The International Trade Commission posted Revision 4 to the 2024 Harmonized Tariff Schedule. The semiannual update to the HTS adds new 10-digit tariff numbers for a variety of products, including integrated circuits and plantation-harvested teak. All changes take effect July 1, unless otherwise specified.
Changes to the USMCA rules of origin (ROOs) have "had a positive economic impact on the U.S. and North American auto industry, although with some challenges in implementation and new challenges emerging," according to the Office of the U.S. Trade Representative. The USTR report to Congress, mandated by Congress when NAFTA was rewritten, noted that carmakers "are still adjusting to the full scope of USMCA’s autos rules," with 13 entities given extended time to meet the stricter rules, at least for some models.
A coalition of U.S. manufacturers seeks the imposition of new antidumping and countervailing duties on imports of low-speed personal transportation vehicles from China, it said in petitions recently filed with the Commerce Department and the International Trade Commission. Commerce will now decide whether to begin AD/CVD investigations, which could result in the imposition of permanent AD/CVD orders on low-speed personal transportation vehicles, commonly known as golf carts, and the assessment of AD/CVD on importers.
A number of prominent trade groups, along with Winnebago, the motor home and powerboat maker with 6,000 employees, questioned the wisdom of a tariff hike from 7.5% to 25% on lithium-ion batteries outside the electric vehicle sector (Harmonized Tariff Schedule subheading 8507.60.0020).
Trade groups and major companies that make electric cars, light trucks and heavy trucks told the Office of the U.S. Trade Representative that domestic industry is not ready to take over from Chinese suppliers of graphite, artificial graphite and electric vehicle battery cells on the timelines the Section 301 tariff modifications propose.
Solar manufacturers asked for retroactive relief on Section 301 tariffs on manufacturing equipment, buyers and producers disagreed on medical product tariffs and many manufacturers supported the equipment listed, and asked for more equipment or parts for equipment that was not identified by the Office of the U.S. Trade Representative as it recommended a new round of exclusions limited to manufacturing equipment.
CBP created Harmonized System Update (HSU) 2407 on June 20, containing 17 ABI records and 4 Harmonized Tariff Schedule records. "This update contained Section 301 exclusion updates that included extending HTS numbers 9903.88.67 and 9903.88.68 from May 31, 2024, to June 14, 2024, and adding new HTS number 9903.88.69 effective June 15, 2024, through May 25, 2025," CBP said in a June 27 CSMS message.
CBP created Harmonized System Update (HSU) 2409 on June 26, containing 261 ABI records and 79 Harmonized Tariff Schedule records. "This update also includes the addition of HTS 9903.45.29 for Section 201 Bifacial Exclusions," CBP said in a CSMS message. "Additional communication with further details, information and guidance on Section 201 bifacial exclusions is forthcoming."
CBP will soon begin rejecting ACE filings for products that fail to comply with certain organic import filing requirements under the USDA’s Strengthening Organic Enforcement final rule, which requires electronic National Organic Program import certificates for organic agricultural products (see 2403190066 and 2301180051). CBP has been issuing warnings for those filings since new USDA organic enforcement regulations became effective March 19, but the agency said in a June 24 CSMS message that the warning will change to a reject in ACE’s certification environment on June 28 and in ACE’s production environment on Sept. 19.
In a bill that Republicans say is "rightsizing agencies and programs," the division of the Commerce Department that handles antidumping and countervailing duties administration would be cut by 5.7% -- $7 million -- from the current fiscal year. The bill also proposes cutting funding of the Office of the U.S. Trade Representative by 8.1% -- $6 million -- from current spending. The International Trade Commission, which manages changes to the Harmonized Tariff Schedule code, provides independent analysis crucial to the AD/CVD process, and manages the Miscellaneous Tariff Bill product nominating process, would get a 5.7% cut, $7 million less than current spending.