CBP released a final rule for drawback regulations under the Trade Facilitation and Trade Enforcement Act. Most of the regulations will take effect upon publication in the Federal Register on Dec. 18, though the new rules for drawback of excise taxes will take effect on Feb. 19, it said.
CBP also released information on processing accelerated payment drawback claims in a CSMS message. "The regulations necessary for CBP to begin processing payments for Accelerated Payment (AP) on TFTEA drawback claims are now effective," it said.
The Office of the U.S. Trade Representative will officially suspend the planned increase in Section 301 tariffs on $200 billion worth goods from China that had been set for Jan. 1, the agency said in a notice. That notice said the third tranche of the tariffs will remain at 10 percent for the time being and won't increase to 25 percent until March 2. The delay follows a recent deal reached by the U.S. and China to begin negotiations toward a resolution of the ongoing trade dispute.
A 90-day pause in implementing increased Section 301 tariffs will run from Dec. 1, the White House said as it corrected the record the evening of Dec. 3. National Economic Council Director Larry Kudlow had erroneously said that the 90-day delay in increasing tariffs on $200 billion in Chinese imports would start Jan. 1. That was the day that tariffs were scheduled to rise from an additional 10 percent on the base rate to 25 percent. Jennifer Hillman, a Georgetown Law professor and former general counsel at the Office of the United States Trade Representative, tweeted that the Federal Register will have to be updated to reflect the new deadline, which should fall around March 1.
Section 301 tariffs on certain Chinese goods will remain at 10 percent after Jan. 1, after President Donald Trump and Chinese President Xi Jinping reached a deal to suspend the tariff increase, said the White House in a statement. Under the agreement, concluded Dec. 1 at the G20 summit in Buenos Aires, China will purchase “a not yet agreed upon, but very substantial” amount of agricultural, energy and industrial goods.
The third tranche of Section 301 tariffs on $200 billion in Chinese goods had been set to increase to 25 percent after the new year. China also “agreed to start purchasing agricultural product from our farmers immediately,” the statement said. The deal appears to only affect the third set of tariffs, and not the first and second tranches that are already set at 25 percent.
The U.S. and China will also “immediately” begin negotiations “on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture,” the statement said. “Both parties agree that they will endeavor to have this transaction completed within the next 90 days. If at the end of this period of time, the parties are unable to reach an agreement, the 10% tariffs will be raised to 25%,” it said.
The Court of International Trade said in an Oct. 12 ruling that CBP must file a final rule for drawback under the Trade Facilitation and Trade Enforcement Act with the Office of the Federal Register by Dec. 17. The final rule, except for provisions involving drawback for excise taxes, will be effective when filed, ruled CIT Judge Jane Restani. The excise tax provisions may take effect 60 days after publication.
The ruling is the latest in a lawsuit brought against CBP that said the government is improperly not processing requests for accelerated payment on TFTEA drawback claims.
Canada and the U.S. reached a deal on NAFTA 2.0 late Sept. 30, which was announced a half hour before the deadline to release the text.
Canada agreed to eliminate Class 7 and Class 6 dairy six months after the agreement goes into effect. Class 7 was a recent addition to Canada's dairy supply management system, and closed a market that had been open to farmers in the northern U.S. to sell ultra-filtered milk, used in making cheese.
As with Mexico, the U.S. promised not to levy Section 232 tariffs on autos and auto parts up to a cap, if Canadian vehicles were not to meet the auto rules of origin. For any Section 232 tariff, the government agreed to a 60-day period of consultations with its partners.
The language on how there will be a transition from the current NAFTA is not yet written.
Finance Committee Chairman Orrin Hatch welcomed the news. Rep. Richard Neal, the ranking member of the House Ways and Means Committee, released a statement that said, "We will need to assess whether this agreement makes real improvements to the terms of the existing NAFTA or President Obama’s TPP.”
Importers will have to pay an additional 10 percent on about 5,700 8-digit tariff lines starting Sept. 24, President Donald Trump said on Sept. 17. "If China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports," said Trump in the statement.
Roughly 300 tariff lines from the original July 10 list are fully or partially exempted from the tariffs, said a senior administration official during a call with reporters.
Smart watches, high chairs, car seats, play pens, paper sheeting for hospitals, rubber gloves, bicycle helmets and some chemicals used in textiles, manufacturing and agriculture, are among the products exempted from the tariffs, the administration said. Network routers remain on the list, which still covers about $200 billion worth of imports from China in total, an official said.
The new tariffs will go up to 25 percent at the end of the year if China has not responded in meaningful negotiations, the senior administration official said. The delay is also designed to give companies a chance to find alternative sources, they said. "If the tariffs go to 25 percent at the beginning of the year, you will have had almost six months to get your business ready," the official said.
President Donald Trump notified Congress of plans to sign a free trade agreement with Mexico, the White House said. The agreement will also include Canada, “if it is willing.”
The notification, which is part of the legislative process under fast track authority, boasts of improvements in market access for farmers, the financial sector, and a more level playing field for American auto workers through improved rules of origin.
Mexico and the U.S. reached an agreement on several NAFTA issues, President Donald Trump said in an Aug. 27 announcement. The two countries found common ground on several contentious issues in recent weeks, including new rules of origin for autos.
Canada has not been involved in the talks, but Canadian Foreign Minister Chrystia Freeland said on Aug. 24 that the country will join discussions after the U.S.-Mexico bilateral issues are resolved, according to Reuters.
The increased Section 232 tariffs on steel from Turkey will take effect at 12:01 a.m. on Aug. 13, the White House said in a proclamation. CBP issued filing instructions for Turkish steel on Aug. 12 in a CSMS message. Importers are to include the classification "9903.80.02 (50% ad valorem duty rate for products of iron and steel that are the product of Turkey)" in addition to the regular Chapter 72 or 73 classifications, the agency said.
President Donald Trump said on Aug. 10 he approved doubling tariffs on steel from Turkey, from 25 percent to 50 percent.
The tariffs on "steel articles that are the product of Turkey are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 13, 2018," said CBP. While Trump also said tariffs on aluminum from Turkey would double to 20 percent, the White House has not yet released a proclamation and CBP hasn't released instructions regarding aluminum.
The Office of the United States Trade Representative released the final list for the second tranche of Section 301 tariffs on Aug. 7. CBP will begin the collection an extra 25 percent in tariffs on those goods from China starting Aug. 23, the USTR said in its announcement.
The USTR only removed five tariff lines, leaving 279 of the proposed 284 tariff lines in place, it said.
CBP will again delay enforcement of parts of the agency's in-bond requirements, it said in a Aug. 1 CSMS message. CBP previously planned to begin enforcement on Aug. 6. The delay is "due to issues identified with electronic communication for intermodal movement of cargo and other operational issues," CBP said.
The CBP Office of Field Operations will now defer enforcement until Feb. 6, it said. The ports will evaluate compliance and "are instructed to issue warnings rather than penalties during this time" said CBP. The agency previously pushed back the enforcement date for several changes to the in-bond rules.
CBP released its proposed rulemaking for updated drawback regulations under the Trade Facilitation and Trade Enforcement Act. The long-awaited rulemaking had been held up for months while the Treasury Department and Office of Management and Budget reviewed its provisions.
The rules are scheduled for publication in the Federal Register on Aug. 2, with comments due 45 days after that.
A Court of International Trade judge recently ruled that the government missed a statutory deadline for issuing the regulations as part of a lawsuit over whether CBP is improperly not processing requests for accelerated payment. Lawmakers also recently called on the agencies to quickly move forward with the regulatory proposal.
President Donald Trump announced that the U.S. will "resolve the steel and aluminum issues" with the European Union after the EU agreed to buy more soybeans and liquefied natural gas, and to enter negotiations to drop non-auto industrial tariffs to zero. The EU's retaliatory tariffs will also be "resolved," said Trump.
As long as negotiations continue, Trump and European Commission President Jean-Claude Juncker said July 25, there will be no new tariffs placed on the EU. A previous EU exemption to Section 232 tariffs on steel and aluminum ended on June 1.
The U.S. Trade Representative is proposing an additional 10 percent tariff on 6,031 8-digit tariff lines -- about $200 billion worth of imports. Those who wish to testify for or against the inclusion of an item on the list must file by July 27, and written comments are due by August 17. Hearings will be held August 20-23. Senior government officials said a decision on tariffs will be made sometime after August 30.
The notice posted at USTR after close of business July 10 says that staff took into account impacts on consumers, and analysts removed some tariff lines because they were "likely to cause disruptions to the U.S. economy, as well as tariff lines subject to legal or administrative constraints." Food, chemicals, pesticides, minerals, fabrics, construction materials, handbags, luggage, car parts, appliances, machines, televisions, items made from steel and aluminum, batteries, semiconductor assemblies, furniture and more were on the list. Pharmaceuticals of Chapter 30, and apparel and footwear of Chapters 61-64, were not.
USTR is proposing the tariffs because China has not acquiesced to U.S. demands after initial Section 301 tariffs set at 25 percent on $34 billion in Chinese goods. A senior administration official, briefing reporters on the action, said that China is refusing to talk about structural issues in their economy and Made in China 2025. Chinese negotiators' attitude, he said, is that "the problems we've identified aren't real problems. They've continued to claim we're not being hurt... . That's just not serious."
Correction: Section 301 duties on products from China that are set to begin July 6 will be eligible for drawback, CBP said in a CSMS message.
The U.S. plans to impose a 10 percent tariff on an additional $200 billion worth of goods from China in response to China's retaliatory tariffs, President Donald Trump said in a June 18 statement. China's decision to implement 25 percent tariffs on $34 billion in U.S. imports, mirroring the Section 301 tariffs, shows China "has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology," said Trump. "The latest action by China clearly indicates its determination to keep the United States at a permanent and unfair disadvantage."
After China retaliates, he said, the U.S. will impose the 10 percent tariffs, once the USTR has identified that list. If China retaliates again, the U.S. will escalate with additional tariffs on another $200 billion in goods, he said, but did not say at what level.
The U.S. will begin collecting an additional 25 percent in tariffs on 818 lines of the original 1,333 tariff lines proposed in April, the Office of the U.S. Trade Representative announced June 15. The tariffs will take effect July 6. Televisions, one of the most significant consumer products on the original list, are no longer facing tariffs.
The list includes many manufacturing inputs, such as boat motors, aircraft parts, parts for dishwashers, elevators, ball bearings, clutches, touch screens, backlight LEDs and much more. It also includes machinery and other manufacturing equipment, such as grinding machines, molds, machine tooling, welding machines and so on.
A second group of potential targets, related to the Made in China 2025 initiative, will have a round of public comments, including a public hearing, before a final decision is made. Those products include 284 lines from the Harmonized Tariff Schedule. The government will offer an product exclusion request process, but no details were included in the USTR announcement.
CBP released an interim final rule and request for comments on the Air Cargo Advance Screening (ACAS) program. The interim final rule makes mandatory the early data filing requirements that were voluntary under the ACAS pilot program. The interim final rule is set to take effect June 12 and the agency will allow for a yearlong phased-in implementation, though "willful and egregious violators will be subject to enforcement actions at all times," it said.
Exemptions from Section 232 tariffs on steel and aluminum for Canada, Mexico and the European Union will end on June 1, President Donald Trump announced in two presidential proclamations issued on May 31. No permanent agreement was reached for the countries, and the administration did not extend their temporary exemptions.
As of 12:01 a.m. on June 1, steel from all countries except Australia, Argentina and Brazil will be subject to a 25 percent tariff, and aluminum from all countries except Australia and Argentina will face a 10 percent duty. Brazil had reached agreement on an exemption on steel but not aluminum.
The presidential proclamation on iron and steel products says imports from Argentina and Brazil will be subject to quota, in addition to already subject imports from South Korea. The proclamation on aluminum says quotas will apply to imports from Argentina. Australia is not mentioned in either of the quota provisions.
The 25 percent tariffs on $50 billion worth of goods from China will go forward, the White House announced on May 29. "The final list of covered imports will be announced by June 15, 2018, and tariffs will be imposed on those imports shortly thereafter," said the White House. The announcement comes just over a week from when the Trump administration said on May 20 it planned to put the Section 301 tariffs on hold while China and the U.S. worked on the framework of an agreement.
CBP will prioritize Section 321 filing via the Automated Broker Interface, an update to CBP Form 5106 importer information, and modernizing foreign-trade zone “e214” admissions, among other new and revised functionalities, with the additional $30 million in ACE funding it received in fiscal year 2018 appropriations legislation, CBP said in an announcement on its website May 22.
The new ACE funding will also be used to create unique identifiers for the Centers of Excellence and Expertise, transition to a national permit for customs brokers, and modernize vessel management and truck processing, CBP said.
CBP will also enhance its refund processing for the Generalized System of Preferences and make other changes related to manifests, CBP said. “More information is forthcoming on these ACE enhancements, including a development and deployment schedule. CBP will engage the trade community through the Trade Support Network to establish workgroups to refine trade-facing technical requirements and implementation plans.”
Proposed new tariffs on products from China will be put "on hold while we try to execute the framework" of a deal with China, Treasury Secretary Steven Mnuchin said in a May 20 interview on Fox News Sunday. "I'm pleased to report that we've made very meaningful progress and we've agreed on a framework, which is important to understand, and the framework includes their agreement to substantially reduce the trade deficit by increasing their purchasing of goods," he said.
The Trump administration proposed new tariffs on $50 billion worth goods from China earlier this year following a Section 301 investigation. China and the U.S. released a joint statement on May 19 that both sides are aligned on the "importance to intellectual property protections, and agreed to strengthen cooperation," among other things.
President Donald Trump extended exemptions from Section 232 duties on steel and aluminum until June 1 for the European Union, Canada and Mexico. He also announced the U.S. has reached agreements in principle on exemptions from tariffs for Brazil, Argentina and Australia, alongside a final agreement on steel tariffs with South Korea.
Discussions are continuing with the EU, Canada and Mexico, the president's proclamations on steel and aluminum said, and he believes the discussions will be more productive if the countries continue to be spared from tariffs. The proclamations also say drawback will not be available on entries subject to the Section 232 tariffs.
Even though South Korea, Brazil, Argentina and Australia are all expected to avoid steel tariffs, South Korean aluminum exports will be subject to a 10 percent tariff; the aluminum proclamation suggests that if the final agreements are satisfactory, Brazil, Argentina and Australia will not. The proclamations were released less than three hours before the temporary exemptions were to expire at one minute past midnight on May 1.
Benefits under the Generalized System of Preferences (GSP) mostly won't apply to goods subject to recently implemented tariffs on solar panels, washing machines, aluminum and steel, said CBP in on its website. President Donald Trump imposed new Section 201 safeguard tariffs on imports of large residential washers and solar cells and modules in January and Section 232 tariffs on steel and aluminum in March.
CBP said imported steel and aluminum from GSP countries Brazil and Argentina are still eligible for GSP benefits because they were exempted from the Section 232 tariffs until at least May 1.
Renewal of the GSP program took effect on April 22 after it expired at the end of 2017. "Articles normally eligible for GSP duty preference that are subject to Section 201 duty and quota measures may not receive GSP duty preference," CBP said in CSMS message. "Currently, imports of certain solar cells and panels from Philippines and certain solar cells, solar panels, washing machines, and washing machine parts from Thailand are the only GSP eligible goods that are subject to Section 201 measures," said CBP.
The Office of the U.S. Trade Representative released a proposed list of tariffs on some $50 billion worth of Chinese imports. "Sectors subject to the proposed tariffs include industries such as aerospace, information and communication technology, robotics, and machinery," said the USTR in a news release.
The tariffs likely wouldn't take effect before June as a result of the administrative process.
The tariffs, a result of a Section 301 investigation, are meant as a response to a pattern of forced technology transfers, intellectual property theft and cyber business espionage. The Chinese ambassador to the U.S. warned on April 2 that China would likely retaliate with tariffs of similar scope in response to Section 301 tariffs.
President Donald Trump signed a memorandum March 22 instructing the U.S. Trade Representative to ready a list of goods imported from China that will be subject to tariffs because of that country's policies of forced technology transfer, forced joint ventures, intellectual property theft and technology licensing restrictions.
After the list is published, which a top White House official said will affect 1,300 tariff lines, the public will have 30 days to submit comments.
Separately, omnibus spending legislation was passed in the House that includes provisions to renew the Generalized System of Preferences, said the House Committee on Appropriations in a news release. The bill still needs Senate approval. The legislation did not include a Miscellaneous Tariff Bill.
The White House released the full text, including annexes, of Presidential Proclamation 9704 and Presidential Proclamation 9705 setting across-the-board Section 232 tariffs on aluminum and steel, respectively. The proclamations create new subheadings 9903.85.01 and 9903.80.01 for aluminum and steel products covered by the tariffs, as well as new notes to chapter 99 detailing the scope of the Section 232 actions.
Each of the annexes includes language allowing CBP to require additional information from importers necessary for the agency to administer the new tariff provisions, as well as any exemptions granted by the Commerce Department. As announced March 8, tariffs are set at 10 percent on aluminum products and 25 percent on iron and steel products. The new tariff provisions take effect at 12:01 a.m. on March 23.
CBP doesn't expect the Treasury Department to approve proposed regulations for coming changes to drawback procedures before the Feb. 24 effective date, a CBP spokesman said by email. The changes are the result of the Trade Facilitation and Trade Enforcement Act, which allowed for two years of preparation before the drawback overhaul became effective. "CBP will, however, accept TFTEA drawback claims in" ACE, "with processing to occur once the regulations are finalized," the spokesman said.
"CBP has been working with internal and external stakeholders to develop an interim guidance document which will provide processing guidelines for TFTEA drawback claimants," the spokesman said. "This guidance will be made public before February 24, 2018 and will address the issues that have arisen as a result of stakeholder engagement."
In order "to ensure full transparency around the new drawback process, CBP has worked extensively with our drawback trade partners, including regular meetings, the posting of technical guidance on CBP.gov and testing with trade filers," the spokesman said. "CBP’s technical guidance provides a great deal of information on the Core and TFTEA drawback processes. Once the regulations are finalized, CBP will continue to work with our drawback trade partners to identify any potential programming changes that result, and respond to questions."