Category Archives: Trade Alerts

Section 301 Duties on China Goods

Thursday, August 2, 2018

Section 301 Duties on China Goods 

Potential Increase on List 3 from 10% to 25%

 The Office of the United States Trade Representative (USTR) announced that it is considering increasing the proposed tariffs on List 3 from 10% to 25%. This list covers approximately 6,013 items and identifies $200 billion worth of goods from China imported into the U.S.

Parties wishing to submit comments on docket number USTR-2018-0026 can click on the link provided here:

https://www.regulations.gov/searchResults?rpp=25&po=0&s=USTR-2018-0026&fp=true&ns=true

The due date for submission of all written comments, including rebuttal comments has been extended to September 5, 2018.

 

List 3 Date
Deadline for filing requests to appear at hearing and summary of expected testimony August 13, 2018
(previously July 27, 2018)
Due date for submission of written comments August 17, 2018
Hearing on List 3 products August 20-23, 2018
Post-hearing rebuttal comments due September 5, 2018
(previously August 30, 2018)
Duty effective on List 3 products TBA
Procedures to request exclusions TBA
Deadline to request exclusions TBA

 

Official notification of the extension dates will soon be published in the Federal Register.

Notice of Adjustment of the Merchandise Processing Fee in 2019

Wednesday, August 1, 2018

Notice of Adjustment of the Merchandise Processing Fee in 2019

The Consolidated Omnibus Budget Reconciliation Act (COBRA) for fiscal year 2019 will adjust and increase various user fees. Of particular note is the increase in the Merchandise Processing Fee (MPF).

The increase in MPF is reflected below:

Minimum – $26.22 up from 25.67
Maximum – $508.70 up from 497.99
Informal – $2.10 up from 2.05

The rate of 0.3464% remains unchanged

The Federal Register Notice published today states the adjusted amounts of customs COBRA user fees and their corresponding limitations set forth in this notice for Fiscal Year 2019 are required as of October 1, 2018.

HOW WILL SECTION 301 TARIFFS AFFECT YOUR BOND SUFFICIENCY?

Friday, June 15, 2018

HOW WILL SECTION 301 TARIFFS AFFECT YOUR BOND SUFFICIENCY?

The President of the United States announced plans for tariffs on imports of goods from China that may impact your continuous bond. See FHK trade alert here.

In addition to the Section 232 proclamations effective June 1, wherein importers saw a 25% increase on steel imports and a 10% increase on aluminum imports, now Section 301 imposes an additional 25% on certain goods from China.

Continuous Bond amounts are calculated on 10% of the total duties, taxes, and fees for the previous twelve month period so the need for a new bond may not be immediate. CBP actively reviews continuous bond sufficiency and may send a letter advising of insufficiency and require an increase. If CBP determines there is an egregious deficiency, the continuous bond may be rendered insufficient, causing delays and additional costs for the importer. Based upon the recent revelations regarding these additional tariffs, the new bond limits required may be significant.

Importers are ultimately responsible and must stay updated on changes that occur regarding their bonds. Be sure to run ACE reports or contact us to assist with entry reports to stay on top of your import activity.

For more information, please reach out to us at 316.721.8980 with any questions you may have.

Section 301 Duties on China Goods Part 2

Thursday, June 21, 2018

Section 301 Duties on China Goods – Part 2

Following up with the FHK trade alert sent on Friday, June 15 regarding the first set of tariffs affecting 818 product lines, the office of the United States Trade Representative (USTR) has released the second set of products from China that cover 284 proposed tariff lines. The link provided below is the list covering goods that include chemicals, plastics, metal articles, machinery, and vehicles.

https://ustr.gov/sites/default/files/enforcement/301Investigations/List%202.pdf 

The USTR has determined that appropriate action in this investigation includes the imposition of an additional ad valorem duty of 25 percent on products from China classified in the subheadings of the HTS. The USTR has further determined to establish a process by which U.S. stakeholders may request that particular products classified within a covered tariff subheading in Annex A be excluded from these additional duties. Further, the Office of the U.S. Trade Representative (USTR) is seeking public comment and will hold a public hearing regarding a proposed additional action in this investigation. The proposed additional action is the imposition of an ad valorem duty of 25 percent on products of China classified in the HTSUS subheadings set out in Annex C of this notice.

Applicable date of duties: The additional duties set out in Annex A to this notice are applicable with respect to products that are entered for consumption, or withdrawn from warehouse for consumption, on or after July 6, 2018.

Comment and hearing deadline: To be assured of consideration, you must submit comments and responses with respect to the proposed list of products in Annex C to this notice in accordance with the following schedule:

June 29, 2018: Due date for filing requests to appear and a summary of expected testimony at the public hearing and for filing pre-hearing submissions.

July 23, 2018: Due date for submission of written comments.

July 24, 2018: The section 301 Committee will convene a public hearing in the main hearing room of the U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436 beginning at 9:30 a.m.

July 31, 2018: Due date for submission of post-hearing rebuttal comments.

For more information on this Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, please follow the link provided:

https://www.federalregister.gov/documents/2018/06/20/2018-13248/notice-of-action-and-request-for-public-comment-concerning-proposed-determination-of-action-pursuant

Section 301 Duties on China Goods

Friday, June 15, 2018

Section 301 Duties on China Goods

The Office of the United States Trade Representative (USTR) revealed the list of products from China that covers 1,102 separate U.S. tariff lines valued at approximately $50 billion in 2018 trade values.

The tariffs will come in two segments, with the first set affecting 818 product lines of the original 1333 lines that were included on the proposed list published in early April. An additional duty of 25 percent will be imposed on these products beginning July 6, 2018. A large percentage of the goods on this list are from HTSUS Chapters 84, 85, 87, 88, and 90, such as engines and motors; construction, drilling, and agricultural machinery; machines for working minerals, glass, rubber, or plastic; rail locomotives and rolling stock; motor vehicles and motorcycles; helicopters and airplanes; and testing, measuring, and diagnostic instruments and devices.

The second set of 284 proposed tariff lines will have a round of public comments, including a public hearing after which USTR will issue a final determination on the products from this list that would be subject to the additional duties. Many of these products are also classified in Chapters 84, 85, 97, and 90, but various products in chapters 27, 34, 38, 39, 70, 73, 76, and 89 are also included. Affected goods include plastics and plastic products; industrial machinery; machinery for working stone, ceramics, concrete, wood, hard rubber or plastic, and glass; cargo containers; tractors; and optical fibers.

Click on the link below for List 1:
https://ustr.gov/sites/default/files/enforcement/301Investigations/List%201.pdf

Click on the link below for List 2:
https://ustr.gov/sites/default/files/enforcement/301Investigations/List%202.pdf

WILL THE SECTION 232 TARIFFS AFFECT YOUR BOND SUFFICIENCY?

Tuesday, June 5, 2018

WILL THE SECTION 232 TARIFFS AFFECT YOUR BOND SUFFICIENCY?

On March 8, 2018, Presidential Proclamations 9704 and 9705 were issued regarding imports of steel and aluminum into the United States under Section 232 of the Trade Expansion Act of 1962. The new duty rates for these commodities are 25% tariff on steel imports and 10% tariff on aluminum imports.

Continuous Bond amounts are calculated on 10% of the total duties, taxes, and fees for the previous twelve month period. Based upon the recent implementation of Section 232 tariffs, the increase in the estimated duty for steel and aluminum products may require larger bonds.

Importers are ultimately responsible and must stay updated on changes that occur regarding their bonds. Be sure to run ACE reports or contact us to assist with entry reports to stay on top of your import activity.

For more information, please reach out to us at 316.721.8980 with any questions you may have.

GACC New Manifest Policy for China Imports and Exports

Monday, June 4, 2018

GACC New Manifest Policy for China Imports and Exports

On Friday, June 1 the General Administration of Customs of China (GACC) began requiring manifest submissions 24 hours prior to loading, or risk missing the intended sailing. This provision requires new data elements related to goods being imported and exported from China and must be accurate and complete for all goods under the bill of lading and waybills. Full contact details of the Shipper and Consignee, and the Notify Party (if applicable) are mandatory. For exports out of China, please note that the shipper, forwarder, and NVOCC information would require a USCI code, and the consignee and notify party information would require an EIN or comparable foreign government identification number.

The new data elements are as follows:

  • Shipper’s company code
  • Shipper’s Phone number
  • Consignee’s company name
  • Consignee’s company code
  • Consignee’s Phone number
  • Name of contact person for Consignee
  • Notify Party’s company name
  • Notify Party’s phone number
  • Notify Party’s company code

The Chinese Customs authorities have not announced consequences for missing details or late filings however some carriers have stated that failure to comply may result in non-shipment of goods from the port of loading.

Please be sure to reach out to us at 316.721.8980 with any questions you have.

STEEL AND ALUMINUM SECTION 232 TARIFF EXEMPTIONS ENDING FOR CANADA, MEXICO AND EUROPEAN UNION

Thursday, May 31, 2018

STEEL AND ALUMINUM SECTION 232 TARIFF EXEMPTIONS ENDING FOR CANADA, MEXICO AND EUROPEAN UNION

June 1 marks the end of the exemptions on steel and aluminum from Canada, Mexico and the EU as announced in two presidential proclamations dated May 31.    The decision was made to not extend their temporary exemptions and no permanent agreement was reached for these countries.

Steel from all countries, except Australia, Argentina, and Brazil will be subject to a 25 percent tariff beginning June 1.  Aluminum from all countries except Australia and Argentina will be subject to a 10 percent duty.  An agreement had been reached with Brazil on an exemption on steel, but not for aluminum.

The proclamation on iron and steel products announced that imports from Argentina and Brazil will be subject to quota, as South Korea currently is.  The second proclamation for aluminum says quotas will apply to imports from Argentina.

Neither proclamation mentioned Australia as being subject to quota.

List of Section 301 Duties on Chinese Origin Goods

Wednesday, April 4, 2018

List of Section 301 Duties on Chinese Origin Goods

Under that authority of Section 301 of the Trade Act of 1974, the US Trade Representative (USTR) released the preliminary list of Chinese origin products that may be subject to additional duties of 25%.

This list is not the final list of provisions that may be subject to a duty increase.

The implementation of these additional duties falls under the authority of Section 301, which can be imposed in order to enforce trade agreements, resolve trade disputes, and open foreign markets to U.S. goods and services.

The proposed list covers approximately 1300 separate tariff lines and will undergo further review in a public notice and comment process, including a hearing.  After completion of this process, USTR will issue a final determination on the products subject to the additional duties.

The schedule for comments released at this time is as follows:

April 23, 2018:  Due date for filing requests to appear and a summary of expected testimony at the public hearing and for filing pre-hearing submissions.

May 11, 2018:  Due date for submission of written comments.

May 15, 2018:  The Section 301 Committee will convene a public hearing in the main hearing room of the U.S. International Trade Commission, 500 E. Street SW, Washington DC 20436 beginning at 10:00 a.m.

May 22, 2018:  Due date for submission of post-hearing rebuttal comments.

To read more about Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, click on the link provided:

https://ustr.gov/sites/default/files/files/Press/Releases/301FRN.pdf

General System of Preferences (GSP) Renewal

Tuesday, March 27, 2018

General System of Preferences (GSP) Renewal

One of the conditions of the latest spending bill signed by President Trump on Friday, March 23, 2018 included a provision to renew Generalized System of Preferences (GSP) benefits. These benefits will take effect on April 22, 2018 and applied retroactively to December 31, 2017 when the program expired. GSP will be in effect until December 31, 2020.

Customs and Border Protection will notify the trade upon completion of the programming for this renewal of GSP. Because FHK continued to utilize the “A” indicator for all applicable goods, refunds should be automatically refunded, as they have in the past. A report will be provided to our clients of their eligible entries and we encourage you to monitor and track your refunds. The deadline to file refund requests is September 18, 2018, which is 180 days from the time the bill was signed into law.

Please feel free to reach out to us with any questions or comments you have regarding GSP renewal.