CBP created Harmonized System Update (HSU) 2001 on Feb. 13, containing 12,922 Automated Broker Interface records and 2,380 Harmonized Tariff Schedule records, it said in a CSMS message. The update includes the Section 301 tariff decrease for goods on list 4A (see 2001160019) and the expanded Section 232 tariffs on steel and aluminum goods, it said. It also includes recently released Section 301 tariff exclusions (see 2002030008).
Section 232 Tariffs
The United States currently maintains a 25% tariff on steel imports and 10% on tariff on aluminum imports under Section 232 of the Trade Expansion Act of 1962. In 2018, the Trump administration imposed Section 232 Tariffs on steel and aluminum imports into the United States, citing national security concerns. The U.S. agreed to lift tariffs on Canada and Mexico after the signing of the United States-Mexico-Canada Agreement (USMCA), and reached deals with the European Union, Japan and other countries to replace the tariffs with quotas for steel and aluminum imports into the U.S.
The Court of International Trade on Feb. 13 issued an injunction barring CBP from collecting new Section 232 tariffs on finished steel and aluminum products form a single importer, PrimeSource. The preliminary injunction says CBP cannot collect “duty deposits” on PrimeSource’s entries of goods covered by the tariffs, which took effect Jan. 8, and sets bonding requirements until CIT enters final judgment in the case. The preliminary injunction results from an agreement between the government and PrimeSource nine days after the lawsuit was filed.
An importer challenging new Section 232 tariffs on steel and aluminum derivatives is now seeking to bar CBP from collecting the tariffs only on its own entries, and not on entries from all importers subject to the new duties. PrimeSource Building Products, after “further consultations” with the government, withdrew its original motion for a universal temporary restraining order on Feb. 12 (see 2002060075), and filed a new motion for temporary restraining order and preliminary injunction barring the government “from collecting duty deposits pursuant to Proclamation 9980 … on entries by PrimeSource Building Products Inc. filed on or after 12:01 am February 8, 2020.” Oman Fasteners on Feb. 7 filed a similar request for an order that only affects its own entries, in a separate challenge to the Section 232 tariffs. In a letter about PrimeSource’s request, the government said it does “not consent to a temporary restraining order or injunction.” A teleconference on the case is scheduled for Feb. 13.
The following lawsuits were filed at the Court of International Trade during the week of Feb. 3-9:
International Trade Today is providing readers with some of the top stories for Feb. 3-7 in case they were missed.
Customs duties are estimated at $72 billion in the current fiscal year, and the White House projects that number will climb to $92 billion in the fiscal year that begins Oct. 1. It projects that duties then will fall to $54 billion the following year.
New Section 232 tariffs on finished products of steel and aluminum face a court challenge just before they’re set to take effect. PrimeSource, a Texas company that bills itself “one of the largest purveyors of fasteners in the world,” says the tariffs on steel and aluminum “derivatives” violate the statutory requirements of Section 232 and importers’ constitutional rights.
The coming expansion of Section 232 tariffs to finished steel and aluminum goods will not apply to immediate transportation entries that are accepted before Feb. 8, CBP said in a Feb. 4 CSMS message. The message gives guidance for filers affected by the new 10 percent tariffs on some finished aluminum goods and 25 percent tariffs on some finished steel goods that start on Feb. 8 (see 2001280072). Eligible immediate transportation entries “shall be subject to the duty rates in effect when the immediate transportation entry was accepted at the port of original importation,” the agency said. CBP used a similar policy when the previous Section 232 tariffs took effect (see 1804050027).
CBP published notices in the Customs Bulletin revoking or modifying numerous rulings in 2019. These ruling revocations and modifications also apply to “any treatment previously accorded by CBP to substantially identical transactions.” When revoking or modifying a ruling, CBP is required by 19 USC 1625(c) to publish notice of the proposed action, and allow a period—generally one month—for comment before finalizing the action. An importer’s failure to advise CBP of “substantially identical transactions” or of a ruling not identified by CBP in these notices “may raise issues of reasonable care on the part of the importer or its agents for importations of merchandise subsequent to the effective date of this notice.” Rulings CBP revoked or modified in 2019 are as follows:
The following is a selection of articles that appeared in International Trade Today in 2019 covering ruling letters. CBP frequently publishes rulings months after they are issued, so these articles are included based on the dates the articles were published, rather than the date the ruling letter was issued.