CBP created Harmonized System Update (HSU) 1820 on Dec. 18, containing 19,061 Automated Broker Interface records and 3,393 harmonized tariff records, it said in a CSMS message. The update includes changes related to the delayed increase of Section 301 tariffs on goods from China (see 1812180010), CBP said. Other changes "include the annual special program staged rate reductions mandated by the individual Free Trade Agreements," it said. "This update also contains modifications mandated by the 484 F Committee, the Committee for Statistical Annotation of Tariff Schedules. These adjustments are effective on January 1, 2019 and will be published within the change record, and chapters, of the 2019" Harmonized Tariff Schedule of the United States.
The Office of the U.S. Trade Representative's notice officially delaying a planned tariff increase on goods from China is set for publication in the Federal Register on Dec. 19. Publication is a necessary step for CBP to implement the delay in ACE (see 1812140046). The third tranche of Section 301 tariffs will now go up to 25 percent from 10 percent on March 2, 2019, unless further progress is made in talks with China (see 1812010001).
International Trade Today is providing readers with some of the top stories for Dec. 10-14 in case they were missed.
The three rounds of Section 301 tariffs since July on $250 billion worth of Chinese goods are costing the tech industry more than $1 billion a month in added fees, the Consumer Technology Association reported. CTA teamed with The Trade Partnership to analyze recent U.S. import data and found tariffs on tech products imported from China jumped to $1.3 billion in October, a sevenfold increase from the same month a year earlier. That includes $122 million more in duties on 5G-related imports in October, compared with $65,000.
Due to "limitations within automatic quota processing when quota and trade remedy conditions overlap," CBP will require manual input by the agency in some cases, CBP said in a Dec. 17 CSMS message. Manual processing is needed when "a quota entry summary line has three or more Harmonized Tariff Schedule (HTS) codes (e.g., if the line is properly classified with two chapter 99 HTS codes (a section 301 HTS and a quota HTS) and the commodity HTS)," it said. Manual processing is also necessary when "the primary HTS code is not subject to quota but the secondary HTS is subject to quota (e.g., if the line is properly classified with two HTS codes: a section 301 HTS and a non-trade remedy quota HTS)."
CBP is awaiting Federal Register publication of the Office of the U.S. Trade Representative notice delaying increased Section 301 tariffs on $200 billion in Chinese goods (see 1809180016). While the USTR posted the coming notice (see 1812140034), CBP confirmed it would wait to make changes in ACE until the notice is formally published in the Federal Register. The National Customs Brokers & Forwarders Association of America noted in an email to members that there's been some confusion "when customs brokers who transmit entries early for shipments arriving after January 1 notice that CBP's system applies a 25% tariff rate for these products." Brokers should be aware that "10% will be the correct duty rate on January 1, but CBP's system will nevertheless show a duty rate of 25% until official notification is published," NCBFAA said.
The Office of the U.S. Trade Representative will officially suspend the planned increase in Section 301 tariffs on $200 billion worth goods from China that had been set for Jan. 1, the agency said in a notice. That notice said the third tranche of the tariffs will remain at 10 percent for the time being and won't increase to 25 percent until March 2. The delay follows a recent deal reached by the U.S. and China to begin negotiations toward a resolution of the ongoing trade dispute.
GoPro will move most of its U.S.-bound action-camera production out of China by summer as a hedge against its products’ exposure on “any new” Section 301 tariffs list, the company said on Dec. 11. GoPro escaped tariffs through the three rounds of duties imposed between July and September. “Today's geopolitical business environment requires agility, and we're proactively addressing tariff concerns” with the move, Chief Financial Officer Brian McGee said. “This diversified approach to production can benefit our business regardless of tariff implications.” McGee spoke on a quarterly earnings call in early November of GoPro preparations to move production out of China if “necessary.” President Donald Trump threatened Sept. 17 to "immediately pursue" a fourth tranche of tariffs on $267 billion worth of additional imports if China retaliated for the duties that took effect Sept. 24. China did retaliate, but Trump never acted. GoPro didn’t comment on where it’s moving production to.
There's been some significant growth in imports of products eligible for Generalized System of Preferences benefits in recent months, the Coalition for GSP said in a blog post. The coalition, which advocates for keeping the GSP program in place and is run by a consultancy called Trade Partnership Worldwide, said October set another record for GSP imports. The GSP benefits in October saved U.S. companies $105 million, an increase of $12 million, or 13 percent, over the previous record set in August, the group said.
Cable modems that are made up of Chinese parts but assembled in Mexico are subject to the 10 percent Section 301 tariffs on goods from China, CBP said in a Nov. 27 ruling. The ruling request was submitted by Barnes Richardson lawyer Lawrence Friedman on behalf of Zoom Telephonics. CBP's analysis is on two types of modems, one type that includes a Wi-Fi gateway and one that does not. The modems are Data Over Cable Service Interface Specification (DOCSIS) 3.1 and compatible with several major cable systems, including Comcast and Cox, it said.