Tag: china

New Section 301 (China) Tariff Rates and Exclusions Request for Comments

The United States Trade Representative (USTR) made public a “Request for Comments” after the report on the 4-year review of the Section 301 China Tariffs (see that story here).

The comment period, open to the participation of interested parties, will run from May 29, 204 to June 28, 2024. Comments must be submitted through the USTR comment portal. Comments can be submitted concerning:

  1. Adding or increasing section 301 duty rates
  2. Subheadings eligible for an temporary duty-exclusion process for “particular machinery used in domestic manufacturing” classified within certain subheading under Chapter 84 and 85 of the HTSUS
  3. 19 potential exclusions for “certain solar manufacturing equipment” (effectively immediately and to expire on May 31, 2025).

The notice details the proposed changes as follows:

Consistent with the President’s direction to increase section 301 tariff rates on certain categories of products, included in Annex A to this notice are 382 HTSUS subheadings and 5 statistical reporting numbers of the HTSUS, with an approximate annual trade value of $18 billion (2023). The President has directed that increases for certain products take effect in 2024, 2025, and 2026. The Trade Representative is proposing that increases in 2024 be effective August 1, 2024, and that increases in 2025 and 2026 be effective January 1 of the corresponding year.

There’s a lot more detail in the full notice which is available here. Contact Great Lakes Customs Law at 734-855-4990 via the contact page for assistance.

Section 301 Duties to Increase from 2024 to 2026

UPDATE 5/22/24: Details about affected HTS subheadings and the comment period are contained in a new notice from the USTR: Request for Comments on Proposed Modifications and Machinery Exclusion Process in Four-Year Review of Actions Taken in the Section 301 Investigation: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation

[original story from 5/14/22 continues]

The USTR has published a report (linked here) on the 4-year review of the Section 301 duties imposed on Chinese-origin goods and as a result, additional increases are coming to the Section 301, as follows:

Battery parts (non-lithium-ion batteries) Increase rate to 25% in 2024
Electric vehicles Increase rate to 100% in 2024
Facemasks Increase rate to 25% in 2024
Lithium-ion electrical vehicle batteries Increase rate to 25% in 2024
Lithium-ion non-electrical vehicle batteries Increase rate to 25% in 2026
Medical gloves Increase rate to 25% in 2026
Natural graphite Increase rate to 25% in 2026
Other critical minerals Increase rate to 25% in 2024
Permanent magnets Increase rate to 25% in 2026
Semiconductors Increase rate to 50% in 2025
Ship to shore cranes Increase rate to 25% in 2024
Solar cells (whether or not assembled into modules) Increase rate to 50% in 2024
Steel and aluminum products Increase rate to 25% in 2024
Syringes and needles Increase rate to 50% in 2024

An exclusion process will be established for machinery used in domestic manufacturing, including certain solar manufacturing equipment.

More information is available in the press release at the USTR website.

Renewed China Tariff/Section 301 Exclusions thru September 2023

Section 301 Exclusions

The U.S. Trade Representative (USTR) announced announced it has extended exclusions which were set to expire on December 31, 2022 through September 30, 2023. This extension applies to 352 exclusions. This was previously referenced on a blog post here: Renewed China Tariff/Section 301 Exclusions March 2022.

The reinstated exclusions are available for any product that meets the description in the product exclusion set out in the digit Harmonized Tariff Schedule of the United States (HTSUS) subheadings and product descriptions in the Annex to the Federal Register notice.

We File Protests for Section 301 Duty Refunds

If you need to file protests to get refunds of Section 301 duties, Great Lakes Customs Law can help. We’ve filed protests thousands of entries over the years, and have been successful in getting our clients refunds for Section 301 duties through protest exclusions. We are happy to discuss your needs, the level of organization required to successfully obtain refunds, and provide some transparent pricing for our services. Please contact us to speak to Jason Wapiennik, customs attorney.

USTR Conducts 4-Year Review of China Tariffs (Section 301)

The USTR is conducting a 4 year review of the Section 301 action which added additional duties to goods originating from China, and they want to hear your comments if you want the tariffs continued (if you don’t want them continued, they will be a comment opportunity in the future). The following appeared in the Federal Register, detailing what is happening and what they are looking for in comments:

The first step in the four-year review process is notifying representatives of domestic industries which benefit from the trade actions, as modified, of the possible termination of the actions, and of the opportunity for these representatives to request continuation of the actions. Requests for continuation must be received in the 60-day window prior to the four-year anniversary of the respective action: Between May 7, 2022, and July 5, 2022, for the July 6, 2018 action, and between June 24, 2022, and August 22, 2022, for the August 23, 2018, action. The Office of the United States Trade Representative (USTR) is opening dockets in these two time windows for representatives of domestic industries which benefit from the trade actions to request continuation of the corresponding trade actions, as
modified. If the actions continue as a result of one or more requests from representatives of domestic industries which benefit from the trade actions, USTR will proceed with the next phase of the review. The second phase of the review will be announced in one or more subsequent notices, and will provide opportunities for public comments from all interested parties.

The full release, including details and submission guidelines, is available from the Federal Register notice.

Want to discuss filing Section 301 comments?

If you want to discuss a Section 301 tariffs and commenting on their benefit or harm? Give us a call at 734-855-4999 or use the contact forms.

Renewed China Tariff/Section 301 Exclusions March 2022

The U.S. Trade Representative (USTR) announced reinstated product exclusions that are valid for entries liquidated from October 12, 2021 and will continue to be excluded through December 31, 2022.

The reinstated exclusions are available for any product that meets the description in the product exclusion set out in the digit Harmonized Tariff Schedule of the United States (HTSUS) subheadings and product descriptions in the Annex to the Federal Register notice, set to be published on March 28, 2022, but available at this link (see pages 3 through 26).

I expect that the USTR will make new opportunities for new exclusions requests to be filed in the lead-up to the November midterm elections.

We File Protests for Section 301 Duty Refunds

If you need to file protests to get refunds of Section 301 duties, Great Lakes Customs Law can help. We’ve filed protests thousands of entries over the years, and have been successful in getting our clients refunds for Section 301 duties through protest exclusions. We are happy to discuss your needs, the level of organization required to successfully obtain refunds, and provide some transparent pricing for our services. Please contact us to speak to Jason Wapiennik, customs attorney.

Section 301 China Tariff Exclusions (October 2021)

The current U.S. Trade Representative, Katherine Tai, is expected to publicly announce a new Section 301 exclusion process that would allow companies to request that certain products be exempt from Section 301 China tariffs. Details will be made available on our website once an official announcement and more details are made available. Here is Ambassador Tai’s presentation where she laid out her thinking on the status of U.S.-China trade:


Counterfeit Goods Seized by CBP Detroit

Detroit CBP Seizes $400k in Counterfeits

CBP Detroit seized counterfeit merchandise at the Fort Street Cargo Facility in the last few days. The headline and the tweet sent out by DFO Perry says that it’s “nearly $400k” worth of goods, but probably that is the MSRP (manufacturer’s suggested retail price); so it’s unlikely that is the price actually paid for the merchandise by the importer.

Here’s the tweet:

What can the importer expect? If they they are truly counterfeit, they will not be released/returned to the importer. And, if they are truly counterfeit, they should be nervous about the possibility of receiving a $400,000 penalty from customs. CBP penalties for trademark violations are based on the MSRP value of the goods, not the transaction value (price paid or payable).

Here’s the rest of the story:

DETROIT— U.S. Customs and Border Protection (CBP) intercepted nearly $400,000 in counterfeit textiles and electronic merchandise at the Fort Street Cargo Facility.

On May 18, multiple purported Bluetooth products to include headphones, valued at approximately $325,000; smart bands, valued at approximately $59,000; various speakers, valued at more than $4,000; and Star Wars hats, valued at nearly $10,000, were discovered when officers and import specialists selected the shipment for an enhanced inspection.

Closer examination of the intended imports, which originated from China, revealed the branding and overall quality of the articles were not consistent with genuine products. Additionally, the electronic goods were not registered with Bluetooth.

The counterfeit goods were subject to various intellectual property rights violations and ultimately seized.

“The importation of counterfeit merchandise poses a significant risk to the vitality of the U.S. economy, our national security and the health and safety of the American people,” said Devin Chamberlain, Port Director. “Our enforcement efforts at the border protect the integrity of private industry, while maintaining the inventory of safe, quality goods for the end user in the U.S.”

CBP may issue civil fines to violators and, where appropriate, refer cases to other agencies for criminal investigation.

What if I get a penalty from CBP?

If you get a penalty from CBP, you should definitely file a petition for mitigation of the penalty. You could get a substantial reduction in the penalty amount through mitigation offered by the Fines, Penalties and Forfeitures Office. We have a lot of experience of getting great results for clients on their CBP penalty cases, including substantial reductions and even some cancellations. You can see some history of our success is HERE.

Of course, results will vary from case to case, and no result could be guaranteed. Customs has maintains a list of mitigating factors and aggravating factors that it looks for, and which should part of the argument and analysis of any petition that is filed for them; without a careful and thoughtful analysis of those factors that customs looks for, you may end up pay more than necessary.

If you have had your merchandise seized or have received a notice of penalty from customs, call our office at (734) 855-4999 to speak to a customs lawyer about the possibility of getting your penalty reduced, or e-mail us through our contact page. We are able to assist petitions and in penalty cases by customs

President Trump signs proclamation imposing tariffs on imported steel and aluminum

Exclusion requests for Sec 232 and 301 tariffs

Section 232 Tariffs: Steel, Aluminum, China

President Trump has announced new tariffs this year imposed on imports from various countries under two bases; first, he imposed a 25% steel tariff and 10% aluminum tariff under section 232 of the Trade Expansion Act of 1962. This section allows the President to impose tariffs for national security reasons. We have a more extensive analysis at our page Steel & Aluminum Tariff Exclusions (Section 232)

Second, President Trump announced Section 301 tariffs against China ranging from 10% to 25%. We have a more extensive analysis at our page Section 301 Tariff Exclusions (China).

To date, the fact that these tariffs might only end-up hurting domestic industries is getting a lot of attention (there is a lot of tariff activity). There seems to be little awareness or recognition — both amongst importers and the news community as a whole — that there is very large loophole in both new tariffs: exclusions.

Exclusion Requests

The section 232 tariffs on steel and aluminum permit importers to request exclusions from certain products, on certain grounds. Initially, the official announcements and proclamations seemed to only permit exclusion requests on national security grounds, however, once the exclusion request form (steel) was published it seemed to permit exclusion requests to be filed for basically any reason (including insufficient U.S. availability, No U.S. Production, and “Other”).

Importers may be in a panic about the new tariffs; they should not. They should calmly consider requesting exclusions for the products so that the new tariffs will not apply to them, and they will not be required to pay the extra duties. Although the exclusion process can be done by anyone, as always, hiring an experienced attorney to advocate for the exclusion of the particular products will help to ensure the best result possible.

Want to discuss a possible section 232 exclusion?

If you’re interested in applying for an exclusion for section 232 or 301 tariffs, you can give us a call or complete the contact form below.

    I acknowledge and agree that no attorney-client relationship is created, intended, or implied by the sending of this message. I understand Great Lakes Customs Law reserves the right to decline representation and if it does accept representation, I will be required to sign a written fee agreement.

    A picture of nearly $150,000 in cash seized by CBP laid out on a table

    Seizures of undeclared cash from Chinese nationals on the rise

    In “Seizures of undeclared cash spike at Vancouver International Airport“, reporters for The Globe & Mail did a lot of good reporting work and present interesting information on customs cash seizures from Chinese nationals occurring in Canada.

    For instance, in the past 3 years customs seized $13 million dollars from 792 Chinese nationals passing through the airport. The average seizure was $17,000. The substance of the article is that these people are bringing the money into the country to get it out of China’s economy (which they fear may crash), to buy homes and/or invest in real estate. This has artificially inflated the property values in cities like Vancouver, and the government there imposed a tax on foreign purchasers of real estate to cool the market. We’ve previously blogged about this in Cash From China Seized Due to Capital Controls and Why some Chinese travel with cash leading to airport seizures.

    If you’re interested in customs cash seizures, you should definitely check out the entire article. However, I’ll quote what I find most interesting below:

    As Vancouver’s housing market began sizzling, border guards at the nearby international airport were seizing millions of dollars in undeclared cash from Chinese citizens, with total amounts jumping 50 per cent in each of the past three calendar years, government data show.

    According to the information, released to The Globe and Mail by a New Democrat MLA, during that period, border guards confiscated more than $13-million in hidden currency from 792 Chinese people passing through Vancouver International Airport, which is Canada’s second-busiest after Toronto. The average person had $17,000 in hidden bills, bank notes or drafts.

    That is in addition to the $323-million declared at the airport by 20,000 Chinese citizens or passengers on flights to and from that country, during roughly the same period, according to data released to The Globe through a freedom of information request.

    Experts say these sums of hidden and declared money, which dwarf the funds brought through the airport from other countries, were likely carried by some of the 922,000 people from China recently given 10-year temporary visas, which allow them to visit for up to six months at a time.

    Former RCMP investigator and financial crimes specialist Kim Marsh said many travellers bring large amounts of money – or bank notes or drafts – instead of transferring them through institutional routes because they want to avoid paying taxes in Canada and get around Chinese currency laws that make it illegal for the average citizen to take more than $50,000 (U.S.) a year out of that country.

    [ . . . ]

    Daniel Kiselbach, a Vancouver-based tax litigator, said the vast majority of Chinese citizens bringing large amounts of cash into B.C. are “just trying to get along in life and they have legitimate reasons for having the money in their possession,” such as buying gifts for family members or paying for living expenses at university.

    He said that these visitors have many disincentives to report their assets to the Chinese government and are likely just as suspicious of how information on their finances will be handled in Canada.

    “Maybe that would get back to the Chinese government, I don’t know,” Mr. Kiselbach said.

    Two years ago, Mr. Kiselbach tried to get Ottawa to divulge whether it has an agreement to share such information with China, as it does with the United States and other Commonwealth countries. Canada Border Services Agency does not make these agreements public, he said.

    Vancouver MLA David Eby, housing critic for the opposition New Democrats, said he is concerned that the amount of cash seized from Chinese citizens at YVR rose from $2.8-million in 2013 to $6.4-million last year.

    [. . . ]

    Anyone can bring as much money as they want in or out of Canada as long as they declare any sum of $10,000 or more – otherwise it could be seized. Border guards at Vancouver airport confiscated $19-million in undeclared cash from 2013 to 2015, with almost three quarters of it belonging to Chinese citizens. (Upwards of 3,200 passengers arrive each day from flights originating in Hong Kong and mainland China, according to data from the airport.)

    Experts say Chinese travellers could have several reasons for not declaring assets.

    Mr. Kiselbach added that CBSA likely ramped up the scrutiny on Chinese passengers because it gives increased attention to citizens from countries deemed a high risk for activities such as money laundering and financing terrorism.

    Hayley Howe, an anti-money laundering expert at Vancouver-based consulting firm MNP, said many foreign visitors may be unaware of Canada’s currency reporting requirements or unable to read the customs form properly when they enter or exit the country.

    Has U.S. Customs & Border Protection  seized your cash?

    If U.S. Customs & Border Protection has seized your cash, you need a lawyer. Read our trusted customs money seizure legal guide and can contact us for a free currency seizure consultation by clicking the contact buttons on this page.

    An image of 11 counterfeit championship rings that were seized by Detroit U.S. Customs & Border Protection at Detroit Metropolitan airport.

    Detroit CBP Seizes $680k in Counterfeit Championship Rings

    CBP at Detroit Metro Airport seized $680,000 worth of counterfeit championship rings that were being imported into the United States from China. This counterfeit seizure by happened in April, but it is just now making the news.

    That’s probably because the story finally made it from FP&F to CBP’s press department, or because the notice of seizure was finally mailed after a final determination by CBP that the rings were actually counterfeit. A valuation of $680,000 means that Customs is putting an MSRP value on each ring of $5,000.

    Recall that each time you cause an importation of a counterfeit item into the United States it subject to seizure and you are subject to a penalty, as the importer, for up to the value of the goods if they were real. You can read more about that in our other articles on that topic: Importing Counterfeit Trademarks – Customs Seizures & Penalties; Part 1 and Part 2  (click to read).

    The use of a fictitious name by the importer opens the importer up to additional liability beyond merely violation 19 USC 1526(e) (importing counterfeits), by charges involving fraud. Not a smart move. Here’s the story:

    DETROIT— In late April, U.S. Customs and Border Protection (CBP), Office of Field Operations at the Detroit Metropolitan Airport seized $680,000 (MSRP) in counterfeit NHL, NFL and MLB championship rings in a shipment that originated on a flight from China.

    While conducting operations at a DHL consignment facility, the Cargo Enforcement Team selected and examined a shipment of rings from China, resulting in the discovery of 136 counterfeit championship rings from the National Football League, National Hockey League and Major League Baseball. In all, the counterfeit rings displayed the names and logos of several teams such as the Dallas Cowboys, Pittsburgh Steelers, New York Giants, Oakland Raiders, New Orleans Saints, and New York Jets. The shipment also included rings for the Chicago Black Hawks and the Boston Red Sox.

    The company identified as the receiver of the rings used a fictitious name and was found to have previous copyright/trademark violations.

    Have you had allegedly counterfeit merchandise seized by CBP in Detroit?

    Not only do you have rights to contest the determination that the merchandise was counterfeit (like getting a sample of seized merchandise), but if you’ve been penalized we are very successful in getting penalties reduced or eliminated entirely. Click the contact button on this page to get in touch with us today!