Daikin America seeks the imposition of new antidumping and countervailing duties on granular polytetrafluoroethylene (PTFE) resin from India and Russia, it said in a petition filed with the Commerce Department and the International Trade Commission Jan. 26. Commerce will now decide whether to begin AD/CVD investigations, which could result in the imposition of permanent AD/CV duty orders and the assessment of AD and CV duties on importers.
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.
The Customs Rulings Online Search System (CROSS) was updated Jan. 31. The following headquarters rulings were modified recently, according to CBP:
More than 3,500 Section 301 complaints have inundated the U.S. Court of International Trade challenging the lawfulness of the lists 3 and 4A tariffs on Chinese imports, “and there’s likely more to come,” trade lawyer John Brew of Crowell & Moring told a Sports and Fitness Industry Association webinar Jan. 26.
CBP published notices in the Customs Bulletin revoking or modifying numerous rulings in 2020. These ruling revocations and modifications also apply to “any treatment previously accorded by CBP to substantially identical transactions.” When revoking or modifying a ruling, CBP is required by 19 USC 1625(c) to publish notice of the proposed action, and allow a period—generally one month—for comment before finalizing the action. An importer’s failure to advise CBP of “substantially identical transactions” or of a ruling not identified by CBP in these notices “may raise issues of reasonable care on the part of the importer or its agents for importations of merchandise subsequent to the effective date of this notice.” Rulings CBP revoked or modified in 2020 are as follows:
Florida-based construction materials manufacturer Gardner-Gibson agreed to pay a $160,933 settlement to resolve allegations of customs laws violations, the Department of Justice said Jan. 20. Gardner-Gibson, which makes and imports products related to residential and commercial construction, allegedly imported a roofing underlayment product made in China without the proper country of origin labels. An individual brought the charges against Gardner-Gibson under the False Claims Act and said the company knowingly failed to apply country of origin markings on its imports in an effort to evade customs duties. The relator will receive 20% of the $160,933 payment, and Gardner-Gibson will also pay the relator's attorney fees of more than $40,000, DOJ said. “It is important that all U.S. businesses have a fair playing field,” said U.S. Attorney Brian Moran. “This case began with a relator alerting the government to the unlawful conduct, helping the government police the import marketplace to ensure fairness.” The settlement resolves allegations and there was no determination of liability, DOJ said.
Ramped up import enforcement efforts are likely here to stay under President Joe Biden, Sidley Austin's Ted Murphy said in an email. The multi-agency effort to crack down on import violations is expected to continue unencumbered and Murphy views these efforts as not administration-specific, particularly dealing with questions of forced labor, Section 301 tariff evasion and USMCA compliance.
Honeywell International seeks the imposition of new antidumping and countervailing duties on pentafluoroethane (R-125) from China, it said in a petition filed with the Commerce Department and the International Trade Commission Jan. 12. Commerce will now decide whether to begin AD/CVD investigations, which could result in the imposition of permanent AD/CV duty orders and the assessment of AD and CV duties on importers.
International Trade Today is providing readers with the top stories from Jan. 4-8 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
Goods stored in a foreign-trade zone that are sold to customers in Canada and subsequently returned in the same condition don't require duty payments if duties were already paid, CBP said in a Dec. 16 ruling. Long Tall Sally Limited asked CBP about how changes under the Trade Facilitation and Trade Enforcement Act to the provisions for returned goods in subheading 9801.00.10 apply. The statute doesn't specifically differentiate between “previously imported and entered with duty paid (i.e., domestic status), or imported without duty paid (i.e., foreign privileged status),” CBP said.
New 25% percent tariffs on goods from France that were to begin Jan. 6 are suspended, the Office of the U.S. Trade Representative said in a news release Jan. 7. The tariffs were planned as a result of France's digital services tax and the suspension will allow the agency to complete investigations into other countries' DSTs. “Given that these DST investigations are ongoing and have not yet reached any determinations on what, if any, trade action should be taken, the U.S. Trade Representative has determined that it is appropriate to suspend the action in the France DST investigation indefinitely,” it said in a notice. The announcement follows days of confusion over whether the Jan. 6 tariffs were being implemented (see 2101060047).