The International Trade Commission updated the tariff schedule late Oct. 26 to restore an exemption for bifacial panels from safeguard duties on crystalline solar photovoltaic cells pursuant an order from the Court of International Trade. Revision 25 to the Harmonized Tariff Schedule of the United States again adds U.S. note 18(c)(iii)(15), which provides for the exemption, to subchapter III of chapter 99. The provision had been removed in the prior HTS revision (see 2010260025).
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.
CBP issued a CSMS message Oct. 26 announcing changes to the tariff schedule to implement a recent proclamation amending safeguard duties on crystalline silicon photovoltaic cells, including the elimination of an exemption for bifacial panels (see 2010130028). The announcement came despite a last-minute court order blocking the proclamation’s withdrawal of the bifacial panel exclusion. The CSMS message does not mention the court order. A CBP spokesperson said the agency "is in the process of issuing additional guidance on this subject." The Office of the U.S. Trade Representative and the Justice Department didn’t comment.
Law firm Husch Blackwell has no objection to a Department of Justice proposal to designate the first-filed HMTX Industries-Jasco Products complaint as a test case in the massive Section 301 litigation, but “there is no reason that it should be chosen as the only test case without further analysis,” it said Oct. 22 in a partial opposition to the government’s Oct. 19 motion for case management procedures (see 2010200022). It told the Court of International Trade that it represents 75 “individually named plaintiffs” of the “approximately 6000 plus” importers seeking to vacate the lists 3 and 4A tariff rulemakings and get the duties refunded.
Duties continue to be collected under the Section 232 tariffs on aluminum from Canada, despite a September Office of the U.S. Trade Representative announcement that the tariffs would end. Lauren Wilk, Aluminum Association vice president for policy and international trade, said Oct. 22 that a presidential proclamation or executive order rolling back the tariffs never came.
HMTX Industries and Jasco Products, the initial filers of the Section 301 litigation seeking to vacate the lists 3 and 4A tariff rulemakings and get the duties refunded, strongly oppose the Department of Justice’s prolonged briefing format and schedule proposed Oct. 19 in a motion for case management procedures (see 2010200022), Akin Gump said in a response Oct. 22 at the Court of International Trade. Under the government’s proposal, the parties would not begin to argue the “merits of this dispute” before 2022 or beyond, it said. “Given the ongoing harms to thousands of plaintiffs, among others, that protracted schedule is unacceptable.”
Grunfeld Desiderio counseled clients in the Section 301 litigation to consider a “sliding scale” of options on filing timely complaints within the two-year statute of limitations window that qualifies importers to recover duties paid if the suits are successful, partner Ned Marshak said in an Oct. 19 interview. The firm filed more than 800 of the nearly 3,600 complaints inundating the Court of International Trade. Its Sept. 16 complaint on behalf of YC Rubber was the first to follow Akin Gump's suit for lead plaintiff HMTX Industries.
CBP is seeking comments by Nov. 20 on existing information collection requests for foreign-trade zone annual reconciliation certification and record-keeping requirements, exportation of articles under special bond, cost submissions and entry of articles for exhibition, it said in notices published in the Oct. 21 Federal Register. CBP proposes to extend the expiration date of these information collections with no change to the burden hours or the information collected.
A steel importer will receive refunds of Section 232 tariffs under a settlement that resolves its legal challenge of denied exclusion requests. Approved Oct. 15 by the Court of International Trade, the settlement directs CBP to reliquidate some entries covered by exclusions Borusan Mannesman Pipe U.S. had alleged were improperly denied by the Commerce Department. The government did not admit liability under the settlement.
Chief Judge Timothy Stanceu of the U.S. Court of International Trade should “automatically stay” all but the lead HMTX Industries-Jasco Products complaint in the Section 301 litigation and designate HMTX-Jasco as the “test case,” the Department of Justice said in an Oct. 19 motion to adopt case management procedures. All the nearly 3,600 complaints inundating the CIT seek to vacate the lists 3 and 4A tariff rulemakings and get the duties refunded. The roster of complaints attached to DOJ’s motion takes up 187 pages.
There is some industry concern that a proposal to end the de minimis exemption to Section 301 goods isn't considered “economically significant,” an executive following the issue said. CBP 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 (see 2009040026).