The following is a selection of articles that appeared in International Trade Today in 2019 covering ruling letters. CBP frequently publishes rulings months after they are issued, so these articles are included based on the dates the articles were published, rather than the date the ruling letter was issued.
The Customs Rulings Online Search System (CROSS) was updated on Jan. 28. The following headquarters rulings not involving carriers were modified on Jan. 27 or 28, according to CBP:
When the new 25 percent Section 232 tariffs go into effect on finished steel products, approximately $800 million in goods will be affected, according to International Trade Commission data for the last full year of imports. That does not include more than $100 million in imports from South Korea, Mexico and Canada that will be exempt from the new policy.
Importers and domestic producers are waiting to find out which steel and aluminum finished products will be hit with 25 percent and 10 percent tariffs, respectively (see 2001250003), because the administration said tariffs on the raw materials that make those products have not benefited domestic producers enough.
The government will impose an additional 25 percent tariffs on some steel articles and 10 percent on some aluminum products starting Feb. 8, President Donald Trump said in a proclamation released late on Jan. 24. The new tariffs are because there has been an import surge in some products made from steel and aluminum, and because domestic capacity has not risen as much as expected from the 232 tariff action, it said.
A pump assembly assembled in Mexico is subject to Section 301 duties, even though the electric motor that powers the pump is the only Chinese component and all of the other parts are Mexican, CBP said in a recent ruling. The assembly process in Mexico does not result in a substantial transformation of the motor, so the pump assembly remains a product of China, CBP said in HQ H303864, issued Dec. 26 and posted to the agency's CROSS database Jan. 9.
The following lawsuits were filed at the Court of International Trade during the week of Jan. 6-12:
Daimler CEO Ola Kallenius told reporters that Mercedes-Benz's transition plan for auto rules of origin under the U.S.-Mexico-Canada Agreement will take three or four years. Kallenius, who was responding to a question from International Trade Today after a Q&A at the Washington Economic Club Jan. 10, did not say explicitly that the carmaker would be applying for the extension, which would require the company to show how Alabama production -- not just Mexican production at its joint venture with Nissan -- will meet the tougher standards. If it will take Mercedes four years to meet the standard, they would need an extension.
Daimler CEO Ola Kallenius told reporters that Mercedes-Benz's transition plan for auto rules of origin under the U.S.-Mexico-Canada Agreement will take three or four years. Kallenius, who was responding to a question from International Trade Today after a Q&A at the Washington Economic Club Jan. 10, did not say explicitly that the carmaker would be applying for the extension, which would require the company to show how Alabama production -- not just Mexican production at its joint venture with Nissan -- will meet the tougher standards. If it will take Mercedes four years to meet the standard, they would need an extension.
The House Ways and Means Committee, with near-unanimity, recommended the U.S.-Mexico-Canada Agreement go to the floor. A vote on the replacement for NAFTA is expected on Dec. 19. For about three hours, Democrats and Republicans praised the rewrite of North America's free trade pact, though many Republicans complained that it took a year to get the opportunity to vote for it.