Industry News

America Competes Act of 2022 addresses trade issues

By January 31, 2022 No Comments

The America Competes Act of 2022 (H.R.4521) has been introduced in the House. This bill addresses a number of key areas of international trade covering issues that have languished over the past year and new proposals. Items of primary concern for importers include:

  • The reauthorization of the Generalized System of Preferences (GSP), that was allowed to expire at the end of 2020. While this program preferential duty treatment for developing countries has historically carried bipartisan support in Congress, it has been allowed to lay dormant since it’s expiration. In this bill, GSP would be reauthorized and the duty reductions would be retroactive to December 30, 2020, and remain effective until December 31, 2024. The bill contains new human rights and anti-poverty requirements that must be met for a country to maintain its eligibility.
  • Passage of the Miscellaneous Tariff Bill (MTB), that includes duty suspensions or reductions on select products. This MTB would be effective until December 31, 2023, and replaces an earlier version that expired in December of 2020. Work on the new MTB was concluded in late 2020, but the new bill was not brought up for a vote in 2021. The America Competes Act allows for a four-month retroactive period, and would extend the process for considering new versions through 2025. Finished products would be excluded from consideration in future MTBs.

The bill also strengthens Antidumping and Countervailing (ADD/CVD) Duty Laws currently on the books. The Commerce Department would be given authority to apply CVD laws to government subsidies provided to companies operating in a different country. This would make it easier to bring these cases against companies that try to circumvent additional duties by moving production to other countries. The bill also imposes statuary requirements to the process and timeliness of inquiries into circumvention of ADD/CVD orders.

Other issues addressed by this act include more oversight of the importation of fish, enhanced review of foreign investment, and limits to the de minimis allowance for certain low value imports. The bill would eliminate the use of Section 321 or type 86 entries for imports falling below the $800 de minimis from countries that are considered “nonmarket economies” and on the USTR’s IPR watch list. Currently, that would apply only to China.

While there are certain to be some changes to this bill before it clears Congress, it is expected to move quickly through the House. The renewal of GSP and the passage of the MTB would be welcome relief for many importers, but the strengthening of the ADD/CVD laws could become major concerns for some industries.

Best Regards,

Sam McClure, LCB

Director of Compliance & Customs Services


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CVI Exclusion Guide 2020

CVI has a free, complete guide to EVERYTHING you need to know for tariff rounds and exclusions, including:

  • HTS Code
  • Publish Dates
  • Exclusion provision number per set list and round
  • Effective & Extended Expiration Dates

The CVI Exclusion Guide 2020 provides you with a link to original USTR exclusion announcements with a breakdown of each excluded product.

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Meet one of CVI’s Customs Brokerage & Compliance experts, Sam McClure:

Sam serves as Director, Compliance and Customs Services for CVI. He serves as CVI’s corporate compliance officer and is responsible for overseeing all aspects of our Customs related services, including growth.

Sam started his career in 1977 with Waters Shipping Company in Charlotte, NC. He began as a document runner, soon becoming a leader in operations and customer service for the branch. Sam, along with Linda Masten, founded Central Carolina Shipping Inc. in 1983 as an independent Customs Brokerage firm where he served as Vice President for 26 years. Sam and Linda grew Central Carolina into a successful and highly respected member of the Carolinas trade community. When Charlotte opened their local chapter of the IFFCBA Sam was part of the organizing group and he headed the Customs committee for several years. Sam obtained his Customs Brokers License in 1984 and remained with Central Carolina until the company was acquired by CVI in 2009.

At CVI, Sam has held several positions in both the operations and sales departments. As an expert in U.S. Customs regulations, Sam is often called upon on to provide guidance to importers on Customs compliance issues. He makes regular presentations on matters related to importation and broader regulatory compliance.

– Sam McClure, LCB, Director of Compliance & Customs Services, CVI
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