Tariff carve-outs for Mexican steel and aluminum in the Section 232 action will be curtailed, so that only steel that is melted and poured in North America can qualify, and so that aluminum that was smelted or cast in China, Russia, Belarus but worked again in Mexico will be taxed at higher rates.
International Trade Today is providing readers with the top stories from last week in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
Homeland Security Secretary Alejandro Mayorkas called for a "legislative fix" to the de minimis exception "and the exploitation of that exception," the first time the administration has clearly said it hopes Congress will restrict the program that allows purchasers to import up to $800 worth of goods per day without paying tariffs.
The administration has added seafood, PVC, which is used in vinyl flooring, and aluminum to its priority enforcement sectors under the Ugyhur Forced Labor Prevention Act, it announced in its strategy update this week. This is the first time priority sectors have been added since the law went into effect two years ago; the original priority sectors of apparel, cotton products, polysilicon and solar panels made from polysilicon, and tomatoes remain.
House Speaker Mike Johnson, R-La., said July 8 that he hopes to have a "significant package of China-related legislation" signed into law this year, including a provision that moved out of the House Ways and Means Committee that would make goods subject to Section 301 tariffs ineligible for de minimis treatment. All goods from China would have to enter with a 10-digit Harmonized Tariff Schedule classification code upon entry so that CBP could enforce the law. That bill also included new penalties for de minimis violations beyond forfeiture of the package (see 2404180068). Johnson said these changes would "rein in the de minimis privilege" that China is exploiting.
Shipping, trucking and freight forwarding associations urged the Federal Maritime Commission to reject a request from a group of major ocean carriers seeking to push back the effective date of the FMC’s new demurrage and detention billing requirements (see 2402230049), saying in public comments to the commission that the delay would cause widespread confusion within the shipping industry. But two of those groups said the FMC should at least consider giving the industry more time to adapt to the rules before punishing violators with fines.
A former prisoner at the Hunan Chishan Prison in China sued Milwaukee Electric Tool Corp. and Techtronic Industries Co. in the Eastern District of Wisconsin for importing goods made with forced convict labor. The individual, using the pseudonym Xu Lun, alleged that the firms violated the Trafficking Victims Protection Act, which allows for civil suits against parties that knowingly benefit from taking part in a venture which the party "knew or should have known was engaged in forced labor" (Xu Lun v. Milwaukee Electric Tool Corp., E.D. Wis. # 24-803).
Sourcemap, an international firm that offers supply chain tracing and mapping services, said its government sources are saying that more companies will be added to the Uyghur Forced Labor Prevention Act Entity List before the end of the year -- and that automotive companies and consumer electronics are in the Forced Labor Enforcement Task Force's crosshairs.
CBP rejected children’s product manufacturer Summer Infant’s claims that its Learn-to-Sit booster seats should be classified as traditional booster seats. As a result, the Learn-to-Sit booster seats are subject to Section 301 duties, according to a recent ruling released by CBP June 14.
Changes to the USMCA rules of origin (ROOs) have "had a positive economic impact on the U.S. and North American auto industry, although with some challenges in implementation and new challenges emerging," according to the Office of the U.S. Trade Representative. The USTR report to Congress, mandated by Congress when NAFTA was rewritten, noted that carmakers "are still adjusting to the full scope of USMCA’s autos rules," with 13 entities given extended time to meet the stricter rules, at least for some models.