E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel
  • Need Help?

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot

What Closing Costs Do Home Buyers Have?

February 25, 2023

What Is Realtek HD Audio Manager

February 2, 2023

A Basic Guide To Cell Tower Leasing

February 2, 2023
Facebook Twitter Instagram
E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel
  • Need Help?
Facebook Twitter Instagram
E Amazings
You are at:Home»Law \ Legal»Russia: Tightening the Screws, One Turn of the Screwdriver at a Time
Law \ Legal

Russia: Tightening the Screws, One Turn of the Screwdriver at a Time

By July 22, 2022No Comments4 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter Pinterest WhatsApp Email

[ad_1]

As the war in Ukraine enters its sixth month, the U.S. and its allies continue to look for opportunities to undermine Russia’s ambitions using economic means. While this dynamic has played out primarily in the export realm, import policy is also proving to be a pressure point.

A prime example of this involves the Biden administration’s recent action with respect to the amount of Column 2 duty assessed on Russian origin merchandise. Building on the authority laid out in the Suspending Normal Trade Relations with Russia and Belarus Act of April 2022 and the import prohibitions established in March 2022 by E.O. 14066 and E.O. 14068 (covering crude oil, petroleum, LNG, coal, seafood, certain alcoholic beverages, diamonds, etc.), President Biden announced, pursuant to Presidential Proclamation 10420, that 567 distinct articles of Russian origin would, effective 27 July 2022, be subject to a 35% ad valorem rate of duty. This action has the effect of ensuring a substantial duty burden applies to those products which, as currently provided for under Column 2 of the Harmonized Tariff Schedule of the United States (HTSUS), have either a free or minimal rate of duty. As a result of this action, the lion’s share of strategically significant Russian origin merchandise is either prohibited outright or subject to ad valorem duties of 35% or more. The same Proclamation, it should also be noted, amends General Note 3(b) of the HTSUS to add Russia and Belarus to the list of countries already subject to Column 2 duties (i.e., Cuba and N. Korea).

Underscoring the depth of the Biden administration’s resolve in this regard, CBP has already issued guidance to the trade on the implementation of these measures. Consistent with the terms of the Proclamation, importers will, for merchandise coming within its scope, be required to enter HTSUS heading 9903.90.08, as informed by U.S. note 30(b), alongside the Chapter 1-97 HTS on the appropriate Entry Summary line. Products provided for in this heading shall, in addition to the newly defined ad valorem rate of duty, continue to be subject to antidumping, countervailing, and any other applicable duties, fees, exactions, and charges. The modifications set forth in the Proclamation continue in effect until expressly reduced, revised, or terminated.

The immediate impact of this measure will, for the same reason discussed in our earlier blog post on this subject, be limited. There can be no other outcome where Russian origin goods amount to approximately 1% of all U.S. imports (with a total estimated value of $29.7 billion in 2021). That said, some action is better than none when it comes to countering the aggression of the Russian forces. And, to the extent the U.S. example of imposing ad valorem duties on strategically sensitive goods – coming, as it does, on top of earlier action to suspend the NTR (MFN) status of both Russia and Belarus – serves as a catalyst for like-minded allies to take similar measures, this initiative could end up having a ripple effect. Of course, any upside realized in connection with this last point would be significantly compounded by a decision on the part of India and/or China to not only forego the future purchase of Russian origin goods but also join the G7 nations in restricting Russia’s MFN trade status. Unfortunately, however, the prospects for either of these possible developments are, respectively, minimal and zero. At least for now.

Going forward, U.S. importers should exercise due diligence for the purpose of ascertaining the admissibility and duty rate of Russian origin goods in advance of purchasing and entering same. Or, if feasible, avoiding such import transactions altogether. Importers who fail to conduct this kind of due diligence should, alternatively, anticipate the possibility of disrupted supply chains, additional duties, and unwanted CBP scrutiny.

The post Russia: Tightening the Screws, One Turn of the Screwdriver at a Time appeared first on Harris Bricken Sliwoski LLP.

[ad_2]

Source link

Related Posts

Free CLE Webinar: Doing Business in Sub-Saharan Africa

By January 3, 2023

The Importance Of Selecting The Right Personal Injury Lawyer

By Corbin BowenJanuary 3, 2023

Happy New Year from Harris Bricken!

By January 1, 2023

Blockchain Developments in Africa: A Youtube Series

By December 27, 2022
Add A Comment

Comments are closed.

Our Picks

What Closing Costs Do Home Buyers Have?

By Corbin BowenFebruary 25, 2023

What Is Realtek HD Audio Manager

By Corbin BowenFebruary 2, 2023

A Basic Guide To Cell Tower Leasing

By Corbin BowenFebruary 2, 2023
Recent Posts
  • What Closing Costs Do Home Buyers Have? February 25, 2023
  • What Is Realtek HD Audio Manager February 2, 2023
  • A Basic Guide To Cell Tower Leasing February 2, 2023
  • Air Duct Repair 101: Everything You Need To Know February 2, 2023
  • Advantage LIC? How Budget Insurance Amendment Bill may benefit the PSU insurance giant January 5, 2023
  • The Flight Of The Dremel January 5, 2023
  • LIC offering multiple benefits on premium payment with co-branded credit cards with Axis Bank: Check features, offer January 5, 2023
Archives
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • September 2021
Facebook Twitter Instagram Pinterest TikTok
© 2022 E Amazings - All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.