02/28/2025
Proposed Action in Section 301 Investigation of China's Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance
Check out this week’s Customs Corner to read about the Section 301 Investigation of China, national security risks of copper, and more.
Trade and Customs Updates
1) Proposed Action in Section 301 Investigation of China's Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance
In response to China's significant expansion in the maritime, logistics, and shipbuilding sectors, the Office of the United States Trade Representative (USTR) has proposed several measures under a Section 301 investigation to counteract China's dominance. The investigation, initiated in April 2024, revealed that China's share of global shipbuilding tonnage grew from less than 5% in 1999 to over 50% in 2023, primarily due to state subsidies and preferential treatment for state-owned enterprises.
South Korean and Japanese ships could also be subject to fees if their owners have a fleet or ship orders predominantly from China. Shippers with mostly Chinese-built fleets could receive fee refunds if they operate U.S.-built ships. The Federal Register notice mentions potential additional requirements for U.S. exports to use U.S.-flagged or U.S.-built ships.
Key Dates:
- February 21, 2025: Comment period opens.
- March 10, 2025: To be assured of consideration, submit requests to appear at a hearing, along with a summary of the testimony, by this date.
- March 24, 2025: To be assured of consideration, submit written comments by this date. USTR will hold a public hearing on proposed action in this investigation in the main hearing room of the U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436, beginning at 10 a.m.
2) USTR Seeks Comments on Unfair and Non-Reciprocal Foreign Trade Practices
The USTR published a press release on February 20, 2025 asking the public to provide comments on unfair and non-reciprocal foreign trade practices.
The Office of the United States Trade Representative is seeking public comments to support its efforts under the America First Trade Policy Memorandum and the Reciprocal Trade and Tariffs Memorandum. These comments will help the U.S. Trade Representative evaluate and identify any unfair or non-reciprocal foreign trade practices.
The deadline for submitting comments is March 11, 2025.
3) Addressing the Threat to National Security From Imports of Copper
The Secretary of Commerce is initiating an investigation under Section 232 of the Trade Expansion Act to assess the national security risks of copper imports in all forms, including raw, refined, alloyed, and recycled copper. The investigation will evaluate factors such as U.S. defense and infrastructure demand, domestic production capacity, foreign supply chain risks, the impact of subsidies and dumping, and the feasibility of increasing domestic mining and refining.
Within 270 days, the Secretary will submit a report to the President with findings on security risks, potential policy actions (e.g., tariffs or incentives), and recommendations for strengthening the U.S. copper supply chain.
Reference: Federal Register :: Addressing the Threat to National Security From Imports of Copper
4) Updated Guidance – Additional Duties on Imports from China and Hong Kong
CBP will reject entry summaries that do not comply with the Executive Order's requirements, including those missing required additional duties. Rejected entries must be resubmitted within two business days, or the importer may face liquidated damages.
Duties must be correctly assigned to the appropriate HTS number and cannot be combined across multiple HTS numbers within an entry summary line. CBP expects full compliance from the trade community and will enforce penalties for repeated non-compliance. CSMS #63988468 provides the applicable HTS numbers for the additional duties.
Reference: CSMS # 64235342 - Updated Guidance – Additional Duties on Imports from China and Hong Kong
5) Ensuring Lawful Governance and Implementing the President’s “Department of Government Efficiency” Deregulatory Initiative
President Trump has published an order that directs federal agencies to focus enforcement on regulations explicitly authorized by constitutional statutes and to reduce regulatory overreach. Agencies must review all regulations within 60 days, identifying those that are unconstitutional, based on unlawful delegations of power, or impose excessive costs without clear benefits.
Enforcement of such regulations should be de-prioritized, and a plan for rescinding or modifying them will be developed. New regulations must align with Executive Order 12866 and additional policy considerations. The order exempts national security, immigration, and internal executive branch matters and includes provisions for severability and compliance with existing laws.
6) FDA Delays “Healthy” Food Label Nutrient Content Claims
The FDA published a final rule redefining the term "healthy" for food labeling on December 27, 2024, with an initial effective date of February 25, 2025. However, following a presidential memorandum on January 20, 2025, ordering a regulatory review, the FDA has delayed the rule's effective date to April 28, 2025.
The rule updates requirements for using "healthy" as a nutrient content claim, aligning it with current dietary guidelines. It sets food group-based criteria, nutrient limits for added sugars, saturated fat, and sodium, and establishes automatic qualifications for certain whole foods and low-calorie beverages. Record-keeping requirements apply for foods where compliance isn’t apparent from labeling. The compliance date remains unchanged.
Reference: Federal Register :: Food Labeling: Nutrient Content Claims; Definition of Term “Healthy”
7) Reminder: Upcoming deployment for the Environmental Protection Agency (EPA) Hydrofluorocarbon (HFC) Program
The refinements related to the EPA Hydrofluorocarbon (HFC) program will be deployed to the U.S. Customs and Border Protection (CBP) Automated Commercial Environment (ACE) PRODUCTION environment on March 1, 2025.
For any questions, please contact EPA at: [email protected].
For any questions about this CSMS please email [email protected].
Related Messages: CSMS # 64065330, 63839859, 63476238, 63114216
EVENT: NCSD’s March Webinars
These webinars are scheduled for 1:30 p.m. ET.
To register for these free webinars, click on the registration link for the coordinating webinar below. All registrants will receive the link for the webinar on their confirmation email, but entry into the webinar is on a first-come, first-served basis as seats are limited. After the live event, this and other previously recorded webinars will be available for replay at Trade Outreach Webinars | U.S. Customs and Border Protection (cbp.gov). These webinars are part of CBP’s continuing education program.
NCSD’s March Webinar Schedule:
Tuesday, March 18, 2025: Knit Outerwear – The “Knit Outerwear” is part of the 2025 Educations Commodity Specific Webinar Series hosted by the National Commodity Specialist Division, Regulations and Rulings, Office of Trade. This webinar will cover on how identify and classify outerwear garments that are constructed by knit fabric.
Tuesday, March 25, 2025: How to Classify Angles, Shapes, and Sections in Chapter 72 – The “How to Classify Angles, Shapes and Sections in Chapter 72” is part of the 2025 Educations Commodity Specific Webinar Series hosted by the National Commodity Specialist Division, Regulations and Rulings, Office of Trade. This webinar will review what are considered angles, shapes, and sections in Chapter 72.
Thursday, March 27, 2025: Determining the Country of Origin of Apparel – The “Determining the Country of Origin of Apparel” is part of the 2025 Educations Commodity Specific Webinar Series hosted by the National Commodity Specialist Division, Regulations and Rulings, Office of Trade. This webinar will cover the complexity of determining the country of origin for wearing apparel.
EVENT: CBP's Trade Facilitation and Cargo Security Summit
May 6 - 8, 2025 | Hilton New Orleans Riverside, Two Poydras St, New Orleans, LA 70130
This event will be hosted in person and webcasted. Event and registration details will be available soon and posted to the TFCS Summit web page. Click here for more information.
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