portions of them were imported, the New Jersey U.S. District Court said in a recent decision. The court found that Albion Engineering continued to claim “Made in U.S.A.” in its marketing materials, representations to customers and even on some product labeling after moving much of its production to Asia, to the detriment of Newborn Bros.'s ability to attract business.
CBP is apparently working on a regulatory change that would eliminate the $800 de minimis exemption for goods subject to Section 301 tariffs. The agency on Sept. 2 submitted to the Office of Management and Budget a proposed rule titled “Excepting Merchandise Subject to Section 301 Duties from the Customs De Minimis Exemption,” according to OMB’s Office of Information and Regulatory Affairs website.
The Court of International Trade on Sept. 2 declined to order the release of an importer’s entries that were detained by CBP on country of origin concerns, finding the uncertainty around its own contradictory line of cases on substantial transformation was a factor in denying the bid for a preliminary injunction.
A recently announced reduction in quotas on Brazilian semi-finished steel results in a reduction in the annual quota amount of about 10%, according to an annex, released Sept. 1, to the president’s earlier proclamation. Originally implemented as part of a deal with Brazil for the country to avoid Section 232 steel tariffs, the adjustment for decreased U.S. steel demand causes the quota for subheading 9903.80.57, which covers steel blooms, billets and slabs, semi-finished, to fall on an annual basis to 3,155,137,048 kg, down 350,570,783 kg from the original deal. The Office of the U.S. Trade Representative has said that, in terms of remaining quota amounts for the year, the reduction amounts to a decline from 350,000 metric tons (350,000,000 kg) to 60,000 metric tons (60,000,000 kg) (see 2008310010). The annex also implements in new subheading 9903.80.62 an exemption from the decreased quota amounts for covered products already contracted for purchase, provided that the decrease would result in a disruption, among other conditions.