President Donald Trump authorized the temporary extension of “deadlines, for importers suffering significant financial hardship because of COVID-19,” in an April 19 Executive Order. “To qualify for this temporary postponement, an importer must demonstrate a significant financial hardship,” CBP said in a prepublication version of a temporary final rule. While the CBP notice limits the deferrals to March and April payments, the EO gives the Treasury secretary broad authority to postpone duty collections during the COVID-19 national emergency.
President Donald Trump authorized the temporary extension of "deadlines, for importers suffering significant financial hardship because of COVID-19" in an April 19 Executive Order. "To qualify for this temporary postponement, an importer must demonstrate a significant financial hardship," CBP said in a prepublication version of a temporary final rule. "An eligible importer need not file additional documentation with CBP to be eligible for this relief but must maintain documentation as part of its books and records establishing that it meets the requirements for relief," it said.
The Council on Foreign Relations said that U.S., European and Japanese pushback over Made in China 2025, at least the part on high performance medical devices, may ebb after the coronavirus pandemic has passed -- because other countries will want to implement their own versions. “If any country knows a little bit about reducing industrial dependence on the rest of the world through conscious industrial choices, that would be China,” said Brad Stetser, a CFR senior fellow for international economics, during a webinar April 16. He said China is displacing imported semiconductors, but has been less successful in displacing imported aircraft.
Cato Institute, a libertarian think tank that advocates for free trade, acknowledged that nationalist impulses are understandable in this COVID-19 pandemic, but said that countries should be careful not to make things worse with their reactions. Simon Lester, associate director of trade policy studies at Cato, said on an April 15 webinar that protectionists usually talk about wanting to increase exports while raising barriers to import competition. But now, 79 countries have lowered their tariffs on medical goods, and many of the major economies are restricting exports of personal protective equipment and ventilators.
A lawyer with Crowell & Moring encouraged importers to apply for a Section 301 exclusion, even if their products aren't primarily used inside hospitals, and even if they were rejected in a previous round. Maria Vanikiotis said on a webinar April 15 that reflective triangles used to direct traffic were identified as needed to fight COVID-19 by the Office of the U.S. Trade Representative even before the office opened a docket for more requests. “We feel there’s also quite a bit of room for creativity and what products may be considered relevant,” she said, including products that are used by remote workers, such as computer docks. “Shelf stable food products also could be within scope,” she said. “Essentially, there's no risk for making an argument.”
CBP issued the following releases on commercial trade and related matters:
Bolt cutter blades and joints forged in South Korea specifically for bolt cutters assembled in China are not recognizable enough for the finished good to be a product of South Korea, CBP said in an April 9 ruling. Harris Bricken lawyer Adams Lee asked for a prospective ruling from CBP on behalf of Weihai Maxpower Tools Co, on the country of origin and marking requirements for the bolt cutters. The bolt cutters would be subject to the Section 301 tariffs on goods from China, the agency said.
The following lawsuits were filed at the Court of International Trade during the week of April 6-12:
International Trade Today is providing readers with some of the top stories for April 6-10 in case they were missed.
A recent Congressional Research Service report suggests that the U.S. may want to use safeguards deal with China's export-dominated strategy to rebuild its economy after the shutdowns needed to fight the coronavirus disease COVID-19. “Congress may want to carefully monitor or consider whether to impose requirements about potential predatory commercial activity in the United States,” the report said. “The potential for China to overwhelm global markets as it leans on exports for economic recovery,” the authors said, may mean that safeguards would be better than “waiting until market injury has already occurred to seek damages.”