The Office of the U.S. Trade Representative posted the transcripts from the hearing on Section 301 tariffs on France (see 2001060040) split over Jan. 7 and Jan. 8.
The Customs Rulings Online Search System (CROSS) was updated with 43 rulings on Jan. 9. The following headquarters rulings not involving carriers were modified on Jan. 9, according to CBP:
U.S. smartphone importers abruptly shifted more sourcing toward Vietnam and less from China in November, the last full month before the scheduled imposition of 15 percent List 4B Section 301 tariffs on Chinese handsets, according to newly released Census Bureau data accessed Jan. 9 through the International Trade Commission’s DataWeb tool. The Trump administration suspended the List 4B tariffs Dec. 13, less than 48 hours before they were to take effect, after reaching a phase one trade deal with China.
CBP has assessed about $53 billion in duties under the major trade remedies started during the Trump administration as of Jan. 8, according to CBP's trade statistics page. That includes $42.8 billion in duties from the Section 301 tariffs on goods from China, and $177.8 billion in Section 301 tariffs on goods from the EU. CBP also has assessed about $6.6 billion under the Section 232 tariffs on steel and $1.9 billion under tariffs on aluminum. The Section 201 trade remedies on washing machines, washing machine parts and solar cells account for $1.4 billion in assessed tariffs. CBP's statistics account for refunds provided to importers, an agency spokesperson said.
The Office of the U.S. Trade Representative created a detailed guidance for how to go about creating exclusions through carve-outs from the Section 301 tariff headings. The guide lays out the considerations for USTR when “drafting” such carve-outs, which can be submitted to the International Trade Commission and CBP “for approval and comments.” ProPublica posted a copy of the document, which was likely attained through a Freedom of Information Act request. The document was mentioned in a broader ProPublica story on tariff exclusions.
Vizio became the first major TV brand to seek exclusions from the List 4A Section 301 tariffs on finished flat-panel sets from China when it filed Jan. 7 for exemptions on four 10-digit classifications of goods under subheading 8528.72.64 that vary by screen size. Vizio is “working closely” with its third-party original design manufacturers to shift production outside China, the vendor posted in the Office of the U.S. Trade Representative public docket. “Some of the ODMs moved manufacturing to third countries including Mexico in the late Q3 2019 timeframe.” Despite those efforts, it’s “extremely difficult” for Vizio to transfer production to other third countries, including Taiwan, Thailand and Vietnam, “without significant cost” that would “far exceed” the “modest profit margin,” it said. That would “likely” result in a “significant price increase to American consumers,” it said. “Responsibly exploring alternatives to manufacturing, without sacrificing quality, safety, and the low prices that define our brand takes considerable time.” List 4A tariffs took effect Sept. 1 at 15 percent, but are due to be rolled back by half (see 1912310010).
The panel deciding which French products should face Section 301 tariffs was intrigued by a point made by the Cheese Importers Association of America -- who could pay more on 21 Harmonized Tariff Schedule headings if all the proposed tariffs are included.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said he's been told it's going to take three or four days for six other Senate committees to clear the U.S.-Mexico-Canada Agreement so that it can go to the floor for a vote. Whether it can come up the week of Jan. 21 will depend on whether the articles of impeachment have arrived by then, he noted.
The International Trade Commission is working to add provisions on the Trade Agreement between the United States and Japan to the Harmonized Tariff Schedule of the U.S., James Holbein, director of the ITC’s Office of Tariff Affairs and Trade Agreements, said in an interview Jan. 7. Technical issues with the ITC’s electronic system for updating the tariff schedule had led to the omission of new General Note 36, as well as provisions in chapter 99, from the 2020 Basic Edition of the HTS, Holbein said. The ITC’s information technology office is currently working to fix those issues, he said.
International Trade Today is providing readers with some of the top stories for Dec. 30 - Jan. 3 in case they were missed.