Sweeping legislation is rapidly coming together and is projected to have a historic impact across the US supply chain. Outlined in the America Competes Act of 2022 (H.R. 4521), there are some notable impacts on trade. The Bill, currently moving through the House of Representatives, addresses many areas of import, but most notably with De minimis, Anti-Dumping and Countervailing Duties and imports of seafood and softwood lumber. It is expected that the legislation laid out in the Bill will undergo changes, however below are key points as they are currently represented.
De Minimis And Section 321
If passed as currently written, imports previously sent under Section 321 will now require a more structured filing process with US Customs and Border Protection (CBP) if imported from non-market economies regardless of low value. Additionally, CBP will be collecting additional data on any goods entering the country via Section 321 with added enforcement for abuse, such as making declarations beyond the limitations of Section 321. If passed as currently drafted this will go into effect 15 days after enactment.
Successive Antidumping And Countervailing Duty Process
The America Competes Act introduces new tools in handling and conducting antidumping and countervailing cases. This includes easier pathways for new cases, newly prescribed timelines and deadlines, and also the concept of successive antidumping and countervailing investigations. The goal is that it will allow the Department of Commerce a means to track repeat offenders more effectively and allows the government to keep the pressure on those engaging in unfair trade practices with the ability to conduct investigations and impose duty cases one after the other.
Softwood Lumber Act Repealed
Reporting requirements under the 2008 Softwood Lumber Act will be removed. There is no information at this time whether there will be any replacement or any further information on what the impact will be, other than the reporting requirements of the long since expired agreement no longer being required at the time of entry.
All species of seafood would be required to report to the Seafood Import Monitoring Program (SIMP). The timeframe for reporting would be increased to a minimum of 72 hours, and no more than 15 days before entry. Additional data would also be required which includes a narrowed down catch location, the name of the vessel owner, and considerations of labor conditions. Oversight will be expanded to include international fisheries and permits.
As with any Bill, changes are expected. We will keep you updated on how this Bill evolves and if it will come into force.