Aweekly roundup of news reports, government announcements, and other information about current and emerging developments in international trade and customs compliance.
CIT Grants Preliminary Injunction Halting Duty Liquidation in Section 301 Case
The Court of International Trade will stop liquidation of unliquidated entries subject to litigation over List 3 and List 4A Section 301 China tariffs, a CIT panel ruled in a July 6 opinion. The U.S. government has claimed that the Court cannot order liquidated duties to be refunded, which prompted importers to seek a preliminary injunction halting further liquidation of duties, so that refunds of their deposits can be recovered should they succeed in challenging the legality of the tariffs. The Court ordered the government to set up a repository to allow importers to request the suspension and that would also temporarily bar CBP from liquidating the duties.
Tai and Ng Meet in Washington to Discuss Ongoing Trade Issues
Ahead of an event marking the one-year anniversary of the entry into force of the USMCA, USTR Katherine Tai hosted a bilateral meeting with Canadian International Trade minister Mary Ng in Washington. According to readouts (here and here) USTR Tai “stressed the importance of Canada fully meeting its home shopping commitments under the USMCA, and urged Canada to abandon its proposed unilateral digital service tax in light of the OECD agreement on a global taxation.” In addition to progress made in the USMCA’s implementation, other issues discussed included softwood lumber, dairy, Buy America Act, and WTO reform.
CBSA Extends Investigation into Dumping of Small Power Transformers from Three Countries
Due to circumstances that CBSA says make it unusually difficult to make a preliminary determination regarding the alleged injurious dumping of certain small power transformers from Austria, Chinese Taipei and South Korea within the normal 90 days, the Agency has extended the period for making preliminary decisions to 135 days (August 27). The CBSA initiated the investigation last April following complaints by Transformateurs Delta Star Inc., Northern Transformer, and PTI Transformers Inc. alleging they were being materially harmed by imports from the three countries being dumped at rates up to 66% in the case of South Korea.
CBSA Launches Investigation into OCTG From Austria
The Canada Border Services Agency initiated an investigation on July 7, regarding the alleged injurious dumping of certain oil country tubular goods from Austria. The investigation follows a complaint filed by Algoma Tubes Inc., Prudential Steel ULC, and Tenaris Canada. CBSA will make a preliminary decision within 90 days (Oct. 5) as to whether the imported OCTG are being dumped, at which time provisional duties may apply. Concurrently, the Canadian International Trade Tribunal will begin a preliminary injury inquiry to determine whether the imports are harming Canadian producers and will issue a decision by September 7, 2021.
U.S. and Mexico Announce Resolution of GM Worker Dispute Under USMCA
The U.S. and Mexico on Thursday announced a remediation plan to resolve a labor complaint involving “serious violations” at a General Motors plant in Guanajuato that the U.S. raised with Mexico under the USMCA’s rapid-response mechanism. Under the plan, a new union vote is to be held in August that will be overseen by the International Labor Organization and a domestic observer group. “Reaching an agreement with Mexico on a remediation plan shows the USMCA’s potential to protect workers’ rights and the benefits of a worker-centered trade policy,” U.S. Trade Representative Katherine Tai said.
Commerce Orders Antidumping Duties on Chinese Chassis
Commerce this week formalized results of its investigation into chassis imported from China, issuing an antidumping order instructing CBP to require, effective July 8, cash deposits equal to an estimated weighted-average dumping margin of 177.05%. Additionally, CBP has been instructed to terminate the suspension of liquidation and to liquidate, without regard to antidumping duties, unliquidated entries of chassis from China entered, or withdrawn from warehouse, for consumption after July 1.