Category: Blog Post
Feb 17th, 2025
Sweeping Section 232 Tariffs Imposed on Steel and Aluminum Derivatives: Scope Includes Manufactured Goods Across Multiple Industries (Beginning as early as March 12, 2025)
On February 10, 2025, President Trump issued two proclamations—Adjusting Imports of Aluminum into the United States and Adjusting Imports of Steel into the United States—expanding Section 232 tariffs. The proclamations eliminated all country exemptions, ended product-specific exclusions, and revoked General Approved Exclusions (GAEs). Aluminum tariffs increased from 10% to 25%,…
Feb 3rd, 2025
Trump Administration Imposes Tariffs on Goods from Canada, Mexico, China; Canada and Mexico Retaliate
On February 2, 2025, President Trump signed three Executive Orders imposing new tariffs on goods from Canada, Mexico and China. Canada quickly retaliated by imposing tariffs on American goods. Mexico has announced that it will impose retaliatory measures, both in the form of tariffs and nontariff barriers. China has indicated…
Jan 6th, 2025
THE TARIFF “STRESS TEST” – TO COURT OR NOT TO COURT?
In recent years, U.S. Customs and Border Protection (CBP) has aggressively pursued the collection of Section 301 “retaliatory tariffs” on imports deemed to be “Products of China.” Imposed by the Trump Administration in 2018 and 2019 under Section 301 of the Trade Act of 1974, these tariffs affect over $400…
Sep 16th, 2024
White House Proposes Changes to Use of Section 321 “Low Value Shipment” Provision
The Biden Administration has indicated its intention to adopt regulations sharply reducing importers’ ability to use the $800 low value shipment exemption” contained in Section 321 of the Tariff Act of 1930, as amended, 19 U.S.C. § 1321. In a September 13, 2024, notice posted to the White House website,…
Jul 1st, 2024
BYE BYE, CHEVRON DEFERENCE . . . HELLO, ‘JUDGES GONE WILD’?
The Supreme Court’s June 28, 2024 decision in Loper Bright Enterprises v. Raimondo wiped away the four-decade old doctrine that reviewing courts must grant “Chevron deference” to agency regulations. The decision represents a massive shift of power away from administrative agencies and to the judicial branch of government. Perhaps nowhere…
Jun 3rd, 2024
New Court of International Trade Decision Discusses “Deemed Liquidation” of Drawback Entries
A significant new decision of the United States Court of International Trade discusses the concept of “deemed liquidation” of drawback claims. In Performance Additives LLC v. United States, Slip Op 24-65 (May 31, 2024), the CIT made two significant determinations, as follows; If all of the designated import entries in…
May 28th, 2024
TRADE REPRESENTATIVE CUTS BACK ON SECTION 301 EXCLUSIONS
In the wake of its Four Year Report concerning the Section 301 tariffs imposed on products of China beginning in 2018, the United States Trade Representative has announced that it will terminate most of the existing product-specific exclusions from Section 301 tariffs, and will continue others until May 31,…
May 15th, 2024
Section 301 Duties: Unpacking the USTR’s Four-Year Review and Future Trade Implications
Section 301 duties continue to play an increasingly pivotal role in U.S. trade strategy to counteract inequitable trade practices and intellectual property theft by China. In the latest development, the Office of the US Trade Representative (USTR) announced the conclusion of a statutorily required four-year review of the Section 301 duties…
Mar 18th, 2024
Aluminum Extrusions: Everything, Everywhere, All at Once.
The imposition of antidumping and countervailing duty orders on a given class or kind of merchandise often causes producers of subject goods in the targeted countries to take action to avoid liability under the orders. This may involve changing the nature of the goods produced to remove them from the…
Feb 5th, 2024
CIT Won’t Consider “Non-Enumerated” Tariff Provisions in Determining “Substitutability” for Drawback Purposes
The United States Court of International Trade recently determined that it will not consider language appearing at “non-enumerated” provsions of the Harmonized Tariff Schedule (HTS) when determining whether imported and exported goods are “substitutable” for duty drawback purposes. In Spirit Aerosystems LLC v. United States, Slip Op. 24-10 (January 30,…
Feb 5th, 2024
Deemed Liquidation? Not So Fast!
A comedy of errors involving the handling of softwood lumber entries ended with Customs in tears, courtesy of an interesting new Court of International Trade decision. In Fraserview Remanufacturing Inc. v. United States, Slip Op 24-8 (January 25, 2024), a Canadian exporter of softwood lumber had some eighty (80) entries…
Jan 2nd, 2024
Cannabis Industry Players Need To Take Control Of Their Supply Chains
Supply chain planning is important to players in the legal cannabis industry. Processing and harvesting equipment which might be lawful to own in one state might be prohibited “drug paraphernalia” in another. This requires industry members to take care in routing domestic movements of their wares. As the industry emerges…
Dec 28th, 2023
The Evolving Legal Landscape For Importing Cannabis-Related Goods
The legal landscape surrounding the importation of cannabis “drug paraphernalia” has seen a remarkable turn in recent years that requires continued vigilance within the industry. A diverse range of cannabis products are needed to serve the needs of the cannabis industry at each level of the supply chain. Whether focused…
Sep 13th, 2023
Say Good-bye To Finality Of Liquidation?
“Finality of liquidation” has long been a core principle of American Customs law. When an importer files an entry of merchandise, Customs and Border Protection “CBP” has up to one year to “liquidate” that entry, making the final determination as to the classification, value, rate of duty and admissibility of…
Aug 6th, 2023
ROYAL BRUSH DECISION RESTORES SOME BALANCE TO TRADE SCENE
The Federal Circuit’s July 27, 2023 decision in Royal Brush Manufacturing Inc. v. United States No. 2022-1226, represents an important step in returning equity and fairness to the rough-and-tumble world of unfair trade remedies. In Royal Brush, the Federal Circuit ruled that an importer targeted by a complaint filed under…
Feb 16th, 2015
Best Key Textiles Co. v. United States
In Best Key Textiles Co. v. United States, No. 2014-1327 (February 3, 2015), the recipient of a ruling concerning the tariff classification of metalized yarn challenged Customs decision to revoke the ruling as being Arbitrary, capricious, an abuse of discretion, and not otherwise in accordance with law, in violation of the Administrative…
Mar 12th, 2015
NEW CIT Decision Eliminates "Liberal Reading" of Protests
Liberal treatment of communications with Customs as constituting a “protest” may be a thing of the past, for in Ovan International Limited v. United States, Slip. Op. 15-17 (February 23, 2015), the CIT held that, in order to be considered a valid protest, a document must be labeled as such,…
Apr 22nd, 2015
Customs Centers of Excellence and Expertise (CEEs): Program Directives and Evolution of Responsibilities
I. INTRODUCTION Numerous importers have recently raised questions concerning Customs’ initiative regarding the establishment of Centers of Excellence and Expertise (CEEs) to handle transactions in discrete industry-defined areas of responsibilities. This memorandum provides background information on CEEs and their current operational status. CEEs are an attempt by Customs to centralize…
Apr 23rd, 2015
Possible Retroactive Renewal of the Generalized System of Preferences (GSP)
After a nearly two-year hiatus, Congress appears ready to reinstate the Generalized System of Preferences (GSP), which provides duty-free treatment for selected goods from “beneficiary developing countries”. Moreover, Congress appears ready to make the renewal retroactive to July 31, 2013, when it expired, and to provide a mechanism for importers…
Jul 13th, 2015
Retroactive Renewal of the Generalized System of Preferences (GSP)
On June 29, 2015, Congress and President Obama reinstated the Generalized System of Preferences (GSP), which provides duty-free treatment for selected goods from “beneficiary developing countries.” The GSP had previously expired on July 31, 2013. The new legislation provides for retroactive refunds of duties paid on GSP-eligible goods for the…
Jul 27th, 2015
SHOULD YOUR COMPANY INDEMNIFY ITS IMPORT MANAGER?
Recent court decisions have made an already scary importing environment even scarier. Companies may be well-advised to consider protecting their import personnel. Your company’s long-serving import manager edges nervously into your office with an unusual request; she would like the company to provide her with an indemnity and hold harmless agreement….
Jul 27th, 2015
THE MYSTERY OF THE MISSING LEGAL DOCTRINE
The CIT’s latest penalty decision is another headscratcher. Call it the Mystery of the Missing Legal Doctrine – a whodunit worthy of Sherlock Holmes and John Watson. And we’re talking the contemporary Benedict Cumberbatch/Martin Freeman Holmes and Watson. This missing doctrine was in plain sight during the time of Conan…
Jul 28th, 2015
Update to Retroactive Renewal of the Generalized System of Preferences (GSP)
Effective July 29, 2015, Congress and President Obama reinstated the Generalized System of Preferences (GSP), which provides duty-free treatment for selected goods from “beneficiary developing countries.” H.R. 1295, The Trade Preferences Extension Act of 2015 (“the Act”), was introduced in the House on March 14, 2015, and extends the GSP,…
Aug 10th, 2015
CUSTOMS TAKES ANOTHER CRACK AT EXPANDING THE FORM 5106 IMPORTER IDENTIFICATION STATEMENT
Last year, U.S. Customs and Border Protection (CBP) caused quite a stir when it proposed amendments to Form 5106, the basic form typically filed by a Customhouse broker to provide basic information concerning an importer of record – name and address, type of entity and taxpayer ID/importer number. Stung by…
Oct 7th, 2015
Negotiators Agree on Trans-Pacific Partnership (TPP Agreement)
This week in Atlanta, the United States and 11 of its trading partners around the Pacific Rim – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam – announced that they had reached agreement on the Trans-Pacific Partnership (TPP), a plurilateral agreement which, if adopted, will…
Jun 27th, 2016
Customs Outsmarts Itself – Possibly – In Section 592 Penalty Case
Having sought civil Customs penalties against an importer under Section 592 of the Tariff Act on grounds of fraud, the government could not, in suing to recover those penalties in the United States Court of International Trade, allege in the alternative that the violations occurred by means of gross-negligence or…
Aug 23rd, 2016
Treasury, Customs Publish Interim “ENFORCE/PROTECT ACT” Regulations
Hard on the heels of a General Accountability Office (GAO) report showing that the Federal Government is owed some $2.3 billion in uncollected antidumping duties and countervailing duties, the Treasury Department and United States Customs and Border Protection have published interim final regulations implementing the “ENFORCE/PROTECT ACT” provisions of the…
Sep 6th, 2016
ITC READIES NEW DUTY SUSPENSION PROCEDURE
Congress is preparing to give away money – millions of dollars’ worth – and qualifying importers need only step forward to ask for theirs. Earlier this year, President Obama signed into law the American Manufacturing Competitiveness Act of 2016 (“AMCA”), which creates a new administrative procedure whereby importers and other…
Nov 21st, 2016
Repeal of the “Consumptive Demand Exception” to 19 U.S.C. §1307 Could Lead to Headaches for Importers
Congress recently and quietly repealed the “consumptive demand exception” to the ban on importation of goods make with forced, child or indentured labor set out in Section 307 of the Tariff Act of 1930, as amended [19 U.S.C. §1307]. The little-noticed changed could have serious…
Dec 7th, 2016
Supreme Court to Consider “International Patent Exhaustion” Issue
In a matter of tremendous importance to the international trade community, the United States Supreme Court last week agreed to consider the question of whether the sale of a patented article abroad “exhausts” a U.S. patent owner’s rights in the product. The issue will determine when patent owners may use…
Jan 31st, 2017
Analyzing Trump Administration Threats and Proposals Regarding Trade With Mexico
The fledgling Trump Administration sowed confusion and alarm in its first week with a series of Presidential and staff statements involving trade with Mexico. First, the President signed an Executive Order directing construction of a wall along the United States’ border with Mexico (although Congress would need to approve and…
Jun 28th, 2017
CIT TO LOOK AT ANTIDUMPING “SETTLEMENT” PAYMENTS
The United States Court of International Trade recently surprised many by indicating that it will take a look of the controversial practice whereby certain domestic petitioners in antidumping and countervailing duty cases seek “settlement payments” from foreign companies in exchange for excluding them from annual Commerce Department reviews of outstanding…
Feb 5th, 2018
Getting Trade Data Reports Admitted Into Evidence In Court: A Primer (as featured in Datamyne Blog)
Descartes Datamyne subscribers use trade data reports for a variety of purposes – to monitor competitors’ importing activities, to detect intellectual property infringements, to spot contract breaches, and to detect wrongdoing in a variety of circumstances. In some cases, some parties may wish to use trade data reports in litigation…
Feb 26th, 2018
FAILURE TO LAUNCH: CUSTOMS’ DRAWBACK DELAY PUTS IMPORTERS AND EXPORTERS IN LIMBO
February 24, 2018 was supposed to be a red letter day for importers and exporters. Two years earlier, Congress, in enacting the Trade Facilitation and Trade Enforcement Act (TFTEA), announced a historic expansion of the duty drawback statute, Section 313 of the Tariff Act. Substitution for drawback purposes, long governed…
Mar 5th, 2018
Section 232 Tariffs on Imported Steel and Aluminum: What You Need to Know (Part I)
Last week, the President unexpectedly announced that, acting under authority of Section 232 of the Trade Expansion Act of 1962, as amended [19 U.S.C. §1862], he would impose significant new tariffs on a wide range of steel and aluminum imports from all foreign countries. He indicated that there would be…
Mar 26th, 2018
Drawback Strikes Back
We recently noted the dismay of duty drawback filers when Customs and Border Protection failed to publish regulations needed to process refunds under the new duty drawback rules of the Trade Facilitation and Trade Enforcement Act (TFTEA), which entered into force on February 24, 2018. Dismay turned to anger when,…
Mar 29th, 2018
NO CONFERENCE? NO SECTION 592 PENALTY, COURT SAYS
Customs’ failure to provide an importer with a requested in-person conference to discuss a penalty claim being imposed under Section 592 of the Tariff Act invalidates the agency’s $4.5 million claim for penalties and withheld duties, according to recent decision of the United States Court of International Trade. In United…
Jun 6th, 2018
DUTY DRAWBACK AND THE STEEL AND ALUMINUM TARIFFS: A FIGHT TO BE FOUGHT?
Presidential Proclamations 9704 and 9705, which entered into force on March 23, 2018 imposed additional tariffs of 10% ad valorem on a wide range of imported aluminum products, and 25% ad valorem tariffs on many imported steel products. The tariffs were imposed pursuant to Section 232 of the Trade Expansion…
Jul 9th, 2018
USTR Issues Procedures for Seeking Product-Specific Exclusions From Section 301 Tariffs on Chinese-Origin Goods
Retaliatory tariffs of 25% ad valorem, imposed pursuant to Section 301 of the Trade ct of 1974, went into force against a wide range of imported Chinese goods on July 6, 2018. The United States Trade Representative (USTR) has announced procedures for a process whereby interested parties may seek product-specific…
Aug 27th, 2018
Customs Laws Push State Unfair Trade Remedies Aside, Court Rules
When can State unfair trade practice laws be used to punish alleged importing violations? Not often, according to a recent decision from the United States District Court for the District of Connecticut. Wind Corporation v. Wesko Locks, Ltd., No. 3: 18-cv-292 (D. Conn) was a lawsuit brought by a Connecticut…
Oct 15th, 2018
DUTY DRAWBACK: THE COURT HAS SPOKEN, NOW THE BALL’S IN TREASURY’S COURT
Back in February, 2018, the Treasury Department bypassed a Congressional deadline for issuing regulations concerning how duty drawbacks should be calculated under the Trade Facilitation and Trade Enforcement Act (TFTEA). Drawback claimants who had been promised a “transition year” in which they could claim drawback either under historical rules or…
Jan 14th, 2019
ASK CUSTOMS TO ENFORCE YOUR PATENT? YOU MAY LOSE CONTROL OVER ITS FATE
Imagine being a patent owner whose patent claims are being litigated in Federal Court –but being barred from participating in the litigation. That’s precisely the position that Chamberlain Group, a manufacturer of garage door openers, recently found itself in at the United States Court of International Trade. Chamberlain had filed…
Feb 21st, 2019
Omnibus Spending Bill Requires USTR to Set Up Section 301 Exclusion Procedure for “Tranche 3” Goods from China
The mini-omnibus spending bill which President Trump signed on February 15 contains a provision requiring the United States Trade Representative to create an exclusion process for the third tranche of retaliatory China tariffs imposed under Section 301 of the Trade Act of 1974. The Act requires the exclusion process to…
Mar 5th, 2019
India and Turkey to Be Terminated from GSP Program
The Trump Administration has announced that India, the largest beneficiary of trade benefits under the Generalized System of Preferences (GSP), will be terminated as a beneficiary of the program, along with Turkey. The termination should occur in a little over sixty (60) days. The President notified Congress of his determination…
Mar 27th, 2019
COURT OF INTERNATIONAL TRADE UPHOLDS CONSTITUTIONALITY OF SECTION 232 TARIFFS ON STEEL AND ALUMINUM PRODUCTS, BUT RELUCTANTLY
The United States Court of International Trade has rejected a Constitutional challenge to the “national security” tariffs imposed by the President on certain steel and aluminum products, pursuant to Section 232 of the Trade Expansion Act of 1962. In American Institute for International Steel, Inc. v. United States, Slip Op….
Apr 10th, 2019
LAWSUIT SETTLEMENT RESULTS IN RECORD SECTION 592 PENALTY
An importer of saccharin has agreed to pay a record $62 million to settle a lawsuit demanding civil penalties under Section 592 of the Tariff Act of 1930 [19 U.S.C. §1592]. Univar, Inc. was charged with evading antidumping duties by misrepresenting saccharin from China as being the product of Taiwan….
Apr 19th, 2019
NATIONAL ASSOCIATION OF MANUFACTURERS CHALLENGES FET DRAWBACK RESTRICTIONS
National Association of Manufacturers v. United States, Court No. 19-00053, filed in the UnitedStates Court of International Trade on April 18, 2019, is the much-anticipated challenges to recently-implemented Customs drawback regulations [19 C.F.R. Part 190] which seek to restrict drawback ofFederal excise taxes. CBP’s final regulations seek to restrict drawback…
May 6th, 2019
USTR To Establish Section 301 Exemption Process for “Third Tranche” of China Tariffs
United States Trade Representative Robert Lighthizer has indicated that his office will set up a process whereby interested parties may seek to exempt Chinese-origin products from the Third Tranche of retaliatory tariffs imposed against Chinese goods pursuant to Section 301 of the Trade Act of 1974. These tariffs, currently set…
May 16th, 2019
TRUMP TARIFFS: THE ART OF THE EXCLUSION REQUEST
Effective May 10, 2019, President Trump announced that retaliatory tariffs against $200 billion worth of Chinese exports, imposed under authority of Section 301 of the Trade Act of 1974, would be increased from 10 percent to 25 percent ad valorem. Coupled with the announcement of the duty increase for goods…
Oct 31st, 2019
ITC DUTY SUSPENSION PORTAL NOW OPEN
On October 11, 2019, the United States International Trade Commission (ITC) opened its portal to receive petitions for the establishment of temporary duty suspension or reduction measures. The portal, established pursuant to the American Manufacturing Competitiveness Act (AMCA), will remain open for applications through 5:15 P.M. on December 10, 2019….
Nov 25th, 2019
New CIT Decision Calls into Question Some Section 232 Tariffs on Iron and Aluminum Products from Mexico and Canada
A recent decision of the United States Court of International Trade appears to have drawn limits on the President’s authority to impose “national security” tariffs on steel and aluminum products under authority of Section 232 of the Trade Promotion Act of 1962. While the President has claimed authority to adjust…
Dec 2nd, 2019
SECTION 301 TARIFFS AND THE LAW OF UNINTENDED CONSEQUENCES
Section 301 of the Harmonized Tariff Schedule is Becoming a Crowded – and Confusing – Place Two major auto makers contacted their supplier in Tennessee one recent morning, giddy with excitement. The United States Trade Representative (USTR) had apparently granted an exclusion from the Section 301 tariffs on Chinese goods…
Jan 27th, 2020
Court of International Trade Strikes Down Excise Tax Drawback Restrictions
In a major victory for drawback claimants, and particularly the wine, petroleum and tobacco industries, the United States Court of International Trade recently struck down Treasury Department regulations which sought to limit drawback of excise taxes on exported substituted merchandise. In National Association of Manufacturers v. United States, Slip. Op….
Feb 19th, 2020
THE GOLD RUSH – WELL, THE STEEL AND ALUMINUM RUSH – GETS UNDERWAY
The United States Court of International Trade’s November 15, 2019 decision in Transpacific Steel Inc. v. United States held that the President was obligated to act within specific time periods in imposing adjustments on imports under Section 232 of the Trade Adjustment Act of 1962. In the case of tariffs…
Mar 3rd, 2020
FEDERAL CIRCUIT UPHOLDS CONSTITUTIONALITY OF STATUTE USED TO IMPOSE “NATIONAL SECURITY” STEEL AND ALUMINUM TARIFFS
To almost nobody’s surprise, the United States Court of Appeals for the Federal Circuit recently upheld the Constitutionality of Section 232 of the Trade Expansion Act of 1962, the statute invoked by President Trump to impose “national security” tariffs on imported steel and aluminum products. In American Institute for Imported…
Mar 17th, 2020
NEVILLE PETERSON LLP CORONAVIRUS PREPAREDNESS
The coronavirus pandemic has changed all our lives, and those changes may only be starting. Companies across the country are taking steps to embrace quarantine, social distancing and remote working to reduce the spread of the virus and protect our most vulnerable citizens. NPLLP joins in this important effort. First…
Mar 23rd, 2020
TRADE IN THE TIME OF CORONAVIRUS: UPDATE #1
Here at Neville Peterson LLP, we’ve transitioned to a remote working environment, and remain fully operational during the Coronavirus National Emergency. Now, more than ever, it is essential for businesses and their service providers to remain in contact and available to provide assistance. We’ll be providing regular updates on the…
Mar 26th, 2020
TRADE IN THE TIME OF CORONAVIRUS: UPDATE #2
At Neville Peterson LLP, we’ve transitioned to a remote working environment, and remain fully operational during the Coronavirus National Emergency. Now, more than ever, it is essential for businesses and their service providers to remain in contact and available to provide assistance. This is our latest update on the state…
Apr 6th, 2020
TRADE IN THE TIME OF CORONAVIRUS: UPDATE #3
At Neville Peterson LLP, we’ve transitioned to a remote working environment, and remain fully operational during the Coronavirus National Emergency. Perhaps a bit less well-groomed than we started, but operational nonetheless Now, more than ever, it is essential for businesses and their service providers to remain in contact and available…
Apr 10th, 2020
TRADE IN THE TIME OF CORONAVIRUS: UPDATE #4
At Neville Peterson LLP, we’ve transitioned to a remote working environment, and remain fully operational during the Coronavirus National Emergency. We’re abiding Samuel L. Jackson’s advice to stay at home and hope you are doing the same and staying safe. Now, our latest update on the state of trade during…
Apr 20th, 2020
TRADE IN THE TIME OF CORONAVIRUS: UPDATE #5
At Neville Peterson LLP, we’ve transitioned to a remote working environment, and remain fully operational during the Coronavirus National Emergency. We get together by Skype biweekly, and we’re getting to see who dyes their hair and who does not. Remarkably, not much dyeing, but a whole lot of honestly…
Apr 27th, 2020
COVID 19 and America’s Newest Oldest Crime – Hoarding
Shortly after the President signed Presidential Proclamation 9994 invoking the Defense Production Act to fight the Coronavirus Pandemic, the Attorney General, acting under the same body of law, issued his own memorandum addressing the legal aspects of the consequences of the Proclamation. The Memorandum, dated March 24, 2020 and sent…
Apr 30th, 2020
TRADE IN THE TIME OF CORONAVIRUS: UPDATE #6
At Neville Peterson LLP, we’re fully functional in remote working mode, ready to assist our clients, and openly fretting about the fate of so many unwatered plants in offices across the nation. But trade rolls on, with fits and starts, in these challenging times, and we’re striving to keep the…
May 11th, 2020
TRADE IN THE TIME OF CORONAVIRUS: UPDATE #7
At Neville Peterson LLP, we’re continuing to work in remote mode, assisting our clients and trying to keep international trade rolling along. Herewith, the latest news affecting international trade. Food and Drug Administration The FDA revoked Emergency Use Authorization (EUA) approvals for more than 60 Chinese makers of protective…
May 18th, 2020
NEW CIT DECISION GREENLIGHTS UP TO $383 MILLION IN REFUNDS
A Friday evening decision of the United States Court of International Trade (CIT) paves the way for quick refunds of up to $383 million to substitution drawback claimants. In National Association of Manufacturers v. Department of the Treasury, Slip Op. 20-67 (May 15, 2020), Senior Judge Jane A. Restani of…
Jun 5th, 2020
TRADE IN THE TIME OF CORONAVIRUS UPDATE #8
At Neville Peterson LLP, we’re continuing to work in remote mode, as the COVID-19 crisis appears, at last, to be winding down a bit. Herewith, the latest news affecting international trade. China Relations Keep Going Downhill: The President’s Phase I trade deal with China hangs in the balance, as trade…
Jun 9th, 2020
A Brief Word on George Floyd’s Killing and Recent Demonstrations
As international trade attorneys, we devote considerable professional effort to ensuring the success of transactions and interactions between people of different colors, nationalities and creeds around the world. We have watched civil unrest unfold, literally steps from our offices, following the killings of George Floyd and others, and we add…
Jul 20th, 2020
TRADE IN THE TIME OF CORONAVIRUS: UPDATE #9
At Neville Peterson LLP, we’re continuing to work in remote mode, as the COVID-19 crisis has eased in some areas of the country, but flared up in others. Herewith, the latest news affecting international trade. President Revokes Special Trade Status for Hong Kong Following the Secretary of State’s certification under…
Jul 31st, 2020
Importers, Customs Scrambling with USMCA Implementation
Neville Peterson’s John Donohue recently addressed some of the major issues facing trade and government following the July 1, 2020 implementation of the United States-Mexico-Canada Agreement. His comments were carried in The Beacon, the magazine of the Delaware River Maritime Exchange, and can be viewed here.
Aug 12th, 2020
U.S. Court of International Trade Decision Could Call into Question the Validity of Section 301 Exclusion Request Denials by U.S. Trade Representative
A recent decision of the United States Court of International Trade could call into question the legitimacy of Commerce Department decisions denying exemptions from the Section 232 “national security” tariffs on imported steel and aluminum. Before the U.S. Court of International Trade in JSW (Steel) USA, Inc. v. United States,…
Sep 15th, 2020
New CIT Lawsuit Challenges Section 301 Tariffs on List 3, List 4A Goods
A lawsuit recently filed in the United States Court of International Trade challenges the legality of Section 301 retaliatory tariffs imposed by the President on Chinese goods appearing on Lists 3 ($200 million trade action) and 4A ($300 million trade action) of the announced retaliatory measures. This lawsuit may provide…
Sep 21st, 2020
September 21 Has Come and Gone – Can I Still File a Suit for Section 301 Duty Refunds?
This past week was like nothing before seen in the 40-year history of the United States Court of International Trade (CIT). From September 16 through September 21, 2020, more than 3,500 new lawsuits were filed in the CIT by importers seeking refunds of Section 301 tariffs imposed on Chinese goods…
Dec 1st, 2020
SECTION 301 LITIGATION; WHERE ARE WE?
Some 3500 importers have filed suit in the United States Court of International Trade, seeking recovery of tariffs imposed under Lists 3 and 4A of the retaliation lists issued in the Section 301 investigation of China’s intellectual property rights practices. Here’s a brief update on the current status of this…
Dec 24th, 2020
TRADE IN THE TIME OF CORONAVIRUS: UPDATE #10
At Neville Peterson LLP, we’ve been working through the COVID-19 pandemic, and like everyone else, we’re hoping the end is in sight as vaccines become available. Herewith, the latest news affecting international trade. THREE BIG YEAR-END DEADLINES LOOM FOR TRADE The trade community is facing three significant year-end deadlines,…
Mar 3rd, 2021
“FIRST SALE” APPRAISEMENT AND NON-MARKET ECONOMIES: KEEP CALM AND CALL A CUSTOMS LAWYER
The United States Court of International Trade this week turned a few heads (and probably stopped a few hearts) with a decision suggesting that the Nissho-Iwai “first sale” rule of transaction value appraisement should not apply to goods from China or other non-market economy countries (NMEs), or goods which contain…
Jul 6th, 2021
CUSTOMS PROPOSES NEW ORIGIN RULES FOR CANADA, MEXICO AND CERTAIN GOVERNMENT PROCUREMENT PURPOSES
United States Customs and Border Protection has issued a proposed regulation which proposes to retain the “NAFTA Marking Rules” in 19 C.F.R. Part 102, and to make them applicable to all non-preferential origin determinations for goods imported from Canada or Mexico — not just marking, The proposal would use these…
Aug 25th, 2021
FEDERAL CIRCUIT AFFIRMS CIT DECISION INVALIDATING LIMITATIONS ON EXCISE TAX DRAWBACKS
The United States Court of Appeals for the Federal Circuit, in National Association of Manufacturers v. Department of the Treasury, No. 2020-1734 (August 23, 2021), affirmed a decision of the United States Court of International Trade (CIT) which invalidated certain Treasury Department regulations which sought to limit drawback of Federal…
Sep 24th, 2021
House Passes Legislation Targeting Excise Tax Drawbacks for Tobacco Products
No sooner did the Court of Appeals for the Federal Circuit hand exporters a major victory in obtaining excise tax drawbacks than the Treasury department has turned to Congress in an effort to reverse that decision, at least with respect to tobacco products. Recently, in National Association of Manufacturers v….
Oct 5th, 2021
USTR to Retain Section 301 Tariffs on Chinese Products But Re-Start Exclusion Process
United States Trade Representative Katherine Tai, in a speech delivered October 4, 2021, indicated that the Biden Administration has completed its 8-month review of China Trade policy, and settled on a “worker-centered” trade policy going forward. As part of this process, the Administration will be keeping in place the Section…
Oct 21st, 2021
SDNY Holds Freight Forwarder Not Strictly Liable for Lanham Act Violations When Counterfeit Goods Are Shipped
Freight forwarders are not strictly liable for violations of the Lanham Act just because they handle the transportation of goods that turn out to be counterfeit, the United States District for the Southern District of New York held in a significant recent ruling. In Nike Inc. v. B&H Customs Services,…
Nov 19th, 2021
Stick to Trade, Not Consumer Advocacy, CIT Tells Commerce Department
The fact that a foreign manufacturer misrepresented facts to consumers, while representing them accurately to the Commerce Department’s International Trade Administration (ITA) in an antidumping investigation, does not allow ITA to use “Adverse Facts Available” to determine dumping margins, the Court of International Trade recently held. In Dalian Meisen Woodworking…
Feb 2nd, 2022
Challenging the Imposition of Section 301 Duties on Chinese Imports: Summary of the Oral Argument in HMTX Industries, Inc. v. United States
On February 1, 2022, a three-judge panel of the United States Court of International Trade heard oral argument in the Section 301 litigation lead case, HMTX Industries LLC et al., v. United States. This case, in which some 6000 importers (and counting) have joined, seeks to have the Section 301 tariffs imposed…
Mar 2nd, 2022
Dead Rabbit? Recent CIT Ruling Upholds Traditional Customs Rules of Origin
In recent years, United States Customs and Border Protection (CBP) has been adopting increasingly novel interpretations of the rules determining the country of origin of imported goods. Largely in an effort to maximize collection of Section 301 tariffs on Chinese-origin products, Customs has wandered away from the traditional “substantial transformation”…
Mar 14th, 2022
Customs Gives Maquiladoras and Other COVID-Stricken Manufacturers a Duty Break
A recent Customs Headquarters Ruling provides a dutiable value allowance for certain manufacturers whose operations were impacted by COVID shutdowns during 2020. In Customs Headquarters Ruling H321226 of January 7, 2022, Customs held that a manufacturer operating a Mexican maquiladora could exclude from its computed value calculations certain plant costs…
Mar 28th, 2022
USTR Reinstates Section 301 Duty Suspensions for 352 Products
United States Trade Representative, Katherine Tai has announced the reinstatement of 352 product specific exclusions from the Section 301 retaliatory tariffs imposed on Chinese goods. The reinstated exclusions had previously expired in late 2020. USTR had sought comments regarding the possible reinstatement of some 549 expired suspensions. The agency has…
Apr 5th, 2022
CIT Shoots Down $5.7 Million Customs Suit for “Withheld Duties”
Customs’ Automated Commercial Environment (ACE) is a notoriously un-secure system for doing government business. Someone with access to the system and a company’s EIN number can make entry of virtually any merchandise in that company’s name. Customs has little way of knowing if the party filing the entry holds a…
May 4th, 2022
Administration to Review Section 301 Tariffs as Four Year Deadline Approaches
The United States Trade Representative (USTR) has issued required “60 day notices”, beginning the statutory process which requires that trade retaliation actions taken under Section 301 of the Trade Act of 1974 be reviewed after they have been in effect four (4) years. USTR is asking domestic “stakeholders” if they…
Jun 6th, 2022
PRESIDENT ESTABLISHES 24-MONTH MORATORIUM ON IMPOSITION OF ANTIDUMPING, COUNTERVAILING DUTIES ON SOLAR GOODS FROM SOUTHEAST ASIAN COUNTRIES
In a somewhat unprecedented development, President Biden today announced a 24-month moratorium on the imposition of antidumping and countervailing duties on solar panels and cells imported from four Southeast Asian countries – Cambodia, Malaysia, Thailand and Vietnam. The development comes in the midst of a series of Commerce Department…
Aug 16th, 2022
GOVERNMENT COUNTERCLAIMS IN PROTEST CASES? NOT SO FAST, CIT SAYS
Ever since enactment of the Customs Courts Act of 1980, which gave the United States Court of International Trade jurisdiction over counterclaims, litigants and the government have assumed that Customs could assert a claim for the payment of more duties than were assessed upon liquidation of Customs entries. But two…
Aug 16th, 2022
FEDERAL CIRCUIT COURT OVERTURNS DECISION LINKING “NON-MARKET ECONOMY” STATUS TO CUSTOMS VALUATION RULES
In a much-awaited decision, the United States Court of Appeals for the Federal Circuit (CAFC) has ruled that the application of the Customs valuation laws is not affected by the question of whether imported goods or their components are from a “non-market economy” country. In Meyer Corporation U.S. v. United…
Sep 21st, 2022
CONTROLLED SUBSTANCES ACT DOES NOT BAR IMPORTATION OF MARIJUANA PRODUCTION EQUIPMENT, COURT OF INTERNATIONAL TRADE RULES
The Federal Controlled Substances Act (CSA) does not bar the importation of equipment for processing marijuana where State laws authorize the possession and use of such equipment, according to an important new ruling by the United States Court of International Trade (CIT). In Eteros Technologies USA Inc. v. United States,…
Feb 1st, 2023
UFLPA a Game Changer for U.S. Importers
The Uyghur Forced Labor Prevention Act (UFLPA) is a game changer for companies that import goods from China, particularly from Xinjiang Province. While Section 307 of the Tariff Act has long banned imports of goods made using forced or prison labor, the UFLPA raises the stakes by creating a “rebuttable…
Jun 26th, 2023
CBSA PROPOSAL WOULD INCREASE DUTIES FOR MANY; PUBLIC COMMENTS DUE BY JULY 26, 2023
The Canada Border Services Agency (CBSA) has proposed amendments to Canada’s Value for Duty Regulations which would amend the definitions of “sale” and “purchaser in Canada” for purposes of determining the dutiable “transaction value” of imported merchandise. While the proposal is styled as one to “level the playing field” between…
Apr 17th, 2023
DUTY DRAWBACK: CLAIMANTS MAY NEED TO “ROOT HURT”
The tight-knit group of drawback professionals serving American importers and exporters (sometimes referred to by Customs as “drawback vigilantes”) is watching with interest and not a little concern as an interesting case makes its way through the United States Court of International Trade. In Spirit Aerosystems Inc. v. United States,…