Modems manufactured in China and sent to Canada for programming and other processing are not transformed in Canada and should be considered a product of China, CBP said in a Nov. 26 ruling. The ruling was in response to a request from Electroline Equipment, which asked CBP about NAFTA treatment and the country of origin of the transponders. The transponders are subject to the Section 301 tariffs on goods from China because China is the country of origin, the agency said.

The Customs Rulings Online Search System (CROSS) was updated with 162 rulings on Dec.18. The following headquarters rulings not involving carriers were modified on Dec. 18, according to CBP:

The Office of the U.S. Trade Representative will grant one-year extensions to only six exclusions from the first list of Section 301 tariffs on China that were due to expire Dec. 28, it said in a pre-publication copy of a notice posted to its website. The notice is silent on the other 25 exclusions issued alongside the six that were granted extensions, so those 25 now appear set to expire on Dec. 28.

Stability in Section 301 tariff levels is one piece of good news to come out of Friday’s announcement of a U.S.-China phase one trade deal, even if the large majority of imports will remain dutied at 25 percent indefinitely, Flexport chief economist Phil Levy told a webinar Monday. Recent history should be as a “precautionary tale” because many times in the past eight months, “a deal was announced, and it didn't last,” he said. Levy doesn't think a Phase Two deal that could include rolling back or eliminating more tariffs is likely in the next year.

Friday’s announcement of a phase one U.S.-China trade deal that included halving 4A tariffs in place since Sept. 1 (see 1912130042) could do little to change damage done to small audio companies smacked by the previous three tranches of tariffs still in place, they said. Executives we spoke to this month have been hit hard by the duties with little hope other than to wait them out.

NakiRadio wants an exclusion from the List 4A Section 301 tariffs for the “kosher Wi-Fi device” it imports from China, it posted Sunday in the Office of the U.S. Trade Representative public docket 2019-0017. The device streams only “pre-approved” Jewish content and is imported under the same 8517.62.00.90 subheading covering a broad swatch of other tech goods, including smart speakers, Bluetooth headphones, fitness trackers and smartwatches. The device has a 2.1-channel stereo speaker/subwoofer with a three-inch screen “used to navigate an electronic interface,” said the application. NakiRadio tried sourcing the product in the U.S., “but has been unable to find a manufacturer” capable of producing the firmware that “limits the accessible channels,” it said. Finding alternative sourcing would incur “punitive capital investment and serious disruption to its supply chain" because the product is of “a highly specific construction and functionality,” it said. “Kosher Wi-Fi devices with limited channels geared for the Orthodox community are not strategically important” to the Made in China 2025 industrial program, it said. NakiRadio pays 15 percent List 4A duties on the imports. The Trump administration announced plans Friday to roll back List 4A to 7.5 percent in the phase one trade deal with China (see 1912130042).

NakiRadio wants an exclusion from the List 4A Section 301 tariffs for the “kosher Wi-Fi device” it imports from China, it posted Sunday in the Office of the U.S. Trade Representative public docket 2019-0017. The device streams only “pre-approved” Jewish content and is imported under the same 8517.62.00.90 subheading covering a broad swatch of other tech goods, including smart speakers, Bluetooth headphones, fitness trackers and smartwatches. The device has a 2.1-channel stereo speaker/subwoofer with a three-inch screen “used to navigate an electronic interface,” said the application. NakiRadio tried sourcing the product in the U.S., “but has been unable to find a manufacturer” capable of producing the firmware that “limits the accessible channels,” it said. Finding alternative sourcing would incur “punitive capital investment and serious disruption to its supply chain" because the product is of “a highly specific construction and functionality,” it said. “Kosher Wi-Fi devices with limited channels geared for the Orthodox community are not strategically important” to the Made in China 2025 industrial program, it said. NakiRadio pays 15 percent List 4A duties on the imports. The Trump administration announced plans Friday to roll back List 4A to 7.5 percent in the phase one trade deal with China (see 1912130042).

With the announcement of a phase one deal, Flexport chief economist Phil Levy said the promise is for stability in tariff levels -- even if the large majority of goods facing Section 301 tariffs will retain the 25 percent hike. But, he noted in a Dec. 16 webinar, many times over the last eight months, “a deal was announced, and it didn't last. That should sort of serve as a precautionary tale.” Levy, like many observers, doesn't believe that a phase two deal, that could lead to rolling back more tariffs, is likely in the next year.

International Trade Today is providing readers with some of the top stories for Dec.9-13 in case they were missed.

NakiRadio wants an exclusion from the List 4A Section 301 tariffs for the “kosher Wi-Fi device” it imports from China, it posted Sunday in the Office of the U.S. Trade Representative public docket 2019-0017. The device streams only “pre-approved” Jewish content and is imported under the same 8517.62.00.90 subheading covering a broad swatch of other tech goods, including smart speakers, Bluetooth headphones, fitness trackers and smartwatches. The device has a 2.1-channel stereo speaker/subwoofer with a three-inch screen “used to navigate an electronic interface,” said the application. NakiRadio tried sourcing the product in the U.S., “but has been unable to find a manufacturer” capable of producing the firmware that “limits the accessible channels,” it said. Finding alternative sourcing would incur “punitive capital investment and serious disruption to its supply chain" because the product is of “a highly specific construction and functionality,” it said. “Kosher Wi-Fi devices with limited channels geared for the Orthodox community are not strategically important” to the Made in China 2025 industrial program, it said. NakiRadio pays 15 percent List 4A duties on the imports. The Trump administration announced plans Friday to roll back List 4A to 7.5 percent in the phase one trade deal with China (see 1912130042).