The U.S. and Japan signed an agreement in Washington "formalizing the shared commitment of the Parties to facilitate trade, promote fair competition and market-oriented conditions for trade in critical minerals." The mini-deal that includes pledges not to impose export duties on the products, investment review within their countries for the sector, and a pledge to "confer on potential effective and appropriate domestic measures to address non-market policies and practices" that affect trade in critical minerals and critical minerals supply chains.
Customs duty
A customs duty is a tariff or tax which a country imposes on goods when they are transported across international borders. Customs Duties are used to protect countries' economies, residents, jobs, and environments, by limiting the flow of imported merchandise, especially restricted and prohibited goods, into the country. The Customs duty rate is a percentage determined by the value of the article purchased in the foreign country and not based on quality, size, or weight. U.S. customs duties are listed in the Harmonized Tariff Schedule of the United States.
Sen. Josh Hawley, R-Mo., has introduced a bill that would end most favored nation tariff treatment for China, part of what he calls the workers' agenda.
The International Trade Commission recently released Revision 2 to the 2023 Harmonized Tariff Schedule, adding four HTS subheadings under chapter 99 to implement Presidential Proclamation 10522 of Feb. 24, "Adjusting Imports of Aluminum Into the United States."
The Office of the U.S. Trade Representative complied with Administrative Procedure Act requirements when it set lists 3 and 4A Section 301 tariffs on China, the Court of International Trade held in a much-anticipated opinion on March 17. After USTR provided more explanation of its tariff decisions on remand, judges Mark Barnett, Claire Kelly and Jennifer Choe-Groves held that the explanations were not made impermissibly post hoc and cleared APA requirements.
CBP created Harmonized System Update (HSU) 2304 on March 9, containing 77 ABI records and 18 Harmonized Tariff Schedule records. These changes include additional Section 232 duties on imports of aluminum and derivative aluminum products from Russia and changes to HTS flagging. "With the upcoming ACE HTS deployment in May 2023, we recommend testing in ACE Certification," CBP said in a March 10 CSMS message.
Democrats and Republicans on the House Ways and Means Committee signaled their displeasure to Treasury Secretary Janet Yellen, as she suggested that critical minerals mined or processed in Japan or Europe may be considered as in-bounds for regional value content if those countries reach a critical-minerals-specific trade agreement. The U.S. and Japan have a free trade agreement reached during the last administration (see 1909260014) which reduced or eliminated some tariffs, but was not a comprehensive FTA that required a vote from Congress.
CBP will require new data on entry summaries for aluminum products beginning on April 10, the agency said in a CSMS message issued March 9. The data will aid its enforcement of increased Section 232 tariffs on Russian aluminum that include articles from third countries that use any Russian aluminum (see 2302240006).
CBP issued the following releases on commercial trade and related matters:
A bipartisan group of senators signed a Feb. 14 letter urging the Biden administration to take action against a surge of Mexican steel imports. The letter said tariffs can be reintroduced under a 2019 agreement that removed Section 232 duties on Mexican steel imports but allows them to be reintroduced if Mexican steel imports "exceed historic volumes of trade" and "surge meaningfully" into the market. The lawmakers said iron and steel imports increased about 73% over the agreed baseline from 2015 to 2017, which they believe requires action from the administration under the agreement.
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