Importer Hellbender filed a complaint at the Court of International Trade on June 6 arguing that its electronic components are of Taiwanese origin, not Chinese origin, and are thus exempt from Section 301 duties (Hellbender v. United States, CIT # 24-00104).
Expert witnesses testified that the Harmonized Tariff Schedule code needs to be refined so that different sizes of semiconductor chips have their own numbers, and, more radically, suggested that the best way to mitigate overdependence on China for legacy chips is to require importers to report where the chips were designed and fabricated within products they are importing.
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 following lawsuits were filed at the Court of International Trade during the weeks of May 19-25 and May 26 - June 1:
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.
The Office of the U.S. Trade Representative has extended by three months certain current exclusions to its Section 301 investigation related to U.S. trade with China.
Georgetown University law professor Jennifer Hillman said that while she expects the U.S. Court of Appeals for the Federal Circuit to take months to decide if the tariff actions under emergency powers weren't legal, the court might not stay the vacation of the orders during that time.
Rep. Jodey Arrington, R-Texas, a member of the House Ways and Means Committee and chairman of the Budget Committee, reintroduced a bill that would allow the administration to impose Section 301 tariffs on goods made outside of China if they are made by Chinese firms.
The end of reciprocal tariffs and tariffs imposed over fentanyl smuggling from China, Canada and Mexico is on hold until an appellate court decides if the use of the International Emergency Economic Powers Act was illegal for those purposes.