The International Trade Commission posted Revision 5 to the 2021 Harmonized Tariff Schedule. The semiannual update to the HTS removes General Note 12 for NAFTA from the tariff schedule, and adds new tariff numbers for a variety of products, including frozen warmwater shrimp, tomatoes, organic berries and high-strength steel. All changes take effect July 1, unless otherwise specified.
CBP's proposed use of Part 102 marking rules to determine the country of origin for non-preferential claims under USMCA (see 2107010045) would create an imbalance between USMCA member countries and the rest of the world, possibly in violation of U.S. commitments to the World Trade Organization, Sidley Austin lawyer Ted Murphy said in a blog post. There is questionable legal basis for continued use of the NAFTA marking rules in USMCA and the expanded use for determining origin on non-preferential claims, he said. “CBP may be attempting to gloss over this issue by trying to tie the proposal to the 'implementation' of USMCA (see the title of the notice of proposed rulemaking),” Murphy said.
The Commerce Department released a redacted version July 6 of its Section 232 report on the national security implications of U.S. imports of autos and auto parts. The Bureau of Industry and Security posted the report and its appendices, dated Feb. 17, 2019. Then-Commerce Secretary Wilbur Ross suggested two scenarios for tariffs that the Trump administration could impose if USMCA negotiations weren't productive. No tariffs were imposed as a result of the report, but the possibility of tariffs remained a threat for years after.
The Customs Rulings Online Search System (CROSS) was updated July 2. The following headquarters rulings were modified recently, according to CBP:
A CBP proposal to expand the use of Part 102 marking rules to determine the country of origin for non-preferential claims (see 2107010045) could be controversial, law firm Neville Peterson said in a July 6 blog post. The proposal to use tariff shift rules of Part 102 “would preclude the use of the traditional 'substantial transformation' test of a change in name, character or use,” it said.
Cynthia Whittenburg, who retired as CBP deputy executive assistant commissioner in the Office of Trade earlier this year (see 2102090059), joined the National Customs Brokers & Forwarders Association of America Educational Institute (NEI) as an associate director, the trade association said in an emailed July 6 news release. Whittenburg will “assist in expanding the delivery of our content though institutions of higher learning as well as other appropriate avenues as well as assist in the development of additional courses needed to continue our mission,” NEI Executive Director Kiko Zuniga said. “Some of these courses will deal with current issues such as forced labor, USMCA, to name a few.” While at CBP, Whittenburg helped in examining the need for continuing education requirements for customs brokers (see 1910160056), an issue that CBP is still working on and that the NEI is following closely (see 2105040004).
International Trade Today is providing readers with the top stories from June 28 - July 2 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
The International Trade Commission posted Revision 5 to the 2021 Harmonized Tariff Schedule late on July 2, following resolution of technical issues that had delayed its publication. The semiannual update to the HTS removes General Note 12 for NAFTA from the tariff schedule, and adds new tariff numbers for a variety of products, including frozen warmwater shrimp, tomatoes, organic berries and high-strength steel. All changes take effect July 1, unless otherwise specified.
CBP issued the following releases on commercial trade and related matters:
The rules for forced labor documentation will likely become as detailed as the rules on conflict mineral reporting, Angelica Tsakiridis, a senior manager at Deloitte, said July 1 at a virtual conference hosted by the American Importers and Exporters Association. CBP has been working on a rulemaking around forced labor for years (see 1805100026), but it remains to be seen whether documentation requirements will be included.