China is going to ask the World Trade Organization to authorize retaliatory tariffs on $2.4 billion worth of goods at the WTO's dispute settlement body meeting Oct. 28. If the U.S. disagrees with either the argument that it's not complying with the ruling on countervailing duties, or the amount of retaliation permitted, an arbitrator will decide how much China may retaliate.

Trade experts identified many weaknesses of the World Trade Organization -- the evidentiary standard for countervailing duties: the fact that CVD in one market doesn't help the industry's economics when surplus flows to other countries; the length of time it takes to show adverse effects to domestic firms; the fact that 164 countries can't agree on trade liberalization.

The Customs Rulings Online Search System (CROSS) was updated with 39 rulings on Oct. 18. The following headquarters ruling not involving carriers were modified on Oct. 18, according to CBP:

CBP created Harmonized System Update (HSU) 1917 on Oct. 18, containing 81 Automated Broker Interface records and 26 Harmonized Tariff Schedule records, it said in a CSMS message. The update includes recently announced exclusions and other changes to the Section 301 tariffs (see 1909300009). Another change is related to the tariffs on goods from Europe that began on Oct. 18 (see 1910170049)

The Office of the U.S. Trade Representative announced procedures for requesting product exclusions to some of the fourth list of Section 301 tariffs on products from China. A subset of those tariffs took effect on Sept. 1 (see 1908270066), while the rest of the tariffs are scheduled to begin on Dec. 15. This process only applies to tariffs that began on Sept. 1, it said.

A new report on the economic impact of the tariff reductions on 1,655 products covered by the Miscellaneous Tariff Bill finds a tiny effect on GDP from the $179 million in duties saved over seven months.

Trade experts identified many weaknesses of the World Trade Organization -- the evidentiary standard for countervailing duties: the fact that CVD in one market doesn't help the industry's economics when surplus flows to other countries; the length of time it takes to show adverse effects to domestic firms; the fact that 164 countries can't agree on trade liberalization.

CBP issued filing instructions for goods subject to the tariffs on goods from Europe set to begin on Oct. 18 (see 1910020044). The Oct. 17 CSMS message includes instructions for "submitting an entry summary in which a heading or subheading in Chapter 98 and/or 99 is claimed on imported merchandise" and the sequence order for reporting the tariff numbers. The additional duties of either 10 percent or 25 percent "are effective on or after 12:01 a.m. eastern daylight time on October 18, 2019," it said.

Details remain vague about the “very substantial phase 1” trade deal President Donald Trump announced Friday at the White House with Chinese Vice Premier Liu He that persuaded the president to delay hiking three rounds of Section 301 tariffs to 30 percent Tuesday. Trump “approved” the delay at Liu's request, “while we go through a process of documenting” phase 1 and putting the agreement on paper, said Treasury Secretary Steven Mnuchin.

The country of origin for Fitbit smartwatches and fitness trackers is based on where the products' printed circuit board assemblies are manufactured, said Customs and Border Protection in an Oct. 3 ruling newly posted at the agency's website. Fitbit had asked CBP for a binding ruling. Fitbit devices are assembled in China from parts and components sourced from Taiwan and Singapore. It announced Wednesday it will shift production outside China starting in January for “effectively all of its trackers and smartwatches” to escape exposure to the 15 percent List 4A Section 301 tariffs on Chinese goods that took effect Sept. 1 (see 1910090025).