Tim Warren

The Department of Homeland Security (DHS) published its spring 2019 regulatory agenda for CBP. There were no new trade-related rulemakings included.

The Treasury Department published its spring 2019 regulatory agenda for CBP. The agenda includes a new rulemaking that would amend CBP's regulations to revise the language on duty-free goods returned. The agency will try to issue an interim final rule by August this year. Specifically, the Trade Facilitation and Trade Enforcement Act extended duty-free treatment to products of non-U.S. origin exported and returned to the U.S. within three years after having been exported, and created a separate tariff schedule "subheading for returned U.S. Government property allowing duty-free return of U.S. Government property without time and origin restrictions."

CBP has responded to fast-moving developments in international trade with predictability and transparency, said Brenda Smith, CBP executive assistant commissioner-trade, while speaking May 16 at a U.S. Chamber of Commerce event. With the Section 301 tariffs and other trade remedies, the agency has given the trade community the necessary information "as quickly as we can provide it," Smith said. "Just last week, in response to a setback in the ongoing U.S.-China trade talks, CBP responded rapidly to the 15 percent increase in China 301 duties. We consulted closely with USTR and the International Trade Commission to streamline the operational impact of the administration's policy goals, provided guidance to CBP field employees and the trade community and expedited programming changes" to ACE "to ensure that trade continued to flow."

The Trump administration will wait at least another six months before taking action in response to the Commerce Department's Section 232 investigation into automobiles and auto tariffs, CNBC and other outlets reported May 15. The administration plans to make use of the Section 232 provisions that allow for an 180-day delay while negotiations continue, CNBC said. It remains unclear whether the White House will detail its planned response to the investigation when it announces the delay.

CBP announced the calendar year 2019 tariff-rate quota for tuna in airtight containers, in a May 15 notice. It said 14,945,117 kilograms of tuna in air-tight containers may be entered and withdrawn from warehouse for consumption during 2019, at the rate of 6% ad valorem under HTS subheading 1604.14.22. Any such tuna that is entered or withdrawn from warehouse for consumption during the current calendar year in excess of this quota will be dutiable at the rate of 12.5% ad valorem under HTS subheading 1604.14.30.

CBP provided some details in a May 9 CSMS message on how importers should file entries that will be subject to the increased Section 301 duties on goods from China. The CSMS message confirms that the increased duties will only apply to goods exported and entered after May 10 (see 1905080035). During a call with software developers the same day, CBP officials explained that several pieces are still being worked out, including the addition of a tariff subheading for goods exported before May 10 and entered after the tariffs take effect.

CBP's proposal for how to classify garments with 50/50 fiber blends would add a "significant amount of additional burden on importers of apparel and made-up textile articles," HanesBrands said in comments filed May 2 with the agency. The filing was in response to CBP's proposed ruling revocation that seems to change how goods of 50/50 blends are classified (see 1905020044). Under the proposal, the tariff classification of the fibers in the 50/50 blend are first considered (e.g., cotton of chapter 52 versus man-made filaments of chapter 54), then the entire garment is classified according to whichever of those constituent fibers in the 50/50 blend is classified last in numerical order.

The recent Global Conference on the future of the Harmonized System for tariffs and trade held by the World Customs Organization resulted in some broad policy recommendations, the WCO said in a news release. Those recommendations will now be sent to the WCO Policy Commission for consideration. The event, which took place May 2-3 at the WCO, included "over 300 participants from Member Customs administrations, partner international organizations, industry associations, trade professionals, import/export companies and academia," it said.

The Miscellaneous Tariff Bill suspension on liquid crystal display (LCD) panel assemblies should be made permanent in order to reverse a "tariff inversion" that makes imported finished TVs cheaper than the LCD panels, Element Electronics said in comments to the International Trade Commission. Last year, the ITC sought comments on the MTB process and "domestic industry sectors or specific domestic industries that might benefit from permanent duty suspensions and reductions, either through a unilateral action of the United States or through negotiations for reciprocal tariff agreements, with a particular focus on inequities created by tariff inversions." The company said that while it "supports free and fair trade, the current US tariff structure is not fair and does not provide a level playing field for American workers."

Tool sets imported from China by the Apex Tool Group can be hit with multiple Section 301 tariffs, CBP said in an April 10 ruling. As was the case in a September 2018 ruling involving Apex (see 1810100040), the tool set is classified based on the article subject to the highest rate of duty under General Rule of Interpretation 1. CBP ruled that the tool sets are dutiable at a 38.9% rate.