The country of origin of certain surgical gowns imported by Global Resources International and Santé USA is the Dominican Republic and not the U.S. for the purposes of government procurement, CBP said in a final determination. Since the most important assembly or manufacturing processes in the production of the gowns took place in the Dominican Republic and not the U.S., the country of origin is the Dominican Republic, CBP said. The agency then directed the importers to consult with the relevant government procuring agency to find whether the gowns qualify as "U.S.-made end products" for the Federal Acquisition Regulation.

Senate Majority Leader Chuck Schumer, D-N.Y., speaking on the floor of the Senate just before the CHIPS bill passed, said he wants the conference committee for the House and Senate China packages to continue negotiating.

International Trade Today is providing readers with the top stories from last week in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.

Partner government agencies listed several new rulemakings in the spring 2022 Unified Agenda involving trade. FDA added new proposals on prior notice requirements and canned tuna standards, and indicated a final rule on traceability requirements for high risk foods is imminent. The CDC said it will propose changes to its dog import requirements, and USDA added a new proposed rule on its user fees.

Importers of finished goods and manufacturing inputs told the International Trade Commission across three days of testimony that the Section 301 tariffs are damaging profit margins, and in some cases lead to layoffs. But some unions and manufacturers said the Section 301 tariffs are deserved for Chinese abuses, and with the tariffs in place, the goods they make are more competitive. The International Trade Commission is studying the efficacy of Section 301 and Section 232 tariffs, and their economic impact.

Across three days of testimony July 20-22, the International Trade Commission heard from dozens of companies, trade groups and advocacy groups about the economic impact of Section 301 tariffs and Section 232 tariffs and quotas. The tariffs and quotas on metals inspired fewer witnesses than the China tariffs, but they were no less emphatic.The United Steelworkers said they strongly supported the tariffs and asked that they remain strong. Pete Trinidad, president of a USW local that represents 3,500 steel workers in Indiana, argued that the tariffs had either a small or no measurable effect on prices, according to a think tank study.

Any chances that the Section 301 tariffs on Chinese goods would stimulate U.S. importers to shift their supply chains to alternative countries of origin were obliterated when the COVID-19 pandemic struck in early 2020, Jonathan Gold, National Retail Federation vice president-supply chain and customs policy, told the International Trade Commission in a virtual hearing July 21. The ITC completed three days of public hearings July 22 as part of its Tariff Act Section 332 investigation into the tariffs’ economic impact on U.S. industries.

The Court of International Trade in a July 20 opinion redenominated the U.S.'s counterclaim in a customs case brought by importer Cyber Power Systems as a defense, ruling that the U.S. does not have the statutory authority to make the counterclaim. With the ruling, Judge Claire Kelly denied Cyber Power's motion to dismiss the counterclaim as moot. Kelly ruled that none of the sections in the U.S. code cited by the U.S. give a basis for the counterclaim, which sought to reclassify imported cables.

A bill that will eliminate tariffs on imported baby formula through the end of the year passed the Senate July 21 after passing the House last week, and the tariffs will be lifted the same day the president signs it into law.

Consumer tech products imported from China bore more than $32 billion in Section 301 tariff exposure between July 2018, when the first of the tariffs took effect, and December 2021, without dissuading most U.S. importers to abandon Chinese sourcing, according to a newly released Consumer Technology Association report produced with Trade Partnership Worldwide. A CTA spokesperson said July 20 that the association released the report to coincide with this week's public hearing at the International Trade Commission as part of its investigation on the economic impact of the Section 301 and Section 232 tariffs on U.S. industries.