More than 12.7 million counterfeit face masks were seized by CBP during fiscal year 2020, part of more than 950 seizures of either FDA-prohibited drugs or test kits, or counterfeit or fraudulent products aimed at fighting COVID-19, the agency said in its annual fiscal year report, released Feb. 4. About 51% came from China; 24% were discovered in the mail; and 53% were sent by express couriers. For general intellectual property seizures, 90% were in either international mail or express shipments.
Two Senate Finance Committee members pressed commerce secretary nominee Gina Raimondo to study the cost of Section 232 tariffs on downstream companies, but she did not agree to do so in her written replies to their questions. “If confirmed as Secretary, I plan to review any work the Department of Commerce has already done on the impact of the tariffs and will ensure that any review is up to date,” she replied.
The Court of International Trade on Feb. 4 denied a broad challenge to Section 232 tariffs on steel products (see 1912040033), finding against a group of steel importers that had challenged the initial proclamation that set the tariffs, as well as procedural steps that formed the basis for the action. One of several recent cases challenging the tariffs, this one differed in its focus on the Commerce Department report that preceded the tariffs, as well as the proclamation's failure to set an explicit expiration date. The trade court found in favor of the government on both issues, holding that the Commerce report was not a final agency action that could be challenged in court and that the law behind Section 232 does not require the president to decide a date when the tariffs will end.
The Court of International Trade on Feb. 4 rejected a broad challenge to Section 232 tariffs on steel. Universal Steel Products, joined by several other importers, had challenged the Commerce Department report upon which all Section 232 steel tariffs were based, as well as President Donald Trump’s failure to set an expiration date for the tariff action, among other things. But the trade court found in favor of the government, holding the report was not a final action and could not be challenged, and that the president’s edict that the tariffs remain in effect so long as national security is threatened satisfied Section 232’s requirement that he set a “duration” for the tariffs.
The following lawsuits were filed at the Court of International Trade during the week of Jan. 25-31:
International Trade Today is providing readers with the top stories from Jan. 25-29 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
President Joe Biden reversed a Trump administration decision to move from 10% tariffs to quotas on aluminum exported from the United Arab Emirates. The proclamation, published Feb. 1, noted that imports of aluminum have “substantially decreased” since the imposition of Section 232 tariffs, and that imports from the UAE fell by 25%. Trade data says that imports of aluminum fell 8% from 2018 to 2019; they fell 10% from 2017 to 2018, the year the tariffs began.
CBP issued the following releases on commercial trade and related matters:
The Court of International Trade on Jan. 27 declined to dismiss a nail importer's challenge to Section 232 steel "derivatives" tariffs, but stopped short of finding in the importer's favor. In a lengthy opinion that drew an even longer dissent, two members of a three-judge CIT panel ruled against the government's motion to dismiss PrimeSource's claims that the derivatives tariffs ran afoul of the deadlines for tariff changes under Section 232, but held that more information was needed before it could render a final decision.
The European Union wants to work with America on ways to develop Artificial Intelligence standards, design a carbon adjustment border mechanism and stockpile medicines and personal protective gear in a way that lessens dependency on certain Asian countries, its ambassador to the U.S. said on a webinar hosted by the European American Chamber of Commerce