Trade News Updates
By Margaret Lange
Although a bit of a slower month, the USTR is still actively reviewing provisional tariffs including aluminum from Canada, and of course 301 tariffs on Chinese goods. While most Section 301 exclusions are expiring, few are being extended, and only through the end of the years, but there has been an interesting development related to a lawsuit submitted to consider the legality of the China Section 301 List 3 and 4A tariffs.
Section 232 Tariffs on Aluminum from Canada Removed
In August, President Trump re-imposed a 10% ad valorem tariff on certain aluminum articles imported into the U.S. from Canada due to a surge in imports. However, following consultations with the Canadian government, the U.S.Trade Representative (USTR) determined that aluminum imports from Canada would normalize in the last part of this year. The USTR announced on September 15, 2020, that the 10% tariffs will be removed retroactive to September 1, 2020.
China Section 301
Lawsuit Filed Against the USTR for Refund of Section 301 China Duties
On September 10th the Court of International Trade received a lawsuit, which challenges the lawfulness of the Section 301 additional duties imposed in the last Section 301 rounds issued. If successful, this suit could result in a refund of all additional duties paid under Section 301 List 3 and List 4A entries filed. The lawsuit is challenging how and when the Section 301 List 3 duties were imposed. The lawsuit claims that the U.S. Trade Representative (USTR) overstepped its authority under the Section 301 statute by imposing the additional duties for List 3, 12 months after the start of their investigation. It also claims that the manner in which the List 3 duties were imposed by the USTR violated the Administrative Procedures Act.
To be included in this claim, each importer must file their own summons with the Court of International Trade. For List 3, importers needed to file their own claims by September 18th, or September 20th, depending on the date published or when the first duties were first collected. Additionally, list 4A claims must be submitted by August 20, 2021, two years from when the action was taken. As of September 22nd, more than 3,400 claims have been filed.
If you are interested in joining this lawsuit, we highly recommend that you contact a Customs attorney to review your claim and assist you with this process as soon as possible.
USTR Grants Some Product Exclusion Extensions, But Left Over 300 to Expire
In two separate notices, the USTR granted extensions for Section 301 product exclusions that were set to expire on September 20, 2020. In one notice, the USTR extended 62 of the 310 exclusions granted on September 20, 2019, under the $34 billion Section 301 action. In the second notice, the USTR granted extensions for 17 of the 86 exclusions granted on September 20, 2019, under the $16 billion Section 301 action. The granted product exclusion extensions in both lists are effective September 20, 2020, through December 31, 2020
M.E. Dey has compiled a list of the granted product exclusions. To see the complete list and status of all exclusions, click here.