In the July 2 Customs Bulletin (Vol. 59, No. 27), CBP published proposals to revoke ruling letters concerning the tariff classification for certain wireless headphones and earphones and the country of origin of a brake hose.
The U.S. Court of Appeals for the 9th Circuit's recent ruling in a trade-related False Claims Act case likely will create more customs fraud enforcement led by private parties and should lead importers to be extra wary that they are complying with U.S. trade laws, various laws firms said. The case is Island Industries v. Sigma Corp. (9th Cir. # 22-55063).
CBP has released its July 2 Customs Bulletin (Vol. 59, No. 27), which includes the following ruling actions:
Sidley trade lawyer Ted Murphy sent a note to clients about his thoughts on the U.S.-Vietnam tariff deal announced July 2 "based on what we (think we) know about the deal thus far," though he noted that the deal is likely still being negotiated.
CBP issued the following releases on commercial trade and related matters:
President Donald Trump posted on social media that Vietnamese goods would face a 20% tariff, rather than an originally proposed 46% reciprocal tariff, in exchange for zero tariffs on U.S. exports.
The Commerce Department is amending countervailing duty rates on imports of wooden cabinets and vanities from China (C-570-107), implementing a recent Court of International Trade decision that overturned the agency’s original final CVD determination (see 2004200017). As a result of changes to Ancientree’s rate calculation, the “all-others” cash deposit rate will fall to 18.17%, effective June 22.
Importer American Eel Depot filed a pair of complaints at the Court of International Trade on June 27 to contest CBP's classification of its frozen roasted eel under Harmonized Tariff Schedule subheading 1604.17.10 and secondary subheading 9903.88.03, subjecting the goods to Section 301 duties. The company argued that its goods aren't products of China but, in fact, have a country of origin of the U.S. (American Eel Depot v. United States, CIT # 21-00278, -00279).
Georgetown Law School Professor Jennifer Hillman, a former International Trade Commissioner and member of the World Trade Organization's appellate body, said she thinks there are grounds for a challenge to 25% tariffs on autos and auto parts, imposed on national security grounds under Section 232.
Even though CBP has given some guidance on how to interpret the "in transit" reciprocal tariff exclusions, the trade is still grappling with how to proceed with the changes, according to a June 27 letter to DHS Secretary Kristi Noem and incoming CBP Commissioner Rodney Scott.