The final forms of two bills addressing American commercial involvement with Uighur forced labor will be considered for votes this week, but the rewrites by the Rules Committee soften the impact on businesses, particularly in apparel and shoes. The Uighur Forced Labor Prevention Act now also has the disclosure bill incorporated into the language.
The Court of International Trade is deluged with hundreds of lawsuits that closely model a challenge from Akin Gump and HMTX Industries that seeks to force refunds of Section 301 tariffs paid on lists 3 and 4 goods from China (see 2009110005). Such a torrent of filings is rare but not unheard of at the CIT, lawyers involved with and following the litigation said. The most obvious example was the yearslong litigation over the harbor maintenance tax (HMT), they said.
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.
Customs brokers and a trade attorney urged trade professionals to work with their importers now to prepare for enforcement of USMCA next year. Monica DeMars, manager of corporate customs for C.H. Robinson, told attendees at a National Customs Brokers & Forwarders Association of America conference session on Sept. 18 that when CBP begins enforcing USMCA, it will look at July-December entries from this year, not just start enforcing prospectively.
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.
Worker rights advocates, from non-governmental organizations and the AFL-CIO, say that the company-by-company withhold release orders on goods from Xinjiang are not enough to prevent goods made with forced labor from entering the U.S., while the head of a major apparel trade group said targeted enforcement is the only way to follow the evidence. They were all witnesses at a House Ways and Means Committee Trade Subcommittee hearing on enforcing the ban on the importation of goods made with forced labor from the Xinjiang region in China.
High tech goods from China that are eligible for USMCA treatment remain subject to applicable Section 301 tariffs, CBP said in a Sept. 11 ruling. The ruling is a follow-up to a ruling in August that addressed a question of whether goods that originate in China and imported from Mexico are eligible for USMCA treatment (see 2008110037). While CBP in the previous ruling said that such goods are eligible for USMCA treatment, the agency didn't say then whether the Section 301 tariffs would apply.
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 had little success when it tried to reduce the number of Section 232 exclusion applications that were rejected for technical problems by launching an applications portal in 2019, a Government Accountability Office report, released Sept. 15, said. The GAO said that the rejection rate went from 18% to 16% with the new portal. Even though the portal has mandatory fields, in an effort to eliminate incomplete submissions, the rejections for reasons other than an incorrect Harmonized Tariff Schedule code went from 27% in Regulations.gov to 43% in the portal.
International Trade Today is providing readers with the top stories from Sept. 8-11 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.