The Office of Management and Budget should restart consideration of a proposal to end the de minimis exemption for goods subject to Section 301 tariffs, the National Council of Textile Organizations said in an April 14 letter to acting OMB Director Robert Fairweather. The review of the proposal began at OMB last year (see 2009040026) but was removed as part of a broad regulatory freeze after President Joe Biden took office (see 2101210039). OMB should reopen the review and “grant approval to this much needed change in CBP regulations,” NCTO said.
The following lawsuits were filed at the Court of International Trade during the week of April 5-11:
International Trade Today is providing readers with the top stories from April 5-9 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
Broad disagreement separates the HMTX-Jasco plaintiffs from the government in the massive Section 301 litigation over the issue of whether importers who prevail on the merits of the case would be entitled to tariff refunds on customs entries for which liquidations become final, according to a joint status report filed April 12 with the Court of International Trade.
The Customs Rulings Online Search System (CROSS) was updated April 12. The following headquarters rulings were modified recently, according to CBP:
The Aluminum Association, which never asked for 10% tariffs on primary aluminum, is asking the administration to lift the tariffs on countries that are committed to market-based trade, while working on multilateral efforts to curb trade-distorting industrial subsidies. At the same time, the group wants federal investment for domestic aluminum capacity, and to maintain Section 301 tariffs on aluminum imports. The association also wants reforms to the 232 exclusion process.
Commerce Secretary Gina Raimondo, speaking at a White House press conference April 7, argued that America's infrastructure needs are broader than roads, bridges and ports, and touted the president's proposal to invest $50 billion in semiconductor manufacturing and research, as well as spending to carry broadband to rural areas. She also argued that spending on elder care will prevent people from having to drop out of the workforce to care for relatives.
Christopher Kane, partner at Simon Gluck, expressed optimism over a recent U.S. Court of International Trade ruling striking down an extension of President Donald Trump's Section 232 tariffs to aluminum and steel derivatives (see 2104050049). He believes the ruling spells good news for the massive litigation involving more than 3,700 companies challenging the expansion of the Section 301 tariffs on goods from China. Although based on a different law, Kane believes CIT's April 5 ruling demonstrates the court's willingness to hold the president to account over laws and regulations. In the case of the derivatives, the tariff expansion was eliminated because it was imposed after a 105-day period during which the president can impose Section 232 tariffs after receiving a report on the need for the duties from the Commerce Department.
Chipmakers and Chip Purchasers Tell Commerce Department More US Production Needed, but Imports Vital
A wide range of companies and trade groups told the Commerce Department that the semiconductor supply is vulnerable because of over-concentration in Taiwan, China and Japan in particular, and because packaging and testing is becoming more concentrated in China. Comments in docket BIS-2021-0011 closed April 5, but some comments were not published until April 6. The comments were sought to flesh out policy to follow an executive order on the semiconductor shortage (see 2103110048).
A U.S. manufacturer seeks the imposition of new antidumping and countervailing duties on walk-behind snow throwers from China, it said in a petition filed with the Commerce Department and the International Trade Commission March 30. Commerce will now decide whether to begin AD/CVD investigations, which could result in the imposition of permanent AD/CV duty orders and the assessment of AD and CV duties on importers.