The Office of the U.S. Trade Representative is publishing its latest list of product exclusions from the first tranche of $34 billion in Section 301 tariffs on China (see 1905090067). This fifth list of exclusions includes one full tariff schedule subheading, as well as 88 subsets of tariff numbers in chapters 84, 85 and 90. The new exclusions take effect retroactively from July 6, 2018, when the $34 billion in tariffs originally entered into force, and will remain for one year following publication of USTR’s notice. USTR is creating Harmonized Tariff Schedule subheading 9903.88.10 for the new set of exclusions.
The Commerce Department issued Federal Register notices on its recently initiated antidumping and countervailing duty investigations on quartz surface products from India (A-533-889/C-533-890), and Turkey (A-489-837/C-489-838).
CBP hopes to begin its second phase of implementation for its in-bond regulations in July, said Jim Swanson, CBP director of cargo and security controls, at the May 30 meeting of the Commercial Customs Operations Advisory Committee in Laredo, Texas. Beginning in mid-July at the earliest, and no later than the end of the month, CBP will begin mandating electronic reporting for arrivals, exports and diversions, though the agency will not at that time begin issuing liquidated damages, he said.
CBP provided guidance on filing foreign-trade zone entries for goods formerly covered by Section 232 tariffs applied to Mexico and Canada, in a CSMS message dated May 30. Under proclamations issued May 19, goods from Canada and Mexico admitted under privileged foreign status into FTZs that were subject to Section 232 tariffs on aluminum and steel products at the time of admission will not be subject to the duties if entered after the tariffs were lifted, i.e., 12:01 a.m. eastern daylight time on May 20.
Steel goods from Turkey that were given “privileged foreign status” for a foreign-trade zone while steel goods were subject to 50 percent Section 232 tariffs will only be subject to 25 percent tariffs when entered for consumption, CBP said in an update to its page on the Section 232 tariffs. Such goods that were admitted "prior to 12:01 a.m. eastern daylight time on May 21, 2019, shall be subject upon entry for consumption on or after such time and date to the additional 25 percent additional ad valorem rate of duty in heading 9903.80.01 in subchapter III of chapter 99 of the [Harmonized Tariff Schedule of the United States]," CBP said. The Section 232 tariffs on steel from Turkey were reduced to 25 percent on May 21 through a proclamation (see 1905170004) that included the language on FTZs.
The following lawsuits were filed at the Court of International Trade during the week of May 20-26:
CBP created Harmonized System Update (HSU) 1909 on May 22, containing 467 Automated Broker Interface records and 103 Harmonized Tariff Schedule records, it said in a CSMS message. The update includes adjustments related to the Section 201 safeguard tariffs on solar cells and residential washers that apply to Turkey now that it has been removed from the Generalized System of Preference benefits program (see 1905240049). Modifications required by the verification of the 2019 HTS are included as well.
The Commerce Department issued notices in the Federal Register on its recently initiated antidumping and countervailing duty investigations on vertical metal file cabinets from China (A-570-110/C-570-111). The CV duty investigation covers entries Jan. 1, 2018, through Dec. 31, 2018. The AD duty investigation covers entries Oct. 1, 2018, through March 31, 2019.
CBP is still waiting for some details on the termination of Turkey's eligibility for benefits under the Generalized System of Preferences, a CBP official said during a May 23 conference call. Asked about the specific effective date for goods being entered from Turkey and why there has not been a CSMS message, a CBP official said "we don't have the confirmed information for that." CBP sometimes has to work "behind the curve" when reacting to executive orders, the official said. President Donald Trump announced that Turkey would no longer be part of GSP program effective May 17 (see 1905170004). Annex A of the proclamation, published in the May 21 Federal Register, says the removal of Turkey from tariff schedule provisions on GSP takes effect "for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on May 17, 2019 ... ."
The Treasury Department published its spring 2019 regulatory agenda for CBP. The agenda includes a new rulemaking that would amend CBP's regulations to revise the language on duty-free goods returned. The agency will try to issue an interim final rule by August this year. Specifically, the Trade Facilitation and Trade Enforcement Act extended duty-free treatment to products of non-U.S. origin exported and returned to the U.S. within three years after having been exported, and created a separate tariff schedule "subheading for returned U.S. Government property allowing duty-free return of U.S. Government property without time and origin restrictions."