Tim Warren

Welding operations in the U.S. used to create a finished product for export are considered to be a “process,” which means the imported components are eligible for duty-free temporary importation under bond treatment, CBP said in a March 30 ruling. The ruling, requested by Crane Worldwide Logistics, involves parts used in nuclear power plants. Crane's client, Thermal Engineering International (TEI), asked for CBP input on how the TIB rules apply and whether the components are eligible treatment in TIB subheading 9813.00.05.20.

CBP will add on April 2 the ability in ACE for importers to file entries with recently excluded goods in the fourth tranche of Section 301 tariffs, it said in a CSMS message. The fourth tranche product exclusions apply retroactively to Sept. 1, 2019, and will remain in effect until Sept. 1, 2020. (see 2003260030)

International Trade Today is providing readers with some of the top stories for March 23-27 in case they were missed.

Williams-Sonoma will pay the Federal Trade Commission $1 million as part of a settlement with the agency involving “Made in USA” claims, the FTC said in a March 30 news release. The company also agreed to stop making claims “that all of its Goldtouch Bakeware products, its Rejuvenation-branded products, and Pottery Barn Teen and Pottery Barn Kids-branded upholstered furniture products are all or virtually all made in the” U.S. The settlement consent order, which was approved 5-0 by the FTC, doesn't include an admission of guilt by the company.

CBP added on March 31 the ability in ACE for importers to file entries with recently excluded goods in the third tranche of Section 301 tariffs, it said in a CSMS message. The official Office of the U.S. Trade Representative notice for the exclusions was published on March 26 (see 2003230043). The exclusions are in subheading 9903.88.43. The exclusions are available for any product that meets the description in the Annex to USTR’s notice, regardless of whether the importer filed an exclusion request. The product exclusions apply retroactively to Sept. 24, 2018, and will expire after Aug. 7, 2020. The CSMS message also includes a summary of Section 301 duties that shows information on each tranche of tariffs and granted product exclusions.

CBP's abrupt shift in policy for case-by-case customs duty deferrals amounts to additional risk to the smaller companies that are facing existential threats due to the COVID-19 pandemic (see 2003260047), the Business Alliance for Customs Modernization said in a March 26 email. “BACM is disappointed with CBP’s decision to stop accepting individual requests to defer the payment of customs duties, taxes and fees,” said Sidley Austin lawyer Ted Murphy, who represents the group. “We understood that this was meant to be a short-term measure to help primarily small and medium-sized companies deal with the devastating impact COVID-19 is having on the U.S. economy, while CBP pursued a more comprehensive solution applicable to all importers,” he said in response to a request for comment. “CBP’s decision will hurt those small and medium-sized businesses the most.” CBP announced on March 26 it would no longer take requests to defer payments of customs duties, less than a week after saying it would consider such requests.

CBP will no longer take requests to defer payments of customs duties, and payments of previously deferred duties must be “initiated” by March 27, the agency said in a CSMS message. “Single payments, daily and periodic monthly statement payments of estimated duties, taxes and fees that should have been tendered from 3/20/2020 through 3/26/2020, must be initiated by 3/27/2020,” it said. “If a trade member did not pay CBP for estimated duties, taxes and fees due 3/20/2020 through 3/26/2020, payment should be initiated via FedWire or ACH credit by 3/27/2020.”

The Office of U.S. Trade Representative announced a new round of 301 tariff exclusions (see 2003260009) that includes some medical supplies that were included in the fourth tranche of tariffs.

A group of Republican senators supports a temporary delay in duty collections, they said in a March 25 letter to President Donald Trump. “We believe it would be wise to provide a temporary deferral of duty collection for businesses to opt-in to,” said the letter, which was led by Senate Finance Committee Chairman Chuck Grassley, R-Iowa. “There are a number of ways to do this that would be helpful that are already being reviewed through the interagency process. Similar to the IRS providing Americans an additional 90 days to make tax payments without incurring interest or penalties, a duty deferral would be a commonsense way to improve the liquidity of our businesses during this time of economic disruption.”

International Trade Today is providing readers with some of the top stories for March 16-20 in case they were missed.