Two Alaskan shipping companies, Kloosterboer International Forwarding and Alaska Reefer Management, filed for a preliminary injunction and a temporary restraining order against CBP penalties for seafood shipments in the U.S. District Court for the District of Alaska. CBP recently continued to issue the penalty notices for companies shipping Alaskan seafood from Alaska to the eastern U.S. via the Bayside, New Brunswick, Canada, port, alleging Jones Act violations. The two companies challenged these penalties in the district court, declaring that they have essentially shut down this critical shipping route that had been previously cleared by CBP as complying with the Jones Act.

The Commerce Department will need to weigh in on how it plans to approach goods that were delayed by Hurricane Ida and have Section 232 tariff date sensitivities, a CBP official said Sept. 2 during a call with software developers. Asked about goods subject to a "232 quota exclusion due to expire in very the near future," the official said CBP has been in contact with the Department of Commerce, which will need to give input on any issues involving quota and the exemptions. Once that "absolute quota is filled, then it's filled" and "the importer will have to warehouse that merchandise if they're not able to use that quota exclusion before the quota exclusion expires."

The U.S. Chamber of Commerce gave advice to Congress in July and August on how to shape legislation that Congress is calling a "polluter import fee," which most call a carbon border adjustment tax. On Sept. 2, it published its reaction to one bill on the table, the Coons-Peters bill, although Senate Finance Committee Chairman Ron Wyden, D-Ore., has not said that the Coons bill will be the starting point for legislation he wishes to advance as part of the "soft infrastructure package" Congress is trying to write this fall (see 2108100031). Just before leaving for the August recess, Wyden said that the Senate was far from a concrete proposal, and that any proposal must get the support of Sen. Joe Manchin, D-W.Va. Manchin represents a state where coal mining is the third-largest industry.

CBP should take a different approach than the one it proposed for the rules of origin used on non-preferential claims and procurement under USMCA (see 2107010045), the Business Alliance for Customs Modernization said in comments to the agency. “BACM requests that CBP withdraw this [notice of proposed rulemaking] and engage the trade community in a dialogue about the type of rule of origin the United States should use for non-preferential purposes -- an objective test or a subjective test -- and then issue a new NPRM based on that input,” it said. BACM, which is made up of “large U.S.-based multinationals,” is the latest to come out against the proposal (see 2108120033 and 2108090027).

International Trade Today is providing readers with the top stories from Aug. 23-27 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.

The U.S. is now facing formal complaints from both Mexico and Canada over how it's calculating regional value content in the auto rules of origin under USMCA. Canada formally joined Mexico's call for consultations, it announced Aug. 26. Canada says that, like Mexico, it does not agree "with the interpretation of the United States of the relationship between the core parts and vehicle regional value content calculations."

Operations including the oiling of a machine, the fitting of a transformer to adjust electrical voltage and the uploading of software patches to a machine tool do not constitute manufacturing or use, and do not render the machine tool ineligible for unused merchandise drawback, CBP said in a recent ruling. The operations do not transform the machine tools into a new product, but merely make them operational for the end customer, CBP told Knuth Machine in HQ H290897, issued July 28 and publicly released Aug. 26.

CBP announced a two-year extension of its Section 321 data pilot, through August 2023, in a notice released Aug. 27. “CBP will extend the test for another two years to continue further evaluation of the 321 Data Pilot program and the risks associated with section 321 shipments,” it said. The pilot is still “limited to a maximum of nine participants,” said CBP, which has said it intends to expand the pilot to more participants (see 2108040012).

The Court of International Trade on Aug. 26 dismissed a steel importer's and purchaser's bid to reliquidate two entries subject to Section 232 steel and aluminum tariffs, saying the plaintiffs had already received the relief available to them from the Commerce Department in the form of a product exclusion but failed to preserve their ability to receive a refund by way of an extension of liquidation or a protest.

A proposal to use a carbon border adjustment tax as a pay-for in legislation Congress hopes to pass this fall faces many obstacles, both political and technical. Politically, it must get support from all 50 Democrats in the Senate, including Sen. Joe Manchin, whose home state of West Virginia exports about a third of its coal; in some recent years, coal was about half of all exports from the state.