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March 16, 2023 | Jessica Woltering Manager, Compliance
To help you better prepare for what’s coming, here’s a rundown of the customs and trade developments we’re following this month:
U.S. Customs and Border Protection (CBP) issued updated guidance for Section 232 Aluminum Smelt and Cast Requirements in CSMS #55438432 following the announcement of the 200% tariff on Russian aluminum and derivatives (effective March 10, 2023) and on aluminum imports with any amount of primary aluminum smelted or cast in Russia (effective April 20, 2023).
Starting April 10, 2023, importers will be required to provide the following details on aluminum imports from all countries.
The country where the largest volume of new aluminum metal is produced from aluminum oxide (alumina) by the electrolytic Hall-Heroult process.
The country where the second largest volume of new aluminum metal is produced from aluminum oxide (alumina) by the electrolytic Hall-Heroult process.
If Russia is not the primary country of smelt reported, and any primary aluminum used in the manufacture of the product was smelted in Russia, then Russia must be reported as the secondary country of smelt.
If a product contains only secondary aluminum and no primary aluminum, then filers should report “N/A” for the primary and secondary country of smelt. Secondary aluminum is aluminum metal produced from recycled aluminum scrap through a re-melting process.
The country where the aluminum was last liquified by heat and cast into a solid state. The final solid state can take the form of either a semi-finished product or a finished aluminum product.
Products of the United States are exempt from smelt and cast reporting requirements. The country of smelt should be reported as “N/A” and the country of cast should be reported as the United States until further notice.
The smelt and cast reporting requirements also apply to products withdrawn from a Foreign Trade Zone (FTZ) for consumption, on or after 12:01 a.m. eastern daylight time on April 10, 2023.
For a list of aluminum article and derivative aluminum article products covered please visit CBP’s Trade Remedies page or Federal Register Notice.
In preparation for the start of the Uyghur Forced Labor Prevention Act (UFLPA) Region Alert Enhancement deploying March 18, 2023, CBP posted a frequently asked questions document for the trade.
The enhancement requires a postal code for parties based in China when the country of origin is China. If the product is a textile item or subject to a partner government agency (PGA) requiring the actual manufacturer of the goods be declared, then the manufacturer name, address, and valid postal code is required. If the product does not require an actual manufacturer to be declared then the name, address, and valid postal code of the invoicing party should be declared.
If an invalid Chinese postal code, or no postal code is provided, an error message will be sent to the filer. A warning message will be sent to filers when a Xinjiang Uyghur Autonomous Region (XUAR) postal code is provided. CBP advised they will not publish a list of impacted postal codes. An UFLPA Entity List has been provided and should be reviewed by importers as part of their due diligence. For more information and resources please see our Client Advisory issued earlier this year.
On March 4, 2023, CBP deployed the latest update to the ACE Portal Modernization, giving account owners the ability to hide employee social security numbers (SSN) and organization Tax ID numbers from users with read-only account access. For instructions on how to mask personal identifiable information (PII) in the ACE Secure Data Portal (ACE Portal) CBP linked to this Quick Reference Card. Additional details on the modernization strategies can be located on the ACE Portal Modernization page.
The next Customs Broker License Exam (CBLE) will take place on April 26, 2023. Registration is open and there is a webinar on March 21, 2023, for a limited number of remote proctored exam registrants, available on a first-come, first-served basis. The CBLE will also be available in-person. For details on the CBLE, reference materials recommended, and registration details, visit the CBLE site.
CSMS# 55418078 was issued March 9, 2023, notifying that registration is open for the April National Commodity Specialist Division (NCSD) webinars. There are 35 commodity-specific educational webinars scheduled for 2023 and CBP will announce the registration opening for each month via the Cargo Systems Messaging Service (CSMS). Links to each registration can be found on CBP's Trade Outreach Webinar site.
April webinars include:
CBP is accepting new applicants to participate in the Section 321 Data Pilot scheduled to run through August 2025. The pilot opened in August 2019 with the goal of gathering advance data from ecommerce supply chain partners to test risk advantages. The pilot has resulted in fewer CBP holds for pilot participants and makes risk evaluations for CBP faster and more accurate. For details on participating in the Section 321 data pilot, visit the Section 321 data pilot Federal Register Notice issued February 16, 2023 or discuss with your C.H. Robinson representative.
Developments in customs and trade continue to evolve, stay informed to be prepared: Subscribe to our Client Advisories and connect with one of our trade policy experts to learn more.
Register to hear from top U.S. Customs and Border Protection (CBP) officials regarding the agency’s priorities, such as the Customs Trade Partnership Against Terrorism (CTPAT), Uyghur Forced Labor Prevention Act (UFLPA), and more. The summit will be held in Boston April 17–19, 2023.
The National Commodity Specialist Division (NCSD), Office of Trade released its 2023 NCSD webinar schedule on February 16, 2023. Sign up for these or watch previous NCSD webinars on the Trade Outreach Webinar website.
In January 2023, CBP targeted 282 shipments worth more than $69 million, seized 1,514 shipments that contained counterfeit goods valued at more than $186 million, and completed 27 audits that identified $7.7 million in duties and fees owed for goods that had been improperly declared.
Our information is compiled from a number of sources that to the best of our knowledge are accurate and correct. It is always the intent of our company to present accurate information. C.H. Robinson accepts no liability or responsibility for the information published herein.
Our information is compiled from a number of sources that to the best of our knowledge are accurate and correct. It is always the intent of our company to present accurate information. C.H. Robinson accepts no liability or responsibility for the information published herein.
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The Pre-Arrival Review System (PARS) Tracker lets truckload and LTL carriers moving freight from the United States to Canada search for a PARS number—a way to confirm that C.H. Robinson has submitted an entry for release of the cargo from the Canada Border Services Agency (CBSA) and that the entry has been accepted by CBSA. Once an entry has been accepted by CBSA, the carrier may proceed to the border for final processing and crossing into Canada.
The Pre-Arrival Processing System (PAPS) Tracker lets truckload and LTL carriers moving freight from Canada to the United States search for a PAPS number—a way to confirm that C.H. Robinson has submitted an entry for release of the cargo from U.S. Customs & Border Protection (CBP) and that the entry has been accepted by CBP. Once an entry has been accepted by CBP, the carrier can proceed to the border for final processing and crossing into the United States.
Locate forms and resource links that support freight forwarding, customs brokerage and surface transportation in Canada.
This interactive database allows you to view the international customs exchange rates to and from the Canadian dollar for the past year. This can be useful in projecting the cost of shipments to and from various countries.
Mitigate tariff risk, offset duties, and gain peace of mind.
Date | Title |
---|---|
2023.03.24 | Updated Guidance Effective April 10th Aluminum Smelt and Cast |
2023.03.14 | EPA Issues Compliance Advisory – UFLPA Region Alert FAQs |
2023.03.07 | CBP Updates Forced Labor Resources and Trade Summit |
2023.03.07 | UFLPA Region Alert Effective March 18 |
Receive notices on changing regulations when they happen.
Tariffs or duties are taxes assessed on imports of foreign goods, paid by the importer to the U.S. government, and collected by U.S. Customs and Border Protection (CBP). Current U.S. tariff rates may be found in the Harmonized Tariff Schedule (HTS) maintained by the U.S. International Trade Commission (ITC). The U.S. Constitution grants Congress the sole authority to regulate foreign commerce and therefore impose tariffs, but, through various trade laws, Congress has delegated authority to the president to modify tariffs and other trade restrictions under certain circumstances.1
Tariffs – A tax on imports of foreign goods paid by the importer. Ad valorem tariffs are assessed as a percentage of the value of the import (e.g., a tax of 25% on the value of an imported truck). Specific tariffs are assessed at a fixed rate based on the quantity of the import (e.g. 7.7% per kilogram of imported almonds), and are most common on agricultural imports.
Quotas – A restriction on the total allowable amount of imports based either on the quantity or value of goods imported. Quotas are in place on a limited number of U.S. imports, mostly agricultural commodities, in part due to past trade agreements to remove and prohibit them.
Tariff-Rate Quota (TRQ) –TRQs involve a two-tiered tariff scheme in which the tariff rate changes depending on the level of imports. Below a specific value or quantity of imports, a lower tariff rate applies. Once this threshold is reached, all additional imports face a higher, sometimes prohibitive, tariff rate.
Yes! CBP does pay interest from the date the original money was deposited. The current interest rates are published in the Federal Register on a quarterly basis. Review the most recent Federal Register Notice for the latest rates.
U.S. CBP assesses and collects duties on U.S. imports, including the additional duties imposed as a result of the president’s tariff actions. As of April 27, 2022 U.S. CBP has reported these duty assessments.
Yes. Some United States’ trading partners subject to the additional United States import restrictions have taken or announced proposed retaliations against each of the three United States actions. The International Trade Administration published an article regarding retaliatory tariffs implemented by United States’ trading partners.
Section 301 of the Trade Act of 1974 allows the United States Trade Representative (USTR) to suspend trade agreement concessions or impose import restrictions if it determines a U.S. trading partner is violating trade agreement commitments or engaging in discriminatory or unreasonable practices that burden or restrict U.S. commerce.
Background Report: Congressional Research Service – Section 301 of the Trade Act of 1974
Certain reinstated Section 301 duty exclusions were extended. The Office of the United States Trade Representative (USTR) announced it is extending the 352 previously reinstated product exclusions, which were retroactively made available to October 12, 2021. Originally scheduled to expire December 31, 2022, the exclusions will now be extended through September 30, 2023. The extension is effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on January 1, 2023, and before 11:59 p.m. eastern daylight time on September 30, 2023.
What this means for your business: Uncover potential duty refunds using our U.S. Tariff Search Tool. Instantly search by Harmonized Tariff Schedule (HTS) and review the language within the “USTR Exclusion Extension Potential” section to determine your eligibility for retroactive duty recovery and for participation on a go-forward basis, through September 30, 2023.
A statutory review of all Section 301 tranches was initiated. The Office of the United States Trade Representative (USTR) announced it would commence its statutory review of all active Section 301 tranches leading up to the four-year anniversary of the Section 301 China tariff actions. Accordingly, representatives of domestic industries were invited to submit their requests for continuation using the USTR’s comment portal.
In September 2022, the USTR announced it will keep the tariff actions in place and conduct a review due to requests for continuation received during the comment period and conduct a review of the actions. The USTR is seeking public comments from the trade community "to consider the effectiveness of the actions in achieving the objectives of the investigation, other actions that could be taken, and the effects of the actions on the United States economy, including consumers."
Enter the product’s harmonized tariff schedule (HTS) classification on the USTR website. In addition, you can refer to our U.S. tariff search tool to quickly search both the Section 301 tariff lists, but also identify if there are any exclusion opportunities. Talk to your Trusted Advisor® expert at C.H. Robinson to learn more.
The time window to submit new exclusion requests is now closed. While the USTR approved, on average, 35% of requests under the first two actions, the approval rates under the third and fourth actions were 5% and 7%, respectively.3 Be sure to check in with your trusted trade advisors to see if new comment periods open.
Be aware the USTR has completed its evaluation for the potential extension of 549 specific product exclusions granted from Lists 1, 2, 3, and 4. Accordingly, on March 23, 2022, of the 549 specific product exclusions, the USTR reinstated 352 previously expired Section 301 China duty exclusions, as published in the accompanying Federal Register notice, which were retroactively made available to October 12, 2021. Originally scheduled to expire December 31, 2022, the exclusions will now be extended through September 30, 2023.
As noted in CSMS Message 18-000419, Section 301 duties are eligible for duty drawback. Drawback is the refund of certain duties, internal revenue taxes, and certain fees collected upon the importation of goods. Such refunds are only allowed upon the exportation or destruction of goods under U.S. Customs and Border Protection supervision.
No, not right now. Goods properly entered under Section 321 are not subject to Section 301 duties. Please note that a formal entry is required if a shipment contains merchandise subject to AD/CVD. Goods subject to AD/CVD do not qualify for Section 321.
Something to keep an eye on: U.S. Customs and Border Protection (CBP) submitted a proposal in early September 2020 to the Office of Management and Budget that would eliminate the $800 de minimis exemption for goods subject to Section 301 tariffs. Additionally, in January 2022, the Import Security and Fairness Act was introduced to address Section 321 shipment activity. Significant changes proposed within this legislation are as follows:
Remember, Section 321, 19 USC 1321 is the statute that describes de minimis. De minimis provides admission of articles free of duty and of any tax imposed on, or by reason of importation, but the aggregate fair retail value in the country of shipment of articles imported by one person on one day and exempted from the payment of duty shall not exceed $800. The de minimis threshold was previously $200 but increased with the passage of the Trade Facilitation and Trade Enforcement Act (TFTEA).
Yes. You have the opportunity to potentially recover duties paid on previous entry activity. Your customs broker, trade attorney, or trade consultant can submit a refund request via Post Summary Correction (PSC) or Protest as long as the entry has not exceeded the liquidation date plus 180-day time period (roughly 480 days from the original entry date). Remember, your company doesn’t have to be the one that requested the exclusion in the first place. You qualify as long as your product meets the specific description of the exclusion granted by the USTR.
The USTR announced on March 20, 2020, that, prior to the COVID-19 outbreak, the agency had been working with the U.S. Department of Health and Human Services “to ensure that critical medicines and other essential medical products were not subject to additional Section 301 tariffs.” Consequently, the United States had not imposed tariffs on certain critical products, such as ventilators, oxygen masks, and nebulizers.
The USTR has since reviewed requests for exclusions on medical care products, resulting in exclusions granted on basic medical supplies, including gloves, soaps, face masks, surgical drapes, and hospital gowns. Since March 2020, the USTR has exempted certain medical products from Section 301 tariffs in several rounds of exclusions.3
Duties are due on goods that are entered for consumption, or withdrawn from warehouse for consumption, on or after the effective date of the provisional tariffs. For entries covered by an entry for immediate transportation, and with a country of origin of China, and a Harmonized Tariff Schedule (HTS) classification covered by Annex A to the FRN, such entries shall be subject to the duty rates in effect when the immediate transportation entry was accepted at the port of original importation, pursuant to 19 CFR 141.69 (b), which states:
Merchandise which is not subject to a quantitative or tariff-rate quota and which is covered by an entry for immediate transportation made at the port of original importation, if entered for consumption at the port designated by the consignee or his agent in such transportation entry without having been taken into custody by the port director for general order under section 490, Tariff Act of 1930, as amended (19 U.S.C. 1490), shall be subject to the rates in effect when the immediate transportation entry was accepted at the port of original importation.
No. Additional duties imposed by the Section 301 remedy only apply to articles that are products of the People’s Republic of China (ISO Country Code CN). Imported goods that are legitimately the product of Hong Kong (HK) or Macau (MO) are not subject to the additional Section 301 duties. Please note that Section 301 duties are based on country of origin, not country of export.2
Yes. Basic changes/processes such as packaging, cleaning, and sorting would not change the country of origin to be declared in most cases. The origin would still be China and therefore the Section 301 duties would still apply.
A Section 232 of the Trade Expansion Act of 1962 allows the president to adjust imports if the Department of Commerce finds certain products are imported in such quantities or under such circumstances as to threaten to impair U.S. national security.
Background Report: Congressional Research Service – Section 232 Investigations: Overview and Issues for Congress
A Section 201 of the Trade Act of 1974 allows the president to impose temporary duties and other trade measures if the U.S. International Trade Commission (ITC) determines a surge in imports is a substantial cause or threat of serious injury to a U.S. industry.
Background Report: Congressional Research Service – Section 201 of the Trade Act of 1974 – August 2018
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All content and materials discussed herein are for informational purposes only and do not constitute legal advice. You should always independently check the related Code of Federal Regulations (CFR) and, if needed, consult with the applicable Federal Agency (e.g. CBP, USTR) and/or external counsel where any question or doubt exists. Information on this site is the property of C.H. Robinson. Any transmission or use without C.H. Robinson’s permission and approval is not allowed or authorized.