The recently implemented Section 232 tariffs on steel and aluminum didn't apply to goods under an Immediate Transportation entry if those goods arrived within U.S. port limits as of the March 23 effective date (see 1803230014), the National Customs Brokers & Forwarders Association of America said in an April 3 email. The NCBFAA said it confirmed that with CBP. "Thus, where an IT was filed for goods which arrived prior to March 23, 2018, 232 duties should not be assessed even though the entry summary was filed after March 23, 2018," it said. Filers that "have deposited 232 duties on IT shipments which arrived prior to March 23, 2018 should contact their [Automated Broker Interface] Client Representative to discuss the procedure for obtaining a refund of the 232 duties." CBP didn't comment.
International Trade Today is providing readers with some of the top stories for March 26-30 in case they were missed.
Deleon Trade added Paulie Nichols as a broker audit specialist and Melissa Shanahan as a senior trade auditor, the company said. Nichols is a long-time customs broker, while Shanahan worked as an auditor at ICE and CBP before joining Deleon, it said.
Several drawback filers and importers on March 23 filed a court challenge of CBP’s new policies on drawback procedures under the Trade Facilitation and Trade Enforcement Act. They say CBP violated the Administrative Procedure Act when it changed drawback requirements via a guidance document issued in February without allowing for notice and comment on what amount to regulatory changes.
CBP will be "closely monitoring importers’ compliance with the Section 232 measures," which take effect on March 23, a CBP spokesman said. "CBP will enforce the remedies imposed by the President under Section 232 on imports of steel and aluminum from covered countries into the United States," he said. "Companies will be responsible for paying the tariff while their exclusion is under consideration. Imports subject to these measures will be processed through CBP’s Automated Commercial Environment (ACE) entry processing system, which CBP uses to determine admissibility and duty requirements for imported goods."
The Senate confirmed Kevin McAleenan as commissioner of CBP on March 19 in a 77-19 vote. McAleenan became acting commissioner when the Trump administration began (see 1611090035) and his nomination had been pending since May of 2017. Department of Homeland Security Secretary Kirstjen Nielsen congratulated McAleenan in a tweet, while trade groups, including the U.S. Council of International Business, the American Apparel and Footwear Association, the National Customs Brokers & Forwarders Association of America and Airlines for America, celebrated the confirmation in news releases. “Imports are essential to the success of the apparel and footwear industry and our ability to employ nearly four million Americans and provide affordable products for American families," AAFA CEO Rick Helfenbein said in an emailed release. "CBP is an invaluable partner to our business, both in terms of supporting lawful trade and preventing the import of counterfeit products." Sen. John Boozman, R-Ark., chairman of the Senate Appropriations Homeland Security Subcommittee, also said he was pleased with the confirmation, in a news release.
Business interests are continuing to sound the alarm that widespread tariffs against China as punishment for intellectual property theft and forced technology transfer are a bad idea (see 1803160009). "The Administration should not respond to unfair Chinese practices and policies by imposing tariffs or other measure that will harm U.S. companies, workers, farmers, ranchers, consumers, and investors," said a letter sent March 18 by 45 business groups to President Donald Trump. The signatories -- which included five regional customs brokers' trade groups and the National Customs Brokers and Forwarders Association of America -- were led by tech industry trade groups.
CBP is likely to quickly focus on misclassification and valuation as enforcement issues involving the coming tariffs on steel and aluminum as a result of the politics and revenue involved, said Michael Roll, a lawyer at Pisani & Roll. Roll discussed the new tariffs during a webinar hosted by the Los Angeles Customs Brokers & Freight Forwarders Association of America. "That doesn't mean that they are going to jump out the gate on March 24 hitting people with penalties necessarily," but there will be a focus on "enforcement, enforcement and more enforcement," Roll said.
CBP may face a legal challenge of its decision not to allow accelerated payment on drawback claims filed under the Trade Facilitation and Trade Enforcement Act until it issues its TFTEA drawback regulations (see 1801260036), said a customs lawyer and a drawback consultant speaking during the International Trade Update conference on March 9 in Washington.
A U.S. cigar distributor may have committed import violations and be liable for more than $3 million in unpaid excise taxes even though it did not act as importer of record on the underlying shipments, the Court of International Trade said in a March 7 decision. Denying Good Times’ motion to dismiss the case, partly because Maverick actually imported the cigars, CIT found that Good Times may have controlled the transaction and fraudulently “introduced” the goods in violation of 19 USC 1592.