MEMO TO CLIENTS ISSUE 25-003 – January 29, 2025

Trump Issued America First Trade Memo On January 20

With all the speculation on when Trump will enact the new tariffs, we should first look at a memorandum that President Trump signed on his first day in office. His memo on America First Trade Policy was issued to several agencies and offices that gave instructions to investigate and review how to put in place his intended trade policies in such a manner that favors domestic workers and manufacturers.  There is much to be reviewed, and can it all be done by February 1?  The memorandum gives instructions for the results of the reviews by April 1, 2025, but orders on some issues may not wait. The memorandum can be found at: https://www.whitehouse.gov/presidential-actions/2025/01/america-first-trade-policy/

Columbia Actions

The above being said, we all must still be aware that President Trump will sometimes take action for immediate results.  This past week Columbia had refused access to the U.S. aircraft to its airports for the return deported immigrants.  Trump took action over the weekend by announcing 25% tariffs on all Columbian products. He also ordered that visas for any Colombian government be canceled. This was announced on Saturday.  Meetings ensued and by Monday agreements were made that the U.S. aircraft with deportees would be allowed into Columbia, the visas would have their status reinstated, and the 25% duties would be postponed indefinitely.

Proposed Restrictions for De Minimis Shipments

U.S. Customs and Border Protection has issued a Federal Register Notice (FRN) to amend the regulations for the eligibility of low value shipments (under $800.00) for duty free treatment under Section 321, also called de minimis.  The rule will remove eligibility for entry under de minimis for goods that are subject to trade remedy requirements. Imported products that subject Section 301, Section 232, or Section 201 trade measures would no longer be eligible for de minimis entry. The new rule will also require that the 10-digit HTSUS classification to be provided with the shipments.  The FRN Can be found at:

https://www.federalregister.gov/documents/2025/01/21/2025-01074/trade-and-national-security-actions-and-low-value-shipments. Comments on this proposal are due no later than March 24, 2025.

China Section 301 Duty Case Has Hearings

The U.S. Court of Appeals for the Federal Circuit (CAFC) heard oral arguments on the Section 301 case.  The parties in this case were asked to address issues of statutory interpretations such as the scope of what would be a possible modification of the original 301 tariffs under lists 1 and 2   and whether retaliatory duties were related to China’s conduct that was subject to the Section 301 investigation.  It is anticipated that the CAFC’s decision on these hearings will be issued within the next few months.

Customs Brokers License Exam Information

This year’s Customs Brokers License Exam (CBLE) will take place on April 23, 2025.  Registration for this exam will open on Monday, February 10, and will close on Wednesday, March 12. Information on the registration and the test can be found on CBP’s website at: https://www.cbp.gov/trade/programs-administration/customs-brokers/license-examination-notice-examination/cble-registration-information