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The European Commission has published a preliminary list of U.S. products on which the EU could impose additional tariffs of up to 100 percent in a long-running transatlantic dispute over aircraft subsidies. The list covers hundreds of items, including aircraft, auto parts, tractors, handbags, video game consoles, chemicals, and food products, with an annual import value of $20 billion.
In a break with a years-long series of rulings, a World Trade Organization dispute settlement panel has upheld a U.S. use of zeroing, a controversial methodology used in trade remedy cases that generally results in higher antidumping and countervailing duties. The decision will be appealed by Canada, which brought the case to challenge U.S. AD/CV duties on softwood lumber imported from that country.
Imports and exports transiting the U.S.-Mexico border are continuing to see delays as U.S. Customs and Border Protection shifts personnel away from cargo processing operations to deal with what the agency has described as a “dramatic increase” in illegal immigration.
U.S. Customs and Border Protection is planning to add to the Automated Commercial Environment this year functionality not previously included on its deployment schedule, including consolidated express filings, enhancements to mass liquidations, and collections. However, CBP has pushed back the deployment of some functionality as well.
In its first-ever decision on the matter, the World Trade Organization ruled recently that trade restrictions imposed by member countries on national security grounds are reviewable. The decision could open the door for the WTO to strike down U.S. tariff increases on steel and aluminum products.
The new China Customs notice provides some helpful clarification on this issue and confirms ST&R’s previous understanding of the legal basis of royalty declaration. However, it also carries important legal implications.
Hundreds of goods imported from the European Union are on a preliminary list of products that could be subject to additional tariffs as early as this summer in a long-running dispute over aircraft subsidies. Importers of goods on this list should consider taking proactive measures to mitigate the impact of any potential tariff increase, such as working to have their products omitted from the final list or considering alternative sourcing locations.
The Trump administration has denied hundreds more requests for exclusions from the additional tariffs it has imposed on imports from China but has approved additional requests as well, according to information made available by the Office of the U.S. Trade Representative. Most such requests are still under consideration but USTR is making progress in conducting its reviews.
The Office of the U.S. Trade Representative has issued its annual National Trade Estimate report, which describes significant foreign barriers to U.S. exports of goods and services, foreign direct investment, and e-commerce as well as the actions being taken to address those barriers. The NTE report covers significant barriers, including those that may be consistent with international trade rules (e.g., very high tariffs), affecting U.S. exports to 61 countries, the European Union, Taiwan, Hong Kong, and the Arab League.
A recent petition seeking the reclassification of an imported product could signal a new strategy that domestic companies could use to seek higher tariffs on goods from foreign competitors.
The World Trade Organization has upheld a September 2017 compliance panel decision that rejected nearly all claims by the European Union that U.S. subsidies to Boeing harmed Airbus’s ability to sell large civil aircraft. The decision could limit the amount of retaliatory sanctions the EU may seek to impose on U.S. goods. In the meantime, the WTO is considering a U.S. request for $11.2 billion in sanctions over EU subsidies to Airbus.
A recent penalty case highlights the importance for U.S. companies to conduct sanctions-related due diligence both prior and subsequent to mergers and acquisitions and to take appropriate steps to audit, monitor, and verify newly acquired subsidiaries and affiliates for compliance, according to the Office of Foreign Assets Control. U.S.-owned or -controlled foreign subsidiaries are subject to U.S. sanctions, OFAC states, and parent companies may face exposure to civil penalties vis-à-vis their subsidiaries’ actions.
Importers should expect “a slowdown in the processing of trade” along the U.S.-Mexico border for an indeterminate period of time as resources are shifted to deal with a “dramatic increase in illegal crossings” by migrants, U.S. Customs and Border Protection Commissioner Kevin McAleenan said March 27. McAleenan said up to 750 CBP officers from ports of entry along the border will soon be reassigned to assist the U.S. Border Patrol with processing, transportation, and hospital watch of migrants.
The Trump administration has taken a more active approach to enforcement of the Generalized System of Preferences, which provides duty-free treatment for imports of thousands of products. This shift presents both challenges and opportunities for companies utilizing this program.
The Court of International Trade has rejected a constitutional challenge to the Section 232 tariffs on imports of steel and aluminum products. This decision (a) highlights the importance for importers of affected goods to use the existing process for seeking exclusions from these tariffs, which to date has yielded a high percentage of approvals, and (b) could increase the likelihood of additional Section 232 tariffs on automobiles and auto parts and other products.
Materials on the Department of Homeland Security’s proposed budget for fiscal year 2020 include the following information on U.S. Customs and Border Protection’s achievements in FY 2018.
President Trump indicated this week that higher tariffs on $250 billion worth of goods imported from China will remain in place for the foreseeable future. The president’s stance could complicate efforts to secure a bilateral trade agreement.