September 10th, 2020

Proposal by CBP to End de Minimis on 301 Goods

CBP has started the process for a regulatory change to eliminate the $800 de minimis exemption of goods subject to Section 301tariffs. The proposed rule titled, “Excepting Merchandise Subject to 301 Duties from the Customs De Minimis Exemption,” was submitted to the Office of Management and Budget on September 2nd.

OMB’s review of the proposal, which also incudes an interagency review, will be the final step before publication of the rule. The review process normally takes 90 days, but can be extended to 120 days.

Coming WROs on China Goods

Brenda Smith, CBP’s Executive Assistant Commissioner in the Office of Trade, announced that there will be withhold release orders coming against China. The WRO’s will cover the entire supply chains for cotton, from yarns to textiles and apparel, tomatoes, tomato paste and other regional exports. Miss Smith told Reuters in an interview, that CBP has reasonable, but not conclusive evidence that there is a risk of forced labor in Xinjiang for the products mentioned above.  CBP also told Reuters, plans to announce the WRO’s were delayed due to scheduling issues.