Customs and Border Protection assessed $49.6 billion in Section 301 tariffs on Chinese imports through Wednesday, said the agency Thursday. CBP began assessing the first tariffs in July 2018 (see 1806150030).

The State and Commerce departments clarified Thursday they're abiding by a March court order that blocked the transfer of 3D printing software from the U.S. munitions list to the commerce control list. Exporters “must continue to treat such technical data and software as subject to control on the USML,” State said in the Federal Register. Commerce said all such requests should go to State.

Huawei’s chairman said the U.S. may face retaliation from China if it follows through on plans to increase restrictions on foreign exports to the Chinese telecom giant (see 2002190002). Chairman Eric Xu said at a Tuesday news conference China may respond with restrictions on U.S. companies operating there. “I think the Chinese government will not just stand by, watching Huawei be slaughtered,” Xu said. “I believe the Chinese government may also take some countermeasures.”

Inconsistencies abound in the List 4A Section 301 tariff exclusions that the Office of the U.S. Trade Representative granted to Chinese smartwatch imports classified under the 8517.62.00.90 product code. The exclusions are retroactive to Sept. 1 when the tariffs took effect and expire after one year, said a USTR notice Thursday. The exemptions apply to devices “suitable for wearing on the wrist” with “time-display functions” and the ability to link to a “network." USTR granted exclusions to the Apple Watch and a range of Fitbit smartwatches and fitness trackers, but also to Tile for a Bluetooth tracking device that has no wrist-worn or time-display component. The Tile device links to a smartphone app for finding misplaced items like keys or glasses. Sonos also landed exemptions for the wireless mesh network speakers and audio components it imports from China under the same 8517.62.00.90 classification as smartwatches. But exclusion requests for wireless speakers from Bose, Sound United and others remain in a Stage 2 administrative review at USTR, as do smartwatches from Fossil. A wide range of additional 8517.62.00.90 goods also remain in a Stage 2 hold, including Apple AirPods and JLab Bluetooth headphones. USTR didn’t comment Friday.

The Commerce Department extended comments on future temporary general license extensions under export administration regulations by about a month to April 22, says Thursday's Federal Register. The feedback will determine “continuing need” and scope for future extensions for the temporary general license for Huawei, the department said Wednesday. Thursday, Reuters reported senior administration officials agreed to new measures to further restrict foreign exports of chips to Huawei. It's unclear if President Donald Trump will OK the change. The White House and Commerce Department's Bureau of Industry and Security didn't comment.

The Commerce Department extended its temporary general license for Huawei until May 15, says Thursday's Federal Register. It replaces the previous license renewal issued in February, which was to expire April 1. The department seeks comment by March 25 on future extensions of temporary general licenses, the FR also says. It will use the feedback to evaluate whether it should continue extending temporary general licenses and “whether any other changes may be warranted to the temporary general license.” Commerce wants to identify “any alternative authorization or other regulatory provisions."

Customs and Border Protection assessed $47.85 billion in Trade Act Section 301 tariffs on Chinese imports through Wednesday, said the agency’s trade statistics page Friday. The Trump administration imposed the first tariffs in July 2018 (see 1806150030) and has kept them in place on more than $500 billion worth of Chinese imports at rates up to 25%.

The Commerce Department launched a portal for department guidance documents, it said Wednesday. The portal provides all guidance issued by the agency. That includes the Bureau of Industry and Security, which is responsible for export restrictions on Huawei.

Customs and Border Protection found “success and value” from its recent “proof of concept” using blockchain to track intellectual property license information, said Vincent Annunziato, director of CBP’s business transformation office, in the agency's report. This second test increased complexity over the previous POC, Wednesday's study said. “The Business Transformation and Innovation Division (BTID) recommends moving forward with maturing these tests as we take on the mission of re-engineering the supply chain,” Annunziato wrote. The simulation "demonstrated the value of emerging standards in Blockchain, Verifiable Credentials, Authorization Capabilities, Encrypted Data Vaults, Decentralized Identifiers and other emerging global open standards,” the agency said. Trade participants used the standards “to register a product’s physical features, e.g., trademark locations, stitching, logo placement, along with information related to organizations licensed to manufacture and import a product.” There are hurdles. “Although license holders may have restrictive contracts about the distribution of licensed goods, a violation of those contracts [is] not enforceable by CBP,” it said. “What CBP needs to verify at import is not whether or not there is a license to 'import' but rather whether or not the IP was legitimately licensed.” An issue emerged in evaluation of "a public-facing web page where a consumer, at the point of making a purchase, can scan in a product code and get information about whether or not that specific product is a legitimate, licensed good,” CBP said. "There was no mechanism to prevent bad actors from re-using valid serialized [global trade identification numbers] on invalid goods, leaving customers to believe they had a valid product when in fact it was a counterfeit.” The POCs "have been vital in not only shaping the global standards being pursued at the W3C" consortium and by the Internet Engineering Task Force "but have also led to a new area of standards related to increasing trust and verifiability on the Internet," CBP said. "This is demonstrated by W3C Membership's broad support for the creation of the Verifiable Credentials Working Group and the Decentralized Identifier Working Group citing" Department of Homeland Security, CBP and "industry involvement as a key motivator for the creation and investment in these global standards setting groups," said CBP: Plans are being "pursued for launching more global standards groups to take the remaining technologies identified in this PoC."

U.S. administration officials will meet with EU and Japanese counterparts next month to lobby for increased scrutiny of mergers and acquisitions involving sensitive technologies, said Thomas Feddo, Treasury Department assistant secretary-investment security. The U.S. is implementing revisions in the Foreign Investment Risk Review Modernization Act (see 2002120034). FIRRMA will adapt to any rulemaking changes in technology, and Treasury prioritized improving investment screening among allies and quadrupled Office of Investment Security staffing as the Trump administration focuses on maintaining a technological edge over China, Feddo said Wednesday. Industry worries about lack of clarity on what's considered critical tech (see 2001150018). Treasury “does not have a lot of latitude” to define this, Feddo said, and the agency is awaiting direction. “Obviously we’re looking to the Commerce Department to develop and designate emerging technologies,” he told the Asia Society: But the ability to review M&A won't be hurt.