New Tariffs on Steel and Aluminum Finished Products Take Effect (From Sandler Travis)
Effective Feb. 8 the U.S. extended its Section 232 additional tariffs on steel (25 percent) and aluminum products (10 percent) to specific finished products made with steel and aluminum. These include iron or steel nails, tacks, drawing pins, and staples; aluminum stranded wire, cables, and plaited bands; and steel or aluminum bumper stampings for motor vehicles and body stampings for agricultural tractors. For a complete list and more info, please go to
https://www.strtrade.com/news-news-steel-aluminum-derivative-finished-product-232-tariff-012820.html?mkt_tok=eyJpIjoiTmpZMk5HTmlPR0U0TW1JMiIsInQiOiI0dElQYnJ5NFVST0VOdUJqSlRHMWt6akxzZ2loZGNSWksyait4NW5TbE9oUXZkZ1pWRHpIWUlBcGUweTRiXC9Cc0RDelluWE5QdWZGY2Y0enNXMVVyR21BS3FHcktOSVZQXC8wMFh1Q2l0TTQ2cWJRSzhCV2lTazgwemt2ZDIrODFsIn0%3D#utm_source=tradereport&utm_medium=email
Tariff on China List 4A Goods to be Lowered Feb. 14 (From Sandler Travis)
The Section 301 additional tariff on List 4A goods imported from China will be reduced from 15 percent to 7.5 percent as of 12:01 a.m. EST on Feb. 14, according to a notice from the Office of the U.S. Trade Representative. That is the effective date of the phase one trade agreement the U.S. and China signed Jan. 15 in Washington.
A full list of goods affected by this change, which have a total trade value of approximately $120 billion, is available at
https://www.strtrade.com/assets/htmldocuments/USTR%20301%20List%204A.pdf
DHS Crackdown on Imports Made By Forced Labor (From NCBFAA)
In their January 15 “Strategy to Combat Human Trafficking, the Importation of Goods Produced with Forced Labor, and Child Sexual Exploitation,” the U.S. Department of Homeland Security (DHS) outlined the ways in which the agency will crackdown on imports that are made with the use of forced labor.
As part of their priority actions, DHS says it will:
- Increase Investigative and Enforcement Capacity: DHS will expand its capacity to assess civil penalties and pursue criminal prosecutions against U.S. importers for violations of forced labor authorities. To strengthen overall enforcement, DHS will consider streamlining regulatory frameworks guiding the process for forced labor enforcement actions. DHS will also coordinate, consolidate, and publicize allegation and intake reporting channels and other information to ensure quality, actionable leads, gain information for ongoing cases, and verify forced labor allegations.
- Improve Education and Outreach to Industry Partners: DHS will educate the industry on the threat of goods produced with forced labor destined for U.S. importation and improve trade alert reporting, due diligence policies, and compliance assistance tools.
- Encourage International Partners to Adopt Reciprocal Safeguards: DHS will raise awareness among foreign partners of U.S. trade laws, limitations, and innovations, encourage international adoption and enforcement of reciprocal safeguards that combat forced labor, and obtain agreements to support investigation and verification of forced labor allegations. DHS will also work with international partners in the process of adopting the prohibition on a two-way system for issuing trade alerts when enforcement actions go into effect.
For the full report, please click here.
DHS Report on Combating Trafficking in Counterfeit and Pirated Goods (From NCBFAA)
On January 24, the U.S. Department of Homeland Security (DHS) published a report pursuant to President Trump’s April 3 Memorandum on Combating Trafficking in Counterfeit and Pirated Goods. This “Combating Trafficking in Counterfeit and Pirated Goods” report “uses available data, substantial public input, and other information to develop a deeper understanding of how e-commerce platforms, online third-party marketplaces, and other third-party intermediaries facilitate the importation and sale of massive amounts of counterfeit and pirated goods” and “identifies appropriate administrative, statutory, regulatory, and other actions, including enhanced enforcement measures, modernization of legal and liability frameworks, and best practices for private sector stakeholders.” For more info, please see entire report at
GSP expires Dec 31, 2020
Please be reminded that Generalized Systems of Preference (GSP) preferential duty treatments for many imported commodities from lesser developed countries will expire at midnight on December 31, 2020.
USMCA Signed Into Law, Implementation Possible Mid-Year (From Sandler Travis)
President Trump signed into law Jan. 29 legislation to implement the U.S.-Mexico-Canada Agreement updating NAFTA. The bill had already passed the House and Senate by wider margins than usually associated with trade agreements after the White House agreed to changes advocated by Democrats.
While the U.S. and Mexico have now approved the USMCA, Canada has only recently launched its ratification process, which is expected to conclude sometime in February. The agreement will enter into force once all three countries have verified that they have satisfied specific obligations spelled out in the deal. [Ed. Note: Probably not before Jul 1] For more info, please go to
https://www.strtrade.com/news-publications-USMCA-NAFTA-implement-013120.html?mkt_tok=eyJpIjoiTVdNMFpETTBPREF6TmpkayIsInQiOiJLakxJYWRpUTlTMkMzcm0rT3NsenlxaDlBb3VxR05ZREhrWEtPWmhFcjhaOG5wTWRcL1hmZ0xqckJ0VW1VZUwyVWF0V2xcL3hyWVRhaHR6ZG1US0xmMGNDaTBpeE5FU2J3OE9LdUZJSEg5Q1pscG5GRzRYMm9ySTR5YlZ1bGxkWG40In0%3D#utm_source=tradereport&utm_medium=email
RELATED PARTY ROYALTIES HELD TO BE NON-DUTIABLE (From Grunfeld Desiderio)
In Trimil SA vs United States, Slip Op 19-161, the U.S. Court of International Trade (CIT) ruled that payments made by the importer to parties related to the sellers of the imported merchandise for advertising fees and trademark royalties (collectively “fees”) were not part of dutiable value. The holding in this case is significant for a number of reasons including the fact that the advertising service provider and the trademark owner were related to the sellers of the imported merchandise. This is the first CIT decision to address the dutiability of royalties paid by an importer to a party that was also related to the seller of the goods. Importers who have been paying duty on royalty payments to parties that are related to the sellers of the merchandise should review those arrangements in light of the Trimil decision to determine whether there is an opportunity to treat those payments as non-dutiable and obtain duty refunds for payments made in connection with entries for which the liquidations have not become final. For more info, please go to
List of 20 Chemicals to be Prioritized for Risk Evaluation Finalized by EPA (From Sandler Travis)
The Environmental Protection Agency has published a list of the next 20 chemicals that will undergo risk evaluation under the amended Toxic Substances Control Act. These chemicals consist of seven chlorinated solvents, six phthalates, four flame retardants, formaldehyde, a fragrance additive, and a polymer precursor. For more info, please go to
https://www.strtrade.com/news-publications-EPA-high-priority-chemicals-risk-evaluation-123119.html?mkt_tok=eyJpIjoiTm1aaFpqZ3pPR0l4Wm1VMCIsInQiOiJRUG9NRzhOb1B2SzZIVVZPUU9OSGx6eWhQYytOcUlIOGVFUU54SUQxeVhwNXgrdmhIQmVDRjlXUlNkbTZnc0FEWkZ6WXJCSk00TTBEQWhSeGNnM0FvNmh5akJ1MVR6RHdGaENLYnBRUlB6Z2tCZUpLMEpzek9lRnJ2QWNBOHd6ViJ9#utm_source=tradereport&utm_medium=email
USMCA Revises Rules for Duty-Free Entry of Textiles and Apparel (From Sandler Travis)
The U.S.-Mexico-Canada Agreement has been signed and implementing legislation is making its way through Congress. The USMCA will update and revise NAFTA in a number of ways, including with respect to textiles, apparel, footwear, and bags. For more info, please go to
https://www.strtrade.com/news-publications-USMCA-textile-apparel-duty-free-rules-011320.html?mkt_tok=eyJpIjoiT1RNeFlXTXhNVFUxWkdabSIsInQiOiJpR21peW44eTA4VVczQ21FY0NlWnY1b2tudTliXC9jdjYxMVwvWGRqR2tPSHZtUE1NNkVsR3I3cVI5bGlJQWd5SE1IM010YU9xcmEyK0lCU0hFT3l0eTBnR3RreG00RHQrV2lXS2ZoRmlLNldHS2hDdTVyR2QwbnFkNUpDQ1lRS3hoIn0%3D#utm_source=tradereport&utm_medium=email
Importer Compliance with FDA’s FSVP Needs Work (From NCBFAA)
According to the Food and Drug Administration (FDA), many U.S. food importers are falling short in meeting their responsibilities under the Foreign Supplier Verification Program (FSVP), which took effect nearly 3 years ago. FDA inspection results for the FSVP reveal that, out of 1,847 inspections of U.S. importers, only 36% resulted in a passing score of “No Action Indicated”, while 63% received “Voluntary Action Indicated,” which means they must take steps to meet the FSVP requirements and will be subject to a reinspection.
The FDA reports anecdotally that many food importers are totally surprised by the FSVP requirements when the inspectors arrive. FDA continues to “educate while they regulate,” although they are prepared to take official action where noncompliance creates health risks. The consequences can be serious. If placed on an import alert for an FSVP violation, an importer will be barred from importing the food product. An overview of FSVP requirements may be found at
https://www.fda.gov/media/97893/download
The results of FDA inspections of foreign food suppliers’ facilities were more positive. 76% of the foreign food facilities received the highest score of No Action Indicated, while 24% received Voluntary Action Indicated.
FDA’s inspection statistics can be found at
Contact us with any questions.
Lee Hardeman LeeH@LHCB.com Direct: 404-477-3452
Sandy Cato SandyC@LHCB.com Direct: 404-477-3454
If you do not wish to continue to receive our newsletter, please email me at leeh@lhcb.com and put “Unsubscribe” in the subject line.