New Section 232 tariffs on finished products of steel and aluminum face a court challenge just before they’re set to take effect. PrimeSource, a Texas company that bills itself “one of the largest purveyors of fasteners in the world,” says the tariffs on steel and aluminum “derivatives” violate the statutory requirements of Section 232 and importers’ constitutional rights.
The effort to give Congress more say on Section 232 tariffs that has stalled so far is not broad enough to ensure that erratic tariffs are not levied, according to experts who spoke during a Feb. 5 briefing held by Rep. Stephanie Murphy, D-Fla., a Ways and Means Committee member who has hosted trade sessions three times in the last few months. No other members of the committee responsible for trade attended, but Rep. Jim Cooper, Rep. Donna Shalala and Rep. Jim Costa, all Democrats, listened for at least part of the session, in addition to many Hill staffers and some lawyers, diplomats and industry representatives.
The following lawsuits were filed at the Court of International Trade during the week of Jan. 27 - Feb. 2:
International Trade Today is providing readers with some of the top stories for Jan. 27-31 in case they were missed.
The coming expansion of Section 232 tariffs to finished steel and aluminum goods will not apply to immediate transportation entries that are accepted before Feb. 8, CBP said in a Feb. 4 CSMS message. The message gives guidance for filers affected by the new 10 percent tariffs on some finished aluminum goods and 25 percent tariffs on some finished steel goods that start on Feb. 8 (see 2001280072). Eligible immediate transportation entries “shall be subject to the duty rates in effect when the immediate transportation entry was accepted at the port of original importation,” the agency said. CBP used a similar policy when the previous Section 232 tariffs took effect (see 1804050027).
CBP collected $71.9 billion in customs duties during fiscal year 2019, a 73 percent increase over the previous fiscal year, the agency said in a news release about its latest annual report on the agency's travel and trade statistics. “This is a staggering increase in duty collections, linked directly to the Administration’s trade remedy measures under Sections 201 and 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962.” CBP said in the report. “Whereas remedies were only in place for part of fiscal year 2018, they were in place for the entire fiscal year in 2019.”
CBP remains cautious in moving toward continuing education requirements for customs brokers as it continues to examine the issues that derailed a similar effort some years ago, said Brenda Smith, executive assistant commissioner of CBP’s Office of Trade, during a Jan. 29 interview with International Trade Today. CBP recently launched a task force on the subject (see 1910160056), but the agency is considering whether an advance notice of proposed rulemaking (ANPRM) is necessary before issuing an actual proposal, she said.
CBP published notices in the Customs Bulletin revoking or modifying numerous rulings in 2019. These ruling revocations and modifications also apply to “any treatment previously accorded by CBP to substantially identical transactions.” When revoking or modifying a ruling, CBP is required by 19 USC 1625(c) to publish notice of the proposed action, and allow a period—generally one month—for comment before finalizing the action. An importer’s failure to advise CBP of “substantially identical transactions” or of a ruling not identified by CBP in these notices “may raise issues of reasonable care on the part of the importer or its agents for importations of merchandise subsequent to the effective date of this notice.” Rulings CBP revoked or modified in 2019 are as follows:
The following is a selection of articles that appeared in International Trade Today in 2019 covering ruling letters. CBP frequently publishes rulings months after they are issued, so these articles are included based on the dates the articles were published, rather than the date the ruling letter was issued.
The Customs Rulings Online Search System (CROSS) was updated on Jan. 28. The following headquarters rulings not involving carriers were modified on Jan. 27 or 28, according to CBP: