USTR Finalizes Action on China Tariffs
Following Statutory Four-Year Review – U.S.
Trade Representative

WASHINGTON – The Office of the
United States Trade Representative (USTR) today (8/13/24) announced
final modifications concerning the statutory review of the tariff
actions in the Section 301 investigation of the People’s Republic
of China’s (PRC) Acts, Policies, and Practices Related to
Technology Transfer, Intellectual Property, and Innovation.

The
proposed modifications announced in May 2024 were largely adopted,
with several updates to strengthen the actions to protect American
businesses and workers from China’s unfair trade practices
following the review of more than 1,100 comments from the
public. 

“Today’s
finalized tariff increases will target the harmful policies and
practices of the People’s Republic of China that continue to impact
American workers and businesses,” said Ambassador Katherine Tai.
“These actions underscore the Biden-Harris Administration’s
commitment to standing up for American workers and businesses in
the face of unfair trade practices.”

The
updates improve the effectiveness of the tariff actions in
achieving the objectives of the investigation, while considering
other actions that could be taken and the overall effects of the
tariff actions on the U.S. economy.

These
updates do not reflect further consideration or alteration of the
review’s finding that, while the PRC had changed some specific
unfair measures, the PRC’s harmful forced technology transfer
practices – in particular its cyber theft and industrial espionage
– have continued, and in some instances, worsened.  The
findings of the four-year review can be found on USTR’s website.

The
updates in today’s announcement include new timing and rates for
tariffs on face masks, medical gloves, needles, and syringes; an
exclusion for enteral syringes; a proposal regarding coverage of
additional tungsten, wafers, and polysilicon tariff lines; an
exclusion for ship-to-shore cranes ordered prior to May 14, 2024;
an expansion of the scope of the machinery exclusions process to
include five additional tariff lines; and modification of the
coverage of proposed exclusions for solar manufacturing equipment.

Information
on the revisions to modifications are detailed in USTR’s Federal
Register Notice, which is available here.

USTR
expects to launch the machinery exclusions process soon, as well as
the comment period for proposed modifications of tariff rates on
certain tungsten, wafers, and polysilicon tariff lines.

Background 
 
In May 2022, USTR commenced the statutory four-year review process
by notifying representatives of domestic industries that benefit
from the tariff actions of the possible termination of those
actions and of the opportunity for the representatives to request
continuation.  In September 2022, USTR announced that because
requests for continuation were received, the tariff actions had not
terminated and USTR would conduct a review of the tariff actions.
 USTR opened a docket on November 15, 2022, for interested
persons to submit comments with respect to a number of
considerations concerning the review.  USTR received nearly
1,500 comments.
 
As part of the statutory review process, throughout 2023 and early
2024, USTR and the Section 301 Committee, a subordinate,
staff-level body of the USTR-led, interagency Trade Policy Staff
Committee (TPSC), held numerous meetings with agency experts concerning
the review and the comments received. 
 
Specifically, the Report concludes: 

The
Section 301 actions have reduced some of the exposure of U.S.
persons and businesses to these technology transfer-related acts,
policies, and practices.
 
The PRC has not eliminated many of its technology transfer-related
acts, policies, and practices, which continue to impose a burden or
restriction on U.S. commerce. Instead of pursuing fundamental
reform, the PRC has persisted, and in some cases become more
aggressive, including through cyber intrusions and cybertheft, in
its attempts to acquire and absorb foreign technology, which
further burden or restrict U.S. commerce.
 
Economic analyses generally find that tariffs (primarily PRC
retaliation) have had small negative effects on U.S. aggregate
economic welfare, positive impacts on U.S. production in the 10
sectors most directly affected by the tariffs, and minimal impacts
on economy-wide prices and employment.
 
Negative effects on the United States are particularly associated
with retaliatory tariffs that the PRC has applied to U.S. exports.
 
Critically, these analyses examine the tariff actions as isolated
policy measures without reference to the policy landscape that may
be reinforcing or undermining the effects of the tariffs.
 
Economic analyses, including the principal U.S. Government analysis
published by the U.S. International Trade Commission, generally
find that the Section 301 tariffs have contributed to reducing U.S.
imports of goods from the PRC and increasing imports from alternate
sources, including U.S. allies and partners, thereby potentially
supporting U.S. supply chain diversification and resilience. 
 
USTR announced proposed modifications on May 28, 2024 and sought
public comment.  USTR received more than 1,100 comments.
 

CSMS # 62269186 – Foreign Trade Zone Benefit
for Customs Trade Partnership Against Terrorism Trade Compliance
Partners – USBP

U.S.
Customs and Border Protection (CBP) has implemented a new benefit
for Customs Trade Partnership Against Terrorism (CTPAT) Trade
Compliance partners.

Subject
to the conditions further described below, U.S. Customs and Border
Protection (CBP) has determined that importers who are CTPAT Trade
Compliance partners, in good standing, may utilize a Foreign Trade
Zone (FTZ) for the storage of goods subject to potential forced
labor enforcement action.  

In
order for importers who are CTPAT Trade Compliance partners to
utilize these benefits, they must identify to CBP which FTZ
Operator they will use to store these goods and receive Port
Director approval prior to the movement of the goods. The FTZ Operator
must have an active Type 4 bond, FIRMS Code, and be in compliance
with all CBP regulations. The selection of an FTZ Operator by a
CTPAT Trade Compliance partner for this purpose is subject to Port
Director approval.

Importers
that are not CTPAT Trade Compliance partners are not authorized to
utilize an FTZ for the storage of goods detained for forced labor.
 Such importers may only store detained forced labor goods in
bonded warehouses using a Type 21 entry.

All
importers that are CTPAT Trade Compliance partners and have
shipments detained for forced labor which are currently stored in
an FTZ may continue to store such shipments in the FTZ if the
importer files a formal 06 entry to include all data elements for
the suspected goods. 

As
entities are added to the Uyghur Forced Labor Prevention Act
(UFLPA) Entity List, any goods that are impacted but are stored in
an FTZ at the time of such addition may continue to remain in the
FTZ only if the importer files an 06 estimated weekly entry
containing all line-item data elements as required for the
transaction.  Such filings enable CBP to properly evaluate the
merchandise being presented for entry. 

Goods
detained by CBP for forced labor and stored in an FTZ by CTPAT
Trade Compliance partners are subject to the following conditions:

• Applicability
  Reviews for shipments stored in FTZs:
• Centers shall not conduct
  formal admissibility reviews prior to the filing of formal
  entries and issuance of detention notices on these formal
  entries.
   
• Notifications:
• CTPAT Trade Compliance
  partners must notify the Port Director, the
• CTPAT Trade Compliance
  Branch, and the Center of Excellence and Expertise Director
  when utilizing this option.
• The partner must receive
  Port Director approval prior to moving cargo. 
   
• ACE
  Instructions
• The line(s) in question on
  the estimated weekly entry will be marked as detained by the
  port issuing the CBP Form(s) 6051D.
• All other lines on the
  estimated weekly entry will remain on the entry unedited.
    
• Please note that this
  estimated weekly entry will not receive a CBP release while
  any goods on the transaction are detained.
• The filer will need to
  submit an additional estimated weekly entry for all remaining
  lines, as this additional estimated weekly entry serves as
  authorization to withdraw the goods from the FTZ.
   
• Storage
  of the goods undergoing a determination in the FTZ
• The detained goods must be
  directly identified and not fungible.
• The detained goods may not
  be manipulated, sold, broken up, repacked, nor distributed.
• The detained goods must be
  physically segregated from other merchandise.
• The detained goods must be
  physically identified to indicate to the FTZ Operator’s
  employees and CBP that those goods cannot and will not be
  entered into the United States for consumption or removed
  from the FTZ.
• One of the following
  processes must be utilized to physically identify the goods:
• CBP 239 Warning Labels must
  be adhered to the identified cargo at the zone site by CBP
  personnel; or,
• Subject to the CBP Port
  Director’s approval, copies of the issued CBP Form 6051D
  must be adhered to the identified cargo by the FTZ Operator.
   

Notice of Modification: China’s Acts,
Policies and Practices Related to Technology Transfer,
Intellectual Property and Innovation – U.S.
Trade Representative

AGENCY: Office of the
United States Trade Representative (USTR).

ACTION: Notice of
modification of actions

SUMMARY: In connection with
the Four-Year Review of actions taken in the Section
301 investigation of China’s acts, policies, and practices
related to technology transfer, intellectual property, and
innovation, and in accordance with the specific direction of
the President, the U.S. Trade Representative has determined
to: modify the actions being taken in the investigation by
imposing additional Section 301 duties or increasing the rate of
existing Section 301 duties, on certain products of China in
strategic sectors; propose increasing tariff rates for certain
tungsten products, wafers, and polysilicon, with a public comment
process to be set out via separate notice; provide a list of
subheadings eligible for consideration of temporary exclusion
under an exclusion process for certain machinery used in
domestic manufacturing; and modify the actions to temporarily
exclude from Section 301 duties certain solar manufacturing
equipment.

DATES: Tariff increases in
2024 are applicable with respect to products that are entered
for consumption, or withdrawn from warehouse for consumption,
on or after September 27, 2024. Tariff increases in 2025 and
2026 are applicable with respect to products that are entered
for consumption, or withdrawn from warehouse for consumption, on or
after January 1 of the corresponding year. Exclusions for
solar equipment included in Annex B are retroactive and
applicable with respect to products that are entered for
consumption, or withdrawn from warehouse for consumption, on
or after January 1, 2024, and through May 
31, 2025. 

SUPPLEMENTARY INFORMATION:
 

Federal
Register Notices:

• Antidumping or Countervailing
  Duty Investigations, Orders, or Reviews: Certain Pasta From
  Italy: Final Results of Antidumping Duty Changed Circumstances
  Review
• Investigations;
  Determinations, Modifications, and Rulings, etc.: Certain
  Hydrodermabrasion Systems and Components Thereof II;
  Correction; Notice of Institution of Investigation; Correction
• Investigations;
  Determinations, Modifications, and Rulings, etc.: Components
  for Certain Environmentally-Protected LCD Digital Displays and
  Products Containing the Same; Notice of a Commission
  Determination To Grant a Joint Motion To Terminate the Investigation
  on the Basis of Settlement; Termination of the Investigation
• Antidumping or Countervailing
  Duty Investigations, Orders, or Reviews: Certain Frozen Fish
  Fillets From the Socialist Republic of Vietnam: Preliminary
  Results of Antidumping Duty Administrative Review and
  Rescission of Administrative Review, in Part; 2022-2023
• Circular Welded
  Carbon-Quality Steel Pipe From the United Arab Emirates: Final
  Results of Antidumping Duty Changed Circumstances Review
• Antidumping or Countervailing
  Duty Investigations, Orders, or Reviews: Barium Chloride From
  the People’s Republic of China and India: Initiation and
  Preliminary Results of Changed Circumstances Review and Intent
  To Revoke the Antidumping Duty and Countervailing Duty Orders
• Wood Mouldings and Millwork
  Products From the People’s Republic of China: Final Results
  and Partial Rescission of Antidumping Duty Administrative
  Review; 2022-2023
• Ferrosilicon From the Russian
  Federation: Final Affirmative Countervailing Duty
  Determination and Final Affirmative Determination of Critical
  Circumstances
• Sales at Less Than Fair
  Value; Determinations, Investigations, etc.: Ferrosilicon From
  the Russian Federation: Final Affirmative Determination of
  Sales at Less Than Fair Value and Final Affirmative
  Determination of Critical Circumstances
• Investigations;
  Determinations, Modifications, and Rulings, etc.: Glycine From
  China, India, Japan, and Thailand; Scheduling of Expedited
  Five-Year Reviews
• Paper Plates From China,
  Thailand, and Vietnam; Scheduling of the Final Phase of
  Countervailing Duty and Antidumping Duty Investigations
• Sales at Less Than Fair
  Value; Determinations, Investigations, etc.: Ceramic Tile From
  India: Postponement of Preliminary Determination in the
  Less-Than-Fair-Value Investigation
• Antidumping or Countervailing
  Duty Investigations, Orders, or Reviews: Hydrofluorocarbon
  Blends From the People’s Republic of China: Final Results of
  Antidumping Duty Administrative Review; 2022-2023
• Initiation of Antidumping and
  Countervailing Duty Administrative Reviews
   

DHS Workforce on the Frontlines of
Biden-Harris Administration’s New Executive Actions to Address
Surge in De Minimis Shipments and Protect American Consumers,
Workers, and Businesses – DHS

WASHINGTON – The Department of
Homeland Security’s workforce, particularly U.S. Customs and Border
Protection (CBP), is on the front lines of the Biden-Harris
Administration’s new executive actions, announced today, to protect
American consumers, workers, retailers, importers, and
manufacturers by tackling the exponential growth of small packages
claiming the de minimis exemption. CBP plays a vital role in
implementing these Executive Actions by targeting and blocking
shipments that violate U.S. laws as they arrive in airports,
express consignment facilities, international mail facilities, and
ports of entry across the country. CBP enforces trade laws to
protect consumers, eradicate forced labor from supply chains and
protect U.S. workers and businesses from unfair competition, ensure
national economic security, and prevent dangerous and illicit
products, including illicit opioids like fentanyl, from entering
the United States.

The
Executive Actions announced today (9/13/24) are designed to combat
a significant increase of shipments in recent years that claim the
de minimis exemption, particularly from Chinese e-commerce
platforms, by strengthening information collection requirements to
improve accountability and enforcement, prevent the misuse of the
exemption for allowing high-volume shipments of de minimis
packages, and prevent shippers from circumventing safety standards.
De minimis shipments, also referred to as Section 321 low-value
shipments, refer to goods that are exempt from duty and tax under
19 U.S.C. § 1321(a)(2)(C) and 19 C.F.R. § 10.151. The de minimis
exemption allows CBP to pass free of duty and tax, merchandise
imported by one person on one day that has an aggregate fair retail
value in the country of shipments of $800 or less. Every day CBP
processes nearly four million de minimis shipments entering the
United States. Although these packages have a low value, they may
pose the same potential health, consumer safety, and economic
security risks as larger and more traditional containerized
shipments. As of July 30, 2024, 89 percent of all seizures in the
cargo environment this fiscal year originated as de minimis
shipments, including 97 percent of narcotics seizures, and 72
percent of health and safety seizures of prohibited items.

“The
actions announced today by the Biden-Harris Administration will
help the Department keep pace with global electronic commerce and
improve our ability to protect communities from fentanyl and its
precursor chemicals,” said Secretary of Homeland Security Alejandro
N. Mayorkas. “Our Administration remains ready and eager to work
with Congress to pass badly-needed, long-overdue comprehensive de
minimis reform legislation and ensure border officials have the
resources and tools they need to track and target the millions of
small-dollar shipments that enter our country every day.”

“Today’s
actions will give us strong tools to ensure that imported goods
comply with U.S. laws that serve to protect Americans,” said Robert
Silvers, DHS Under Secretary for Policy and Chair of the federal
Forced Labor Enforcement Task Force. “We will leave no stone
unturned in keeping fentanyl out of this country. We will not
tolerate forced labor in our supply chains. With regulatory and
statutory updates to modernize its enforcement mechanisms, CBP will
have the instruments it needs to keep illicit goods out of our
markets, while facilitating the legitimate trade that is the
lifeblood of our economy.”

“CBP
employs a multilayered enforcement strategy, but the fact remains
we are operating under the constraints of outdated laws passed more
than 30 years ago, with significant resource and enforcement
limitations in a heightened threat environment,” said CBP Senior
Official Performing the Duties of the Commissioner, Troy Miller.
“These executive actions are a critical first step in modernizing
our enforcement mechanisms in the small package environment so we
can better protect the health and safety of Americans. However, we
still need to modernize and enhance our trade laws so that CBP can
implement a more strenuous enforcement architecture to further
crack down on the individuals and networks attempting to abuse the
de minimis environment.”

The
new Executive Actions targeting the abuse of the de minimis
exception and protecting U.S. consumers, workers and businesses
include:

• New
  Rulemaking to Improve Accountability and Enforcement in De
  Minimis Shipments: Specifically, this proposed rule would
  strengthen information collection requirements to promote
  greater visibility into de minimis shipments. That additional
  level of transparency would help CBP protect consumers from
  purchasing goods that do not meet health and safety standards,
  and protect U.S. workers and businesses—including retailers,
  importers and manufacturers—from unfair competition.
   
• New
  Rulemaking to Reduce De Minimis Volume and Strengthen Trade
  Enforcement: Specifically, this proposed rule would make
  ineligible for the de minimis exemption shipments containing
  products subject to U.S. trade enforcement actions, such as
  those driving the increase from China-founded e-commerce
  platforms like low-value textiles and apparel, closing a major
  loophole. Those products would no longer enter the U.S. market
  duty free.
   
• Final
  Rule to Prevent De Minimis Shipments from Circumventing Safety
  Standards: Specifically, this Consumer Product Safety
  Commission (CPSC) proposed final rule would require importers
  of consumer products to file Certificates of Compliance (CoC)
  electronically with CBP and CPSC. That would strengthen CBP’s
  and CPSC’s ability to target and block unsafe products, and
  prevent foreign companies from abusing the de minimis
  exemption to circumvent consumer protection testing and
  certification requirements.

These
Executive Actions will be carried out through the federal
regulatory process in the coming weeks and months. For the full
White House fact sheet, visit: FACT SHEET: Biden-⁠Harris Administration Announces New
Actions to Protect American Consumers, Workers, and Businesses by
Cracking Down on De Minimis Shipments with Unsafe, Unfairly Traded
Products

The
Administration is also ready to work with Congress to pass
comprehensive de minimis reform legislation by the end of the year,
which is urgently needed even as these regulatory processes move
forward. Key reforms Congress should advance include:

• Exclusion
  from de minimis of import-sensitive products.
• Exclusion
  of shipments containing products from the de minimis exemption
  that are covered by Section 301, Section 201, or Section 232
  trade enforcement actions.
• Passage
  of previously proposed de minimis reforms in the Detect and
  Defeat Counter-Fentanyl Proposal.
• These
  proposed legislative reforms would, among other actions,
  increase transparency and accountability under the de minimis
  program by requiring more data from shippers, including the
  product tariff number, and give border officials the tools
  they need to more effectively track and target the millions
  of shipments coming in claiming the de minimis exemption. The
  Detect and Defeat Counter-Fentanyl proposal incorporates many
  of the bipartisan ideas put forward by Members of Congress,
  and will increase CBP’s ability to detect and seize illicit
  drugs and their precursor chemicals, as well as the machinery
  used to make counterfeit pills, and hold drug traffickers
  accountable.
• CBP
  would be granted the authority to demand additional
  documentation and other information about de minimis
  packages. The change would enable customs officials to more
  effectively analyze risk, identify patterns of concern, and
  take action against those who try to abuse our system. The
  legislation would also add a user fee for de minimis packages
  to help pay for the staff and equipment needed to better
  identify, and seize, illicit fentanyl being shipped in small
  packages into our country.
• The
  Detect and Defeat Counter-Fentanyl Proposal would also result
  in stronger penalties that will more effectively deter
  synthetic drug and precursor trafficking in the de minimis
  environment and incentivize the private sector to self-police
  their supply chains for narcotics risk.

DHS
is continuing to build on recent successes to strengthen
enforcement of U.S. textile and apparel trade laws to support U.S.
textile manufacturers and workers, and continues to prioritize
eliminating forced labor from U.S. supply chains, including through
the enforcement of the Uyghur Forced Labor Prevention Act (UFLPA).
In April, DHS outlined an enhanced strategy to combat illicit trade
and level the playing field for the American textile industry, led
by CBP and Homeland Security Investigations (HSI). In Fiscal Year
2024 through September 1, CBP has:

• Launched
  18 Trade Special Operations (TSOs) that focus on physical
  inspection of small shipments and cargo containing textile and
  apparel products, as well as post-release reviews to determine
  eligibility for preferential treatment under free trade agreements,
  verify classification, valuation, and right to make entry.
• Initiated
  over 553 full USMCA and CAFTA-DR, classification, valuation
  and right to make entry summary verifications on more than
  $150.8 million in textile and wearing apparel trade.
• Initiated
  trade audits on more than $22.6 billion in textile imports.
• Doubled
  the number of Textile Production Verification Team (TPVT)
  visits in comparison to FY23, reaching 109 factories and 6 raw
  material providers.
• In
  July, the interagency Forced Labor Enforcement Task Force
  (FLETF), with DHS as Chair, added 26 entities in the
  high-priority textile sector to the UFLPA Entity List, which
  will restrict imports of goods from these entities into the
  United States. DHS and the FLETF will continue to prioritize
  examination of entities in the textile and apparel sector for
  possible addition to the UFLPA Entity List, which currently
  includes 73 entities across a wide range of industry sectors.
   

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United States Files Suit For Unpaid Duties
and Penalties For Alleged Transshipment of Chinese Aluminum Wire – Department of Justice

The
United States has filed a civil lawsuit against Repwire LLC, a
Florida Corporation that imports wire and cables. The lawsuit
alleges that Repwire made false statements to customs officials in
importing aluminum wire into the United States. The lawsuit also
names as defendants Repwire’s manager, Jose Pigna, and insurer,
American Alternative Insurance Corporation.   

The
United States’ complaint contends that Repwire, through gross
negligence or negligence, misrepresented to U.S. Customs and Border
Protection (CBP) the imported wire’s classification code and
country of origin. Repwire allegedly falsely classified the
imported wire from China as aluminum wire with connectors instead
of wire without connectors, and after import duties on the former
were subsequently raised, Repwire allegedly then falsely identified
the country of origin for various entries of its merchandise as
Singapore or Korea. Both of these alleged misrepresentations
resulted in Repwire failing to pay the appropriate amount of duties
owed on its merchandise.

“The
Justice Department is committed to pursuing individuals and
companies who evade customs duties or otherwise engage in unfair
trade practices that harm U.S. manufacturers,” said Principal
Deputy Assistant Attorney General Brian M. Boynton, head of the
Justice Department’s Civil Division. “We will continue to employ
all of our tools to ensure that U.S. manufacturers are competing on
a level playing field.”

“CBP
takes its trade mission of protecting the U.S. economy very
seriously as we strive to maintain fair trade and preserve American
jobs from predatory practices,” said Executive Director Susan
Thomas of Cargo and Conveyance Security, Office of Field Operations,
CBP. “These civil penalties should serve as a warning to those who
attempt to do harm to our economy and American businesses.”

The
complaint alleges that Repwire, acting through Pigna, avoided
various duties owed on the imported wire, including Section 301
duties, which are owed on certain Chinese merchandise, including
aluminum wires without connectors, and anti-dumping and countervailing
duties associated with Chinese aluminum wire. Antidumping and
countervailing duties are trade remedies that help protect domestic
industries from unfair trade practices by foreign businesses and
countries, such as government subsidies or below market sales.

The
complaint seeks the recovery of over $11 million in import duties
and up to $62 million in civil penalties. 

CBP’s
Electronics Center of Excellence and Expertise and Homeland
Security Investigations (HSI) Miami investigated the case. CBP and
HSI are the agencies responsible for enforcing U.S. laws related to
the importation of merchandise into the United States, including
the collection of duties and assessment of penalties.

Trial
Counsel Daniel Hoffman of the Civil Division’s Commercial
Litigation Branch, National Courts Section, handled the case.

The
case, which is filed in the Court of International Trade, is
captioned United States v. Repwire LLC, and Jose Pigna, and
American Alternative Insurance Corporation, No. 24-00173. 

To
combat trade fraud, including avoidance of import duties, the
Justice Department created a Trade Fraud Task Force. The Task Force
partners with CBP and other law enforcement agencies to ensure
compliance with United States trade laws.

The
claims in the complaint are allegations only, and there has been no
determination of liability. 

Complaint