Tim Warren

Steel fence posts assembled in Mexico are actually products of the U.S. and are not subject to the Section 232 tariffs, CBP said in a Feb. 27 ruling. The ruling was in response to a request from Alex Romero of A.F. Romero & Co. Customs Brokers on behalf of Merchant Metals that asked CBP to weigh in on whether steel fence posts sent to Mexico for assembly operations could be returned under heading 9802 and whether the return entry triggers Section 232 liability. CBP said the Mexican processing doesn't create a substantial transformation of the posts.

Several departments are to initiate a broad review of current policies and ways to improve measures to prevent the trade of counterfeit goods, the White House said in an April 3 memorandum. Among other things, the administration would like a review of how different parties, including customs brokers, can help stop the trade of counterfeit and pirated goods, it said. The Department of Homeland Security secretary is tasked with developing a report on the subject within 210 days, along with the attorney general, the U.S. trade representative, the assistant to the president for Trade and Manufacturing Policy and other officials, it said.

Steel of West Virginia submitted a petition to CBP asking it to reclassify steel parts so that the parts face Section 232 tariffs upon import, CBP said in a notice. The petitioner, which makes steel shapes for sale to forklift truck operators, seeks a new classification for “incomplete steel mast rails and finger bars,” the agency. Specifically, the parts should be classified in subheading 7216.50.00, which covers “Angles, shapes and sections of iron or nonalloy steel: Other angles, shapes and sections, not further worked than hot-rolled, hotdrawn or extruded.” That subheading is duty-free but is covered by the Section 232 tariffs.

The Express Association of America pointed to several specific regulatory changes it would like to see CBP make, in its follow-up comments on the agency's efforts to modernize the customs framework. The EAA comments are the only ones posted since CBP reopened the comment period (see 1903110039) following a March 1 meeting on the subject (see 1903040023). Among other things, EAA said the "current drawback regulations do not support the modern B2C/e-commerce environment."

Department of Homeland Security Secretary Kirstjen Nielsen directed CBP's Office of Field Operations to "accelerate its planned reallocation of up to 750 officers to Border Patrol Sectors," DHS said in an April 1 news release. CBP is also directed to consider further shifts in the agency's port personnel to help handle illegal Southern border crossings. Nielsen's memo to CBP Commissioner Kevin McAleenan follows a March 27 CBP announcement that it would be redirecting 750 officers from Ports of Entry, which likely will result in slowed trade processing along the border (see 1903290035).

Byer California, a women's apparel wholesaler, reached a settlement agreement with the Justice Department over the company's alleged involvement in an undervaluation scheme, the U.S. Attorney’s Office for the Southern District of New York (USAO) said in a March 27 news release. Byer is said to have allowed one of its importers, Queen Apparel NY, to continue to use falsified customs forms despite being aware of the discrepancies, the Department of Justice said. The USAO said it also filed a civil fraud suit last month against Queen. Both cases stem from a whistleblower complaint that previously resulted in a major settlement (see 1607140056).

The U.S. should keep in place the Section 232 tariffs on aluminum and steel from both Mexico and Canada even if it impedes movement on the U.S.-Mexico-Canada Agreement, the American Line Pipe Producers Association said in a news release. The group, a coalition of large-diameter welded pipe (LDWP) producers, took issue with recent United Steelworkers calls for the removal of the tariffs before any USMCA ratification (see 1903250035). "While ALPPA supports the USMCA, it strongly rejects that USMCA should be tied to removal of Section 232 tariffs, particularly given the trade-distortive practices of Canada and Mexico," the group said.

There are no immediate plans to remove the Section 301 tariffs on goods from China, President Donald Trump told reporters March 20. Asked about discussions of the possible lowering of tariffs as the two countries work toward a trade deal, Trump said the tariffs will continue. "No, we're not talking about removing them, we're talking about leaving them [in place] for a substantial period of time because we have to make sure that if we do the deal with China, that China lives by the deal," he said. China has "had a lot of problems living by certain deals," he said. Even so, "the deal is coming along nicely," Trump said. "We have our top representatives going there this weekend to further the deal," he said. The U.S. is taking in "billions and billions of dollars right now in tariff money, and for a period of time that will stay."

CBP is examining the possible transshipment of glycine from China in order to evade antidumping duties, the agency said a notice of initiation of investigation. The notice follows an allegation of evasion filed under CBP's Enforce and Protect Act process. Due to evidence creating a "reasonable suspicion" of evasion, "CBP has imposed interim measures," it said.

CBP plans to mostly pursue Importer Security Filing-5 requirements noncompliance through liquidated damage claims, said Craig Clark, CBP's director of the Border Security and Trade Compliance Division, during a March 15 webinar. Clark said this differs from the agency's enforcement approach for ISF-10. "The common sense approach with ISF-5 is kind of the flip side of the common sense approach with ISF-10," he said. During the webinar, Clark, along with Sandra Langford-Coty, director of operational development at A.N.Deringer, and Lisa Gelsomino, CEO of Avalon Risk Management, explored multiple scenarios and what would be required from an ISF perspective.