A domestic trade association filed petitions on Feb. 1 with the Commerce Department and the International Trade Commission requesting new antidumping and countervailing duties on fabricated structural steel from Canada, Mexico and China. Commerce will now decide whether to begin AD/CVD investigations on fabricated structural steel that could eventually result in the assessment of AD/CV duties. The petition, filed by the American Institute of Steel Construction, targets steel mill products of various shapes that have been fabricated (and typically custom-manufactured) into articles suitable for erection or assembly into a variety of structures.
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 International Trade Commission posted the 2019 Basic Edition of the U.S. Harmonized Tariff Schedule. The new HTS implements the removal of Mauritania from eligibility for African Growth and Opportunity Act benefits, makes widespread changes to units of measure throughout the tariff schedule, and adds new statistical suffixes for infant footwear, aluminum foil and paper, among other products. Most changes took effect Jan. 1.
The Internet Association criticized the Office of the U.S. Trade Representative for seeking to raise de minimis levels on shipments from its neighbors as part of the U.S.-Mexico-Canada Agreement (see 1901300009). "A consistent, high de minimis threshold benefits the entire American e-commerce system, including thousands of small businesses that use the internet to export and import," the group said in a statement Jan. 30. "USTR’s proposed provision in the implementing legislation would force small businesses to navigate a complicated, confusing net of customs rules.” Businesses have complained that even the concessions won in the text of the new NAFTA are complicated and confusing, because Mexico and Canada have different de minimis levels for sales taxes and for customs duties.
In order for importers to be able to create certificates of origin under the U.S.-Mexico-Canada Agreement, U.S. law will have to change. That's one of dozens of changes to statutes that will need to happen to accommodate the changes between NAFTA and USMCA. The U.S. trade representative shared the six-page outline of the needed changes with Congress late on Jan. 29, fulfilling one of the steps under fast-track consideration of the trade pact. The document suggests that USTR is still seeking a lowering of U.S. de minimis levels specifically for Canada and Mexico (see 1810190043), since those countries did not raise their de minimis levels as much as the U.S. negotiators wished.
International Trade Today is providing readers with some of the top stories for Jan. 22-25 in case they were missed.
Steam turbine shaft assemblies and nozzle rings were properly claimed as eligible for duty-free treatment under the U.S.-Israel FTA, CBP said in a Nov. 30 ruling. The ruling, HQ H291700, was in response to an application for further review of protest submitted by Tuttle Law Offices for the importer, Ormat Nevada. The agency said the imported good satisfied the requirements of the FTA and that the protest should be granted.
CBP is now accepting claims for drawback on Section 301 duties on products from China, said John Leonard, executive director-trade policy and programs, on a conference call held Jan. 23 to discuss issues related to the ongoing federal government shutdown. The agency has fixed a bug in ACE that was preventing Section 301 drawback claims and is now able to begin processing, though the agency’s ability to resolve particular issues will be limited due to staffing issues caused by the ongoing shutdown, he said.
The Court of International Trade on Jan. 18 ordered an importer to pay more than $500,000 in penalties and unpaid duties for misclassifying goods that should have been subject to antidumping and countervailing duties, though it declined to impose the full amount requested by the government. Six Star Wholesale allegedly imported wire hangers and polyethylene retail carrier bags from China under the wrong tariff classifications, then failed to defend itself in court against the penalty action.
Measures of compliance among steel products importers are down since the imposition of sections 301 and 232 tariffs, said the American Institute for International Steel’s Customs Committee in its 2018 year-end report. CBP told the trade association that compliance measured by the letter of the law for imports in Harmonized Tariff Schedule chapters 72 and 73 was down to 96.46 percent in fiscal year 2018, and down to 97.8 percent when measured by major trade discrepancies, CBP told AIIS, the report said. “Issues with Section 232 and Section 301 entries presumably contributed to the reductions,” the report said.
The U.S. trade representative will negotiate with the European Union to seek to "secure comprehensive market access for U.S. agricultural goods in the EU by reducing or eliminating tariffs," and eliminate "non-tariff barriers that discriminate against U.S. agricultural goods," the Office of the U.S. Trade Representative said.