More on WROs (Withhold Release Orders)
The Withhold Release Order (implemented January this year), banning imports of cotton and tomato products from the Xinjiang region of China is still causing supply chain disruptions for many textile and apparel importers. Discussions are taking place for more products to be added to the list.
Additionally, a manufacturer specific WRO for disposable gloves from Top Glove in Malaysia is now active and any questionable shipments arriving to the US will be detained.
Both of these WROs fall right in line with one of US Customs’ stated top objectives - enforcement of worldwide human rights violations. These Withhold Release Orders restrict importation of goods produced wholly or in part by forced labor.
CBP has been clear that importers must know their supply chains from end to end.
Ruling on Section 232 Tariffs
On April 5th, the Court of International Trade (CIT) determined that, in a company specific case (PrimeSource Building Products), the expansion of Section 232 tariffs on derivative products of steel and aluminum, was ‘beyond authority’, and, therefore invalid. This decision grants PrimeSource refunds for duties paid, and may extend to other companies with like products, too. Although there are a multitude of importers with cases similar to PrimeSource, their applications for refunds may have to wait until the appeals process is finished to see any movement.
Even though it may be some time before any companies see refunds, this is a huge win for importers who have been battling the negative impacts of tariffs on their goods for the last few years.
More to come on this developing story.
We have a team of experts on staff who would be happy to help you navigate the complexities of these issues. Please contact Ashley Coxey, National Director of Business Development, Customs Brokerage or your Laufer representative for more information on any topic discussed in this week’s market letter.