International Trade Today is providing readers with some of the top stories for Aug. 5-9 in case they were missed.
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.
CBP is issuing a proposed rule that would set minimum requirements for customs brokers to collect and verify information on their importer clients. Under the proposal, CBP would require brokers to collect certain information from their clients at the time they obtain power of attorney (POA), and then verify that information and retain records on the information and verification activities. Importer information and verification would have to be updated annually. Comments on the proposed rule are due Oct. 14.
CBP is issuing a notice formally announcing the beginning of a pilot to test a new type of informal entry in ACE for low-value shipments. New entry type 86 will allow importers of goods valued under the $800 de minimis level to file a less complex entry, including for goods subject to partner government agency (PGA) requirements, “and will expedite the clearance of compliant Section 321 low-valued shipments,” CBP said. The test will begin “no earlier than,” Sept. 28.
The U.S. is pushing for border inspections of all tomatoes imported from Mexico in negotiations over a new antidumping duty suspension agreement, according to tweets from Mexico’s chief trade negotiator for North America, Jesus Seade. Despite concessions offered by Mexican tomato growers, that could threaten to derail negotiations that seek to avoid the imposition of antidumping duties on tomatoes from Mexico that were first put on hold in 1994.
A third party logistics provider in Toronto will offer a new service to take advantage of Section 321 de minimis exemptions, the company said in an Aug. 7 news release. Stalco, the 3PL, will let "U.S. sellers have their inventory shipped from countries, such as China, directly to Stalco’s distribution centre in Canada," it said. "Where applicable, duty is paid to Canada Customs (CBSA) on the cost of goods," it said. "Stalco then picks, packs and ships the client’s U.S. consumer orders and automatically files for a refund with CBSA on the previously paid duty, on the seller’s behalf. Consumer orders with a value less than US $800 do not attract duty on entry to the USA when imported under the Section 321 clearance type." This service "allows companies to eliminate their duty costs when selling goods directly to U.S. consumers," the company said.
A recent Federal Circuit decision on tariff engineering is the latest in a string of cases that threatens to throw the importing community into turmoil, trade groups said in briefs requesting that the court rehear the case. The American Association of Exporters and Importers, the Customs and International Trade Bar Association and, in a joint brief, the National Association of Manufacturers and the U.S. Chamber of Commerce say the appeals court’s decision on Ford transit vans threatens to upend a century of precedent on tariff classification by solidifying use as a factor in eo nomine tariff classification.
Even at only 10 percent, the List 4 Section 301 tariffs due to take effect Sept. 1 on up to $300 billion worth of Chinese imports “would have a much larger impact on the U.S. tech sector” than the previous three rounds of 25 percent duties, an Aug. 5 S&P Global Ratings report said. The List 4 tariffs would “significantly raise costs for manufacturers and prices for consumers,” much more so than the current tariffs, it said.
The Commerce Department issued Federal Register notices on its recently initiated antidumping duty investigations on utility scale wind towers from Canada, Indonesia, South Korea and Vietnam (A-122-867, A-560-833, A-580-902, A-552-825), as well as its new countervailing duty investigations on utility scale wind towers from Canada, Indonesia and Vietnam (A-122-868, A-560-834, A-552-825).
The majority of companies and a trade group representing metal fabricators oppose the inclusion of brass and other copper alloys on the Airbus retaliation list, but two firms said Germany's dominance in the field is unfair and should be countered. Sixteen players in the metals industry, 14 in the U.S. and two from Europe, testified Aug. 5 at a hearing considering what items should be put on the retaliation list for Europe's subsidies of Airbus launches. The World Trade Organization has ruled that the European Union has not complied with rulings on the subsidies, and that the U.S. is entitled to rebalancing tariffs, but an arbitrator has not yet said how large the tariff action can be (see 1904090031).
Pete Mento, previously vice president of global trade and managed services at Crane Worldwide Logistics, recently joined Crowe as managing director, global customs and duties.