Category Archives: Washington Newsline

MEMORANDUM

As part of the U.S. response to what is said to be China’s unfair trade practices related to the forced transfer of U.S. technology and intellectual property, the Office of the U.S. Trade Representative (USTR) today published a proposed list of products imported from China that could be subject to additional tariffs. Sectors subject to the proposed tariffs include industries such as aerospace, information and communication technology, robotics, and machinery, according to a USTR news release.

The Trade Representative proposes an additional duty of 25 percent on the Chinese products. The USTR is seeking public comment and will hold a public hearing regarding a proposed determination on appropriate action in response to these acts, policies, and practices.

The proposed list is defined by 8-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), covering approximately 1,300 separate tariff lines. The list is set out in the announcement, which can be found here (The list is in the Annex, which starts on page 14).

DATES: To be assured of consideration, comments and responses should be submitted in accordance with the following schedule:

April 23, 2018: Due date for filing requests to appear and a summary of expected testimony at the public hearing and for filing pre-hearing submissions.
May 11, 2018: Due date for submission of written comments.
May 15, 2018: The Section 301 Committee will convene a public hearing in the main hearing room of the U.S. International Trade Commission, 500 E Street SW Washington DC 20436 beginning at 10:00 am.
May 22, 2018: Due date for submission of post-hearing rebuttal comments

MEMORANDUM

April 2, 2018

Importers should continue to flag GSP-eligible importations with the SPI “A” and pay normal trade relations (column 1) duty rates until the effective date of the Act, April 22, 2018, at which time programming will obviate the duty payment.

Refund Programming

Shortly after April 22, 2018, CBP will begin refunding GSP duties without interest, to the importer of record, for goods on entry summaries filed with SPI “A” preceding the tariff number, during the lapse period.

Up-to-Date Importer of Record (IOR) Information

It is imperative that all importer of record information in ACE be up-to-date and valid, including the importer’s mailing address and banking information, if the importer is a member of CBP’s ACH refund program. Accurate records will allow refunds to be processed expeditiously.

Post-Importation GSP Claims for Importations Prior to Expiration

For importations made prior to expiration, CBP will continue to process post-importation GSP claims via post summary correction (PSC) and protest (19 USC 1514, 19 CFR 174). For importations made subsequent to expiration, CBP will not allow post-importation GSP claims made via PSC or protest.

Post-Importation GSP Claims for Importations During the Lapse

An importer may submit a duty refund request (post-importation GSP claim) for entry summaries submitted during the GSP lapse period on which the special program indicator “A” was not transmitted. Refund requests may be submitted as letters, Post Summary Corrections (PSC) or Protests. (Although the refund request may be submitted as a protest, do note that it is not truly a protest.)

The GSP refund request should include the following information:

     – Entry number

     – Line number

     – HTSUS number

     – Estimated total refund

     – Signed statement that the goods are eligible for GSP

     – Point of contact name, phone number and email address

Although importers may avail themselves of these post-importation GSP procedures at any time prior to September 19, 2018, CBP will begin processing these claims only after processing those submitted at entry summary. CBP reserves the right to reject claims without the aforementioned information.

Be advised that the failure to submit a post-importation GSP claim in accordance with the aforementioned requirements is not remediable via protest.

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Eligibility

In order to benefit from GSP, a good must be either wholly obtained or sufficiently manufactured in a GSP country. Sufficiently manufactured means that all 3rd-country materials have undergone a substantial transformation plus at least 35% of the good’s value has been added in the beneficiary country. Additionally, the good must be “imported directly”.

Eligible tariff items are identified by the symbols “A”, “A*” or “A+” in the “Special” sub-column of the HTSUS.

    The symbol “A” indicates that all GSP countries are eligible (HTSUS General Note 4(a))

    The symbol “A*” indicates that certain GSP countries are ineligible (HTSUS General Note 4(d))

    The symbol “A+” indicates approximately 1,500 additional tariff items for which only the LDBDCs are eligible (HTSUS General Note 4(b))

Commissioner Rebecca Dye has launched the first phase of her investigation into port demurrage, detention, and free time practices by ordering ocean common carriers to provide information and documents explaining those practices. A similar effort with respect to container terminals at major U.S. ports is also underway.

The Federal Maritime Commission initiated the investigation, Fact Finding 28, under a Commission Order dated March 5, 2018.
The first phase of Commissioner Dye’s investigation involves gathering information from ocean common carriers and marine terminal operators serving a broad section of container ports located throughout the United States. Carriers have been directed to provide detailed information about their detention and demurrage practices, especially regarding circumstances where shippers are not able to retrieve cargo.

“The ultimate resolution of this investigation will have the potential to affect every ocean common carrier calling the United States. It is vital that the information we gather is representative of business and operational practices, as well as market conditions, nationally,” said Commissioner Dye.
Commissioner Dye emphasized that it is critical that shippers, dray truck companies, and other affected parties who can document specific allegations and provide supporting materials of unreasonable port detention and demurrage practices and fees step forward and cooperate with the investigation.
“We expect concerned parties to participate robustly in this investigation. Their cooperation is essential,” said Commissioner Dye.

Correspondence, allegations, and supporting documents can be sent to the Commission via: FF28@FMC.GovFor those preferring to send supporting documents by mail, the address to use is:

• Commissioner Rebecca Dye
• Federal Maritime Commission
• 800 North Capitol Street, Northwest Washington, District of Columbia 20573

An interim report of findings and recommendations is due no later than September 2, 2018.
A final report will be issued to the Commission for consideration, discussion, and vote no later than December 2, 2018.

Gemini Shippers Group joined numerous industry groups to again urge support of a Miscellaneous Tariff Bill.

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The United States Congress
United States Capitol
Washington, DC 20510

Dear Members of Congress:

As associations and businesses of all sizes representing manufacturing and other major sectors of the U.S. economy employing millions of U.S. workers, we urge you to include the “Miscellaneous Tariff Bill Act of 2018” (H.R. 4318 and S. 2108) in the upcoming omnibus spending package.

The Miscellaneous Tariff Bill (MTB) plays an important role in the operations of domestic manufacturers as it corrects, on a temporary basis, historical distortions in the U.S. tariff code by eliminating border tariffs on imported products for which there is no or insufficient domestic production and availability. Such distortions undermine the competitiveness of manufacturers in the United States by imposing unnecessary costs and, in some cases, imposing a higher cost on manufacturers’ inputs than the competing foreign imported finished product.

While Congress had effectively addressed such distortions through the enactment of MTB legislation with strong bipartisan support for three decades, Congress has not passed an MTB since the U.S. Manufacturing Enhancement Act in 2010 expired at the end of 2012. Since 2012, businesses have paid billions of dollars of tariffs on products not even made in the United States, to the detriment of good-paying American jobs and American competitiveness.

Congress now has the opportunity to address this self-imposed tax on U.S. competitiveness. Through a transparent and thorough process created by the American Manufacturing Competitiveness Act of 2016, which passed Congress with near-unanimous bipartisan support, the U.S. International Trade Commission (ITC) scrutinized thousands of petitions for duty-relief and received input from across the manufacturing sector and from the U.S. Department of Commerce and U.S. Customs and Border Protection to determine eligibility under the AMCA requirements. The Miscellaneous Tariff Bill Act of 2018 includes nearly 1,700 petitions that the ITC reported to Congress in August were eligible for duty-relief as products not produced or available in the United States.

Our organizations commend the House of Representatives for its approval of the Miscellaneous Tariff Bill Act of 2018 on January 16 by a unanimous vote of 402-to-0. Manufacturers and other businesses across the country, however, have been paying nearly $1 million per day in tariffs since the beginning of 2018 on products not made or available in the United States, because the full Congress has not yet approved the legislation.

Based on analyses by the National Association of Manufacturers, the Miscellaneous Tariff Bill Act of 2018 would eliminate import tariffs of more than $1.1 billion over the next three years and increase U.S. manufacturing output by more than $3.1 billion, bolstering manufacturers and other businesses in the United States of all sizes in industries ranging from chemicals, agriculture, textiles and footwear to electrical equipment, machinery and sporting equipment.

For nearly five years, manufacturers and other businesses have been held back by out- of-date and distortive import tariffs that are costing billions of dollars. We urge the full Congress to act to eliminate these distortions and improve U.S. competitiveness by including the Miscellaneous Tariff Bill Act of 2018 in the upcoming omnibus spending package.

Sincerely,

Sara Mayes

President / CEO

Members

As reported in the news this week, the white house has released its 2018 infrastructure plan.

Significant proposals affecting infrastructure for ocean transportation (ports & roads) were referenced.

A copy of the document can be found in the following link:    2018 WH Infrastructure Proposal 2.12.2018

Please note the following update on the Federal Maritime Commision hearing to be held on Demmurage and Detention.

P4-16 Final Notice Public Hearing Schedule Reissue