CBP may still suspend some duty collections (see 2003280001), according to a person knowledgeable about the discussions. The Wall Street Journal said in a March 27 report that duty collections would be deferred for three months, though President Donald Trump called the report “fake news.” The person said that there are multiple options being looked at and the plans are not yet finalized. One such option includes limiting the deferrals to regular duties, taxes and fees, and not trade remedies, such as the Section 301 tariffs and antidumping or countervailing duties, the person said. While the specifics are still being discussed, the action may come in the form of an executive order or Federal Register notice, the person said.
CBP may still suspend some duty collections, according to a person knowledgeable of the discussions. The Wall Street Journal said in a March 27 report that duty collections would be deferred for three months, though President Donald Trump called the report "fake news."
The House of Representatives, on a voice vote March 27, passed a bill that will give businesses access to forgivable loans and grants to keep operations going as the economy grinds to a halt due to the novel coronavirus COVID-19 pandemic. President Donald Trump signed it later that afternoon. It includes a provision that could help importers that have been unprofitable after the imposition of Section 301 or Section 232 tariffs (see 2003250025). Companies can use the losses they incurred in 2018, 2019 or 2020 to get income tax refunds from the previous five years. They could apply now for those 2018 and 2019 losses. The bill also sets in motion a study of the U.S. medical product supply chain.
The Senate Finance Committee chairman, joined by 11 other Senate Republicans, is asking President Donald Trump to consider a total moratorium on new or raised tariffs, as well as examining how tariffs and import and export restrictions specific to medical supplies can be tackled. They praised the Office of the U.S. Trade Representative for excluding some medical supplies from Section 301 tariffs since the novel coronavirus COVID-19 pandemic spread to the U.S., but said a wider review should be done to make sure none remain. And they encouraged him to coordinate with other countries that have imposed export restrictions in response to COVID-19, so that there aren't cost increases and “critical supply shortages.”
The Office of U.S. Trade Representative announced a new round of 301 tariff exclusions (see 2003260009) that includes some medical supplies that were included in the fourth tranche of tariffs.
The Office of the U.S. Trade Representative issued another set of product exclusions from the fourth group of Section 301 tariffs on goods from China. The new exclusions from the tariffs include "five 10-digit HTSUS subheadings and seven specially prepared product descriptions, which together cover 36 separate exclusion requests." according to the notice. The product exclusions apply retroactively to Sept. 1, 2019, the date the fourth set of tariffs took effect. The exclusions will remain in effect until Sept. 1.
The Senate Finance Committee chairman, joined by 11 other Senate Republicans, is asking President Donald Trump to consider a total moratorium on new or raised tariffs, as well as examining how tariffs and import and export restrictions specific to medical supplies can be tackled. They praised the Office of the U.S. Trade Representative for excluding some medical supplies from Section 301 tariffs since the novel coronavirus COVID-19 pandemic spread to the U.S., but said a wider review should be done to make sure none remain. And they encouraged him to coordinate with other countries that have imposed export restrictions in response to COVID-19, so that there aren't cost increases and “critical supply shortages.”
While they are pleased that the Office of the U.S. Trade Representative is seeking information about how Section 301 tariffs are hindering the fight against the spread of COVID-19, three pro-trade Democrats told USTR Robert Lighthizer that “this move alone is not enough to stop the harm that is being done to our health care system and economy. We request that you temporarily suspend tariffs or at least greatly expedite and simplify the tariff exclusion process during this difficult time. Immediate tariff relief will have numerous positive effects, including reducing disruptions to existing supply chains and easing the economic burden on our companies and their workers.”
The coronavirus bill pending in Congress includes a provision that could help importers that have been unprofitable after the imposition of Section 301 or Section 232 tariffs. According to draft text of the CARES Act (Coronavirus Aid, Relief and Economic Security Act), companies can use the losses they incurred in 2018, 2019 or 2020 to get income tax refunds from the previous five years. They could apply now for those 2018 and 2019 losses.
CBP should look at “extending the liquidation of all unliquidated entries by 90 or 180 days,” the Business Alliance for Customs Modernization told the agency in a March 23 letter. Those extensions “would help ensure that importers who may be eligible for duty refunds (e.g., based on Section 232 or Section 301 product exclusion approvals) do not miss opportunities to pursue such refunds administratively due to staffing issues caused by COVID-19.” BACM offered its support for deferring collections of customs duties and asked “that payments related to past liabilities, such as denied protests, also be temporarily deferred.” BACM suggested several other items it said “would help ease the burden on the trade community during this time.”