House Ways and Means Committee Trade Subcommittee Chairman Earl Blumenauer, D-Ore., cast doubt on Congress voting to renew the Generalized System of Preferences trade benefits program before it expires, and on passing a new Miscellaneous Tariff Bill to cover imports in 2021 and 2022. He told an online audience at the Washington International Trade Association Sept. 23 that it's too soon to say whether a vote would be possible.
The International Trade Commission recently issued Revision 21 to the 2020 Harmonized Tariff Schedule. This latest revision implements a cut to Section 232 quotas on Brazilian semi-finished steel that took effect Aug. 28 (see 2008310010), and changes to the U.S.-Singapore Free Trade Agreement rules of origin that had been part of the proclamation implementing USMCA at the end of July (see 2006300079). It also reflects extensions to List 4 Section 301 exclusions that had been set to expire Sept. 1 (see 2008310013), now filed under new tariff subheading 9903.88.57.
The trade group that represents 12 foreign companies that have auto manufacturing operations in the U.S. says that the dialogue with the U.S. trade representative on alternative staging regimes will be ongoing for “the next several months.” Jennifer Safavian, CEO of Autos Drive America, spoke with reporters Sept. 16. The Office of the U.S. Trade Representative must bless each manufacturer's plan to move toward USMCA rules of origin for that company to get a five-year transition to higher regional value content standards, and a slower transition to meeting new labor value content standards. She said all three countries will have to approve each alternative staging plan.
The Commerce Department had little success when it tried to reduce the number of Section 232 exclusion applications that were rejected for technical problems by launching an applications portal in 2019, a Government Accountability Office report, released Sept. 15, said. The GAO said that the rejection rate went from 18% to 16% with the new portal. Even though the portal has mandatory fields, in an effort to eliminate incomplete submissions, the rejections for reasons other than an incorrect Harmonized Tariff Schedule code went from 27% in Regulations.gov to 43% in the portal.
The day before Canadian countermeasures were to begin in response to 10% tariffs on Canadian non-alloyed, unwrought aluminum, the Office of the U.S. Trade Representative announced it will end the Section 232 tariffs, retroactive to Sept. 1. The 10% tariff on the subsection of aluminum imports went into effect Aug. 16.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, and his colleague Sen. Joni Ernst, R-Iowa, sent a letter to Commerce Secretary Wilbur Ross asking him to bypass the normal exclusion process and lift the 25% tariffs on steel that will be used to rebuild grain bins, machine sheds, or other construction projects in Iowa, and to remove the tariff for agricultural machinery manufacturers. They said that farmers who need to replace grain bins or other buildings with steel infrastructure are being gouged by “opportunists” after sustaining damage from a powerful wind storm Aug. 10, and that they don't have time to wait through the several months' process of applying for an exclusion. They said that the high prices being quoted are proof that there isn't enough domestic supply, and they believe allowing imports at market prices would curb abuses by domestic sellers. “Your staff has often said that one reason they need broad authority under the current Section 232 law is to have the flexibility in case of an emergency. Well, there’s clearly one now. We, and other Members of Congress, will be watching your response closely. We expect you to rise to the task,” they wrote.
The Commerce Department will expand steel import licensing requirements to cover more steel products and require more information to be submitted to obtain the licenses, it said in a final rule released Sept. 10. The rule also indefinitely extends the expiration date of the Steel Import Monitoring and Analysis (SIMA) system, which had previously been renewed every four years and was set to expire in 2022, by removing provisions on the program’s expiration from the regulations. The rule takes effect Oct. 13.
The following lawsuits were filed at the Court of International Trade during the week of Aug. 31 - Sept. 6:
The International Trade Commission recently issued two revisions to the 2020 Harmonized Tariff Schedule to implement changes to exclusions on tariffs from China, as well as modifications of Section 301 tariffs on the European Union and Section 232 tariffs on aluminum from Canada. In Revision 20, issued Aug. 31, the ITC implemented recent changes to Section 301 tariffs on the European Union that removed cheeses from Greece and sweet biscuits from the United Kingdom, while adding fruit jams and purees from France and Germany to the list of goods subject to tariffs (see 2008130031). New subheading 9903.89.55 is added to implement some of the changes. The ITC also implemented new and amended exclusions from list three Section 301 tariffs on products from China (see 2008210003).
CBP issued the following releases on commercial trade and related matters: