The Office of the U.S. Trade Representative is requesting comments on whether the set of tariff exclusions on Chinese imports on Section 301 List 1 that are set to expire July 9 (see 1907080023) should last another year, it said in a notice. The agency will start accepting comments on the extensions on May 1. The comments are due by June 1, it said. Each exclusion will be evaluated independently. The focus of the evaluation will be whether, despite the first imposition of these additional duties in July 2018, the particular product remains available only from China. The companies are required to post a public rationale.
Although the hearing scheduled for input on a Kenya Free Trade deal was canceled, comments continue to come in for what the U.S. trade representative's priorities should be.
High-level Office of the U.S. Trade Representative and senior Brazilian officials agreed April 16 to “accelerate ongoing trade dialogue under the Brazil-U.S. Commission on Economic and Trade Relations (ATEC) with a view to concluding in 2020 an agreement on trade rules and transparency, including trade facilitation and good regulatory practices,” USTR said in a statement issued the following day. “They also agreed to engage in domestic consultations, consistent with each country’s domestic procedures, to solicit input on how best to expand trade and develop the bilateral economic relationship,” the statement said.
The Office of the U.S. Trade Representative issued a pre-publication notice April 20 that carmakers must submit draft staging plans under the U.S.-Mexico-Canada Agreement no later than July 1. Their final plans are due by Aug. 31, the notice said. If USTR approves the plans, companies would have five years instead of three to increase regional content and adjust to other changes in the auto rules of origin. In order to be approved, the companies must show how every model can meet the stricter standards, even if that can't be done within the five-year time frame. Many cars imported from Mexico do not meet the current standards and pay the 2.5% duty. “The petitioner also should identify any North American investments and sourcing, preferably by calendar year and location, which will allow such vehicles to meet the standard USMCA rules,” USTR said.
As a date of entry into force, June 1 “is too aggressive and unrealistic,” said The American Association of Exporters and Importers in a letter sent April 15 to the U.S. trade representative. The organization did not say what day would be late enough for traders, who are affected by the COVID-19 public health emergency. “Many companies have personnel working from home due to COVID-19, which will make responses to queries for data slower, thereby causing delays in the certification process for USMCA,” they said. But they noted that without final regulations, “it is impossible for companies to know if there will be an impact or if supply chains may need to be shifted.” Once the regulations are in place, AAEI said, it will take time to solicit documents from suppliers. The group asked that NAFTA certificates of origin for 2020 continue to be valid during a period of informed compliance until Jan. 1, 2021.
The Office of the U.S Trade Representative intends to apply the safeguard tariffs on imported solar panels to bifacial solar panels, it said in a notice. The USTR said it will ask the U.S. Court of International Trade to lift its injunction against applying the safeguard tariff to this category (see 1912050063), but said regardless of when CIT lifts the injunction, it will apply the tariff no earlier than 30 days after May 18.
A lawyer with Crowell & Moring encouraged importers to apply for a Section 301 exclusion, even if their products aren't primarily used inside hospitals, and even if they were rejected in a previous round. Maria Vanikiotis said on a webinar April 15 that reflective triangles used to direct traffic were identified as needed to fight COVID-19 by the Office of the U.S. Trade Representative even before the office opened a docket for more requests. “We feel there’s also quite a bit of room for creativity and what products may be considered relevant,” she said, including products that are used by remote workers, such as computer docks. “Shelf stable food products also could be within scope,” she said. “Essentially, there's no risk for making an argument.”
The U.S. trade representative and Brazil's Foreign Affairs minister discussed ways to deepen discussions under the Agreement on Trade and Economic Cooperation, the Office of the U.S. Trade Representative said April 10. Another call is to take place next week, to both flesh out areas of agreement and tackle irritants. USTR will consult with Congress, as well, on “how best to expand trade and develop our economic relationship.”
The Office of the U.S. Trade Representative announced country-by-country allocations of additional fiscal year 2020 in-quota quantities of the tariff-rate quotas for imported raw cane sugar. USTR also announced increased allocations to the fiscal year 2020 tariff-rate quota for refined sugar.
The Trump administration should “lift” the Section 301 tariffs on more than 60 categories of “healthcare-essential” information and communications technology (ICT) products to help the U.S. fight the COVID-19 pandemic, urged the Information Technology Industry Council. “Relief” from the tariffs “would directly contribute to the U.S. economic and public health response to the current crisis,” ITI said. “A range of ICT products and components are at the heart of detecting and treating illnesses, recording and tracking vital signs, and conducting tests,” it said. Processors, controllers and integrated circuits, for example, imported from China under the 8542.31.00 tariff code are “foundational to a variety of medical equipment,” it said. List 2 tariffs on 8542.31.00 goods were imposed in August 2018 and are still in effect at 25%. Lifting the tariffs “will help to alleviate the strain on the healthcare system in the midst of dealing with COVID-19,” ITI said. “Tariffs act as direct impediments to U.S. governments, consumers and businesses, and we would encourage the removal of tariffs by any means to increase confidence in the COVID-19 response and support economic recovery.” While others, including Sen. Susan Collins, R-Maine, and the U.S. Chamber of Commerce have urged the administration to defer the tariffs for 90 days, ITI is asking for the duties’ outright removal.