Widespread problems with transmitting foreign-trade zone entries are one of several technical problems that plague customs brokers and compliance managers as the effects of the Trump administration's rapid policy changes make themselves felt. Compounding the difficulties is the administration's decision to pull back from engagement with the trade industry through its Trade Support Network and the cancellation of bi-weekly ACE calls.
Joseph Barloon, who was a general counsel at the Office of the U.S. Trade Representative during Donald Trump's first term, told Sen. Maria Cantwell, D-Wash., that he believes in rules-based trade.
House Select Committee on China Chairman John Moolenaar, R-Mich., said his vision of revoking Permanent Normal Trade Relations status for China is not to move Chinese goods to Column 2, but to create a new tariff schedule just for Chinese goods, with high rates reserved for strategic goods. Moolenaar, who has sponsored legislation to end PNTR (see 2501240061), described the approach he'd like to see at a Center for a New Security conference June 3.
The U.S. District Court for the District of Columbia on June 3 stayed its decision finding that the International Emergency Economic Powers Act doesn't provide for tariffs, pending the government's appeal of the ruling to the U.S. Court of Appeals for the D.C. Circuit. Judge Rudolph Contreras said a stay is "appropriate to protect the President’s ability to identify and respond to threats to the U.S. economy and national security" (Learning Resources v. Trump, D.D.C. # 25-01248).
The U.S. District Court for the Northern District of California on June 2 said the Court of International Trade has exclusive jurisdiction via Section 1581(i) to hear California's challenge to all tariff action taken under the International Emergency Economic Powers Act. Judge Jacqueline Scott Corley said President Donald Trump's executive orders implementing the tariffs are laws of the U.S. for purposes of Section 1581(i), since they modify the Harmonized Tariff Schedule, and the law implementing the HTS, 19 U.S.C. 3004, says the HTS includes modifications made by the president (State of California v. Trump, N.D. Cal. # 3:25-03372).
CBP created Harmonized System Update 2520 on May 31, containing 11 Automated Broker Interface records and three Harmonized Tariff Schedule records. HSU 2520 includes the extension of Section 301 Exclusions 9903.88.69 and 9903.88.70 to Aug. 31 and a partner government agency update.
An importer is liable for duties on merchandise that it sought to import in 2019, despite arguing that it didn't consent to having its broker designate it as an importer of record, according to a recent CBP ruling.
International Trade Today is providing readers with the top stories from last week in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
President Donald Trump said that although the 25% tariffs on steel, and the recently hiked aluminum tariffs, have "helped provide critical price support" to domestic producers, the rates are not high enough to enable them "to develop and maintain the rates of capacity production utilization that are necessary for the industries' sustained health and for projected national defense needs." So those rates will increase to 50% at 12:01 a.m. EDT June 4.
Steel and aluminum and their derivatives will be subject to 50% tariffs, not 25% tariffs, President Donald Trump wrote in a proclamation. The changes take effect at 12:01 a.m. June 4.