The packaging and dilution of perfume and cologne in China don't result in a change to the country of origin, CBP said in a Nov. 28 ruling (NY N301656). The colognes and perfumes therefore are not subject to the Section 301 tariffs on goods from China, the agency ruled. The ruling request came from Fantasia Accessories through Grunfeld Desiderio lawyer Kevin Leonard.
President Donald Trump celebrated revenue the U.S. is collecting from Trade Act Section 301 tariffs on Chinese goods, noting progress in talks with China to reach a comprehensive trade agreement. "The United States Treasury has taken in MANY billions of dollars from the Tariffs we are charging China and other countries that have not treated us fairly," tweeted Trump Thursday. "In the meantime we are doing well in various Trade Negotiations currently going on. At some point this had to be done!"
President Donald Trump celebrated revenue the U.S. is collecting from Trade Act Section 301 tariffs on Chinese goods, noting progress in talks with China to reach a comprehensive trade agreement. "The United States Treasury has taken in MANY billions of dollars from the Tariffs we are charging China and other countries that have not treated us fairly," tweeted Trump Thursday. "In the meantime we are doing well in various Trade Negotiations currently going on. At some point this had to be done!"
The ongoing partial federal government shutdown is causing some confusion for the trade community on tariff classification. CBP’s last tariff update in the Automated Broker Interface came on Dec. 19 (see 1812190004), but the International Trade Commission has not yet issued its annual update to the online Harmonized Tariff Schedule (see 1901020021). Further complicating matters, a presidential proclamation making more changes to the HTS is now set for publication on Jan. 7 (see 1812270038).
Despite partial government shutdown, the Office of the U.S. Trade Representative continues “to conduct all operations,” including trade negotiations and enforcement activities, “using existing funds,” said the agency Friday. USTR Robert Lighthizer is the lead negotiator in talks with China on a comprehensive trade package that forestalled the imposition of 25 percent Trade Act Section 301 tariffs on the third tranche of Chinese imports, at least until March 2 (see 1812140045). “Big progress” is being made in the U.S.-China trade negotiations, tweeted President Donald Trump Saturday. “Just had a long and very good call with President Xi of China,” said Trump. “Deal is moving along very well. If made, it will be very comprehensive, covering all subjects, areas and points of dispute.”
Despite partial government shutdown, the Office of the U.S. Trade Representative continues “to conduct all operations,” including trade negotiations and enforcement activities, “using existing funds,” said the agency Friday. USTR Robert Lighthizer is the lead negotiator in talks with China on a comprehensive trade package that forestalled the imposition of 25 percent Trade Act Section 301 tariffs on the third tranche of Chinese imports, at least until March 2 (see 1812140045). “Big progress” is being made in the U.S.-China trade negotiations, tweeted President Donald Trump Saturday. “Just had a long and very good call with President Xi of China,” said Trump. “Deal is moving along very well. If made, it will be very comprehensive, covering all subjects, areas and points of dispute.”
Despite partial government shutdown, the Office of the U.S. Trade Representative continues “to conduct all operations,” including trade negotiations and enforcement activities, “using existing funds,” said the agency Friday. USTR Robert Lighthizer is the lead negotiator in talks with China on a comprehensive trade package that forestalled the imposition of 25 percent Trade Act Section 301 tariffs on the third tranche of Chinese imports, at least until March 2 (see 1812140045). “Big progress” is being made in the U.S.-China trade negotiations, tweeted President Donald Trump Saturday. “Just had a long and very good call with President Xi of China,” said Trump. “Deal is moving along very well. If made, it will be very comprehensive, covering all subjects, areas and points of dispute.”
International Trade Today is providing readers with some of the top stories for 2018 in case they were missed.
Even though only 21 percent of the nearly 10,800 Section 301 exclusion requests have been adjudicated, Miller & Chevalier is drawing some qualified conclusions about what worked. The Office of the U.S. Trade Representative approved exclusions to the 25 percent tariff on 984 products from the initial $34 billion in Chinese imports targeted (see 1812240010). The two most important factors, the law firm said in an analysis published Jan. 2, are specificity around why the import could not be sourced outside China and concrete explanations on how the additional duties would hurt the requester.
The “procedures” of the federal Foreign Trade Zones board chaired by Commerce and Treasury “generally align” with established rules and regulations for approving or denying applications for storing goods in FTZs but can do a better job of more fully documenting their decisions, a GAO report said. Customs and trade experts have described FTZs as being among several good “deferral mechanisms” for companies seeking to mitigate the higher costs of Trade Act Section 301 tariffs on Chinese imports because companies that store foreign goods in FTZs don't pay duties on them unless the goods are imported or consumed (see 1809240011). The FTZ program "offers a range of benefits" to encourage companies "to maintain and expand their operations" in the U.S., said GAO. As of July, 262 FTZs were approved for operation, it said. GAO audited 59 applications to store goods in FTZs between July 2017 and November 2018, and found 49 were approved, the rest denied “for reasons such as new or complex policy issues that required further review,” it said. Staff evaluating the applications correctly “collected and considered comments” from the public, industry specialists and Customs and Border Protection and made recommendations to the board whether to authorize the requests, said GAO. The rules require consideration of a “number of criteria” for evaluating applications, but staff didn't always “document consideration of all required criteria,” and the procedures “do not require” them to do so, it said. Without such documentation, the board “lacks an institutional record that all required criteria were considered and also lacks assurance that its decisions comply with U.S. trade and tariff law and public policy,” it said. It recommended the board write documentation requirements into its procedures.