The Office of the U.S. Trade Representative (USTR) announced the rescission of Section 232 tariffs on Canadian aluminum, retroactive to September 1, 2020. The 10% tariff on non-alloyed, unwrought aluminum under subheading 7601.10 from Canada was announced on August 6, 2020 and went into effect on August 16, 2020. Following the USTR’s announcement of
WTO Rules that U.S. Section 301 Tariffs on Chinese Imports Violate International Trade Rules
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.
Steel Import Licenses Must Include Country of “Melt and Pour”
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
D.C. Federal Judge Rules EAR Does Not Infringe FedEx’s Rights
A federal judge for the U.S. District Court for the District of Columbia dismissed FedEx Corporation’s challenge to the U.S. Department of Commerce’s (Commerce) Export Administration Regulations (EAR). Specifically, FedEx challenged the EAR requirements for global couriers to either verify the contents of its packages or to cease business with certain foreign entities, such as
Court of International Trade Receives its First Complaint Against Section 301 China Tariffs
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
CBP Proposes Rule to Eliminate Section 321 Exemption for Imports Subject to Section 301 Tariffs
U.S. Customs and Border Protection (“CBP”) is preparing a regulatory change that would eliminate the $800 de minimis exemption for imports subject to Section 301 tariffs, according to a proposed rule submitted by CBP to the Office of Management and Budget (“OMB”) on September 2, 2020. Reviews of the proposed rule by OMB and an interagency review are the final steps before the publication of a final rule in the Federal Register.
BIS Seeks Comments on Identifying “Foundational Technologies”
The U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) recently published an Advanced Notice of Proposed Rulemaking (“ANPRM”) regarding the identification and review of controls for certain “foundational technologies.” This ANPRM represents another step toward implementation of the “emerging and foundational technology” provisions set forth in the Export Control Reform Act (“ECRA”) of
USTR, DOC, and Department of Agriculture Issue Plan to Investigate Foreign Imports of Certain Perishable Produce
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.
Commerce Initiates New Administrative Reviews on AD/CVD Orders
On 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:
- Belgium: Citric Acid and Certain Citrate Salts (A-423-813)
August 2020 Trade Law Update
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