Tag Archives: Section 232

Trump will decide tariffs on auto imports “soon”.

November 14, 2019 By in automobile, European Union, Japan, Uncategorized Tags: , , , , , , , , Leave a comment

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Today’s November 14th deadline on whether to impose tariffs (duties) on cars and auto parts imported into the US will likely result in President Trump extending the time to make a decision.

These additional tariffs on vehicles and parts are part of the “Section 232” national security tariffs enacted during the Cold-War that could see tariffs as high as 25% on vehicles and parts from the European Union, South Korea, and Japan.

A delay would likely result in a 6-month extension and allow for negotiators from all sides attempt to reach an agreement.

If you are an importer of car parts or vehicles and want to know what you can do, contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Will the new US/China trade war truce lead to a trade deal?

June 30, 2019 By in Uncategorized Tags: , , , , , , , , , 1 Comment
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Two big newsworthy events happened over the weekend at the G20 summit. First, Trump said US companies could supply to Huawei (waiting for official guidance at the moment) and second, the US and China agreed to not enact any further tariffs (current proposed Section 301 List 4 duties) in the near future and to start a new round on trade talks.

This may sound like Groundhog Day, and it partially is. Last year at the Argentina G20 summit, Trump and Xi also reached a similar agreement. And the differences that prevented a deal to be reached in Argentina also exist today. Key issues such as intellectual property and China’s 2025 plan are two areas where the two countries still do not reach a consensus.

With an election looming a little over a year away, Trump may be waiting until after next November before moving forward with a final deal – in the meantime, Trump says the US is already benefiting from the tariffs as the US is “taking in a fortune”.

If you have any questions about any of the 232 or 301 duties and how they may impact your business. Contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

Court of International Trade Upholds Constitutionality of Trump Steel Tariffs

March 30, 2019 By in Section 232, Uncategorized Tags: , Leave a comment
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As you may know, the Court of International Trade (CIT) has nationwide jurisdiction over customs and international trade laws and the imposition of tariffs.

Back in March 2018, steel importers challeged the constitutionality of Trump’s Section 232 duties on the basis of national security. The steel importers claimed Section 232 gives any President unlimited power to determine executive actions when justified on the basis of national security.

The three-judge panel of the CIT said the Supreme Court’s 1976 decision in Federal Energy Administration v. Algonquin SNG already decided that Section 232 met the “intelligible principle” standard because the scope of the law was limited to issues of national security.

US and China exchange tariff duties in trade war.

September 18, 2018 By in international trade, Uncategorized Tags: , , , , , , , Leave a comment
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Sorry for the lack of updates, Trump’s 232 and 301 duties have been occupying most of my time.

As you likely already know, yesterday, the Trump administration announced they will impose 10% duties on $200 billion worth of Chinese goods, earlier today, China announced retaliatory duties on $60 billion in US goods.

If you import from China and have questions about commenting, exclusion requests or other alternatives to minimize the tariff penalty – feel free to give me a call, 832.896.6288 or email me at attorney.dave@yahoo.com.

Current US Tariff Action Deadlines

August 15, 2018 By in Uncategorized Tags: , , , , , , , , Leave a comment
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I receive many questions about the deadlines for all the various tariff actions, I thought I’d post all the upcoming deadlines for your convenience.

If you have any questions regarding any 301 or 232 duties or are interested in filing of comments or an exclusion, or need assistance filing a response to comments, feel free to contact David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.

August 20-23 – Public hearing in DC for List 3

August 23, 2018 – 25% duty effective on List 2

September 6, 2018 – deadline to submit written comments for List 3

September 6, 2018 – deadline to submit post-hearing rebuttal comments

October 9, 2018 – deadline for product-specific exclusions for List 1

14 days after request for exclusion posted on docket – deadline for responses to requests for product-specific exclusion.

7 days after the close of response period – deadline for responses filed during the 14-day response period.

To Be Announced – 10% or 25% duty on List 3

GM applies for tariff exemption on their Buick Envision manufactured in China and subject to a 25% duty.

August 5, 2018 By in GM, Uncategorized Tags: , , , , Leave a comment
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According to Reuters, General Motors (GM) is seeking to apply for a tariff exclusion on their Chinese-made Buick Envision. As the Buick Envision is made in China, imports of the vehicle to the US would be subject to a 25% tariff. According to the same article, sales of the Buick Envision total 19% of Buick brand sales in 2017.

According to GM authority, the automaker has currently sold 16,814 Envisions so far in 2018.

The tariff exclusions are also known as the “Section 301” tariff exclusions. Reuters cites the GM’s argument in the filing: “to invest in our U.S. manufacturing facilities and to develop the next generation of automotive technology in the United States” and that “assembly in our home market is not an option” due to low US sales numbers.

Besides applying for a Section 301 exclusion, GM shipped in a six-month supply of Envisions at the current 2.5% tariffs.

Will followup and update if/when the exclusion has been approved.

If your company would like to file a Section 232 or Section 301 exclusion, contact experienced trade attorney, David Hsu at 832-896-6288 or by email at: attorney.dave@yahoo.com.

U.S. Secretary of Commerce expected to present results of national security investigation into auto imports in August.

July 28, 2018 By in European Union, Import, Uncategorized Tags: , Leave a comment
Wilbur_Ross_Official_Portrait

U.S. Commerce Secretary, Wilbur Ross Official Portrait

U.S. Secretary of Commerce Wilbur Ross (pictured above), will present his Department’s findings on the national security investigation of auto imports into the US later next month.

The report to President Trump could impact foreign automakers as the results may lead to the importation of new tariffs – up to 25% on imported cars and parts.

Earlier in May, the U.S. Department of Commerce started a “Section 232” investigation to determine whether imports of cars and parts pose a risk to U.S. national security. As you are aware, invoking Section 232 is the same rule Trump used to impose tariffs on steel and aluminum at 25% back in March of this year.

Last week, foreign governments from Japan, Canada and the EU along with US industry groups met with Commerce to express opposition to the investigation. These groups argued higher tariffs would harm American consumers and workers along with the economy. Part of the harm would stem from an estimated increase in price of imported cars by $6,000 and price of domestic built cars by $2,000.

Check back for further news regarding the auto import tariffs as they become available.

What should my company do regarding the Section 232 and Section 301 tariffs?

July 13, 2018 By in Uncategorized Tags: , , , , , , , Leave a comment
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We are fielding a lot of calls from importers, vendors, manufacturers, brokers and freight forwarders about what to do now that the Section 232 and Section 301 tariffs are in place.

We suggest:

  1. Review the list of products to determine your company’s exposure to Section 301 and Section 232 tariffs. The First Section 301 list can be found here.
  2. If there is a product on the second list of the Section 301 tariffs, you should participate in the comment process. The second list can be found here.
  3. If you are importing a product covered under Section 301 or Section 232, look into other alternatives for sourcing.
  4. This may be a good time to review your imported and exported goods and the classification used.
  5. Notify your customers, suppliers, vendors, buyers of potential price impacts of these new tariffs.
  6. Review pending purchase orders and pending shipments with companies in China, Canada, Mexico and the European Union.

If you have any questions about Section 232 or Section 301, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com. We also assist in filing exclusion requests and submission of comments, call or email now for immediate assistance.

Trump administration considering new tariffs on imported vehicles.

May 23, 2018 By in Customs Lawyer, Import, trade law, Uncategorized Tags: , , , , , Leave a comment
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Reuters reports the Trump administration may consider imposing new tariffs on imported vehicles based under Section 232 of the Trade Expansion Act of 1962.

A little bit of background – a section 232 investigation is conducted under the authority of the Trade Expansion Act of 1962, as amended and the purpose of a 232 investigation is to determine the effect of imports on the national security. Investigations may be initiated based on an application from an interested party, a request from the head of any department or agency, or may be self-initiated by the Secretary of Commerce.

Reuters reports the administration is currently considering tariffs of up to 25 percent for imported vehicles. As this was just announced, the plan is still not yet implemented and will receive much feedback from interest groups, foreign trading partners, domestic dealers of importer cars and anyone else involved in the import car business.

Check back for the latest news. If you have any questions about the current steel and aluminum tariffs initiated under section 232, contact experienced trade attorney – David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com.

Senate Finance Leaders Ask Commerce Secretary to Improve Tariff Exclusion Process.

April 20, 2018 By in ADD/CVD, Uncategorized Leave a comment
Wilbur_Ross_Official_Portrait

Department of Commerce Secretary Wilbur Ross

According to the Senate Finance Committee website, Chairman Orrin Hatch (R-Utah) and Ranking Member Ron Wyden (D-Ore.) urged the U.S. Department of Commerce Secretary Wilbur Ross to implement improvements to the Commerce Department’s process for excluding products from tariffs on steel and aluminum imports under Section 232 of the Trade Expansion Act of 1962.

In short, the letter voices concerns that the process lacks “basic due process and procedural fairness for stakeholders, especially American small businesses” and “appropriate mechanisms to prevent the Section 232 tariffs and product exclusion process from being abused for anticompetitive purposes.”

The Senators write the exclusion request process requires submission of a “substantial amount of information at a minute level of detail” for each imported product and may increase the burden for small businesses. Additionally the Senators state the request and objection forms allow for ambiguity by the Commerce department to approve or deny a product. Lastly, Commerce has not specified how to protect business proprietary information, how to address ex parte communications, how to ensure consistent determination across similar petitioners and objectors.

A full text of the letter can be viewed here (scroll to the bottom, full letter in italics).

If you have any questions about the 232 exclusion process, contact experienced trade attorney David Hsu at 832.896.6288 or by email at attorney.dave@yahoo.com.