US Treasury Secretary Mnunchin may travel to Beijing for trade talks.

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77th United States Treasury Secretary, Steven Mnuchin

Earlier this week, current US Treasury Secretary Steven Mnuchin told reporters he may travel to Beijing for trade negotiations to ease U.S.-China tensions.

In recent weeks both countries have announced tariffs on goods imported from the other country and the tensions between the US and China (the world’s two largest trading partners) has raised concerns of an impending trade war. The US first proposed tariffs totaling $150 billion on Chinese imports and Beijing has proposed tariffs on American goods such as soybeans.

In response, the Ministry of Commerce, People’s Republic of China would “welcome” the move by Treasury Secretary Mnuchin.

More updates as they become available.

Latest CBP Instructions on Section 232 Investigations (April 11, 2018)

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Photocredit: Imaginechina/REX/Shutterstock

See below for the most recent instructions regarding the Section 232 Investigations. These instructions were released by the CBP, on April 11th. The original text can be found here.

Commodities: Unchanged and includes steel mill and aluminum articles as specified in proclamations.

COUNTRIES COVERED:
March 23, 2018 through April 30, 2018: All countries of origin except Canada, Mexico, Australia, Argentina, South Korea, Brazil and member countries of the European Union (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom).

However, after May 1, 2018, all countries of origin.

Customs does make a note to remind readers that it is based on the country of origin, not the country of export.

ENTRY SUMMARY FILING INSTRUCTIONS:

Steel Products: importers shall use the HTS classification for imported merchandise subject to duty: 9903.80.01 (25 percent ad valorem additional duty for steel mill products)

Aluminum Products: importers shall use HTS classification: 9903.85.01 (10 percent ad valorem additional duty for aluminum products)

If the two above HTS numbers are not used for importers under Chapters 72, 73 and 76 for the covered countries of origin, these error messages will display:

E1 IQ10 LINE SUBJECT TO QUOTA

E1 FQ09 QUOTA NOT ALLOWED FOR ENTRY TYPE

E1 FQ05 BANNED IMPORT

E1 RF998 TRANSACTION DATA REJECTED

Note: Quota is not in effect, but this ACE functionality is being used to validate entry summary transmissions and reject when validations determine the data is missing the required chapter 99 number.

If importers or filers do not include the chapter 99 code with their Post Summary Corrections for imports under Chapters 72, 73 and 76, the above reject messages will also appear.

Importers may file a protest if they believe an entry was incorrectly liquidated.

Below are the FREQUENTLY ASKED QUESTIONS from the CBP website copied for your convenience.

1. What is the timing of duty calculations on immediate transportation in bond entries subject to Section 232?

Pursuant to the Presidential Proclamations, duties are due on goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on March 23, 2018.

19 CFR 141.69(b) states:

Merchandise which is not subject to a quantitative or tariff-rate quota and which is covered by an entry for immediate transportation made at the port of original importation, if entered for consumption at the port designated by the consignee or his agent in such transportation entry without having been taken into custody by the port director for general order under section 490, Tariff Act of 1930, as amended ( 19 U.S.C. 1490), shall be subject to the rates in effect when the immediate transportation entry was accepted at the port of original importation.

For such entries covered by an entry for immediate transportation, and with a country of origin and Harmonized Tariff Schedule classification subject to the Presidential Proclamations, such entries shall be subject to the duty rates in effect when the immediate transportation entry was accepted at the port of original importation.

Accordingly, entries of steel and aluminum articles covered by an entry for immediate transportation accepted at the port of original importation before March 23, may have been incorrectly rejected by CBP and/or incorrectly filed with a Chapter 99 steel or aluminum HTS classification.

CBP is working to address the incorrectly filed entries to alleviate the need for the trade to resubmit entry summaries, submit post summary corrections (PSC), or file protests. CBP is aware that some entry summaries incorrectly submitted with the Chapter 99 HTS classification may have a deadline approaching to pay the associated duties. CBP will fully consider the issues associated with these entries in enforcing the duty deadline and CBP will be addressing these entries promptly. Importers who incorrectly paid duties pursuant to the Presidential Proclamations on an AD/CVD entry, and want to request an administrative refund of these duties prior to liquidation, may file a PSC to request an administrative refund of these duties prior to liquidation.

2. Which Harmonized Tariff System (HTS) classifications under HTS 7616.99.51 are subject to the Section 232 duties.

Per the Presidential Proclamations, 7616.99.51.60 and 7616.99.51.70 are subject to the Section 232 duties.

 

If you have any questions, call customs and trade law attorney David Hsu at 832-896-6288 or by email at dhsu@givensjohnston.com.

US proposes tariffs impacting $50 billion worth of Chinese imports.

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The current administration announced tariffs on an additional 1,300 technological and transport products from China. Imports of these 1,300 goods are worth an an estimated $50 billion and could be subject to an additional 25-percent tariff.

The list posted on US Trade Representative’s (USTR) office covers nonconsumer products, ranging from chemicals to electronic components and excludes some common consumer products such as cellphones and laptops assembled in China. However, the list also includes consumer products such as flat-panel televisions, LED’s, motorcycles and electric cars.

Part of the justification for tariffs is an effort by the administration to cut the trade surplus – in which China has a $375 biillion trade surplus on goods from the US in 2017. Throughout his campaign, President Trump promised reducing the trade surplus by $100 billion during his presidency.

After the proposals were announced, the USTR has a public comment period from now until May 11th. A hearing will follow on May 15th. During this comment period, companies and consumers will be able to ask the government to remove or add certain products to the list.

If you have any question about these potential tariffs or want to know more about how to get your good off the list, contact trade and customs attorney David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.

Renegotiated KORUS FTA results in changes more favorable to US companies.

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According to the Office of the United States Trade Representative website, the Trump administration has negotiated additional favorable terms of the United States – Korea Free Trade Agreement (KORUS) that went into effect in 2012.

Fulfilling part of his campaign promises, President Trump has re-negotiated the KORUS with these (and many more) favorable changes to US companies:

1. Korea will double the number of US automobile exports to 50,000 cars per manufacturer per year.

2. US automobile exports to Korea that meet US safety standards can enter the Korean market without further modification. This lowers the cost of US cars being sold in Korea as additional testing and modifications are not needed before the US cars are sold in the marketplace.

3. Korea will recognize US standards for auto parts to service US vehicles in Korea, this reduces the labeling burden for US parts manufacturers.

4. Korea will amend their Premium Pricing Policy for Global Innovative Drugs to ensure non-discriminatory and fair treatment for US pharamceutical exports.

5. Korea imports of steel products into the US will be subject to a product-specific quota equal to 70% for the average annual import volume of such products during the years 2015-2017, resulting in reduction of Korean steel shipments to the US.

If you have any questions regarding the KORUS or other trade and customs law issues, feel free to contact David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.

Section 232 – Duties do not apply to goods coming from these countries until May 1, 2018.

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Until May 1, 2018, the Section 232 duties do not apply to goods coming from:

• Argentina;

• Australia;

• Brazil;

• Canada;

• Mexico;

• the member countries of the European Union; and

• South Korea.

After that time, the President will review whether to continue exempting these countries from the order.

Furthermore, the most recent customs message also says that admissions into FTZs can only be made with a privileged foreign status, which closes the previous FTZ loophole.

Any Section 232 questions? Call experienced trade and customs attorney David Hsu at 832.896.6288, or by email at dhsu@givensjohnston.com.

Trump Announces Tariffs on at Least $50 billion in Chinese Goods.

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On March 22nd, President Donald Trump signed a memorandum instructing the U.S. Trade Representative to prepare a list of goods imported from China that will be subject to tariffs.

The tariffs are in response to China’s policies of forced technology transfers, forced joint ventures, intellectual property theft and technology licensing restrictions for U.S. companies doing business in China.

Check back here for the list when it is published. It is is estimated the list will include approximately 1,300 tariff lines and the public will have 30 days to submit comments.

If you have any questions how this may affect your imports, call experienced trade and customs attorney David Hsu at 832-896-6288 or email dhsu@givensjohnston.com.