The U.S. Trade Representative (“USTR”) has prepared for publication a Federal Register Notice (“Notice”) that identifies a list of approximately 1,300 tariff lines on which it proposes to levy additional duties of up to 25% on goods made in China. The pre-published copy of the Notice was released yesterday, April 3, 2018, and includes an Annex identifying the products on which USTR proposes to assess the additional duties. The notice can be found here. According to an accompanying press release, the sectors targeted for the proposed tariffs “include industries such as aerospace, information and communication technology, robotics, and machinery.” The press release further indicates these tariffs are intended to combat China’s “industrial plans, such as ‘Made in China 2025.’” The tariffs, therefore, are intended to “target products that benefit from China’s industrial plans while minimizing the impact on the U.S. economy.”
The Notice announces a public hearing and an opportunity for interested parties to submit written comments. The public hearing will take place on May 15th; interested members of the public must file requests to appear at that hearing, and a summary of expected testimony as well as any other pre-hearing submissions are due by April 23rd. Written comments must be filed by May 11th, and any post-hearing rebuttal comments are due May 22nd. (more…)
In off the record comments on March 28, 2018, an official of the Dept. of Commerce provided some clarification as to how the product exemption process will work relative to steel and aluminum tariffs. Of course, the starting point is: if your product is subject to the steel or aluminum tariffs and is not from an exempted country, the 25% or 10%, respectively, will have to be paid. After that, things get trickier.
If you decide to seek exemption for your product, the first step obviously is to gather the needed details and file your exemption request. The way the process is intended to work is once the exemption request is uploaded to regulations.gov, the Bureau of Industry and Security (“BIS”) will review it for completeness. If not complete, the application will be rejected. If complete, it will be officially posted on the regulations.gov website. That date is key. Because, if your exemption request is later granted, while not official until five days after it is published, you will be able to seek refunds on any entries filed between the date the exemption request is posted and when it is granted. (more…)
New Proposition 65 safe harbor warnings will take effect on August 30, 2018. While these new warnings relate to a wide range of goods and services, we are focused on changes that impact consumer products due to the focus of our clientele. If you are currently subject to Prop 65, you will continue to be subject to its requirements. If you are not currently impacted, you may be under the new rules!
Not sure? Check the various fact sheets published here, or more generally the “warnings page” here.
Warnings are now expressly required on your website!Internet warnings – “a warning that complies with the content requirements of Section 25603(a) must also be provided by including either the warning or a clearly marked hyperlink using the word “WARNING” on the product display page, or by otherwise prominently displaying the warning to the purchaser prior to completing the purchase.” The Office of Environmental Health Hazard Assessment or OEHHA (the California state agency which oversees Prop 65) noted the following: “Some online retail sellers who currently provide an internet warning do so by providing the warning as a pop-up when the purchaser enters a California zip code. This is an example of a way to prominently display ‘the warning to the purchaser prior to completing the purchase’ as required by the regulation.” (more…)
Some events rather significant to international traders occurred in the last few days. First, on Friday, March 23, 2018, President Trump signed the latest spending bill. It includes a provision to renew Generalized System of Preferences (“GSP”) benefits retroactive to December 31, 2017, when the program last expired. GSP is now authorized through December 31, 2020.
With history as a guide, we should expect Customs and Border Protection to shortly publish a message advising when its programming is updated, the deadline by which to file refunds and similar details. In the past, so long as the entry was filed with an “A” or similar indicator, refunds were routinely issued, but importers would still be wise to make sure their list of eligible entries is current, and then to track their refunds. Since the bill was signed into law on Friday, the deadline to file refund requests will be 180 days later, which works out to September 18, 2018. (more…)
When President Trump announced the 25% steel and 10% aluminum tariffs on March 8, 2018, he instructed the Secretary of Commerce to issue regulations explaining how American companies could seek exclusions from those tariffs no later than March 19, 2018, and that deadline has been met. These new regulations can be found here.
Before we discuss the new regulations, we should start with the data Customs and Border Protection (CBP) released with its programming updates to implement these safeguard tariffs. (more…)
Earlier today, March 8, 2018, President Trump signed two Presidential Proclamations, one dealing with additional tariffs on steel and the other with additional tariffs on aluminum. As has been widely reported in the general press, those rates are 25% on steel and 10% on aluminum. The only countries exempted are Canada and Mexico.
Steel articles are defined as those which are classified under HTSUS 7206.10 through 7216.50 (including ingots, bars, rods and angles), 7216.99 through 7301.10 (including bars, rods, wire, ingots, and sheet piling), 7302.10 (rails), 7302.40 through 7302.90 (including plates and sleepers), and 7304.10 through 7306.90 (including tubes, pipes and hollow profiles). Aluminum products are defined as unwrought aluminum (HTS 7601); aluminum bars, rods, and profiles (HTS 7604); aluminum wire (HTS 7605); aluminum plate, sheet, strip and foil (flat rolled products) (HTS 7606 and 7606); aluminum tubes and pipes and tube and pipe fittings (HTS 7608 and 7609); and aluminum castings and forgings (HTS 7616.99.5160 and 7618.104.22.168). (more…)
Earlier today, President Trump announced his intention to adopt the recommendations of the Dept. of Commerce and impose tariffs on imports of steel and aluminum. The formal signing is said to be taking place “next week.” President Trump has stated those tariffs will be 25% on foreign-made steel and 10% on foreign-made aluminum. Hopefully when the final document is signed and released, it will become clear how long these tariffs will be in place and whether they will be accompanied by any other measures, such as quotas.
Commerce’s original steel recommendations were: (i) a 24% tariff on all steel imports; or (ii) a 53% tariff on steel imports from Brazil, China, Costa Rica, Egypt, India, Malaysia, South Korea, Russia, South Africa, Thailand, Turkey and Vietnam; which (iii) could include a quota from all other countries equal to their 2017 level of imports; or (iv) no tariffs, but a quota on all steel products from all countries equal to 63% of their 2017 import levels. (more…)
Yesterday, January 22, 2018, U.S. Trade Representative (USTR) Robert Lighthizer announced the imposition of safeguard tariffs on solar cells and modules. Much has been said in the general press about this case, but only now is the key point starting to register, and is something international traders immediately thought about – is President Trump starting a new trade war with China?
By way of a quick summary, after seeking relief through the antidumping and countervailing duty laws and not getting the desired market relief, Suniva, later joined by SolarWorld, invoked Section 201 of the Trade Act of 1974. The appropriate petition was brought, the International Trade Commission (ITC) conducted the required proceedings, found detrimental harm, and made recommendations to the President. While disagreement among the Commissioners was acknowledged, most favored an increase in duties, and President Trump agreed. Safeguard tariffs have been imposed for four years – the maximum length of time permitted – on a per year basis – 30%, 25%, 20% and 15%. The USTR announcement also states the first 2.5 gigawatts of imported cells are excluded from the safeguard tariff. A critical point here is these safeguards are being imposed on both the cells and the modules, regardless of where made, as would be expected from a global safeguard, but the solar cells are overwhelmingly made in China. (more…)
Earlier this month, MSK attorneys David Rugendorf and Frida Glucoft published an Alert summarizing the latest directive issued by Customs and Border Protection (CBP) regarding the search of electronic devices. A copy of their original article can be found here – Hold That Call International Travelers. Given the increasing likelihood of any traveler’s electronic devices being subjected to a search, whether arriving or departing the U.S. by air, ocean or land, these recent changes warrant a deeper dive.
First, for those who want to read the actual document, it is CBP Directive 3340-049A. As the earlier Alert noted, CBP has the broad rights to search any individuals, luggage, and cargo entering and leaving the U.S. Searches of cargo are governed by other laws and regulations. This directive deals only with arriving and departing travelers and their devices. (more…)
As the Department of Homeland Security continues to phase in the requirements of the REAL ID Act, some domestic airline travelers may be prohibited from using their state-issued driver’s license or ID card in order to board their flight.
After January 22, 2018, state-issued driver’s licenses and IDs may be used for domestic airline travel only if they were issued by a state which is in compliance with the REAL ID Act or has been granted an extension by the Secretary of Homeland Security. Currently, all 50 US states, Puerto Rico, Guam, and the US Virgin Islands are either in compliance with the REAL ID Act or have been granted an extension by the Secretary of Homeland Security. The only US nationals impacted by the January 22, 2018 date are individuals who possess driver’s licenses or IDs issued by American Samoa or the Northern Mariana Islands. (more…)