On Tuesday, October 30, 2018, a Presidential Proclamation was made that modifies the list of products eligible for duty-free treatment under the Generalized System of Preferences (GSP). These changes impact goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on November 1, 2018.
The following HTSUS numbers have been removed from GSP eligibility for preferential treatment duty when imported from the countries indicated:
On Friday, July 6, 2018, the effective date of the new U.S. Section 301 tariffs, the United States Trade Representative (USTR) published the procedure on how companies can request exclusion from the tariffs on specific products from China.
July 6, 2018 marks the effective date of the U.S. Section 301 25% duties on imports of Chinese-made products included in this list: Chinese Line Items. U.S. importers should be aware that they may need to increase their bond amounts to address the increase in duties on these specific imported goods.
President Trump Proposes Increased Tariffs on China Imports
Based upon an investigation by the United States Trade Representative (USTR) under section 301 of the Trade Act of 1974, as amended (the “Act”) (19 U.S.C. 2411) President Trump issued a Memorandum on March 22 stating he will impose about $60 billion worth of annual tariffs on Chinese imports as a result of China’s laws, policies, practices, or actions that may be unreasonable or discriminatory and that may be harming American intellectual property rights, innovation, or technology development. The tariffs, which the United States trade representative will publish within 15 days, will target 1,300 lines of Chinese goods — everything from shoes and clothing to electronics, administration officials said. Under the terms of the memorandum, the President ordered a 60-day consultation period, which will give industry lobbyists and legislators a chance to water down a proposed target list.
GSP Expired On December 31, 2017
The Generalized System of Preferences (GSP) provides duty-free treatment to goods of designated beneficiary countries. The program was authorized by the Trade Act of 1974 to promote economic growth in the developing countries and was implemented on January 1, 1976.
US CBP issued new requirements governing the movement of cargo in-bond from the Port of Discharge to an Inland Port for Customs Clearance or Export. These new requirements are effective November 27, 2017. Full enforcement of the new rules will begin February 24, 2018. The most important change for MIQ origins is that CBP now requires the six-digit HTSUS number on ocean cargo consigned to inland points.
The United States International Trade Commission (USITC) on October 31 announced the remedy recommendations that it will forward to the President in its global safeguard investigation regarding imports of crystalline silicon photovoltaic cells (whether or not partially or fully assembled into other products).
Generalized System of Preferences (“GSP”) Expires December 31, 2017
The Generalized System of Preferences (“GSP”), first implemented on January 1, 1976, periodically expires and must be renewed by Congress to remain in effect. The most recent GSP reauthorization (H.R. 1295) expires on December 31, 2017. Although Congress let the program lapse for two years past the previous expiration date of July 31, 2013, we are not aware of any current effort to end the program. But it nonetheless remains a possibility.
Do you know the President’s authority as it is related to international trade and commerce? This presentation provides insight into the President’s authority according to language in the Constitution, Executive Authority per specific Trade Acts, as well as historical precedents. The presentation also reviews the current status of NAFTA and the potential impact to Regional Value Content if the trade agreement is renegotiated.
