Shipmonk, an e-commerce fulfillment and inventory management provider, acquired El Mar Mexico and its fulfillment center based in Tecate, Mexico, Shipmonk said Oct. 21. The acquisition will allow for customers to "legally bypass taxing on the majority of U.S. shipments, eliminating tariffs and import duties" due to the Section 321 exemption allowed on low-value goods, it said. "Goods are legally imported into a free trade zone in Mexico under special license, and then shipped directly to the U.S. consumer within ShipMonk's comprehensive shipping zone coverage area, without paying duties and tariff fees," it said.
Customs duty
A customs duty is a tariff or tax which a country imposes on goods when they are transported across international borders. Customs Duties are used to protect countries' economies, residents, jobs, and environments, by limiting the flow of imported merchandise, especially restricted and prohibited goods, into the country. The Customs duty rate is a percentage determined by the value of the article purchased in the foreign country and not based on quality, size, or weight. U.S. customs duties are listed in the Harmonized Tariff Schedule of the United States.
The following lawsuits were filed at the Court of International Trade during the week of Oct. 11-17:
An executive with a logistics company with more than 100,000 customers talked about tariffs as a contributor to supply chain strains. So did the owner of a 200-person candy manufacturer, and a board member from the National Association of Home Builders. While tariffs were not the top concern for businesses mentioned at the hearing on how global supply chain kinks are hurting small businesses, companies said lifting them, even temporarily, would ease the pain of high shipping costs.
RANCHO MIRAGE, California -- Lawyers are seeing a rise in cases filed against customs brokers for failing to meet their fiduciary duties, said Cameron Roberts, a Roberts & Kehagiaras trade attorney. Many of the cases involve importers who allege their brokers didn’t correctly advise them about issues related to forced labor, Section 301 tariffs and certain agriculture imports, he said. “All of these issues are being put at the foot of the broker,” Roberts said, speaking during the Oct. 15 Western Cargo Conference.
The Court of International Trade granted the Department of Justice's motion to stay a case challenging the expansion of Section 232 duties on steel and aluminum “derivatives,” in an Oct. 14 order, due in part to the defendant's likelihood of succeeding on appeal. Finding that a recent U.S. Court of Appeals for the Federal Circuit opinion indicates DOJ's chances of success at the appellate court, CIT also stayed any resulting liquidation but noted that the fact pattern in the present case reads differently from that of the recent Federal Circuit case.
Importers shouldn't cancel entries to "take advantage of pending or potential decreases in Section 301 duties and/or approval/extension of exclusions in violation of the applicable regulations," CBP said in a CSMS message. Cancellation requests are allowed in some instances but must comply with the appropriate regulations, it said.
CBP has assessed about $123.5 billion in duties under the major trade remedies started during the Trump administration, as of Oct. 7, according to CBP's trade statistics page. That includes $108 billion in duties from the Section 301 tariffs on goods from China, and $1.1 billion in Section 301 tariffs on goods from the European Union. CBP also has assessed about $8.8 billion under the Section 232 tariffs on steel and $2.7 billion under tariffs on aluminum. The Section 201 trade remedies on washing machines and washing machine parts account for about $277 million and the solar cells tariffs account for $2.7 billion in assessed tariffs.
Heavy truck parts destined for a U.S. assembly plant cannot qualify for USMCA benefits under tariff shift rules, CBP told Mitsubishi Electric's Automotive division. Under USMCA, the original equipment starter must have 60% North American content under a net cost method, or 70% under a transaction value method; that percentage will go up in July 2024 to 64% or 74%, respectively, and 70% or 80% in 2027.
Although U.S. traders would widely welcome the U.S. rejoining the Trans-Pacific Partnership, industry officials are disappointed with the country’s lack of urgency on the trade pact and don't expect the Biden administration to prioritize the deal before its term ends. While they said mini trade deals, such as the 2020 agreement with Japan (see 1912050058), can serve as “short-term” bandages, they aren’t nearly enough to make up for the benefits U.S. traders would have received under TPP.
The Office of the U.S. Trade Representative is seeking comments on whether it should reinstate hundreds of Section 301 product exclusions that expired either late last year or early this year. The public docket at https://comments.USTR.gov will open Oct. 12, and parties can submit comments until Dec. 1. The agency is asking that commenters not only weigh in on specific products, but also on how long the exclusions should last.