CBP updated its guidance on the Section 232 tariffs and Chapter 98 revisions in an April 14 CSMS message. The agency issued guidance in 2018 (see 1807060027) that said “Section 232 duties are assessed in the same manner as regular customs duties,” and that “goods eligible for Chapter 98 provisions that provide duty-free treatment are free of Section 232 duties.” That language was removed and replaced with language to say that while for valid claims “Chapter 98 treatment will be applied,” additionally, “Section 232 duties, under Chapter 99, will be assessed independently from any Chapter 98 treatment and in accordance with the applicable chapter 99 note.” CBP didn't immediately comment when asked for more information about the change.
Customs Duty
A Customs Duty is a tariff or tax which a country imposes on goods when they are transported across international borders. Customs Duties are used to protect countries' economies, residents, jobs, and environments, by limiting the flow of imported merchandise, especially restricted and prohibited goods, into the country. The Customs Duty Rate is a percentage determined by the value of the article purchased in the foreign country and not based on quality, size, or weight.
The Commerce Department issued notices in the Federal Register on its recently initiated antidumping and countervailing duty investigations on lawn mower engines from China (A-570-124/C-570-125). The CV duty investigation covers entries Jan. 1, 2019, through Dec. 31, 2019. The AD duty investigation covers entries July 1, 2019, through Dec. 31, 2019.
The Customs Rulings Online Search System (CROSS) was updated on April 7. The following headquarters rulings not involving carriers were modified on April 7, according to CBP:
The draft regulations for auto rules of origin that have been circulating suggest that the rules won't be as flexible or practical as automakers would like, said David Bause, a project manager at MIC Customs Solutions. Bause, who spoke about the new NAFTA on a webinar April 9, used to be a customs manager for General Motors. Bause said stakeholders don't even know what the date of entry into force will be, or if the uniform regulations will be released by then. He said, “Logically one would think the earliest EIF is July 1 at this point, but from what we’re hearing, the U.S. government is still talking about June. Not sure that is technically possible.”
The Commerce Department issued Federal Register notices on its recently initiated antidumping duty investigations on common alloy aluminum sheet from Bahrain (A-525-001), Brazil (A-351-854), Croatia (A-891-001), Egypt (A-729-803), Germany (A-428-849), Greece (A-484-804), India (A-533-895), Indonesia (A-560-835), Italy (A-475-842), South Korea (A-580-906), Oman (A-523-814), Romania (A-485-809), Serbia (A-801-001), Slovenia (A-856-001), South Africa (A-791-825), Spain (A-469-820), Taiwan (A-583-867) and Turkey (A-489-839), and its recently initiated countervailing duty investigation on Brazil (C-351-855), Turkey (C-489-840), Bahrain (C-525-002) and India (C-533-896).
The Trump administration won't be going forward with a broad customs duty deferral, White House economic adviser Larry Kudlow said in an April 3 interview on Bloomberg TV (see 2004030033). After considering a limit on such deferrals to most favored nation (MFN) duties, Kudlow said, the administration determined that such an action was “too complicated” and “might send the wrong signals.”
The Trump administration won't be going forward with a broad customs duty deferral, White House economic adviser Larry Kudlow said in an April 3 interview on Bloomberg TV. After considering a limit on such deferrals to most-favored nation duties, Kudlow said the administration determined that such an action was "too complicated" and "might send the wrong signals."
CBP closed the Anchorage, Alaska, federal building that houses the area port office (Port Code 3126) “possibly for 14 days” after an employee tested positive for COVID-19, CBP said in an April 3 CSMS message. The sea port and cargo operations are not affected, it said. “For the interim, any documents (Entry Summary packages, Fines, Penalties & Forfeitures (FP&F) payments, petitions etc., duty payments, etc.) that would be delivered in person or by courier to this location, are to be submitted to the Customs & Border Protection (CBP) Cargo Office at Ted Stevens International Airport.”
CBP published the quarterly Internal Revenue Service interest rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties. For the quarter beginning April 1, 2020, and ending on June 30, 2020, the interest rates for overpayments remains 4 percent for corporations and 5 percent for non-corporations, and the interest rate for underpayments will be 5 percent for both corporations and non-corporations. These interest rates are subject to change for the calendar quarter beginning July 1, 2020, and ending on Sept. 30, 2020, CBP said.
Welding operations in the U.S. used to create a finished product for export are considered to be a “process,” which means the imported components are eligible for duty-free temporary importation under bond treatment, CBP said in a March 30 ruling. The ruling, requested by Crane Worldwide Logistics, involves parts used in nuclear power plants. Crane's client, Thermal Engineering International (TEI), asked for CBP input on how the TIB rules apply and whether the components are eligible treatment in TIB subheading 9813.00.05.20.