CBP Proposes Changes to Regulations For De Minimis Shipments - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

U.S. Customs and Border Protection (CBP) has recently issued two proposed amendments to the regulations governing the clearance of “de minimis” shipments.  Under Section 321 of the Tariff Act, good valued at $800 or less (and gifts under $100) per shipment may enter the U.S. without payment of customs duties.

The first proposed amendment, titled ​“Entry of Low-Value Shipments” (ELVS), would establish a dual-track entry process for de minimis shipments.  This proposal would create an ​“enhanced” entry process that should allow faster clearance of de minimis shipments.  Additional data elements would be required to utilize the enhanced process, and the right to file such an entry would be extended to express couriers and carriers.  This new “enhanced” entry process would replace the Type 86 entry.   Importers would still be permitted to use the existing process of release from manifest (renamed the “basic” entry process).  The proposal maintains CBP’s existing policy to deny the de minimis exemption to merchandise subject to antidumping and countervailing duties.  Comments on this proposal are currently due March 17, 2025.

The second proposed amendment, titled ​“Trade and National Security Actions and Low Value Shipments,” would make merchandise subject to trade or national security actions (Section 201, 232, or 301 tariffs) ineligible for the de minimis exemption, including merchandise subject to an exclusion granted by the relevant agency.  However, goods that are not subject at all to a tariff action would continue to be eligible for the Section 321 de minimis exemption. Importantly, the rule would also modify the first proposal by requiring the 10-digit HTSUS classification for merchandise imported under the basic entry process (release from manifest) so that CBP can determine whether the merchandise is subject to Section 201, 232, or 301 tariffs.  Comments on this second proposed amendment are currently due March 24, 2025.

Please note the Trump administration has placed a temporary pause on issuing new Federal regulations, and thus the deadline for comments will likely be extended, or the proposed rules might be withdrawn.  Stakeholders are encouraged to monitor developments.  Please feel free to contact one of our attorneys for additional information on how these the proposed amendments may impact current business models.
 

OTEXA:  Announcements - Office of Textile & Apparel

[01/21/2025] – U.S. Customs and Border Protection is seeking comments on the Trade and National Security Actions and Low-Value Shipments proposed rulemaking. CBP proposes to make merchandise that is subject to specified trade or national security actions ineligible for this administrative exemption and to require that certain shipments claiming this exemption provide the 10-digit Harmonized Tariff Schedule of the United States classification of the merchandise. Comments are due by March 24, 2025
 

Federal Register Notices:

• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Pure Magnesium From the People's Republic of China: Amended Final Results of Antidumping Duty Administrative Review; 2022-2023
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Photovoltaic Connectors and Components Thereof; Notice of a Commission Final Determination Finding no Violation of Section 337; Termination of the Investigation
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Pure Magnesium From the People's Republic of China: Amended Final Results of Antidumping Duty Administrative Review; 2022-2023
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Photovoltaic Connectors and Components Thereof; Notice of a Commission Final Determination Finding no Violation of Section 337; Termination of the Investigation
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Narrow Woven Ribbons With Woven Selvedge From Taiwan: Final Results of Antidumping Duty Administrative Review; 2022-2023
• Sol Gel Alumina-Based Ceramic Abrasive Grains From the People's Republic of China: Initiation of Countervailing Duty Investigation; Correction
• Investigations; Determinations, Modifications, and Rulings, etc.: Temporary Steel Fencing From China; Institution of Antidumping and Countervailing Duty Investigations and Scheduling of Preliminary Phase Investigations
• Certain Nanolaminate Alloy Coated Metal Parts and Products Containing Same; Notice of Institution of Investigation
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Chassis and Subassemblies Thereof From the People's Republic of China: Rescission of Antidumping Duty Administrative Review; 2023-2024
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Mobile Electronic Devices; Notice of Institution of Investigation
• Certain Electronic Devices, Including Mobile Phones, Tablets, Laptops, Components Thereof, and Products Containing the Same; Notice of Commission Determination To Review in Part and, on Review, Affirm a Final Initial Determination Finding No Violation; Termination of the Investigation
• Certain Active Matrix Organic Light-Emitting Diode Display Panels and Modules for Mobile Devices, and Components Thereof; Notice of a Commission Determination To Review in Part a Final Initial Determination Finding No Violation of Section 337; Request for Written Submissions on the Issues Under Review and on Remedy, the Public Interest, and Bonding
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Softwood Lumber Products From Canada: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2021; Correction
• Certain Softwood Lumber Products From Canada: Final Results of Antidumping Duty Administrative Review; 2019; Correction
• Wooden Cabinets and Vanities and Components Thereof From the People's Republic of China: Final Results of Countervailing Duty Administrative Review; 2022; Correction
• Certain Softwood Lumber Products From Canada: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2020; Correction
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Paper Plates From China, Thailand, and Vietnam; Cancellation of Hearing for Final Phase Antidumping and Countervailing Duty Investigations
• Investigations; Determinations, Modifications, and Rulings, etc.: Quartz Surface Products From China
• Certain Glass Substrates for Liquid Crystal Displays, Products Containing the Same, and Methods for Manufacturing the Same; Notice of Institution of Investigation
• Strontium Chromate From Austria and France; Scheduling of Expedited Five-Year Reviews
   

Proposed Revocation of Six Ruling Letters, Modification of One Ruling Letter, and Proposed Revocation of Treatment Relating to the Tariff Classification of Certain Neck, Face, Head, and Arm Coverings - U.S. Customs & Border Protection

AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.

ACTION: Notice of proposed revocation of six ruling letters, modification of one ruling letter, and proposed revocation of treatment relating to the tariff classification of certain neck, face, head, and arm coverings.

SUMMARY: Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. § 1625(c)), as amended by section 623 of title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103–182, 107 Stat. 2057), this notice advises interested parties that U.S. Customs and Border Protection (CBP) intends to revoke or modify seven ruling letters concerning tariff classification of certain neck, face, head, and arm coverings under the Harmonized Tariff Schedule of the United States (HTSUS). Similarly, CBP intends to revoke any treatment previously accorded by CBP to substantially identical transactions. Comments on the correctness of the proposed actions are invited. 

DATE: Comments must be received on or before February 8, 2025.

ADDRESS: Written comments are to be addressed to U.S. Customs and Border Protection, Office of Trade, Regulations and Rulings, Attention: Shannon L. Stillwell, Commercial and Trade Facilitation Division, 90 K St., NE, 10th Floor, Washington, DC 20229–1177. CBP is also allowing commenters to submit electronic comments to the following email address: 1625Comments@cbp.dhs.gov. All comments should reference the title of the proposed notice at issue and the Customs Bulletin volume, number and date of publication. Arrangements to inspect submitted comments should be made in advance by calling Ms. Shannon L. Stillwell at (202) 325–0739 or by emailing shannon.l.stillwell@cbp.dhs.gov.

SUPPLEMENTARY INFORMATION:
 

USITC Votes To Continue Investigations on Sol Gel Alumina-Based Ceramic Abrasive Grains from China - U.S. International Trade Commission

The U.S. International Trade Commission (Commission or USITC) today determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of sol gel alumina-based ceramic abrasive grains from China that are allegedly sold in the United States at less than fair value from China and subsidized by the government of China.

Chair Amy A. Karpel and Commissioners David S. Johanson and Jason E. Kearns voted in the affirmative. Commissioner Rhonda K. Schmidtlein did not vote.

As a result of the Commission’s affirmative determinations, the U.S. Department of Commerce will continue its investigations of imports of sol gel alumina-based ceramic abrasive grains from China, with its preliminary antidumping duty determination for China due on or about May 27, 2025, and its preliminary countervailing duty determination for China on March 12, 2025.

The Commission’s public report, Sol Gel Alumina-Based Ceramic Abrasive Grains from China (Inv. Nos. 701-TA-750 and 731-TA-1728 (Preliminary), USITC Publication 5581, February 2025), will contain the views of the Commission and information developed during the investigations.

The report will be available by March 5, 2025; when available, it may be accessed on the USITC website at: [http://%C2%A0https:/www.usitc.gov/commission_publications_library] https://www.usitc.gov/commission_publications_library.
 

USITC Makes Determination in Five-Year (Sunset) Review Concerning Steel Wire Garment Hangers from China - U.S. International Trade Commission

The U.S. International Trade Commission (USITC) today determined that revoking the existing antidumping duty order on steel wire garment hangers from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. 

As a result of the Commission’s affirmative determination, the existing order on imports of these products from China will remain in place. 

Chair Amy A. Karpel and Commissioners David S. Johanson and Jason E. Kearns voted in the affirmative. Commissioner Rhonda K. Schmidtlein did not participate in the vote.

Today’s action comes under the five-year (sunset) review process required by the Uruguay Round Agreements Act. See the attached page for background on these five-year (sunset) reviews.

The Commission’s public report on Steel Wire Garment Hangers from China (Inv. No. 731-TA-1123 (Third Review), USITC Publication 5580, January 2025) will contain the views of the Commission and information developed during the reviews.

The report will be available by February 24, 2025; when available, it may be accessed on the USITC website at: https://www.usitc.gov/commission_publications_library. 

BACKGROUND

The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the USITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (USITC) within a reasonably foreseeable time. 

The Commission’s institution notice in five-year reviews requests that interested parties file responses with the Commission concerning the likely effects of revoking the order under review as well as other information. Generally within 95 days from institution, the Commission will determine whether the responses it has received reflect an adequate or inadequate level of interest in a full review. If responses to the USITC’s notice of institution are adequate, or if other circumstances warrant a full review, the Commission conducts a full review, which includes a public hearing and issuance of questionnaires.

The Commission generally does not hold a hearing or conduct further investigative activities in expedited reviews.  Commissioners base their injury determination in expedited reviews on the facts available, including the Commission’s prior injury and review determinations, responses received to its notice of institution, data collected by staff in connection with the reviews, and information provided by the Department of Commerce.

The five-year (sunset) review concerning Steel Wire Garment Hangers from China was instituted on July 1, 2024.

On October 4, 2024, the Commission determined to conduct expedited five-year reviews. Chair Amy A. Karpel and Commissioners Rhonda K. Schmidtlein and Jason E. Kearns concluded that the domestic interested party group response was adequate, and the respondent interested party group response was inadequate and voted for an expedited review. Commissioner David S. Johanson concluded that the domestic interested party group response was adequate, and the respondent interested party group response was inadequate and voted for a full review. 

A record of the Commission’s vote to conduct expedited review is available on the investigations page for Steel Wire Garment Hangers from China; Inv. No.731-TA-1123 (Review 3).
 

USITC Institutes Section 337 Investigation of Certain Composite Intermediate Bulk Containers - U.S. International Trade Commission

The U.S. International Trade Commission (Commission or USITC) voted to institute an investigation of certain composite intermediate bulk containers. The products at issue in the investigation are described in the Commission’s notice of investigation.

The investigation is based on a complaint filed by Schütz Container Systems, Inc. of North Branch, N.J., and Protechna S.A. of Fribourg, Switzerland, on December 5, 2024. The complaint was supplemented on December 20, 2024. The complaint, as supplemented, alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain composite intermediate bulk containers that infringe patents asserted by the complainants. The complainants request that the USITC issue a general exclusion order, or in the alternative a limited exclusion order, and cease and desist orders. 

The USITC has identified the following respondents in this investigation:

• Shandong Jinshan Jieyuan Container Co., Ltd, Zhengjiang City, China
• Zibo Jielin Plastic Pipe Manufacture Co. Ltd., Zibo City, China
• Shanghai Sakura Plastic Products Co., Ltd. (d/b/a Shanghai Yinghua Plastic Products Co., LTD), Shanghai, China
• Hebei Shijiheng Plastics, Co., Ltd., Huanghua, China

By instituting this investigation (337-TA-1434), the USITC has not yet made any decision on the merits of the case. The USITC’s Chief Administrative Law Judge will assign the case to one of the USITC’s administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission. 

The USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.