Customs and Trade Weekly Snapshot
Here is a recap of the latest customs and international trade law news: 
Big News! 352 of 549 Proposed China Tariff Exclusions Reinstated
On March 23, 2022, the U.S. Trade Representative (“USTR”) announced that 352 of the 549 proposed exclusions have been reinstated. The reinstated product exclusions will apply as of October 12, 2021, and extend through December 31, 2022. For a full list of reinstated exclusions, please see this Federal Register announcement.
On October 8, 2021, USTR invited comments on whether to reinstate 549 previously granted and extended exclusions. This recent determination was a result of USTR’s review of public comments regarding whether and which of the proposed exclusions should be reinstated.
Diaz Trade Law filed comments on behalf of several clients who have had their exclusions reinstated. Are your products on the list of exclusions that were reinstated? Do you have questions about navigating Section 301 China tariffs? We are here for you! Diaz Trade Law has significant experience working on Section 301 exclusions. Contact us today at info@diaztradelaw.com.
A list of all the exclusions can be found below:
A. Effective with respect to good entered for consumption, or withdrawn from warehouse for
consumption, on or after 12:01 a.m. eastern daylight time on October 12, 2021, and before
11:59 p.m. eastern daylight time on December 31, 2022, subchapter III of chapter 99 of the
Harmonized Tariff Schedule of the United States (HTSUS) is modified:
1. by inserting the following new heading 9903.88.67 in numerical sequence, with the
material in the new heading inserted in the columns of the HTSUS labeled
“Heading/Subheading”, “Article Description”, and “Rates of Duty 1-General”,
respectively:
Heading/Subheading: 9903.88.67
Article Description: Effective with respect to entries on or after
October 12, […]
Customs and Trade Law Weekly Snapshot
Here is a recap of the latest customs and international trade law news:
CBP
- In Fiscal Year 2021, CBP at the LA/Long Beach Seaport seized More Than $760 Million in Counterfeit and Prohibited Products, a 652% increase over the previous year.
- CBP issues guidance regarding the extension of product exclusions from additional Section 301 China duties on certain medical-care products to address COVID-19.
- With changes to the HTSUS classification systems possibly coming as early as January 1, 2021, U.S. importers should review their classifications and ensure compliance with U.S. regulations
BIS
- The Bureau of Industry and Security (BIS) requests public comment regarding areas and priorities for U.S. and EU export control cooperation under the Trade and Technology Council.
- Comments are due by January 14, 2022
- On November 26, 2021, the Department of Commerce’s Bureau of Industry and Security (BIS) published a final rule adding 27 foreign entities and individuals to the Entity List for engaging in activities that are contrary to the national security or foreign policy interests of the United States.
China
- In their most substantial talk since President Biden took office, Chinese President Xi Jinping has warned that encouraging Taiwanese independence would be “playing with fire”.
- On November 12, 2020, the President declared a national emergency to deal with the extraordinary threat to the national security, foreign policy, and economy of the United States constituted by certain companies of the People’s Republic of China.
- Airbnb subject to regulatory risk under […]
OFAC Targets Russian Crypto Platform
Treasury’s Ransomware Advisory
Recent administrations have rightfully been concerned about ransomware. Ransomware is a form of malware used to extort users – the software locks your device and then demands a ransom for its release. Ransomware attacks are increasing in scale, sophistication, and frequency, victimizing governments, individuals, and private companies around the world. In 2020, ransomware payments reached over $400 million, more than four times their level in 2019. The U.S. government estimates that these payments represent just a fraction of the economic harm caused by cyber-attacks, but they underscore the objectives of those who seek to weaponize technology for personal gain.
Why China’s Cryptocurrency Miners are Moving to Texas
In May 2021, China announced a crackdown on cryptocurrency mining and trading. In recent months, China has doubled down on its new policy by targeting businesses involved in the mining and trading of bitcoin and other cryptocurrencies. China’s is prohibiting cryptocurrency mining and trading for many reasons, including:
Want Your 301 Exclusion Back? Comment Now!
Source: USTR
USTR Proposes Reinstating Exclusions
On October 6, 2021, the Office of the U.S. Trade Representative (“USTR”) announced in the Federal Register that the agency is considering a possible reinstatement of 549 EXCLUSIONS for Section 301 duties on products imported from China that had expired on December 31, 2020.
Insight on Last 6 Months of Biden/Congress on Trade
A lot has happened in the first 6 months of the Biden administration. Notable developments include (at least temporary) resolutions in the large civil aircraft and digital service tax disputes, consensus around a global minimum corporate tax of 15%, lawsuits pertaining to Section 232, increased export controls enforcement, shifting U.S. policy stances on Cuba, and more. However, the most important developments pertain to the ongoing U.S.-China trade war. The U.S. and China are engaged in ongoing negotiations while tensions have risen, a lawsuit challenging Trump’s imposition of 301 tariffs are underway, and a massive U.S. competitiveness bill is being considered in Congress that could bring back broad China tariff exclusions. Join us for a jam-packed hour where we discuss everything that has happened in the world of U.S. trade policy over the past 6 months, and provide insight into how Biden’s trade policies affect industry.
Between a Rock and a Hard Place – Conflicting U.S. & EU Sanctions Policies Towards Iran
Background on U.S. Sanctions Programs
The U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) administers a number of different sanctions programs. The purpose of U.S. sanctions programs is to advance U.S. foreign policy objectives and protect national security. Currently, OFAC administers 35 sanctions programs. These sanctions programs vary widely – some are comprehensive while others are highly selective.
Potential Relief from China Tariffs Coming
Background on Section 301 Tariffs
A key element of the U.S.-China trade war, initiated under the Trump administration and continuing through Biden’s first term, was the imposition of China tariffs under Section 301. Section 301 is a mechanism via which the President can retaliate against foreign countries that violate U.S. trade agreements or engage in acts that are “unjustifiable” or “unreasonable” and burden U.S. commerce. With regard to China, the U.S. Trade Representative (“USTR”) found that China’s acts, policies, and practices related to intellectual property and innovation are unreasonable or discriminatory and burden or restrict U.S. commerce. Accordingly, a broad set of tariffs were instituted. Section 301 tariffs for goods originating from China have been so expansive that U.S. Customs revenue has nearly doubled from $41.6 billion in FY 2018 to $71.9 billion in FY 2019 and $74.4 billion in FY 2020.
301 Exclusion Extensions for COVID-19 Related Products
On March 10, 2021, via Federal Register Notice ( 86 FR 13785), the United States Trade Representative (USTR) announced that 99 medical product exclusions will be extended from March 31, 2021, to September 30, 2021. This action extends a previous USTR action which extended these exclusions from December 31, 2020, to March 31, 2020 (85 FR 85831). […]