The Office of the U.S. Trade Representative said that since Turkey agreed to remove its digital services taxes before the international tax agreement takes effect, "the United States will terminate the currently-suspended additional duties on goods of Turkey that had been adopted in the DST Section 301 investigation." The goods that could have been targeted with additional 25% tariffs were in 32 subheadings, and there was more than $300 million worth of the products imported from Turkey in 2019 (see 2106020047).
Plans to update statutory language to allow for CBP to use advance cargo data "for any lawful purpose" is an early area of concern among trade groups that submitted comments to the office of Sen. Bill Cassidy, R-La., about a draft customs modernization bill (see 2111030039). That provision "is a significant amendment to the Trade Act of 2002 manifest requirements and will present a challenge regarding how the agency will merge and crosscheck data received from multiple parties," the Express Association of America told Cassidy, EAA Executive Director Michael Mullen said by email.
Sen. Marco Rubio's attempt to get the Senate version of the Uyghur Forced Labor Prevention Act appended to the National Defense Authorization Act was rejected by the Armed Services Committee chairman. But the House and Senate will likely try to get on the same page on how to change the burden of proof for forced labor content in Xinjiang products through a separate conference committee dealing with the Senate's China package and House efforts to address China.
At a hearing on supply chain challenges, the committee chairman described deregulation and disinvestment as two root causes, panelists cited overregulation and labor shortages, and there was intense disagreement between the parties on whether the surge in demand for imports was the result of foolish policy or wise economic support for households during the pandemic.
The China package passed by the Senate -- which includes instructions to reopen Section 301 tariff exclusion applications, and a renewal of both the Generalized System of Preferences benefits program and the Miscellaneous Tariff Bill -- will go to a conference committee to reconcile the Senate bill with various pieces of House legislation, one of which changes the burden of proof on goods from Xinjiang. None of the House bills touches on tariffs, and none offers funding for chipmakers, a centerpiece of the Senate bill. Senate Majority Leader Chuck Schumer, D-N.Y. had earlier planned to attach the China package to the must-past National Defense Authorization Act, but after Republican opposition, they decided this was a better way to get the House-Senate talks going.
The top Republican on the House Ways and Means Committee said he thinks that the Generalized System of Preferences benefits program and the Miscellaneous Tariff Bill ought to be bipartisan policies, and he would prefer that the House and Senate agree on them as freestanding bills rather than "jam it through" on the Senate's National Defense Authorization Act. "I haven’t had a conversation with Chairman [Richard] Neal about adding it to NDAA. If that’s an approach he thinks would work with his members, I would support that -- it’s important to get it done sooner rather than later," Rep. Kevin Brady, R-Texas, added in response to questions from International Trade Today during a phone call with reporters Nov. 16.
Congress should direct CBP to impose "a region-wide Withhold Release Order on products originating from Xinjiang, China," the U.S.-China Economic and Security Review Commission said within a group of 32 recommendations for lawmakers. Congress should also require the Department of Homeland Security "to provide a comprehensive list of technologies needed and an outline of the resources required to enforce the Withhold Release Order and address other instances of China’s use of forced labor." it said in the report, released Nov. 17.
International Trade Today is providing readers with the top stories from Nov. 8-12 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
Comments filed in response to CBP's proposal to require 36 hours of continuing education every three years for customs brokers were largely supportive and suggested only minor tweaks. As of Nov 16, there were 70 comments posted to the docket, which closed Nov. 9. Several of the filings copied language from the National Customs Brokers & Forwarders Association of America submission (see 2111010040).
The Environmental Protection Agency “showed no flexibility” on an upcoming requirement to submit entry data for imports of hydrofluorocarbons 14 days prior to importation (see 2109230054), despite concerns raised by the National Customs Brokers & Forwarders Association of America at a recent meeting with the agency, the trade group said in an emailed update.