It’s “difficult to read the tea leaves,” or “glean” any lessons, from why the Office of the U.S. Trade Representative removed certain tariff lines from the initial list of Section 301 tariffs, said David Cohen, a lawyer with Sandler Travis, during Sports & Fitness Industry Association (SFIA) webinar July 18. The USTR on June 15 announced it deleted 40 percent of the product lines from its first list of proposed Section 301 tariffs on Chinese imports (see 1806150003). The rationale behind those changes isn't apparent, he said.
Customs Duty
A Customs Duty is a tariff or tax which a country imposes on goods when they are transported across international borders. Customs Duties are used to protect countries' economies, residents, jobs, and environments, by limiting the flow of imported merchandise, especially restricted and prohibited goods, into the country. The Customs Duty Rate is a percentage determined by the value of the article purchased in the foreign country and not based on quality, size, or weight.
CBP Commissioner Kevin McAleenan highlighted some planned additional benefits to participation in the Customs Trade Partnership Against Terrorism program, in prepared remarks for the July 18 Senate Finance International Trade Subcommittee hearing on U.S. ports and trade. The ongoing transitioning of the Importer Self-Assessment program into CTPAT Trade Compliance "includes the extensive development of new benefits," he said. CBP has a loose deadline of the end of 2018 for transitioning ISA participants into CTPAT (see 1709070010), and a phased rollout of new CTPAT standards is expected to begin in October (see 1806070058).
The Section 321 entry exemptions do not apply to bulk shipments sent to foreign-trade zones that are broken up for individual consumption entries below the $800 de minimis level prior to a consumer order, CBP said in May 8 ruling the agency released on July 17. Much of the decision hinges on the definition of "importation," as expected (see 1806050049). The ruling came in response to an internal advice request from Jim Swanson, CBP director-cargo and conveyance security and controls, it said. CBP recently said the new Section 301 tariffs won't apply to Section 321 entries (see 1807050033).
The Section 301 tariffs on goods from China do not apply to covered imports that are part of a set if that set is classified under a subheading that is not included in the Section 301 list, CBP told the National Customs Brokers & Forwarders Association of America. "If the product that imparts the essential character to the set (i.e., the [Harmonized Tariff Schedule of the U.S.] under which the entire set is classified) is covered by the Section 301 remedy, then the entire set will be subject to the additional 25% duties," CBP told the NCBFAA. "If the HTSUS under which the entire set is classified is not covered by the Section 301 remedies, but the set contains a component that is classified in a subheading covered by the 301 list, the 301 duties will not be assessed on the individual component at this time."
The Commercial Customs Operations Advisory Committee (COAC) for CBP will next meet Aug. 1 by webinar, CBP said in a notice.
CBP published the quarterly Internal Revenue Service interest rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties. For the quarter that began July 1 and ends Sept. 30, 2018, the interest rates for overpayments will be 4 percent for corporations and 5 percent for non-corporations, and the interest rate for underpayments will be 5 percent for both corporations and non-corporations. These interest rates are subject to change for the calendar quarter beginning Oct. 1 and ending Dec. 31, 2018, CBP said.
The Commerce Department issued notices in the Federal Register on its recently initiated antidumping and countervailing duty investigations on steel racks from China (A-570-088/C-570-089). The CV duty investigation covers entries Jan. 1, 2017, through Dec. 31, 2017. The AD duty investigation covers entries Oct. 1, 2017, through March 31, 2018.
The Court of International Trade has jurisdiction to hear government lawsuits to recover unpaid excise taxes even when no penalty is sought, it said in a pair of decisions issued July 3. CIT has exclusive purview over cases dealing with violations of 19 USC 1592, and though laws on CIT jurisdiction over those cases refer only to penalty cases and recovery of customs duties, the underlying law specifically allows CBP to seek recovery of duties, taxes and fees without collecting a penalty, CIT said. Federal excise taxes, which are collected at the time of importation and are a condition of release, “are customs duties for the purposes of jurisdiction,” the trade court said.
CBP poked several holes in a proposed sales plan for wine stored within a foreign-trade zone in a June 15 ruling (HQ H277473). DQ Enterprises asked CBP to weigh in on a wine sales operation that would make use of several different regulations to reduce or avoid customs duties. The agency responded with concerns for the bulk of the proposed plans, but noted other agencies would need to be consulted, too.
Royal Brush Manufacturing is being investigated after allegations of evasion of antidumping duties required on imported pencils from China, CBP said in a June 26 notice. The investigation stems from allegations filed under the Enforce and Protect Act (EAPA) by Dixon Ticonderoga Company, a Florida office and art supplies maker, CBP said. The company alleged that RBM evaded antidumping duties through transshipment.