International Trade Today is providing readers with some of the top stories for April 6-10 in case they were missed.
A recent Congressional Research Service report suggests that the U.S. may want to use safeguards deal with China's export-dominated strategy to rebuild its economy after the shutdowns needed to fight the coronavirus disease COVID-19. “Congress may want to carefully monitor or consider whether to impose requirements about potential predatory commercial activity in the United States,” the report said. “The potential for China to overwhelm global markets as it leans on exports for economic recovery,” the authors said, may mean that safeguards would be better than “waiting until market injury has already occurred to seek damages.”
The Border Trade Alliance is asking Congress to consider including a “broad removal of tariffs” in the next round of relief funding, but if Congress does not intervene on sections 301 and 232, they recommend lifting tariffs related to the coronavirus pandemic response and an “automatic and indefinite extension” of Section 301 exclusions. They also said that a July 1 date of entry into force for the U.S.-Mexico-Canada Agreement would “be too aggressive. We would urge Congress, in consultation with the administration and our trade partners Canada and Mexico, to agree to a new enforcement date, ideally not before January 1, 2021.”
CBP has assessed about $60.8 billion in duties under the major trade remedies started during the Trump administration as of April 8, according to CBP's trade statistics page. That includes $49.6 billion in duties from the Section 301 tariffs on goods from China, and $500 million in Section 301 tariffs on goods from the European Union. CBP also has assessed about $6.9 billion under the Section 232 tariffs on steel and $2.1 billion under tariffs on aluminum. The Section 201 trade remedies on washing machines, washing machine parts and solar cells account for $1.7 billion in assessed tariffs. CBP's statistics account for refunds provided to importers.
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 Office of the U.S. Trade Representative will grant one-year extensions to eight exclusions from the first list of Section 301 tariffs on China that were due to expire April 18, it said in a pre-publication copy of a notice posted to its website. The exclusions that weren't extended will expire April 18.
U.S. importers sourced 5.81 million Chinese smartphones in February, according to Census Bureau data accessed April 5 through the International Trade Commission’s DataWeb tool. It was the lowest monthly volume from China since customs began tracking smartphone imports in 2007, and vivid evidence of the COVID-19 pandemic's upending of the Chinese supply chain after the world’s first outbreak in Hubei province in January.
The following lawsuits were filed at the Court of International Trade during the week of March 30 - April 5:
The recently announced exclusions from the Section 301 tariffs on the third list of products from China (see 2003230043) seem to be unintentionally limited by the statutory liquidation timelines, lawyer Chris Kane said in a March 31 LinkedIn post. While the notice allows for retroactive applicability to Sept. 18, 2018, when those tariffs took effect, it's not clear that importers have any way to be fully refunded for that period, he said. The Office of the U.S. Trade Representative published the official notice with numerous tranche three exclusions on March 26 (see 2003230043).
General Motors, noting that its financial resources are strained with a shutdown of vehicle manufacturing, asked the U.S. trade representative last week to lift Section 301 tariffs on eight components it will be importing from China to make ventilators in Kokomo, Indiana. The letter was posted at regulations.gov on April 2.