Swiss computer peripheral and software company Logitech won its tariff classification challenge in the Court of International Trade, getting duty-free treatment for its webcams and ConferenceCams, per an Aug. 24 decision. Senior Judge Leo Gordon ruled that the webcams fit under Harmonized Tariff Schedule heading 8517, as argued by Logitech, as opposed to heading 8525, dutiable at 2.1%, as suggested by the government. Finding that the products in dispute fall under both headings, Gordon said the duty-free heading describes the goods “with a greater degree of accuracy and certainty.”

International Trade Today is providing readers with the top stories from Aug. 16-20 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.

There have been no productive discussions in the last month between Republican and Democratic trade staffers to find a compromise on renewing the Miscellaneous Tariff Bill and Generalized System of Preferences benefits program, Rep. Kevin Brady, R-Texas, said in response to a question from International Trade Today during a telephone press conference. "Regrettably, I see further delays in that because the speaker [of the House] and all her committees are focused on jamming through these tax hikes and welfare expansion," Brady said, referring to Democrats' legislative priorities. Brady said that while the Senate's Trade Act of 2021 is the framework for a bipartisan solution to GSP and MTB renewal, "we need time on task to do that," and he doesn't know if there will be conversations working toward that.

The Mexican government has asked the Office of the U.S. Trade Representative for formal consultations under USMCA's dispute resolution process over a disagreement on how the auto rules of origin should work. Mexico says that when it agreed to a 75% regional value content standard at the end of the phase-in period, its negotiators were assuming that once a part is considered originating, its value should count as North American as you move to assemblies, and ultimately, to the vehicle as a whole. So, Mexico says that in the text on the rules of origin, if a core part is originating, its full value is counted in a super-core part, such as an engine, and if that engine is originating, its value counts in the RVC for the vehicle as a whole.

CBP provided some more detail on the requirements of importers and brokers for duty-free claims under subheading 9801.00.10, in a recent CSMS message. The update revises a guidance issued by CBP in 2017 on legislative changes that allowed for duty-free treatment of products of the U.S. returned within any time frame after having been exported, or products of other countries returned within three years after having been exported, and not advanced in value or improved in condition (see 1702010047). CBP said it plans to propose regulatory changes to "align" the regulations with the law.

The Aluminum Association's Section 232 working group recently met with Commerce Department and Office of U.S. Trade Representative staff “with a recommendation on how to navigate the ongoing aluminum tariff dispute between the U.S. and European Union,” it said in its weekly newsletter. The U.S. and the EU said in June they hoped to reach an agreement on Section 232 tariffs on steel and aluminum by year-end (see 2106150070). “Rather than a hard tariff rate quota (TRQ) to replace the 10 percent tariff on aluminum imports from the EU, the Aluminum Association is proposing that the tariff be gradually reduced until it reaches parity on a U.S./EU Most Favored Nation basis,” it said.

OtterBox's victory in a Court of International Trade case setting a lower duty rate in a customs challenge on smartphone covers cannot be extended to a prior disclosure made by OtterBox, CIT said in an Aug. 18 opinion. Judge Claire Kelly ruled that the court did not have the jurisdiction to make the determination that entries not part of the Summons of the case should be reliquidated.

CBP's use of a new “de minimis” standard for allowing imports of goods in which forced labor played a minimal role will depend on the specifics of individual cases, a CBP spokesperson said by email. The standard was first mentioned as part of a set of frequently asked questions about a withhold release order aimed at silica-based products produced by Hoshine Silicon Industry, a company located in China's Xinjiang province, and its subsidiaries (see 2106240062). CBP said in the FAQs that it may consider a product outside the scope of the statute that prohibits forced labor goods if the forced labor contribution is “insignificant” (see 2108050019).

International Trade Today is providing readers with the top stories from Aug. 9-13 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.

CBP seemed to open up the possibility for a new de minimis provision under forced labor withhold release orders, but more guidance is needed to determine its impact, Mayer Brown said in an Aug. 16 post. The post focused on an answer released in a recent CBP set of frequently asked questions on the WRO on silica-based products made by Hoshine Silicon Industry Co. in Xinjiang, China (see 2108030026). “CBP now appears willing to use its authority to enforce US law on the use of forced labor (19 U.S.C § 1307) to provide importers with flexibility when their imports contain de minimis amounts of product produced with forced labor,” the firm said. “However, until more guidance develops on how CBP intends to implement this policy, manufacturers and US importers should be wary of relying on it too heavily.”