Effective May 10, 2019 importations of merchandise covered under the Section 301 third tranche, manufactured in China and entered into the U.S., are subject to the increase in additional duties from 10 to 25%. However, according to U.S. Customs and Border Protection updated guidance, the increased duties of 25% will not apply to goods a)
In response to a long running dispute with the European Union (EU) over subsidies to Airbus, the U.S. Trade Representative (USTR) has proposed additional tariffs on certain products of the EU covering approximately $11 billion in trade. The proposed list covers 317 tariff subheadings and includes fish, cheese, olive oil, wine, leather handbags, textiles, wool…
One of the potential consequences of the U.S.-China trade dispute is that more companies may consider supply chain sourcing from third countries such as Mexico. This may include direct sourcing in the third country or the processing of Chinese components into finished products in third countries prior to entry into the United States. There are a number of issues to consider where the processing of Chinese products subject to section 301 duties occurs in third countries prior to importation in the United States.
For example, the imported Chinese components processed in a third country may nonetheless be subject to section 301 duties when imported into the United States unless they are “substantially transformed” into a new and different article of commerce in the third country. This is a product-specific analysis and involves a review of components and production steps. Recently, the Court of International Trade ruled that mere assembly of foreign component parts does not constitute substantial transformation. (Energizer Battery Inc. v. United States, 190 F. Supp. 3d 1308 (Ct. Intl. Trade 2016). The decision noted that, “whether there has been a substantial transformation depends on whether there has been a change in the name or use of the components.” The court focused not on whether “the components as imported have the form and function of the final product” but rather “whether the components have a pre-determined end-use at the time of importation.” The court suggested that the imported parts would need to undergo “further work” beyond mere assembly to be considered substantially transformed.
US Customs and Border Protection has finally released the much anticipated proposed changes to the drawback regulations. (See FRN August 2)
Drawback provides an opportunity for importers to apply for refunds of duty payments upon exportation of the same or similar product. It is also a terrific opportunity for importers of components to receive…
With the Section 301 25% duties on imports of Chinese made products set to go into effect on July 6, 2018, importers should be aware that they may need to increase their bond amounts. Bonds are based on value and duty on imported goods. U.S. Customs and Border Protection (“CBP”) routinely reviews bond amounts for…
The Trump Administration is using an infrequently used provision of the trade laws, Section 301 of the Trade Act of 1974 to impose an additional 25% tariff on $50 billion worth of Chinese products imported into the U.S. The proposed list covers 1300 tariff lines and includes medicaments, pumps and valves, machinery for the oil and gas, agriculture, food, beverage, and apparel industries, motors, generators, trucks, bulldozers, railway cars, automobiles, helicopters, airplanes, and boats, and consumer products such as dishwashers, microwaves, TV’s, and VCR’s. (see full list here)
The proposed list covers the following sectors (See blog post from March 21):
- New advanced information technology
- Automated machine tools and robotics
- Aerospace and aeronautical equipment
- Maritime equipment and high tech shipping
- Modern rail transport equipment
- New energy vehicles and equipment
- Power equipment
- Agricultural equipment
- New materials
- Biopharma and advanced medical products
As an update to an earlier blog post the Trump administration is using Section 301 of the Trade Act of 1974 to impose additional tariffs, up to $50 billion per year, on certain products manufactured in China and imported into the U.S. and has announced that the proposed list of affected products will be issued…
The Trump Administration is planning on dusting off another infrequently used provision of the trade laws, Section 301 of the Trade Act of 1974, to impose additional tariffs on apparel, footwear, electronics, and home goods manufactured in China and imported into the U.S. The potential tariffs could reach between $30-$60 billion per year. The Trump…
U.S. Customs and Border Protection has been preparing for more than one year for security at this year’s Super Bowl. In coordination with the Department of Defense, other federal agencies, and local law enforcement, CBP’s mission is to be the “eyes in the sky” and help keep the air space around the stadium safe.
According to the Acting Commissioner of Customs, Kevin McAleenan, and other senior staff, the ports are open and Customs is coordinating with the over 40 partner government agencies with representatives at the ports. Customs will continue to process cargo and collect duties. Import and entry specialists are working as are the Centers of Excellence and…