U.S. Announces Deal with Japan to Partially Rollback Section 232 Steel Tariffs - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
On February 7, 2022, the USTR announced a deal to partially rollback the Section 232 tariffs on steel from Japan through the use of a tariff rate quota (“TRQ”). The TRQ will be set to allow for the importation of historically-based volumes of Japan steel products without the assessment of Section 232 tariffs. Highlights of the agreement, which takes effect on April 1, 2022, include the following:
1. TRQ Amount: The aggregate annual TRQ is set at 1.25 MMT for 54 specified product categories, allocated in line with the 2018-2019 historical period. Steel imports in excess of the TRQ will remain subject to the 25% Section 232 tariff (unless covered by an exclusion).
2. Derivative Products: Imports from Japan of derivative articles of steel, as referenced in Presidential Proclamation 9980 will not be subject to Section 232 duties. These include certain nails, tacks (other than thumb tacks), drawing pins, corrugated nails, staples (other than those of heading 8305) and similar articles, bumper stampings and body stampings.
3. Eligible products: In order to be qualify under the TRQ, steel imports must be “melted and poured” in Japan according to current U.S. requirements and rules (which must be supported by substantiating documentation).
4. Exclusions: The exclusion process will remain available.
5. Administration, Adjustment & Review: The TRQ will be administered on a quarterly basis. Special rules allow for the limited rollover of unused TRQ volume from a given quarter. A public website will provide data as to quarterly utilization of the TRQ, including allocations for rollover. Adjustments may be made, subject to specified rules, based on annual reviews. The U.S. will evaluate utilization and administration of the TRQ every three months and, at the request of Japan, enter into consultations to address any substantial TRQ under-use.
6. Aluminum – The February 7th announcement makes no changes to the Section 232 tariffs applicable to aluminum from Japan.
Should you have any questions in connection with the above, please contact Arthur Bodek or any other GDLSK attorney.
________________________________________________________________________________
CSMS #50930928 - Reminder on Requirements for Steel Mill Certificates and Aluminum Certificates of Analysis - U.S. Customs & Border Protection
This is a reminder that steel mill certificates, statements of metal components of aluminum, and (for entries from the European Union) aluminum certificates of analysis are required to be submitted at the time of importation for steel and aluminum, imports, respectively, to U.S. Customs and Border Protection in CBP’s Document Imaging System.
These are required documents which are important for supporting entry and entry summary information, including, but not limited to, HTSUS classification, antidumping and countervailing duty Orders, Section 232 duty and quota requirements, Section 232 exclusions, and/or Section 232 melt and pour requirements.
Iron or Steel Imports
19 CFR 141.89 requires, for iron or steel imports classifiable in Chapter 72 or headings 7301 to 7307 of the HTSUS, a statement of the percentages by weight or carbon and any metallic elements contained in the articles, in the form of a mill analysis or mill test certificate. These certificates should be submitted at the time of importation to the Document Imaging System.
Aluminum Imports
19 CFR 141.89 requires, for aluminum and alloys of aluminum imports classifiable under subheadings 7601.10.60, 7601.20.60, 7601.20.90, or 7602.00.00, HTSUS, a statement of the
percentages by weight of any metallic element contained in the article. This can be included on the invoice or a separate document submitted in the Document Imaging System.
Effective January 1, 2022, the December 27, 2021 Presidential proclamation on Adjusting Imports of Aluminum into the United States requires that all imports of aluminum articles from the European Union must be accompanied by a certificate of analysis in order to be eligible for the Section 232 tariff rate quota. Importers should submit the certificate of analysis using the Document Imaging System.
For more information on the EU Section 232 measures, see:
CSMS #50536327 - GUIDANCE: European Union (EU) Section 232 Tariff Rate Quota on Aluminum and Steel Articles and Exempting EU from Derivative Duties (govdelivery.com)
QB 22-901 2022 First and Second Period Tariff Rate Quota (TRQ) for Aluminum Articles of European Union (EU) Member Countries | U.S. Customs and Border Protection (cbp.gov)
QB 22-801 2022 First and Second Quarter Tariff Rate Quota (TRQ) for Steel Mill Articles of European Union (EU) Member Countries | U.S. Customs and Border Protection (cbp.gov)
________________________________________________________________________________
Federal Register Notices:
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Carbon and Alloy Steel Cut-to-Length Plate From the Republic of Korea: Final Results and Partial Recission of Countervailing Duty Administrative Review; 2019
• Quartz Surface Products From the People's Republic of China: Initiation of Scope and Circumvention Inquiries of the Antidumping Duty and Countervailing Duty Orders
• Certain Steel Nails From the United Arab Emirates: Final Results of Antidumping Duty Administrative Review; 2019-2020
• Investigations; Determinations, Modifications, and Rulings, etc.: Carbon Steel Butt-Weld Pipe Fittings From Brazil, China, Japan, Taiwan, and Thailand
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Barium Chloride From India: Initiation of Countervailing Duty Investigation
• Aluminum Extrusions From the People's Republic of China: Final Results of Antidumping Duty Administrative Review; 2019-2020
• Xanthan Gum From the People's Republic of China: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2019-2020
• Certain Corrosion-Resistant Steel Products From Taiwan: Final Results of the Antidumping Duty Administrative Review and Final Determination of No Shipments; 2019-2020
• Sodium Nitrite From India and the Russian Federation: Initiation of Countervailing Duty Investigations
• Antidumping or Countervailing Duty Order, Finding, or Suspended Investigation; Opportunity To Request Administrative Review and Join Annual Inquiry Service List
• Certain Carbon and Alloy Steel Cut-To-Length Plate From Belgium: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2019-2020
• Steel Concrete Reinforcing Bar From the Republic of Turkey: Final Results of Antidumping Duty Administrative Review and Final Determination of No-Shipments; 2019-2020
• Large Diameter Welded Pipe From Greece: Final Results of Antidumping Duty Administrative Review; 2019-2020
• Sales at Less Than Fair Value; Determinations, Investigations, etc.: Barium Chloride From India: Initiation of Less-Than-Fair-Value Investigation
• Sodium Nitrite From India and the Russian Federation: Initiation of Less-Than-Fair-Value Investigations
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Aluminum Extrusions From the People's Republic of China: Final Results of Countervailing Duty Administrative Review and Rescission of Review, in Part; 2019
• Certain Uncoated Paper From Australia, Brazil, the People's Republic of China, Indonesia, and Portugal: Continuation of Antidumping Duty and Countervailing Duty Orders
• Magnesium Metal From the People's Republic of China: Final Results of Antidumping Duty Administrative Review; 2020-2021
• Investigations; Determinations, Modifications, and Rulings, etc.: Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From Korea, Mexico, and Turkey; Scheduling of Expedited Five-Year Reviews
• Narrow Woven Ribbons With Woven Selvedge From China and Taiwan; Scheduling of Expedited Five-Year Reviews
• Certain Apparatus and Methods of Opening Containers; Commission Determination Not To Review an Initial Determination Granting Complainant's Motion for Summary Determination of Violation of Section 337; Schedule for Filing Written Submissions on Remedy, the Public Interest, and Bonding
• Agency Information Collection Activities; Proposals, Submissions, and Approvals: Emulsion Styrene-Butadiene Rubber From Mexico: Final Results of Antidumping Duty Administrative Review; 2019-2020
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Hot-Rolled Steel Flat Products From the Republic of Korea: Final Results of Antidumping Duty Administrative Review; 2016-2017; Certain Hot-Rolled Steel Flat Products From the Republic of Korea: Amended Final Results of Antidumping Duty Administrative Review; 2016-2017; and Certain Hot-Rolled Steel Flat Products From the Republic of Korea: Final Results of Antidumping Duty Administrative Review and Rescission of Administrative Review, in Part; 2017-2018; Correction
• Oil Country Tubular Goods From Ukraine: Final Results of Antidumping Duty Administrative Review; 2019-2020
• Sales at Less Than Fair Value; Determinations, Investigations, etc.: Raw Honey From the Socialist Republic of Vietnam: Preliminary Affirmative Determination of Critical Circumstances in the Less-Than-Fair-Value Investigation; Correction
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Shingled Solar Modules, Components Thereof, and Methods for Manufacturing the Same ; Commission Determination To Review in Part and Remand in Part a Final Initial Determination Finding a Violation of Section 337; Schedule for Filing Written Submissions on Remedy, the Public Interest, and Bonding
________________________________________________________________________________
$2.88 Million of Counterfeit Items Intercepted by Chicago CBP in January - U.S. Customs Border & Protection
CHICAGO - On January 31, U.S. Customs and Border Protection (CBP) officers at an Express Consignment Operations (ECO) hub near O’Hare seized a shipment that was arriving from Israel containing over $713,000 worth of counterfeit Cartier, Louis Vuitton, and Versace bracelets, rings, and necklaces.
During the month of January, Chicago CBP averaged at least one shipment a day of counterfeit goods. Officers at the ECO and Chicago’s International Mail Facility (IMF) seized a total of 29 shipments worth a staggering $2.88 million. Officers found everything from counterfeit shoes, wallets, designer apparel, handbags, jewelry, and more.
“These are significant seizures for CBP, but unfortunately, CBP officers see counterfeit shipments like this every day,” said LaFonda D. Sutton-Burke, Director, Field Operations-Chicago. “I’m extremely proud of these officers’ determination in stopping illicit shipments, and our commitment to protecting the American economy.”
All these counterfeit shipments were arriving from various countries: China, Hong Kong, the Netherlands, Russia, the Philippines, Thailand, Mexico, and Israel. Jewelry, which includes rings necklaces, bracelets, and watches, was the most common item that was found. Counterfeit designer handbags and apparel were also prevalent in these shipments. The shipments were heading to various cities throughout the U.S., to include the local cities of Joliet, Lake in the Hills, and Chicago.
“This is just another example of the work our officers do to protects consumers and the U.S. economy,” said Shane Campbell, Area Port Director-Chicago. “Our officers are at the frontline protecting the U.S. economy and guarding against charlatans making money by selling fake merchandise.”
The rapid growth of e-commerce enables consumers to search for and easily purchase millions of products through online vendors, but this easy access gives counterfeit and pirated goods more ways to enter the U.S. economy. U.S. consumers spend more than $100 billion every year on intellectual property rights (IPR) infringing goods, falling victim to approximately 20% of the counterfeits that are illegally sold worldwide.
Counterfeit commodities fund smugglers and members of organized crime. Consumers often believe they are buying a genuine product but soon realize the item is substandard.
CBP Trade protects the intellectual property rights of American businesses through an aggressive Intellectual Property Rights enforcement program, safeguarding them from unfair competition and use for malicious intent while upholding American innovation and ingenuity. Suspected violations can be reported to CBP here.
Every year, CBP seizes millions of counterfeit goods from countries around the world as part of its mission to protect U.S. businesses and consumers. These goods include fake versions of popular products, such as smartphones and related accessories, electronics, apparel, shoes, cosmetics, and high-end luxury goods, as well as goods posing significant health and safety concerns, such as counterfeit pharmaceuticals, bicycle and motorcycle helmets, medical devices, supplements and other consumables. Sold online and in stores, counterfeit goods hurt the U.S. economy, cost Americans their jobs, threaten consumer health and safety, and fund criminal activity. Visit the National IPR Coordination Center for more information about IPR including counterfeiting and piracy.
CBP has established an educational initiative, Truth Behind Counterfeits, to raise consumer awareness about the consequences and dangers that are often associated with the purchase of counterfeit and pirated goods. The agency encourages anyone with information about counterfeit merchandise illegally imported into the United States to submit an e-Allegation. The e-Allegation system provides a means for the public to anonymously report to CBP any suspected violations of trade laws or regulations related to the importation of goods in the U.S.
CBP’s border security mission is led at 328 ports of entry by CBP officers from the Office of Field Operations. Please visit CBP Ports of Entry to learn more about how CBP’s Office of Field Operations secures our nation’s borders. Learn more about CBP at www.CBP.gov.
________________________________________________________________________________
CBP Memphis, HSI and Gwinnett County Georgia Crush nearly $16 Million Counterfeit Goods Seller - U.S. Customs Border & Protection
MEMPHIS, Tennessee — U.S. Customs and Border Protection Officers (CBPOs) in Memphis, working from information provided by the Gwinnett County Police Department in Georgia, seized two shipments of various counterfeit luxury goods, including Louis Vuitton totes and purses. While the goods in these two seizures totaled $1,066,207 if they had been real (MSRP), they led local investigators to a couple’s illegitimate counterfeit goods business and an inventory worth $15,896,061 MSRP.
CBPOS in Memphis selected for examination the two shipments that arrived September 28, 2021, en route from the Mexican state of Chihuahua to a residence in Lawrenceville, GA. They found 19 Rolex Submariner Watches, 15 Rolex Yacht Master Watches, 10 Rolex Sky Dweller Watches, 10 Rolex Date Just Watches, 3 Rolex Daytona Watches, 2 Rolex Oyster Perpetual Watches, 5 Chanel Sunglasses, 2 Versace Sunglasses, and 1 Louis Vuitton Duffel Bag. The second shipment contained 20 Louis Vuitton tote bags. The items were turned over to Homeland Security Investigations, who continued their coordinated efforts with Gwinnett County.
“Counterfeit goods are poor quality products that cost U.S. businesses billions of dollars a year while robbing our country of jobs and tax revenues,” said Michael Neipert, Memphis Area Port Director. “According to the arrested sellers, their customers knew they were buying counterfeits, which is maddening. Why would you want to walk around with a fake $18 Louis Vuitton tote, $1,522 cheaper than an original. That’s uncouth. It diminishes the original product.”
Gwinnett County PD:
On Thursday, November 18, 2021, Gwinnett Police Department Special Investigation Section Vice Unit seized over 9,000 counterfeit merchandise items valued at over $15,800,000.00 from a business named Real Moda in Lawrenceville, Ga.
An investigation on the sale of luxury goods bearing counterfeit trademarks was started in September 2021 with the assistance of the United States Customs and Border Protection and ICE HSI. As a result, a 31-year-old female from Lawrenceville, GA and a 33-year-old male from Lawrenceville, GA were charged with Possession and Sale of Goods Bearing a Counterfeit Trademark and are out on bond.
The three-month investigation led the officers to a vast number of counterfeit items and several items of evidentiary value. The items were stored in multiple locations, including Real Moda, and advertised for sale on Facebook. Luxury goods were sold such as fake Louis Vuitton, Christian Dior, Gucci handbags, Rolex watches, Chanel and Versace sunglasses.
Illicit manufacturers continue to exploit the rapid growth of e-commerce to sell counterfeit goods to unsuspecting consumers in the United States. In FY2021, CBP processed approximately $2.8 trillion of imports, an increase of nearly 17 percent compared to the same period in Fiscal Year 2020. Overall, CBP collected approximately $93.8 billion in duties, taxes, and other fees on behalf of the U.S. government in FY2021, representing a 133% increase over a five-year period. CBP has also seized more than 83,000 shipments for trade violations in the current fiscal year.
CBP data indicates that handbags, wallets, apparel, footwear, watches, jewelry, and consumer electronics are at higher risk of being counterfeited. Counterfeit watches and jewelry make up almost half of the total MSRP of seized goods. Counterfeit versions of popular brands are regularly sold in online marketplaces and flea markets. Counterfeit goods hurt the U.S. economy, cost Americans their jobs, threaten consumer health and safety, and fund criminal activity. Visit the National IPR Coordination Center for more information about IPR including counterfeiting and piracy.
Consumers can take simple steps to protect themselves and their families from counterfeit goods:
• Purchase goods directly from the trademark holder or from authorized retailers.
• When shopping online, read seller reviews and check for a working U.S. phone number and an address that can be used to contact the seller.
• Review CBP’s E-Commerce Counterfeit Awareness Guide for Consumers.
• Remember that if the price of a product seems too good to be true, it probably is.
To report suspected counterfeits, visit CBP’s online e-Allegations portal or call 1-800-BE-ALERT. More information about counterfeit goods is available on CBP’s Fake Goods, Real Dangers website and StopFakes.gov.
________________________________________________________________________________
Tai, Raimondo Statements on 232 Tariff Agreement with Japan - U.S. Trade Representative
Agreement will counter practices by China that harm our industries and workers, showcasing the strength of the U.S.-Japan relationship
Today, United States Trade Representative Katherine C. Tai and United States Secretary of Commerce Gina M. Raimondo announced a new 232 tariff agreement with Japan to allow historically-based sustainable volumes of Japanese steel products to enter the U.S. market without the application of Section 232 tariffs. This deal will help ensure the long-term viability of our steel industry and protect American jobs. It is also part of our efforts to provide relief for American manufacturers who rely on readily accessible, affordable steel to make their products and lower prices for American families.
The deal is another example of President Biden’s focus on strengthening relationships with our vital Allies and partners, and working with them to address unfair practices by countries like China together.
Ambassador Tai and Secretary Raimondo released the following statements:
Statement from Ambassador Katharine Tai:
“Since Day One, the Biden Administration has been committed to working with our allies and partners to address shared challenges. In reaching this agreement with Japan, one of our most important trading partners, we are taking another step forward in our mission to rebuild and revitalize these important relationships.
“This agreement, combined with last year’s resolution with the European Union, will help us work together with Japan to combat China’s anti-competitive, non-market trade actions in the steel sector, while helping us reach President Biden’s ambitious global climate agenda.
“Importantly, this agreement represents an important example of our worker-centered trade policy in action. It will defend opportunities for a vital American industry, our workers, and their families as we work to deliver trade policies that can unlock broad-based economic prosperity and growth.”
Statement from Commerce Secretary Gina M. Raimondo:
“As part of our work to reinvigorate America’s manufacturing economy and bring down costs for consumers and businesses, President Biden directed us to renegotiate the 232 steel measures with Japan to allow duty-free imports into the United States. I’m pleased to announce the deal we reached will strengthen America’s steel industry and ensure its workforce stays competitive, while also providing more access to cheaper steel and addressing a major irritant between the United States and Japan, one of our most important allies.
“Today’s announcement builds on the deal we struck with the EU and will further help us rebuild relationships with our allies around the world as we work to fight against China’s unfair trade practices and create a more competitive global economy for America’s families, businesses and workers.
“I’d like to sincerely thank our counterpart at Japan’s Minister of Economy, Trade and Industry Hagiuda Koichi, for his determination and resolve, as well as Ambassador Rahm Emanuel for his partnership in this effort.”