The Customs Rulings Online Search System (CROSS) was updated on Jan. 28. The following headquarters rulings not involving carriers were modified on Jan. 27 or 28, according to CBP:
International Trade Today is providing readers with some of the top stories for Jan. 21-24 in case they were missed.
Though President Donald Trump “initiated these tariff actions, in part, to address the issue of intellectual property rights for American businesses in trade with China,” TCL warned effects may be more widespread. “Rather than be sanctioned under 301 tariffs, TCL’s partnership with Roku should serve as a model for ensuring the proper protection and compensation of American creators and owners of intellectual property for products manufactured in China.” If TCL North America can’t win the exclusions it seeks from 15 percent List 4A Trade Act Section 301 tariffs it has paid since Sept. 1 on flat-panel TV imports from China, it wants the Trump administration to weigh “reallocating” TVs to List 4B where there’s no current tariff exposure. TCL filed exemption requests Thursday at the Office of the U.S. Trade Representative docket on 8528.72.64.30, 8528.72.64.40 and 8528.72.64.60 classifications. The “sole available source of LCD panels and supporting material components is China,” said the applications.
Though President Donald Trump “initiated these tariff actions, in part, to address the issue of intellectual property rights for American businesses in trade with China,” TCL warned effects may be more widespread. “Rather than be sanctioned under 301 tariffs, TCL’s partnership with Roku should serve as a model for ensuring the proper protection and compensation of American creators and owners of intellectual property for products manufactured in China.” If TCL North America can’t win the exclusions it seeks from 15 percent List 4A Trade Act Section 301 tariffs it has paid since Sept. 1 on flat-panel TV imports from China, it wants the Trump administration to weigh “reallocating” TVs to List 4B where there’s no current tariff exposure. TCL filed exemption requests Thursday at the Office of the U.S. Trade Representative docket on 8528.72.64.30, 8528.72.64.40 and 8528.72.64.60 classifications. The “sole available source of LCD panels and supporting material components is China,” said the applications.
If TCL North America does not get the exclusions it seeks from the 15 percent List 4A Section 301 tariffs it has paid since Sept. 1 on flat-panel TV imports from China, it wants the Trump administration to weigh “reallocating” TVs to List 4B where there’s no current tariff exposure, the vendor said. TCL filed three separate exemption requests Jan. 23 at the Office of the U.S. Trade Representative public docket on tariff schedule subheadings 8528.72.64.30, 8528.72.64.40 and 8528.72.64.60, covering TV imports that vary by screen size. The “sole available source of LCD panels and supporting material components is China,” it said in all three applications.
If TCL North America can’t win the exclusions it seeks from the 15 percent List 4A Section 301 tariffs it has paid since Sept. 1 on flat-panel TV imports from China, it wants the Trump administration to weigh “reallocating” TVs to List 4B where there’s no current tariff exposure, said the vendor.
CBP is awaiting official guidance from the Office of the U.S. Trade Representative for how to handle goods from China that fall under the six extended Section 301 exclusions (see 1912190060), a CBP official said during a Jan. 23 conference call. While USTR extended those exclusions beyond the Dec. 28, 2019, expiration date, the Harmonized Tariff Schedule code for those exclusions, 9903.88.05, became unusable after that date. A Federal Register notice from USTR will be necessary, the official said.
A pump assembly assembled in Mexico is subject to Section 301 duties, even though the electric motor that powers the pump is the only Chinese component and all of the other parts are Mexican, CBP said in a recent ruling. The assembly process in Mexico does not result in a substantial transformation of the motor, so the pump assembly remains a product of China, CBP said in HQ H303864, issued Dec. 26 and posted to the agency's CROSS database Jan. 9.
The volume of imports from China fell about 20 percent across the fourth quarter, Flexport executives noted during a webinar Jan. 21 -- which represents both shifting to other categories of goods and re-orienting supply chains. Ryan Petersen, CEO of the freight forwarder, said 64 percent of its clients are paying additional tariffs because of the Trump administration policies.
Stillwater Designs and Audio made “exhaustive attempts” to find contract manufacturers in the U.S. and in third countries able to source the speakers it imports from China and escape the 15 percent Section 301 List 4A tariff exposure to those products, said the vendor Tuesday in the Office of the U.S. Trade Representative public docket. It filed separate tariff exclusion requests for speakers in their enclosures imported under the 8518.21.00.00 tariff code and speakers not mounted in their enclosures sourced under the 8518.29.80.00 subheading. Stillwater did find contract manufacturers “with potential to produce these goods," but none has "the capacity nor related infrastructure to support the volume,” it said. “Because these products and the technology required for production are considered run-of-the-mill, intellectual property infringement is a non-issue,” said the vendor. “The additional tariffs on these goods imported from China do not in any way influence the Chinese government to alter or change the policies and practices identified by USTR in its Section 301 Report. These goods simply have no connection to the targeted Chinese policies and practices identified in the USTR’s Section 301 investigation.” USTR is scheduled to roll back the List 4A tariffs by half Feb. 14. Importers that land tariff exclusions can qualify for refunds of duties paid retroactive to when List 4A took effect Sept. 1.