Here at Neville Peterson LLP, we’ve transitioned to a remote working environment, and remain fully operational during the Coronavirus National Emergency. Now, more than ever, it is essential for businesses and their service providers to remain in contact and available to provide assistance. We’ll be providing regular updates on the state of trade during these trying times. 

Government Operations Generally – Government operations are moving to remote working arrangements, as much as possible. This presents a challenge for some agencies, whose Virtual Private Networks (VPNs) are set up to accommodate minor percentage of employees teleworking, but not a majority. Most agencies, however, have migrated to Cloud-based working platforms, ensuring continued functionality. 

United States Trade Representative: After recently announcing a number of Section 301 tariff exclusions directed to medical supplies (hospital gowns, masks, stethoscope covers, etc.), the USTR today announced 157 more product-specific tariff exclusions for a wide range of products. In addition, USTR announcing that it was accepting comments concerning additional Chinese products which should be excluded from Section 301 tariffs on the ground that they are relevant to the “medical response to Coronavirus.” USTR will be accepting comments through at least June 25, 2020 at www.regulations.gov. This provides an opportunity for companies dealing in medically relevant products to seek exclusions, even if they failed to seek exclusions in earlier phases of the Section 301 process. 

Customs and Border Protection (CBP) – Customs and Border Protection (CBP) has reported that port operations are continuing without significant change. Ocean and land border operations are operating as normal, although about 30 CBP officers to date have been quarantined over Coronavirus concerns. Airfreight operations, however, have suffered serious impacts, with some carriers canceling as many as 96% of their inbound flights. This has resulted in diminished capacity for inbound airfreight, combined with higher freight rates. Some air carriers, such as UPS, have chartered Boeing 747 and 767 freight carriers, as well as some Boeing 777 passenger planes, which will fly with their passenger sets empty but cargo holds filled. 

While there have been partial closures of the Northern and Southern Borders, cargo shipments continue to be allowed. 

Customs is considering, but has not taken action on, proposals to extend the periods for making payments of estimated duties. For now, regular time limits remain in place, but companies seeking extensions to make payments, on a case-by case basis, can contact  to request extensions. 

CBP is considering a 90-day extension on duty payments, but has not yet announced any such extension. 

Companies wishing to delay electronic funds transfers to Customs should work with their financial institutions on these issues, the agency says. 

Customs is considering, but has not yet authorized, extensions on the periods for filing protests. The agency has implemented a 10-day delay in the period for importers to correct bond deficiencies. 

Customs’ Office of Regulations and Rulings (ORR) continues to issue binding rulings, although the office is suffering a considerable backlog. ORR has urged importers to file ruling requests using the agency’s electronic rulings portal, providing photographs instead of physical samples. Paper ruling requests with physical samples are still being accepted, but rulings may be delayed. 

The President’s invocation of the National Emergencies Act, 50 U.S.C. §1601 et seq., has opened up a wide range of emergency powers. These include powers granted to the Secretary of the Treasury to make departures from usual procedures pursuant to 19 U.S.C. §1381(b)(1).

U.S. International Trade Commission: As of March 17 2020, the ITC implemented a directive for all employees to work remotely. The ITC has cancelled all public hearings and meetings, and will instead make determinations based on written submissions. 

Department of Commerce, International Trade Administration (ITA): Most ITA employees are under a work-at-home order, with filings made using the agencies’ ACCESS portal. 

Courts – The Federal Courts, including the United States Court of International Trade and the Court of Appeals for the Federal Circuit, continue operations, but have closed their courthouses to most visitors. Oral arguments in cases are being done telephonically. Most trials are being delayed until the crisis is over. 

White House – Despite calls for the Administration to provide some relief from Section 301 tariffs on Chinese products, the White House for now remains adamantly opposed to granting any relief from these duties. Proposals floated by trade associations, calling for suspension of Section 301 tariffs, or refunds of tariffs already collected, have for now fallen on deaf ears. Industry groups intend to keep up the pressure as the current economic crisis intensified. 

If you have any questions regarding these issues, please contact any Neville Peterson LLP professional.