International Trade Today is providing readers with some of the top stories for March 25-29 in case they were missed.
Momentum is moving China and the U.S. toward a trade deal, Myron Brilliant, head of international affairs for the U.S. Chamber of Commerce, said while speaking with reporters April 2. "We're getting into the end game phase" with China, he said. Brilliant said the negotiations with the Chinese delegation that will begin April 3 will be critical to reaching a resolution at the end of April, as both sides desire. But Brilliant emphasized that the business community is more interested in a comprehensive, durable deal that resolves long-standing complaints on discrimination against foreign companies operating in China and subsidies for Chinese firms than in reaching a quick deal.
The International Trade Commission recently posted Revisions 1 and 2 to the 2019 Harmonized Tariff Schedule. According to its change record, Revision 1 adds new note 20(i) to subchapter III of Chapter 99 to implement the latest set of Section 301 exemptions announced by the Office of the U.S. Trade Representative (see 1903210048). New HTS subheading 9903.88.06 is added for products that benefit from the new set of exclusions. Also, General Statistical Note 4(d) is amended to add unit of quantity abbreviation “A” for amperes, and remove the abbreviation “gr cntnrs” for gross containers. Revision 2 adds a new section to the rules of origin under the U.S.-Morocco Free Trade Agreement in General Note 27 for goods of chapter 62, as announced by USTR on March 22 (see 1903210042). That change, the only in the now-current Revision 2 edition of the HTS, takes effect April 1.
A bill introduced this week by two Democrats that would give Congress some say on Section 301 tariffs (see 1903280054) was endorsed by Freedom Partners March 29. The pro-business group's executive vice president, Nathan Nascimento, said: "This bill is another signal that there is growing momentum for Congress reclaiming its authority over tariffs. Americans pay enough in taxes as it is without the executive branch imposing new levies unilaterally.”
Tariffs levied in the name of national security, whether under Section 232 or other statutes, could only last 120 days without affirmative congressional approval under a proposed bill from Sen. Tim Kaine, D-Va., and Sen. Tom Carper, D-Del. This approach is similar to what's being considered in the Senate Finance Committee, but this bill, introduced March 27, also provides more information and consultation for Section 301 tariffs, such as those currently applied to Chinese goods. Under Section 301, the International Trade Commission would receive descriptions about what products will face tariffs, and at what rates, how long a tariff would last, and the ITC would produce a report on the impact on the economy. The bill would allow Congress to pass a joint resolution of disapproval of these tariffs, but that vote could be vetoed by the president. The bill is called the ‘‘Reclaiming Congressional Trade Authority Act of 2019.’’
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, is finding a way to bridge the gap between an approach that would roll back existing Section 232 tariffs and prevent any new ones without congressional assent and an approach that would leave metals tariffs in place and give Congress the opportunity to rein in Section 232 authority only by disapproving tariffs that have been levied. The latter tack would require a veto-proof majority (see 1902120033).
CBP created Harmonized System Update (HSU) 1904 on March 25, containing 1,015 Automated Broker Interface records and 194 Harmonized Tariff Schedule records, it said in a CSMS message. The update includes adjustments required by the Office of the U.S. Trade Representative's announcement of new exemptions from Section 301 tariffs on China (see 1903210048). Also included in the update are "some, not all, of the associated HTS codes for composite wood products, flagged with an EP7 (TSCA certification 'may be required’) code," CBP said. Modifications required by the verification of the 2019 HTS are included as well.
International Trade Today is providing readers with some of the top stories for March 18-22 in case they were missed.
CBP on March 22 added the ability in ACE for importers to file entries with the second group of exclusions from Section 301 duties, it said in a CSMS message issued on the same day. Filers of imported products that were granted an exclusion should report the regular chapter 84, 85 or 90 Harmonized Tariff Schedule number, as well as subheading 9903.88.06 for products subject to Section 301 duties on products from China but that have been granted an exemption by the Office of the U.S. Trade Representative. “Do not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.06 is submitted,” CBP said.
The latest batch of Section 301 exclusions (see 1903200067) only cover three 10-digit-level products in whole, while another 30 products are subsets of 10-digit Harmonized Tariff Schedule codes.