A case on the classification of printed circuit board assemblies used in audio-visual transmission equipment will go to trial, after the Court of International Trade on Dec. 22 found it could not determine whether PCBAs imported by Plexus are principally used for televisions and dutiable at 2.9%, or principally used for other devices, including computers and smartphones, and duty free.
The Office of the U.S. Trade Representative released a list of witnesses slated to testify during the Dec. 29 Section 301 hearing on Vietnam currency manipulation. The agency hasn't addressed a request from trade associations that USTR delay the hearing in order to consider a Dec. 16 Treasury Department report blasting the Vietnam government for tampering with the foreign exchange market “in a sustained, asymmetric manner,” to the detriment of U.S. interests. Treasury released the report nearly a week after the deadline passed for submitting requests to appear at the USTR hearing.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, joined by five Republicans and two Democrats on the committee, told the Office of Management and Budget that a proposed rule to carve out items under Section 301 tariffs from de minimis needs “a thorough and complete review,” including a public comment period of 60 days. However, the letter was not signed by either of the two men who might be the chairman in January, depending on which party controls the Senate.
Sen. Chuck Grassley, R-Iowa, won't be leading the Senate Finance Committee next year but said “it's going to take more than a few minutes between staff to work things out” on how to change the Generalized System of Preferences benefits program. “I’m open to some of the things the Democrats hope to get in GSP,” he said Dec. 23 on a phone call with reporters, noting he's interested in promoting human rights, environmental protections and labor standards in other countries. But “some industries and segments of our economy” are going to suffer because the tariff preferences expired, he said. “And it’s just too bad.”
The Office of the U.S. Trade Representative will extend exclusions on goods used to treat COVID-19 from the Section 301 tariffs on goods from China, it said in a notice posted on the agency's website. “In light of the rising spread and ongoing efforts to combat COVID-19, the U.S. Trade Representative has determined that maintaining or re-imposing additional duties on certain products subject to the action no longer is appropriate and that the application of additional duties to these products could impact U.S. preparedness to address COVID-19,” it said.
International Trade Today is providing readers with the top stories from Dec. 14-18 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
CBP issued filing instructions in a CSMS message for goods eligible for the Generalized System of Preferences treatment after the GSP benefits program expires at the end of the year. As in previous GSP lapses, filers would continue to use the GSP special program indicator to flag their entries, but would have to pay duties at the normal, non-preferential rate for any imports with a time of entry during the lapse. GSP is currently set to expire Dec. 31 if the program isn’t extended by Congress. GSP renewal didn't make into year-end spending legislation, so expiration is likely (see 2012210040).
New licensing requirements for aluminum products are now set to begin Jan. 25, 2021, under a Commerce Department final rule creating a new Aluminum Import Monitoring and Analysis System. Similar to the Steel Import Monitoring and Analysis System in place since 2005, the new scheme requires importers of aluminum or their customs brokers to submit information in an online portal to obtain an automatically issued license, then submit the license number with entry summary documentation.
The Generalized System of Preferences and Miscellaneous Tariff Bill will expire at the end of the year, as neither provision moved with the end-of-year spending bill and COVID-19 relief package.
Foreign-trade zone users will no longer be able to claim tariff benefits under USMCA when the products manufactured in those zones meet the free trade agreement's rules of origin. However, none of the producers had yet been able to avoid tariffs on inputs, National Association of Foreign-Trade Zones CEO Erik Autor told International Trade Today Dec. 21, as there had been no administrative process at CBP to implement the change.