Monday, September 14, 2009

Residue and Tires

On the regulatory front, Customs and Border Protection is delaying enforcement of the rule requiring the entry of previously considered empty containers if there is residue in the container. For now, they can be treated as empty. The implementation of this change is delayed until further notice.

After this comes into force, the residual goods will have to be entered. Quantities may be estimated, but if a more accurate quantity is later determined, the entry should be updated.

In case you spent the past 48 hours under a rock or in a cave, President Obama has decided to levy new duties on tires for passenger cars and light trucks from China. This is a Section 421 case based upon the theory that there has been a surge in imports and the U.S. industry needs some breathing room to adjust. The duties will begin at 35%, go to 30% in the second year, and then to 25%. This is the first time an industry has successfully sought relief from the Obama administration. Here is the USTR press release. This takes effect 15 days from September 11, 2009 (which is September 26).


Anonymous said...

Larry -

Please get this one straight - on the tires, the industry didn't raise the issue, US labor unions did. Labor unions supported Obama. Need I say more??

Larry said...

Yes, it is true that the union asked for relief. Calling that "the industry" is a little loose. I admit that. Legally, though, trade remedies must be sought on behalf of "the industry." According to 19 USC 2252,

(a) Petitions and adjustment plans
(1) A petition requesting action under this part for the purpose of facilitating positive adjustment to import competition may be filed with the Commission by an entity, including a trade association, firm, certified or recognized union, or group of workers, which is representative of an industry.

So, I don't think I was actually wrong, but I get your point.