The U.S. could use the False Claims Act to more aggressively combat tariff evasion, attorneys at Ropes & Gray said in a Feb. 3 alert. Companies should "carefully scrutinize their import policies and procedures to ensure they are adhering to all applicable laws," the firm said, adding that importers should ensure that they have "appropriate avenues" for internal and external parties to bring confidential reports to the company's attention.
The U.S. on Feb. 3 brought a complaint against importer Shunny Corp., doing business as Sampac Enterprises, alleging that the company negligently misreported the country of origin of its health products to avoid import duties. The government is seeking nearly $200,000 in unpaid duties, along with a nearly $1.4 million penalty (United States v. Shunny Corp., CIT # 25-00039).
A listing of recent Commerce Department antidumping and countervailing duty messages posted on CBP's website Feb. 4, along with the case number(s) and CBP message number, is provided below. The messages are available by searching for the listed CBP message number at CBP's ADCVD Search page.
The U.S. Postal Service suspended international inbound mail and packages from China and Hong Kong on Feb. 4 -- and then subsequently removed that suspension hours later.
Howard Lutnick, whose nomination advanced out of the Senate Commerce Committee Feb. 2 with a 16-12 vote, told senators from both parties that, despite the president's announcements that he would have "direct responsibilities over the Office of the U.S. Trade Representative," the scope of responsibilities for the USTR won't change, and his agency will coordinate with others working on trade policy.
Trade lawyers at Thompson Hine told clients and stakeholders that the old approaches to lobbying for North American trade don't work on the Trump administration. Don't try arguing that sourcing in Mexico makes your products more price competitive. Don't explain that the three countries' manufacturing supply chains are integrated. Don't tell them that 60% of the value of the Mexican car was in U.S. parts exported to the assembly plant. Don't try to argue that a 25% tariff on imports from Mexico and Canada will cause inflation. "They don't want to hear, 'It's going to cost more,' said Dan Ujczo, a senior counsel at the law firm. "'We have invested x amount of dollars, and here are the jobs in the United States,' that’s what they want to hear."
The Trump-aligned trade advocacy group Coalition for a Prosperous America named E.J. Valentine its new director of government relations, it said in a news release. Valentine previously was policy director for the National Republican Congressional Committee and, before that, senior policy adviser to Sen. Rick Scott, R-Fla.
Canadian express courier Purolator has agreed to buy Livingston International, Purolator said in a Feb. 4 news release. The customs broker and freight forwarder “will now become a wholly owned subsidiary of Purolator led by its existing leadership team managing its day-to-day operations,” the release said. Purolator is itself majority owned by Canada Post, the primary postal operator in Canada. The terms of the deal weren’t disclosed.
Moments after President Donald Trump’s 10% tariffs on all Chinese products took effect Feb. 4 (see 2502030034), China announced new tariffs and export controls against the U.S. and added two American companies to its so-called unreliable entity list, including one that it accused of adopting “discriminatory measures” when sourcing products from China's Xinjiang region.
The International Trade Commission published notices in the Feb. 4 Federal Register on the following antidumping and countervailing (AD/CVD) duty injury, Section 337 patent or other trade proceedings (any notices that warrant a more detailed summary will be in another ITT article):