The Office of the U.S. Trade Representative on Tuesday, March 11 launched new tariff investigation covering 16 trading partners that could lead to new tariffs around the time the current 10 percent Section 122 tariffs expire in July. Another investigation on forced labor in 60 trading partners is also likely soon. As these investigations begin, importers are waiting to see the final process for refunds of tariffs paid under the IEEPA statute struck down by the U.S. Supreme Court.
The investigation into excess manufacturing capacity will target China, the European Union, Singapore, Switzerland, Norway, Indonesia, Malaysia, Cambodia, Thailand, Korea, Vietnam, Taiwan, Bangladesh, Mexico, Japan, and India, and will take five to six months to complete, according to U.S. Trade Representative Jamieson Greer. The U.S. has already requested consultations with these governments, as required by the Section 301 statute under which these investigations were launched. For some of these countries, the existing framework agreement reached with the Trump Administration will be the starting point for discussions.
A docket for public comment will become available on March 17th. The same link will also have a docket for requests to appear at a planned May 5 public hearing, which will likely last for several days.
An investigation under Section 301(b) of the Trade Act examines whether the acts, policies, or practices of a foreign country are unreasonable or discriminatory and burden or restrict U.S. commerce.
A second probe, likely to be initiated later this week, is expected to investigate other nations’ efforts to fight forced labor and could result in higher tariffs on countries that don’t prohibit the sale or importation of goods made by coerced workers. That investigation will target about 60 nations, Greer said according to a report in The Wall Street Journal.
Separately, Customs and the Court of International Trade have gone back and forth in legal proceedings to determine a refund process for IEEPA tariffs. CBP has proposed a refund system but has asked for time to implement the system. It therefore remains unclear when refunds may become available and what steps importers will need to take to obtain them.
ACMA members that have paid duties are urged to ensure their Automated Customs Environment (ACE) account has been updated to receive electronic payment now, so that refunds can be disbursed quickly when they become available.