CBP provided instructions in a May 22 CSMS message on how to handle cases where an exclusion request is still pending with the Office of the U.S. Trade Representative, an issue recently addressed by a CBP official (see 1905090059). "If you have a pending product exclusion request with USTR, or are importing a product that is covered by such a pending exclusion request, and you are concerned that a corresponding entry may liquidate before USTR renders a decision on the exclusion request," there are two options. The filer can either "request an extension of the liquidation deadline, and file a [post-summary correction] no later than 15 days before the extended date of liquidation," or " file a protest within the 180 day period following liquidation," CBP said. "When filing a protest, the protestant should identify the pending product exclusion decision from USTR as a basis for the protest. Upon receiving USTR’s decision on the product exclusion, the protestant should submit the exclusion information to CBP." After a protest is filed, "CBP will postpone making a determination on protests that include a claim identifying a pending product exclusion. Once USTR completes the exclusion processing, CBP will process these protests pursuant to USTR’s exclusion determination. That is, CBP will refrain from denying or granting a party’s protest before the importer receives a final determination from USTR regarding its product exclusion request."

Many eyes will turn toward Best Buy Thursday morning when it reports quarterly earnings for the first time since the Trump administration hiked the List 3 Section 301 tariffs to 25 percent May 10 on $200 billion worth of Chinese goods (see 1905090018). Analysts will watch to see whether Best Buy revises its fiscal 2020 forecast, and if so by how much, knowing that the big-box retailer previously said its guidance assumed the duties would stay at 10 percent (see 1902270021).

The top Democrat on the Senate Finance Committee told U.S. Trade Representative Robert Lighthizer in a May 22 letter that panel blocking is a mistake, and that trying to use Section 301 tariffs to enforce trade commitments of Canada or Mexico won't work. Sen. Ron Wyden, D-Ore., wrote: "So far, the Administration’s justification for this mechanism has only increased my worry that the new Agreement will not be enforced." He acknowledged "certain improvements" in the labor and environment chapters, but said, "all of the obligations become meaningless if the United States cannot effectively and swiftly enforce them."

A 25 percent tariff on shoes from China "would be catastrophic for our consumers [and] our companies," according a letter signed by more than 150 European and U.S. shoe manufacturers and shoe retailers, which was sent to President Donald Trump May 20. Footwear is not currently on the Section 301 list, but the president is considering adding tariffs on all Chinese imports.

The Office of the U.S. Trade Representative plans to open the product exclusion process for the third tranche of Section 301 goods "on or around June 30," the agency said in a notice. The notice is a request to the Office of Management and Budget asking for expedited approval for an information collection for the exclusion process that was announced as part of the tariff increase for the third tranche of goods from China (see 1905080035). "USTR is establishing a process by which U.S. stakeholders can request the exclusion of particular products classified within a covered tariff subheading from the additional duties that went into effect on September 21, 2018, and May 10, 2019," the agency said. "USTR anticipates that the window for submitting exclusion requests will open on or around June 30, 2019. Requests for exclusion will have to identify a particular product and provide supporting data and the rationale for the requested exclusion. Within 14 days after USTR posts a request for exclusion, interested persons can provide a response with the reasons they support or oppose the request. Interested persons can reply to the response within 7 days after it is posted."

International Trade Today is providing readers with some of the top stories for May 13-17 in case they were missed.

The International Trade Commission recently issued two updates to the Harmonized Tariff Schedule to reflect changes for Section 301 tariffs on products from China. In Revision 4, the ITC implemented the increase in duties on tranche three of goods subject to the tariffs from 10 to 25 percent, as announced in early May (see 1905060040). The increase in duty rates for subheadings 9903.88.03 and 9903.88.04, as well as U.S. Notes 20(e) and 20(g) to subchapter III of chapter 99, took effect May 10. The subsequently issued Revision 5 implemented a new batch of exclusions from tranche one of the tariffs under new subheading 9903.88.08 and U.S. Note 20(k) to subchapter III, and made conforming changes to U.S. Note 20(a) and U.S. Note 20(b). It also implemented new subheading 9903.88.09 for goods subject to tranche three of duties that are still subject to a 10 percent duty because they were exported from China before May 10 and entered before June 1. U.S. Note 20(l) explains the new provision. Also in Revision 5 but unrelated to Section 301 tariffs, the ITC updated Statistical Annexes A and B of the HTS to reflect the new name of North Macedonia.

A Chinese Foreign Ministry spokesperson sidestepped questions at a Beijing news conference May 17 about media reports suggesting new U.S.-China trade talks are off the table for now. Presidents Donald Trump and Xi Jinping “have maintained contact through various means,” the spokesperson said. The Office of the U.S. Trade Representative didn’t comment. The U.S. and China “intend to continue further discussions,” a USTR notice in the Federal Register said, officially proposing the 25 percent Section 301 tariffs on $300 billion in Chinese goods not previously dutied. Requests to appear at public hearings on the proposed List 4 tariffs are due June 10 in docket USTR–2019–0004 at regulations.gov, and written comments are due June 17, the same day the hearings are set to begin. Post-hearing rebuttal comments are due seven days after the hearings end.

A Chinese Foreign Ministry spokesperson sidestepped questions at a Beijing news conference Friday about media reports suggesting new U.S.-China trade talks were off the table for now. Presidents Donald Trump and Xi Jinping “have maintained contact through various means,” said the spokesperson. The Office of the U.S. Trade Representative didn’t comment Friday. The U.S. and China “intend to continue further discussions,” said a USTR notice Friday in the Federal Register officially proposing the 25 percent Section 301 tariffs on $300 billion in Chinese goods not previously dutied (see 1905140025). Requests to appear at public hearings on the proposed List 4 tariffs are due June 10 in docket USTR–2019–0004 at regulations.gov, and written comments are due June 17, the same day the hearings are set to begin. Post-hearing rebuttal comments are due seven days after the hearings end.

Manufacturers showed a wide range of tech products this month at showcase events in New York covering audio, video, lifestyle, wellness and smart home categories. Some looked to use flexibility of sensors to extend products’ reach outside their intended purpose.