2020 has been a difficult year filled with immense challenge and change (to say the least). From all of us at Diaz Trade Law, we are incredibly thankful and grateful for your support. Despite a pandemic, Diaz Trade Law still managed to save our clients MILLIONS of dollars in 2020. It is with great joy that we finish off 2020 filled with numerous achievements and accomplishments. We look forward to assisting you in what we envision will be a better and brighter 2021!
Trump’s Trade Legacy
To fully understand the Biden administration’s trade priorities, it’s essential to understand Trump’s U.S. trade actions and the trade environment Biden will inherit. Trump made trade policy a center-stage issue. The administration enacted policies that counter several decades of neoliberal trade policies. The administration also questioned fundamental tenets of the global trading system and the function and purpose of the World Trade Organization. Furthermore, Trump followed through on many trade-related campaign promises by utilizing an array of tools.
White House Releases Critical Technologies Report
Last month, the White House released a landmark report titled the “National Strategy for Critical and Emerging Technologies.” The report outlines how the United States will promote and protect our competitive edge in fields such as artificial intelligence, energy, quantum information science, communication and networking technologies, semiconductors, military, and space technologies.
Last week, the U.S. Department of Commerce’s Bureau of Industry & Security (“BIS”) informed some U.S. semiconductor manufacturers via a confidential letter that they would require export licenses before exporting certain products to China’s largest semiconductor manufacturer, Semiconductor Manufacturing International Corporation (“SMIC”). Although the letter is not available for public view, a September 28, 2020 Wall Street Journal article that broke the story said that the Commerce Department was concerned about high risks of diversion to a military end use. This additional export license requirement is part of a broader pattern of increased export restrictions, particularly to China.
On June 24, 2019, the Office of the United States Trade Representative (USTR) provided the public with an exclusion process for items included subjected to Section 301 Tariffs. Specifically, the exclusions related to products included on List 3, which went into effect on September 24, 2018.
Originally, List 3 imposed 10 percent ad valorem duties on 5,757 full and partial subheadings of the Harmonized Tariff Schedule of the United States (HTSUS) and had an annual trade value of $200 Billion. Months later, in May 2019, the 10 percent ad valorem duties were increased to 25 percent. […]
On June 26, July 17, and August 11, 2020, the Office of the United States Trade Representative (USTR) requested the public to submit comments regarding potential product exclusion extensions for items subject to Section 301 Tariffs. This comment period specifically applied to products that were included on List 4.
When the list was announced on August 20, 2019, it imposed a 10 percent ad valorem on 3,805 full and partial subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), with an annual trade value of approximately $300 billion. Then, on August 30, 2019, USTR increased the rate of the additional duty announced in the August 20 notice from 10 to 15 percent. Finally, on January 22, 2020, USTR determined to reduce the rate from 15 to 7.5 percent. […]
Diaz Trade Law Now Filing List 4A Complaints – Join Section 301 Refund Lawsuit Now to Demand Refunds
301 Lawsuit Background
In mid-September, a coalition of importers filed a Court challenge to the USTR’s imposition of Section 301 duties on certain imports from China under Lists 3 and 4. These duties were imposed as part of a process purportedly intended to address intellectual property abuses by China. Specifically, this coalition has claimed that these duties were imposed contrary to law and ignored the statutory deadlines in Section 301. Further, the coalition has argued that these duties were not imposed in response to the intellectual property violations alleged in the initiation notice, but rather were filed in response to the retaliatory tariffs enacted by China. Accordingly, the coalition argues, such tariffs were void from the initial imposition.
Forced Labor is the third most lucrative illicit trade, behind only drugs and weapons, and has an annual trade value of roughly $150 Billion. Right now, over 40 million people around the world are victims of some type of forced labor, including modern slavery, human trafficking, etc.
Thankfully, U.S. Customs and Border Protection has been working to curb this inhumane practice.
On June 25, 2020, the Office of the United States Trade Representative (USTR), requested the public to submit comments regarding potential product exclusion extensions for items subject to Section 301 Tariffs. This comment period specifically applied to products that were included on List 2, which went into effect on August 23, 2018.
List 2 imposed 25 percent additional duties on 279 eight-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS) and had an annual trade value of $16 Billion.
On September 18, 2018, USTR provided the public with an exclusion process; then September 2019, USTR granted a number of exclusions that were set to expire on September 20, 2020. In the June 25th Notice, commenters were asked a variety of questions relating to their supply chains, such as…
whether the particular product and/or a comparable product is available from sources in the United States and/or in third countries; any changes in the global supply chain since August 2018 with respect to the particular product, or any other relevant industry developments; and efforts, if any, importers or U.S. purchasers have undertaken since August 2018 to source the product from the United States or third countries.
The June 25th announcement was made via federal register notice and stated that requests for exclusion extensions were to be submitted no later than July 30, 2020. Less than three months later, on September 22, 2020, USTR announced its determination to extend certain exclusions through the end of the year. Although USTR […]