Brian Feito

Labatt can act as a “brewer” and assign reduced excise tax rates to importers under the Craft Beverage Modernization Act, even though the beer was brewed by a different company under a production agreement, CBP said in a recent ruling. Labatt and the actual brewer of the beer, Molson, were operating in a manner similar to an “alternating proprietor” arrangement for small brewers, rather than a contract brewing relationship that would not qualify for the tax refunds, CBP said in HQ H304179, issued Feb. 28.

The Department of Justice recently interceded in an antidumping and countervailing duty case on mattresses to warn that imposition of new tariffs could run counter to efforts to combat the COVID-19 pandemic. In a brief filed April 22 with the International Trade Commission, lawyers from DOJ’s Antitrust Division argued that new AD/CV duties could increase the price of mattresses, making it harder for hospitals to increase the number of beds they have available for patients with the disease.

The Commerce Department is proposing new regulations that would create an Aluminum Import Monitoring and Analysis System. Similar to the Steel Import Monitoring and Analysis System in place since 2005, the new scheme would require importers of aluminum or their customs brokers to submit information in an online portal to obtain an automatically issued license, then submit the license number with entry summary documentation. Comments are due May 29.

Aluminum foil cold-rolled and annealed in Germany from Chinese “foilstock” is of German origin for customs country of origin purposes, CBP said in a recent ruling. The annealing process necessary to make the foil flexible again following the rolling operation substantially transforms the foil into a much weaker but more flexible material with the character and use of aluminum foil, CBP said in HQ 302201, issued April 6.

A steel and aluminum importer filed a lawsuit April 21 challenging the importer-specific exclusion process for Section 232 tariffs on steel and aluminum products as unconstitutional. Thyssenkrupp says the exclusions, which, unlike Section 301 exclusions, are only granted to the importer that requested them, violate the “Uniformity Clause” of the Constitution.

Interim implementation instructions for the U.S.-Mexico-Canada Agreement posted April 20 by CBP provide the technical language needed for companies to develop internal processes as they prepare for the revised NAFTA to take effect, but it will be tough for importers to meet the new guidelines in time, particularly given the disruptions resulting from the COVID-19 pandemic, trade lawyer and NAFTA specialist Dan Ujczo said following release of the document.

CBP should develop a new electronic platform incorporating its e-recordation system to improve intellectual property rights enforcement through better targeting and communication, the Commercial Customs Operations Advisory Committee said in recommendations adopted at the April 15 COAC meeting.

CBP should update its regulations on prior disclosures to clarify the requirements and benefits of prior disclosures of forced labor violations, the Commercial Customs Operation Advisory Committee said in recommendations adopted at the April 15 COAC meeting. Regulations on forced labor should also be amended, and guidance documents issued, to clarify what should be included in a forced labor allegation, as well as how CBP should inquire about potential violations and how importers should respond, the COAC said.

The Commercial Customs Operations Advisory Committee (COAC) is asking CBP to revise its policies on continuous bond amounts for foreign-trade zone operations to create a more level playing field for FTZs, it said in a document posted to the CBP website in advance of the April 15 COAC meeting. Some ports are basing bond amounts on values instead of the risk of loss of revenue, “which is very low for FTZ,” the COAC said.

The following lawsuits were filed at the Court of International Trade during the week of April 6-12: