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.
The International Trade Commission posted Revision 4 to the 2024 Harmonized Tariff Schedule. The semiannual update to the HTS adds new 10-digit tariff numbers for a variety of products, including integrated circuits and plantation-harvested teak. All changes take effect July 1, unless otherwise specified.
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A number of prominent trade groups, along with Winnebago, the motor home and powerboat maker with 6,000 employees, questioned the wisdom of a tariff hike from 7.5% to 25% on lithium-ion batteries outside the electric vehicle sector (Harmonized Tariff Schedule subheading 8507.60.0020).
The U.S. on July 1 urged the Court of International Trade to dismiss customs broker Seko Customs Brokerage's suit contesting CBP's suspension of the company from participation in the Entry Type 86 pilot and Customs-Trade Partnership Against Terrorism program. The government said Seko's claims aren't ripe for judicial review, are moot and are premature (Seko Customs Brokerage v. U.S., CIT # 24-00097).