Customs and Trade Law Snapshot

Here is a recap of the latest customs and international trade law news:

The Bureau of Industry and Security (BIS) 

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Insight on Last 6 Months of Biden/Congress on Trade

A lot has happened in the first 6 months of the Biden administration. Notable developments include (at least temporary) resolutions in the large civil aircraft and digital service tax disputes, consensus around a global minimum corporate tax of 15%, lawsuits pertaining to Section 232, increased export controls enforcement, shifting U.S. policy stances on Cuba, and more. However, the most important developments pertain to the ongoing U.S.-China trade war. The U.S. and China are engaged in ongoing negotiations while tensions have risen, a lawsuit challenging Trump’s imposition of 301 tariffs are underway, and a massive U.S. competitiveness bill is being considered in Congress that could bring back broad China tariff exclusions. Join us for a jam-packed hour where we discuss everything that has happened in the world of U.S. trade policy over the past 6 months, and provide insight into how Biden’s trade policies affect industry.

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New Antidumping Petition Against Imports of Certain Honey Products

Background on AD/CVD Investigations

Antidumping duty (“AD”) and countervailing duty (“CVD”) investigations are brought jointly by the U.S. International Trade Commission (“USITC”) and the U.S. Department of Commerce (“Commerce”). AD investigations are triggered when a domestic industry alleges that it has been injured by competing imports of particular goods from specific countries being sold at less than a fair value. Meanwhile, CVD investigations are triggered when a domestic industry alleges that it has been injured by competing imports that are being unfairly subsidized by their governments. The domestic industry initiating the investigation is known as the petitioner while the foreign industry participating in the investigation is known as the respondent.

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USTR Targets Vietnam in New 301 Investigations – Submit Request to Testify by Dec. 10

Co-Authored by Sharath Patil

 USTR’s Tougher Stance on Vietnam

 The Trump administration has begun to exercise a tougher stance against Vietnam. The United States Trade Representative (“USTR”) initiated two Section 301 investigations against the Southeast Asian country on October 2, 2020. The focus of the two investigations are Vietnam’s acts, policies, and practices related to (1) the valuation of its currency, and (2) Vietnam’s importation and use of illegal timber. The news of USTR’s launch of these dual investigations came days before the U.S. Census Bureau’s latest trade data release – which indicated that the U.S. trade deficit in goods with Vietnam is at record levels, registering at $42.7 billion in the 8 months of data available for 2020. This skyrocketing trade deficit is relevant to U.S. trade policy towards Vietnam because one of President Trump’s key economic pledges was to lower the U.S. trade deficit with trading partners. A well-documented pattern of transshipment of goods from China through Vietnam to avoid U.S. Section 301 duties towards China could also explain Vietnam being targeted.

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