While members of Congress actively negotiate government spending levels for fiscal year 2024, the United States is heading for its fourth partial government shutdown in the last decade. Trade agencies’ operations will be at risk if a government shutdown occurs. The House of Representatives and the Senate have a deadline of September 30th, 2023, to reach an agreement on spending bills for fiscal year 2024. If an agreement is not met, approximately 438 government agencies will suspend their day-to-day operations starting on October 1st, 2023.
Non-essential federal workers will be forced into furlough, which in return will disrupt various services vital to U.S. trade activities. Agencies and federal workers deemed “essential” will continue to provide important services, such as anything relating to national security, and activities necessary to protect life and property. With the length of the looming shutdown unknown, the trade industry must prepare for impacts on operations for importers, exporters, transportation and logistics companies, Customs brokers, and any other party involved in global trading with the United States.
We expect cargo to flow through our borders as normal should a government shutdown take place; however, there could be unexpected delays in clearing shipments if the goods require any other Partner Government Agencies (PGAs) involved with processing imported merchandise. Post summary activities such as refunds or responses to rulings are also expected to face delays in the importing process.
In a recent post, FDA highlights the challenges the US Food & Drug Administration’s (FDA) Foods Program has encountered and their resolutions to achieve their mission of protecting the safety of human foods, as increasing access to safe and nutritious foods for all consumers in 2022.
The post highlights 4 main elements: Infant formula, food safety, nutrition and innovation.
The article reads as follows:
“Despite being a challenging year, the U.S. Food and Drug Administration’s Foods Program has taken important strides in 2022 to protect the safety of human foods and expand access to safe and nutritious foods for all consumers last year.
We know the infant formula issue created hardships for far too many families across the country, so first we’d like to take a moment to highlight our work to address the Cronobacter sakazakii related illnesses in infants and the ensuing infant formula shortage, one of the toughest challenges the FDA has faced since the passage of the Food Safety and Modernization Act (FSMA). This situation reinforced our public health mission.
Infant Formula (Frank Yiannas)
As the infant formula incident unfolded, we worked around-the-clock with infant formula manufacturers to increase production and used data tools to monitor industry-provided production volumes for infant formula and assist with tracking and addressing infant formula supply shortages throughout the country. Additionally, we have expanded access to infant formula by exercising enforcement discretion for 12 firms to temporarily import their foreign-produced infant formula products into the U.S. market. The agency has provided a pathway for those manufacturers to bring their products into full compliance with U.S. requirements and be able to sell in the U.S. permanently. Importantly, we also worked with manufacturers to increase their production capacity by exercising flexibility on ingredient and packaging supply chain issues and by working with other government partners activated the Defense Production Act to ensure availability of critical ingredients. Finally, the FDA has outlined a prevention strategy on Cronobacter sakazakii and powdered infant formula that will help us do our part to reduce illnesses associated with Cronobacter sakazakii contamination. We continue to be fully committed to protecting the safety of infant formula and safeguarding this essential source of nutrition for so many babies in this country.
Food Safety ( Susan T. Mayne, Ph.D.)
In 2022, we made significant advances in implementing FSMA and, building upon it, through the advancement of the FDA’s New Era of Smarter Food Safety goals: In November, the FDA issued the Food Traceability Final Rule mandated by FSMA, with its list of foods for which additional recordkeeping will apply, allowing for faster identification and rapid removal of potentially contaminated food from the market. We continued work to finalize the pre-harvest agricultural water requirements for covered produce other than sprouts. In March, we released an on-line Agricultural Water Assessment Builder to guide farmers in an interactive format. We released the first in a series of Prevention Strategies to Enhance Food Safety that target specific commodity-hazard pairings. Our Office of Human and Animal Food Operations trained more than 1,000 FDA staff to recognize elements of Food Safety Culture in food operations. We expanded Domestic Mutual Reliance partnerships with states, adding Iowa, Minnesota, and Virginia. We entered into a Memorandum of Understanding between the FDA and the Centers for Disease Control and Prevention to strengthen food safety in retail and foodservice establishments. In September, we released the “Activities for the Safety of Imported Produce” to detail how the agency is working to enhance the safety of fresh fruits and vegetables. We enhanced oversight of imported shrimp from the three largest exporting countries through increased examination and sample collection. Additionally, we collaborated with foreign governments to provide training and outreach events focusing on seafood safety and import requirements. We enhanced regulatory oversight of foreign firms the agency cannot routinely inspect by leveraging tools such as the Foreign Supplier Verification Program, remote regulatory assessments, importer seafood inspections, and sampling to ensure supply chain security and compliance with good manufacturing practices. Susan T. Mayne, Ph.D. Other advances in our food safety work included making available the testing results for per-and polyfluoroalkyl substances (PFAS) in seafood samples collected at retail. As a result of the findings, two companies issued voluntary product recalls. Additionally, we advanced the Closer to Zero initiative. In support of those goals, the agency is working with federal partners to study the role of seafood consumption, the primary dietary source of mercury, in child growth and development. The FDA also issued a draft guidance to industry on action levels for lead in single-strength juices and juice blends.
The FDA’s Foods Program is committed to helping to ensure that consumers have access to healthy foods and have the information they need to make informed choices for themselves and their families. In September, we participated in the White House Conference on Hunger, Nutrition, and Health during which one of the priorities was empowering consumers to make healthy choices. At the conference, the FDA announced the proposed updated criteria for when foods can be labeled with the nutrient content claim “healthy” on their packaging. In December, we issued the 2022 edition of the FDA Food Code, which provides guidance to state and local authorities and retailers to help mitigate foodborne illness risks at retail and provide a uniform set of national standards for retail food safety. The 2022 update specifically addressed food donations as part of an effort to reduce food waste that is part of the Biden-Harris Administration’s National Strategy on Hunger, Nutrition, and Health.
Innovation ( Judy McMeekin, Pharm.D.)
We are constantly striving to find smarter and more modern ways to improve food safety and increase access to nutritious foods. In 2022, the agency: Continued to explore the use of Artificial Intelligence (AI) to strengthen import screening. We entered the third phase of the Artificial Intelligence Imported Seafood Pilot program, which uses AI and machine learning to help predict the likelihood that an import shipment is potentially harmful and not compliant with FDA regulations. Completed our first pre-market consultation for a human food made from cultured animal cells. As the Human Foods program undergoes some important changes, at our core the talented and dedicated employees from the program look forward to continuing this important work with our public and private sector partners in the year ahead. Together we will bend the curve of foodborne illness, protect consumers from unsafe foods, and support them in making healthy food choices”.
If you have any additional questions, please don’t hesitate to contact us HERE.
U.S. Rail Strike has been Deterred as Freight Railroads and Unions Reach Tentative Agreements. Earlier today, the 46th President of the U.S, Joe Biden has released a statement on the tentative Railway Labor Agreement. It reads as follows:
“The tentative agreement reached tonight is an important win for our economy and the American people. It is a win for tens of thousands of rail workers who worked tirelessly through the pandemic to ensure that America’s families and communities got deliveries of what have kept us going during these difficult years. These rail workers will get better pay, improved working conditions, and peace of mind around their health care costs: all hard-earned. The agreement is also a victory for railway companies who will be able to retain and recruit more workers for an industry that will continue to be part of the backbone of the American economy for decades to come.
I thank the unions and rail companies for negotiating in good faith and reaching a tentative agreement that will keep our critical rail system working and avoid disruption of our economy.
I am grateful for the hard work that Secretaries Walsh, Buttigieg, and Vilsack, and NEC Director Deese put into reaching this tentative agreement. I especially want to thank Secretary Walsh for his tireless, around-the-clock efforts that delivered a win for the hard working people of the US rail industry: as a result, we will keep Americans on the job in all the industries in this country that are touched by this vital industry.
For the American people, the hard work done to reach this tentative agreement means that our economy can avert the significant damage any shutdown would have brought. With unemployment still near record lows and signs of progress in lowering costs, tonight’s agreement allows us to continue to fight for long term economic growth that finally works for working families.”
The Association of American Railroads released details of the agreement, which indicates that the new contracts provide rail employees a 24 % increase during the 5 years period from 2020-2024, including an immediate payout on average of $11,000 upon ratification, following the recommendations of Presidential Emergency Board (PEB) No. 250.
To read the full statement from AAR, you may clickHERE.
If you have any additional questions, please don’t hesitate to contact us here.
On September 02, 2022 the United States Trade Representative declared a continuation of China 301 Tariffs in a press release.
It reads as follows:
“WASHINGTON – Today, the Office of the United States Trade Representative confirmed that representatives of domestic industries benefiting from the tariff actions in the Section 301 investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation have requested continuation of the tariffs. Accordingly, as required by statute, the tariffs did not expire on their four-year anniversary dates and USTR will proceed with the next steps as provided in the statute.
USTR’s formal notice of the continuation may be found here. Details on the next steps in the four-year review process will be set out in subsequent notices.
In May 2022, USTR commenced the statutory four-year process by notifying representatives of domestic industries that benefit from the tariff actions of the possible termination of those actions and of the opportunity for the representatives to request continuation. Because requests for continuation were received, the tariff actions have not terminated and USTR will conduct a review of the tariff actions.”
If you have any additional questions, please do not hesitate to contact usHERE.
“The Office of Trade’s National Commodity Specialist Division and the Office of Trade Relations is excited to present a series of approximately 40 commodity-specific, educational webinars to support Customs and Border Protection’s internal and external customers. The webinars began in February and will run through September 2022. Each webinar will be approximately an hour. The date and time will vary, so please be sure to check the time for each webinar.
The schedule for the September webinars is below. Please click on the webinar title to register. The link to join will be sent via email no later than 9 a.m. on the day of the webinar. We look forward to your participation!”
If you have any additional questions, please do not hesitate to contact us HERE.
The latest in user fee changes have been announced by the U.S Customs and Boarder Protection inCSMS #52834229. The message reads as follows:
“Pursuant to the General Notice (87 FR 46973) published August 1, 2022, adjustments to certain customs user fees and corresponding limitations, as codified in 19 U.S.C. § 58c, will take effect on October 1, 2022. These adjustments are being made in accordance with the Fixing America’s Surface Transportation Act of 2015 (FAST Act), Public Law 114-94. The General Notice may be accessed at the link below:
The Merchandise Processing Fee (MPF) ad valorem rate of 0.3464% will NOT change. The MPF minimum and maximum for formal entries (class code 499) will change. The minimum will change from $27.75 to $29.66; and the maximum will change from $538.40 to $575.35.
Some other fees that are changing:
The fee for Informal Entry/Release, automated and not prepared by CBP personnel (class code 311a), will change to $2.37.
The Surcharge for Manual Entry/Release (class code 500) will change to $3.56.
The Dutiable Mail fee (class code 496) will change to $6.52.
The Express Consignment Carrier/Centralized Hub Facility fee will change to $1.19 per individual waybill/bill of lading. An individual air waybill is the bill at the lowest level and is not a master bill or other consolidated document. See82 FR 50523 (Nov. 1, 2017).
The Commercial Vessel or Commercial Aircraft Passenger Arrival customs fee will change to $6.52 per passenger.
The Commercial Vessel Passenger Arrival (from exempt areas) customs fee will change to $2.29 per passenger.
The Commercial Truck Arrival fee will change to $6.50. The Commercial Truck Arrival Fee is the CBP fee only; it does not include the United States Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) Agricultural and Quarantine Inspection (AQI) Services Fee (currently $7.55) that is collected by CBP on behalf of USDA to make a total single crossing fee of $14.05.
Please see the General Notice for the full list of fees that are changing. Another CSMS will be sent when the changes are in the ACE Certification environment for trade testing.”
If you have any additional questions, please do not hesitate to contact us HERE.
Bureau of Industry and Security announced afinal rulingin response to the Russian federation’s ongoing aggression against Ukraine. The Department of Commerce is expanding the existing sanctions against Russian industry sectors by imposing a license requirement for exports, reexports, or transfers (in country) to and within Russia for additional items subject to the Export Administration Regulations (EAR) identified under specific Schedule B numbers or Harmonized Tariff Schedule codes. The Bureau of Industry and Security (BIS) is taking these actions to further restrict Russia’s ability to withstand the economic impact of the multilateral sanctions, further limit sources of revenue that could support Russia’s military capabilities, and to better align with the European Union’s controls.
The article reads as follows:
In response to Russia’s February 2022 invasion of Ukraine, BIS imposed extensive sanctions on Russia under the Export Administration Regulations (15 CFR parts 730 – 774) (EAR) as part of the final rule Implementation of Sanctions Against Russia Under the Export Administration Regulations (EAR) (the Russia Sanctions rule), effective on February 24, 2022, and published on March 3, 2022 (87 FR 12226). Since the publication of the Russia Sanctions rule, BIS has published a number of final rules imposing additional stringent export controls on Russia. These actions reflect the U.S. Government’s position that Russia’s invasion of Ukraine flagrantly violated international law, was contrary to U.S. national security and foreign policy interests, and undermined global order, peace, and security, all of which necessitated the imposition of stringent and expansive sanctions. The export control measures in this final rule build upon the policy objectives set forth in one of the subsequent rules, a final rule effective on March 3, 2022, and published on March 8, 2022 (87 FR 12856), Expansion of Sanctions Against the Russian Industry Sector Under the Export Administration Regulations (EAR) (Russian Industry Sector Sanctions rule). Among other things, the Russian Industry Sector Sanctions rule revised part 746 of the EAR (Embargoes and Other Special Controls) by adding a new paragraph (a)(1)(ii) which imposed an additional license requirement for exports, reexports, and transfers (in-country) to or within Russia of any items subject to the EAR if identified under certain Schedule B or Harmonized Tariff Schedule 6 (HTS) codes. The Russian Industry Sector Sanctions rule also added supplement no. 4 to part 746 – HTS Codes and Schedule B Numbers that Require a License for Export, Reexport, and Transfer (in-country) to or within Russia pursuant to § 746.5(a)(1)(ii) – which identifies HTS codes and Schedule B numbers that are subject to the license requirement set forth in paragraph (a)(1)(ii). The four columns added in supplement no. 4 to part 746 consisted of: the Harmonized Tariff Schedule (HTS)-6 Code, HTS Description, Schedule B and Schedule B Description to assist exporters, reexporters, and transferors in identifying the items subject to this license requirement. This final rule builds upon the policy objectives set forth in the Russian Sanctions rule and the Russian Industry Sector Sanctions rule by expanding upon the latter to further restrict Russia’s access to items that it needs to support its military capabilities. The expansion of these export controls under the EAR, implemented in parallel with similarly stringent measures by partner and ally countries, further limits sources of revenue that could support Russia’s military capabilities, as well as Russia’s ability to withstand the economic impact of the multilateral sanctions.
II. Revisions to the Export Administration Regulations (EAR)
1. Expansion of Russian Industry Sector Sanctions
This final rule amends part 746 of the EAR (Embargoes and Other Special Controls) to further expand the scope of the Russian industry sector sanctions by adding additional HTS codes and Schedule B numbers to supplement no. 4 to part 746 of the EAR, thereby imposing a license requirement for all exports, reexports, and transfers (in-country) to or within Russia for such items. In this final rule, BIS is adding 205 HTS codes at the 6-digit level and 478 corresponding 10-digit Schedule B numbers to better align with the European Union’s controls.
2. Clarifications to Supplement No. 4 to Part 746 Controls
This final rule revises supplement no. 4 to part 746 by re-organizing the list of items subject to a license requirement under § 746.5(a)(1)(ii) in order to make it easier for exporters to determine whether a particular item is described in this supplement. Specifically, the columns in supplement no. 4 were previously listed in the following order: Harmonized Tariff Schedule (HTS)-6 Code, HTS Description, Schedule B, Schedule B Description. This final rule reorganizes the columns to list them in the following order: Schedule B, Schedule B Description, HTS Code, and HTS Description. In addition, this final rule is individually listing the existing Schedule B numbers so each number corresponds with a single HTS Code; previously, some of these Schedule B numbers were listed with multiple HTS Codes. It also reorganizes the list of items by ordering them numerically by Schedule B number; previously they had been organized alphabetically by HTS Description.
This final rule revises the existing language in the introductory text in supplement no. 4 to part 746 to reflect the reorganization of the list. In addition, this final rule adds Schedule B number 8705200000 to the introductory text to indicate it is also listed in both supplements no. 2 and 4 and adds a sentence to indicate that Schedule B number 8412294000 is listed in both supplements no. 4 and 5 to this part.
This final rule also adds a second paragraph to the introductory text in supplement no. 4 to part 746 to clarify the relationship between the four columns included in supplement no. 4 to part 746 by further explaining the scope of the items controlled under § 746.5(a)(1)(ii). The first sentence being added clarifies that under the Foreign Trade Regulations (15 CFR 30.6(a)(12)), exporters can use either the referenced HTS Code or Schedule B number from supplement no. 4 to part 746 when filing Electronic Export Information (EEI) in the Automated Export System (AES). The Russian Industry Sector Sanctions Rule included the applicable HTS-6 Code and Schedule B number and descriptions of items listed in supplement no. 4 to part 746 to assist exporters, reexporters, and transferors who may be more familiar with one or the other of the HTS Code or Schedule B number identification systems. The second sentence being added clarifies that only the items identified in the HTS Description column are subject to the license requirement under § 746.5(a)(1)(ii), which is consistent with how the European Union (EU) applies its comparable controls. Lastly, the third sentence being added clarifies that the other three columns –HTS Code, Schedule B, and Schedule B Description – are only intended to assist exporters with their AES filing responsibilities and does not indicate that all items classified under those HTS Codes or Schedule B numbers are subject to § 746.5(a)(1)(ii)’s restrictions.
3. Conforming changes
This final rule revises the last sentence of the introductory text of supplement no. 2 to part 746 – Russian Industry Sector Sanction List – to provide guidance on certain Schedule B numbers that are identified in both supplement no. 2 and supplement no. 4 to part 746. It now clarifies that in addition to Schedule B number 8479899850, Schedule B number 8705200000 is also listed in both supplements no. 2 and 4, and that exporters, reexporters, and transferors must comply with the license requirements under both § 746.5(a)(1)(i) and (ii), as applicable, for these Schedule B numbers.
In addition, this final rule adds one sentence at the end of the introductory text of supplement no. 5 to part 746 – ‘Luxury Goods’ That Require a License For Export, Reexport, and Transfer (In-Country) to or Within Russia or Belarus Pursuant to § 746.10(a)(1) and (2) – to provide guidance on one Schedule B number that is identified in both supplements no. 4 and no. 5 to part 746. This sentence clarifies that exporters, reexporters, and transferors must comply with the license requirements under both §§ 746.5(a)(ii) and 746.10 as applicable, for Schedule B number 8412294000.
In § 746.5 (Russian industry sector sanctions), this final rule revises the license review policy in paragraph (b)(2) to specify that applications involving items that meet humanitarian needs will be reviewed under a case-by case license review policy. This case-by-case license review policy will allow for discretion in approving licenses for items that meet humanitarian needs while also providing discretion to deny licenses for items that could generate revenue to support Russia’s military capabilities.
For the changes being made in this final rule, shipments of items removed from eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR) as a result of this regulatory action that were en route aboard a carrier to a port of export, reexport, or transfer (in-country), on [INSERT DATE OF FILING FOR PUBLIC INSPECTION], pursuant to actual orders for export, reexport, or transfer (in-country) to or within a foreign destination, may proceed to that destination under the previous eligibility for a License Exception or export, reexport, or transfer (in-country) without a license (NLR).
The United States Department of Commerce has announced that the United States of America will be temporarily suspending 232 tariffs on Ukrainian steel for one year.
The full announcement reads as follows:
Ukraine’s steel industry is uniquely important to the country’s economic strength, employing 1 in 13 Ukrainians with good-paying jobs.
Some of Ukraine’s largest steel communities have been among those hardest hit by Putin’s barbarism, and the steel mill in Mariupol has become a lasting symbol of Ukraine’s determination to resist Russia’s aggression. Many of Ukraine’s steel mills have continued to pay, feed, and even shelter their employees over the course of fighting. Despite nearby fighting, some Ukrainian mills have even started producing again.
Creating export opportunities for these mills is essential to their ability to continue employing their workers and maintaining one of Ukraine’s most important industries.
Statement from Commerce Secretary Gina M. Raimondo:
“Steelworkers are among the world’s most resilient—whether they live in Youngstown or Mariupol. We can’t just admire the fortitude and spirit of the Ukrainian people—we need to have their backs and support one of the most important industries to Ukraine’s economic well-being. For steel mills to continue as an economic lifeline for the people of Ukraine, they must be able to export their steel. Today’s announcement is a signal to the Ukrainian people that we are committed to helping them thrive in the face of Putin’s aggression, and that their work will create a stronger Ukraine, both today and in the future.
“I want to thank President Biden for his leadership in directing us to do all we can to support Ukraine’s people and their economy, as well as the Ukrainian leaders I have had a chance to work with over the past two months. Ukraine’s diplomatic leaders have been essential partners and advocates for their people, and we will continue to do all we can to support their work toward peace, freedom, and prosperity.”
About Commerce’s Support for Ukraine
Since Russia invaded Ukraine on February 24, the Department of Commerce has launched a series of new export control restrictions on Russia in partnership with three dozen allies, including 27 EU member states, Canada, the United Kingdom, Australia, New Zealand, Japan, South Korea, Switzerland, Iceland, and Norway.
The multilateral coordination on export controls and other areas has been impressive and led to swift development and implementation of powerful restrictions that are having a serious impact on Russia’s ability to sustain its aggression.
Commerce has added 260 parties in Russia, Belarus, and multiple other countries to the Entity List. These entities have been involved in, contributed to, or otherwise supported the Russian security services, military and defense sectors, and military and/or defense research and development efforts. (BIS)
U.S. exports to Russia in categories of items subject to new U.S. export licensing requirements have decreased 97% by value as compared to the same time period in 2021 (February 24-April 29). (BIS data)
Overall U.S. exports to Russia have decreased approximately 79% by value over the same time period in 2021. (BIS data)
Public reports indicate Russia’s two largest tank manufacturing facilities have been forced to shut down, due to an inability to access the necessary parts and equipment. (Wall Street Journal, 4/25)
Russia is facing a critical shortage of precision-guided missiles. (Financial Times, 4/30)
The U.S. Trade Representative is commencing the statutory four-year review of the two actions taken under Section 301 of the Trade Act of 1974, as amended, in the investigation of China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. The two actions were effective, respectively, on July 6, 2018 and August 23, 2018, and subsequently were modified by imposing additional duties on supplemental lists of products, as well as by the temporary removal of duties on certain products through product exclusions.
The first step in the four-year review process is notifying representatives of domestic industries which benefit from the trade actions, as modified, of the possible termination of the actions, and of the opportunity for these representatives to request continuation of the actions. Requests for continuation must be received in the 60-day window prior to the four-year anniversary of the respective action: Between May 7, 2022, and July 5, 2022, for the July 6, 2018 action, and between June 24, 2022, and August 22, 2022, for the August 23, 2018, action. The Office of the United States Trade Representative (USTR) is opening dockets in these two time windows for representatives of domestic industries which benefit from the trade actions to request continuation of the corresponding trade actions, as modified. If the actions continue as a result of one or more requests from representatives of domestic industries which benefit from the trade actions, USTR will proceed with the next phase of the review.
The second phase of the review will be announced in one or more subsequent notices, and will provide opportunities for public comments from all interested parties.
DATES: For the July 6, 2018 trade action, the web portal at https:// comments.ustr.gov/s/ will open for requests to continue the action on May 7, 2022, and close at 11:59 p.m. on July 5, 2022. For the August 23, 2018 trade action, the web portal at https:// comments.ustr.gov/s/ will open for requests to continue the action on June 24, 2022, and close at 11:59 p.m. on August 22, 2022.
FOR FURTHER INFORMATION CONTACT: For questions about this notice, contact Assistant General Counsels Megan Grimball or Philip Butler at (202) 395– 5725.
Background: On August 24, 2017, the U.S. Trade Representative initiated an investigation into certain acts, policies, and practices of the Government of China related to technology transfer, intellectual property, and innovation. 82 FR 40213. In a notice published on April 6, 2018 (83 FR 14906), the U.S. Trade Representative announced a determination that the acts, policies, and practices of the Government of China covered in the investigation are unreasonable or discriminatory and burden or restrict U.S. commerce. The April 6 notice also invited public comment on a proposed action in the investigation, in the form of an additional 25 percent ad valorem duty on products of China classified in a list of 1,333 tariff subheadings, with an annual trade value of approximately $50 billion.
Actions Taken Under Section 301 of the Trade Act Following a period of public notice and comment, the U.S. Trade Representative determined to take action under Section 301 of the Trade Act of 1974, as amended (Trade Act) (19 U.S.C. 2411) in the form of additional duties of 25 percent ad valorem on 818 of the proposed tariff subheadings, with an approximate annual trade value of $34 billion, effective July 6, 2018 (List 1). 83 FR 28710 (hereinafter referred to as the July 6, 2018, action). The U.S. Trade Representative also proposed further action in the form of additional ad valorem duties of 25 percent on a list of 284 tariff subheadings with an approximate annual trade value of $16 billion. Following a period of notice and comment, the U.S. Trade Representative determined to take action under Section 301 in the form of additional duties of 25 percent on 279 tariff subheadings with an approximate annual trade value of $16 billion, effective August 23, 2018 (List 2). 83 FR 40823 (hereinafter referred to as the August 23, 2018, action).
2. Subsequent Modifications Under Section 307 The U.S. Trade Representative subsequently modified the July 6, 2018, and August 23, 2018, actions, pursuant to authority under Section 307(a) of the Trade Act. (19 U.S.C. 2417(a)). These modifications were in the form of (i) additional duties on supplemental lists of products, and (ii) the temporary removal of duties on certain products through product exclusions. The modifications to the July 6, 2018, and August 23, 2018, actions that are currently in effect are as follows: a. List 3—83 FR 47974 (September 21, 2018), as modified by 84 FR 20459 (May 9, 2019), and as amended by 84 FR 21892 (May 15, 2019); 84 FR 26930 (June 10, 2019); 86 FR 22092 (April 26, 2021); and 84 FR 9785 (February 22, 2022); b. List 4A—84 FR 43304 (August 20, 2019), as modified by 84 FR 45821 (August 30, 2019), 84 FR 69447 (December 18, 2019), and 85 FR 3741 (January 22, 2020); c. COVID Exclusions—86 FR 63438 (November 16, 2021), as amended: By 86 FR 69350 (December 7, 2021) and 87 FR 4704 (January 28, 2022): and d. Reinstated Exclusions—87 FR 17380 (March 28, 2022). In the four-year review, USTR will examine the July 6, 2018, action, as modified, and August 23, 2018, action, as modified. To ensure comprehensive coverage of the review, USTR will consider the List 3 and List 4A modifications as applicable to both the July 6, 2018, action and August 23, 2018, action.
If you have any additional questions, please do not hesitate to contact us HERE.
The U.S. Census Bureau announced on April 25,2022 that preliminary March steel imports were $3.9 billion (2.8 million metric tons) compared to the preliminary February totals of $3.1 billion (2.1 million metric tons). The March change in steel imports based on metric tonnage reflected an increase in hot rolled sheets. Decreases occurred in used rails; electrical sheets and strips; and pipe and tubing. Increases occurred primarily with Canada. Decreases occurred primarily with Austria, Italy, and Germany. The year-to-date final statistics through February 2022 showed steel imports of 4.9 million metric tons compared with 3.9 million metric tons through February 2021. The largest commodity increases occurred with galvanized hot dipped sheets and strip and cold rolled sheets. Decreases occurred primarily in blooms, billets, and slabs; line pipe; and galvanized electrolyte sheets and strip. The largest country increases occurred with Mexico. Decreases occurred primarily with Brazil. The April report is scheduled for release on May 24, 2022. Yo may view the full report here: https://www.census.gov/foreign-trade/Press-Release/steel/steelp_2203.pdf
CBP’s Modernization of ACE Portal as of April 2022:
U.S. Customs and Border Protection (CBP) is modernizing the Automated Commercial Environment Secure Data Portal (ACE Portal) over multiple phases in 2022. The modernization effort will entail the transition of existing functionality to an upgraded platform, offering easier use and better performance. The ACE Portal offers users real-time access to trade data through features such as ACE Reports, ACE account management, and electronic communication with CBP and Partner Government Agencies (PGA).