Manufacturing Enhancement Act of 2010

(CBP)

CBP is announcing changes to the Harmonized Tariff Schedule of the United States (HTSUS) by the Manufacturing Enhancement of 2010.

Background:

The Manufacturing Enhancement Act of 2010, which was signed into law on August 11, 2010, sets forth changes to subchapter II, chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS), as amended. Goods listed in Titles I, II, and III of the Manufacturing Enhancement Act of 2010, entered or withdrawn from warehouse for consumption, on or after August 26, 2010 are afforded the duty suspensions or reductions listed in the Manufacturing Enhancement Act of 2010.

Title I of the Manufacturing Enhancement Act of 2010, added new duty suspensions and reductions to subchapter II, chapter 99 of the HTSUS. Titles II and III of the Manufacturing Enhancement Act of 2010, pertain to either existing duty suspensions and reductions or additional existing duty suspensions and reductions to subchapter II, chapter 99 of the HTSUS.

Action:

Goods listed in Titles II and III of the Manufacturing Enhancement Act of 2010, are provided retroactive benefits for merchandise entered or withdrawn from warehouse, on or after January 1, 2010 and before August 26, 2010. Notwithstanding section 514 of the Tariff Act of 1930, any other provision of law, US Customs and Border Protection (CBP) shall liquidate or reliquidate articles listed in Titles II and III in accordance with the Manufacturing Enhancement Act of 2010 upon a formal request filed with CBP. Liquidation or reliquidation will occur only if the request is filed with CBP within 180 days after the enactment of the Manufacturing Enhancement Act of 2010. The request must contain sufficient information to enable CBP to locate the entry or request a reconstructed entry if it cannot be located. The request must be made at the port of entry. Any payment of amounts owed by the Government pursuant to liquidation or reliquidation of an entry shall be paid without interest, not later than 90 days from the date of the liquidation or reliquidation. CBP is in the process of updating the Automated Commercial System (ACS) to reflect the provisions of the Act. And it is expected that these changes will be completed by the effective date.

The Manufacturing Enhancement Act of 2010, and applicable tariff numbers listed in Titles I, II, and III can be found here.

Request for Definition Expansion of Tariff Items 9995.00.00 and 9996.00.00

(IE Canada)

The Department of Finance is seeking views on the expansion of the definitions of tariff items 9995.00.00 and 9996.00.00 to provide for duty-free treatment for imported synthetic shells and fibre-filled shells using synthetic materials, for use in the manufacture of duvets, featherbeds and pillows. We are proposing to amend these tariff items as follows (proposed amendments appear in bold):

9995.00.00 Woven fabrics, whether or not embroidered, solely of single cotton yarns, measuring 70 decitex or more but not exceeding 150 decitex, having a sum of yarns per 10 cm in the warp and the weft of 790 or more, with an air permeability not exceeding 5.0 cm³/cm²-s-1 as determined by CAN/CGSB-4.2 No. 36-M89, for use in the manufacture of shells for duvets, featherbeds and pillows filled solely with "commercial landfowl feather", "commercial waterfowl feather", or "commercial down" or any combination thereof, as defined in the Textile Labelling and Advertising Regulations, or synthetic staple fibres of Chapter 55.

Shells, made of fabrics of Chapter 52, 54, 55, 58 or 60, for use in the manufacture of duvets, featherbeds and pillows filled solely as described above.

9996.00.00 Woven fabrics, unbleached or bleached, solely of single cotton yarns, measuring 151 decitex or more but not exceeding 300 decitex, having a sum of yarns per 10 cm in the warp and the weft of 790 or more, with an air permeability not exceeding 5.0 cm³/cm²-s-1 as determined by CAN/CGSB-4.2 No. 36-M89, for use in the manufacture of shells for featherbeds and pillows filled solely with one of the following:
(a) "commercial landfowl feather" or "commercial waterfowl feather", or any combination of the two, as defined in the Textile Labelling and Advertising Regulations;
(b) 85% or more by weight of "commercial waterfowl feather" mixed solely with "commercial down", as defined in the Regulations;
(c) 85% or more by weight of "commercial landfowl feather" mixed solely with "commercial down", as defined in the Regulations;
(d) 85% of more by weight of a combination of "commercial waterfowl feather" and "commercial landfowl feather" mixed solely with "commercial down", as defined in the Regulations; or
(e) synthetic staple fibres of Chapter 55.

Shells, made of fabrics of Chapter 52, 54, 55, 58 or 60, for use in the manufacture of featherbeds and pillows filled solely as described above.

IE Canada is asking that you send any views that you or others may have on this matter to Amesika Baeta abaeta@iecanada.com by August 31, 2010.

Tories Unveil Déjà Vu Tariff Measure

(Jane Taber — Globe & Mail)

For the second consecutive day, the Harper government re-announced measures that were in last week’s budget, declaring today that Canada will become a tariff-free zone for manufacturers.

Again, this is old news but suggests an effort by the government to show it is busy and working while Parliament was shut down for six weeks. The measure, which eliminates more than 1,500 tariffs, will create 12,000 jobs, according to International Trade Minister Peter Van Loan.

Mr. Van Loan was joined by Finance Minister Jim Flaherty. The two played up the budget measure, re-announcing that their move will make Canada more competitive and signal to other countries that “Canada is open for business.”

But Jason Myers, president of the Canadian Manufacturers and Exporters Association had said last week this will be a “pretty marginal benefit.” Read more here.

Mr. Harper, Cut Down These Tariffs

(Terence Corcoran — Financial Post)

The commentary brigades are rightly falling all over themselves in praise of the Harper government’s budget plan to eliminate tariffs on industrial machinery and equipment. As economic policy goes, it was the best move in the budget. Whether it says anything at all about the free trade resolve of the Harper Conservatives is another matter. Ottawa talks big on trade, but the equipment tariff cut is a small-time play in the government’s $4-billion annual consumer-punishing customs tariff regime.

The removal of tariffs on 1,541 equipment import categories is a tribute to the lobbying efforts of Canadian manufacturers. Businesses from car makers to carpet makers will benefit from the lower cost of equipment purchases. By definition, that improves their productivity because they will get the same amount of output from fewer dollars invested. Read more here.

Proposed Remission of Customs Duties on Future Importations of Certain Types of Vessels…

(Department of Finance)

The Government published a notice in the October 24, 2009 edition of Canada Gazette Part I regarding the proposed remission of customs duties on future importations of certain types of vessels of a length of 129 metres or more. The Canada Gazette notice is available at the hyperlink below.

Comments should be submitted by December 11, 2009, in the format described in the following notice.

Senate Panel Moves Tariff Bill

(Journal of Commerce Online – R.G.Edmonson)

Importers urge congress to complete legislation by year-end

The Senate Finance Committee belatedly kicked its miscellaneous tariff bill into gear, and is making up for lost time. Senators will have until October 30 to file requests for duty reductions or suspensions on specific imported products that have no equivalent manufacturer in the United States.

The miscellaneous tariff bill is normally routine and non-controversial legislation, but that changed this year due to the Senate’s late start. Last July, the Tariff Action Coalition, which consists of eight companies seeking action on imports, urged Congress to move forward quickly with the MTB. If a new bill is not signed into law by December 31, importers will lose some $500 million in tariff breaks now on the books. In comparison, the House has nearly completed work on its version of the bill, the coalition said. Read more here.