International Trade & Supply Chain

The World Trade Organization (WTO) dispute settlement body ruled that the tariffs imposed by the U.S. on imports from China are inconsistent with the General Agreement on Tariffs and Trade (GATT), and recommended that the U.S. “bring its measures into conformity” with its obligations under the GATT.  Beginning in 2018, at the direction of President Trump, the U.S. imposed tariffs on $400 billion worth of imports from China over 4 different lists or tranches.  The U.S. and China negotiated a “phase one” trade deal earlier this year, however, most of the tariffs were still left in place.

The WTO panel concluded that the U.S. failed to demonstrate that the tariff measures are justified under Article XX(a) of the GATT 1994.  As a result, the panel found the U.S. tariff measures to be inconsistent with Articles I:1, II:1(a) and II:1(b) of GATT 1994.  In other words, the WTO found that the U.S. tariffs on China were discriminatory and excessive, and the U.S. failed to present justification for an exemption that could have legally allowed for the tariffs.

The U.S. Department of Commerce’s (Commerce) Steel Import Monitoring and Analysis System (SIMA) will be modified effective October 13, 2020 to require that the country where the steel was “melted and poured” to be identified in the license application.  Other changes in the final rule published on September 11, 2020, include adding coverage for eight…

On September 10, 2020, HMTX Industries LLC, along with Halstead New England Corporation, and Metroflor Corporation (importers of vinyl tile) filed a complaint (Ct. No. 20-00177) at the Court of International Trade (CIT) challenging both the substantive and procedural processes followed by the United States Trade Representative (USTR) when instituting Section 301 Tariffs on imports…

On September 1, 2020 the Office of the United States Trade Representative (USTR), Department of Agriculture, and Department of Commerce issued a 32-page report outlining the Trump Administration’s plan to address increased foreign imports of perishable fruits and vegetables.  Following the public hearings held in August, the Administration published this report in hopes to open a dialogue with senior Mexican Government officials over the next 90 days regarding specific produce.

U.S. Supply ChainOn September 3, 2020, the U.S. Department of Commerce published a notice initiating new Administrative Reviews for antidumping duty (AD) and countervailing duty (CVD) orders with mostly July anniversary dates, but some other dates as well. Listed below are the countries and products named in the notice:

  1. Belgium: Citric Acid and Certain Citrate Salts (A-423-813)

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In Husch Blackwell’s August 2020 Trade Law Newsletter, you’ll learn about the following updates in international trade and supply chain law:

  • Commerce proposed modifications to AD/CVD laws to strengthen enforcement
  • EU lifted tariffs on U.S. lobsters; U.S. agreed to limited tariff rollback on certain products
  • USTR revised list of EU imports subject to Section

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On September 1, 2020, Commerce announced in the Federal Register the opportunity to request an annual administrative review for products that are currently subject to antidumping and countervailing duties.  In addition to administrative reviews, Commerce has included an opportunity to request a new suspension agreement proceeding pertaining to fresh tomatoes from Mexico.

The Office of the U.S. Trade Representative (“USTR”) issued extensions for previously granted product exclusions under List 4 of the Section 301 tariffs on imports from China.  USTR is extending the duty exemptions for only 87 of the approximately 248 product exclusions published to date under List 4, allowing for more than 150 to expire on September 1, 2020. The products for which exclusions have not been extended will be subject to the 7.5% tariff beginning on September 2, 2020.

On August 21, 2020, the United States Trade Representative Robert Lighthizer and European Union (EU) Commissioner Phil Hogan issued a joint statement, announcing that both parties would reduce tariffs on certain goods. Specifically, the EU has agreed to eliminate tariffs on imports of U.S. live and frozen lobster products. The elimination of these tariffs…

The Office of the U.S. Trade Representative (“USTR”) issued two (2) new product exclusions pertaining to the Section 301 List 3 tariffs.  The current tariff is 25%.  The new exclusions include 2 specific product descriptions that together cover 2 separate exclusion requests.  According to the USTR, the product exclusions apply retroactively from September 24, 2018…