The Commerce Department issued Federal Register notices on its recently initiated antidumping investigations on oil country tubular goods from India, South Korea, Philippines, Saudi Arabia, Taiwan, Thailand, Turkey, Ukraine, and Vietnam (A-533-857, A-580-870, A-565-802, A-517-804, A-583-850, A-549-832, A-489-816, A-823-815, A-552-817) and countervailing duty investigations on oil country tubular goods from India and Turkey (C-533-858, C-489-817). The agency will determine whether imports of oil country tubular goods from these countries are being, or are likely to be, sold in the U.S. at less than fair value, and whether imports from these countries are being illegally subsidized.
Harmonized Tariff Schedule
The Harmonized Tariff Schedule (HTS) is a reference manual that provides duty rates for almost every item that exists. It is a system of classifying and taxing all goods imported into the United States. The HTS is based on the international Harmonized System, which is a global standard for naming and describing trade products, and consists of a hierarchical structure that assigns a specific code and rate to each type of merchandise for duty, quota, and statistical purposes. The HTS was made effective on January 1, 1989, replacing the former Tariff Schedules of the United States. It is maintained by the U.S. International Trade Commission, but the Customs and Border Protection of the Department of Homeland Security is responsible for interpreting and enforcing the HTS.
In a tariff classification case on clocks that forecast the weather (or meteorological instruments that tell the time), the Court of Appeals for the Federal Circuit on July 25 voided the judgments of both the lower court and CBP, finding in favor of importer La Crosse Technology. The dispute centered on whether the devices should be classified as clocks, thermometers/barometers/hygrometers, or meteorological instruments. CBP had said they’re all clocks, while the Court of International Trade had classified various models in each of the three categories. La Crosse on appeal argued the devices should all be classified as meteorological instruments because that subheading fully describes them. The appeals court agreed, but for different reasons.
The Commerce Department issued Federal Register notices on its recently initiated antidumping investigations on steel threaded rod from India and Thailand (A-533-855, A-549-831) and countervailing duty investigation on steel threaded rod from India (C-533-856). The agency will determine whether imports of steel threaded rod from India and Thailand are being, or are likely to be, sold in the U.S. at less than fair value, and whether imports from India are being illegally subsidized. A Commerce Department fact sheet said domestic petitioners alleged AD rates of 17.93 to 119.87 percent and CV rates of above de minimis for Indian exporters, and AD rates of 63.16 to 74.9 percent for Thai exporters (see 13071821).
Several U.S. companies and labor unions filed on July 19 petitions for antidumping duties on ferrosilicon from Russia and Venezuela (A-821-820, A-307-824). Globe Specialty Metals, CC Metals and Alloys, and the United Steel Workers (USW) and United Auto Workers (UAW) alleged dumped imports from the two countries are underselling U.S. product and harming U.S. industry. Ferrosilicon is used primarily as an alloying agent in steel and cast iron production.
The Court of Appeals for the Federal Circuit rejected a test used by the Commerce Department to determine if items covered by antidumping duty orders, but included in non-subject sets, are subject to AD duties. But while it found fault with the particulars of the test Commerce used to see whether Target’s nails are included under the AD duty order on China, the appeals court reversed a 2012 Court of International Trade ruling that said Commerce wasn’t allowed to perform any test at all on the “mixed media items.” Instead, the appeals court put forward its own test for when this issue arises, both in this Target case and in future cases, and appealed to Commerce to clearly define its mixed media analysis procedures for future cases.
The Harmonized Tariff Schedule (HTS) table is updated in the Automated Export System (AES), effective immediately, said the Census Bureau in a July 18 AES broadcast. AES will permit a grace period of 30 days beyond the expiration date for shipments with outdated codes. Reporting an outdated code after the 30 day grace period will result in a fatal error.
In a case on the tariff classification of Latitudes International Fragrance’s diffuser bottles, the Court of International Trade ruled July 17 that the product is a bottle for the conveyance of scented oil, rather than decorative glassware. Latitudes, a U.S. importer doing business as Maesa Home, argued the bottles are simple vessels bought for the scented oil and reeds they contain. The court agreed, finding the bottles’ decorative function was secondary.
An entire Santa Claus costume by Rubie’s Costume could not be classified as a festive article under Harmonized Tariff Schedule heading 9505, said CBP in a June 20 ruling. The ruling, HQ 237067, came in response to a request on behalf of Rubie’s Costume and to comments delivered during an Oct. 23 meeting with CBP office members.
The Commerce Department retroactively suspended liquidation for entries of AREMA lock washers imported by United Steel and Fasteners (US&F), after finding the product is subject to the antidumping duty order on helical spring lock washers from China (A-570-822) in a July 10 final scope ruling. US&F’s argued that Commerce can’t suspend liquidation for entries made prior to the initiation date of a scope inquiry, citing the Court of International Trade’s December 2012 decision in AMSAssociates v. U.S. to bolster its position. But Commerce said the circumstances of US&F’s scope inquiry are different, and in any case the AMS case is still under appeal, and isn’t settled.
CBP's Seattle Field Office issued a notice reminding importers of how to use CBP Form 7523 when importing vehicles. That form, which is for duty-free vehicle imports for personal use, is commonly used under Harmonized Tariff Schedule subheadings 9805.00.50 (Government), 9801.00.10 (Products of the U.S.), 9804.00.35 (Non-resident), and 9804.00.20 (Immigrant). An imported vehicle isn't eligible for duty-free entry if a non-resident importer is planning to drive the vehicle through the U.S. and make entry into Canada or Mexico, the notice said.