To say this year has been boring for the trade compliance world would be an understatement.

In 2022, the U.S. suspended normal trade relations with Russia & Belarus, implemented a first-ever forced labor law, limited Section 232 tariff actions on steel and aluminum with the U.K., E.U., and Japan, and started a 4-year review on Section 301 China tariffs. GSP continues to be on hold, creating uncertainty for importers relying upon duty relief for goods from developing countries. Meanwhile, U.S. Customs continues to modernize its processes, looking for ways to collect information to facilitate legitimate trade.

Here are our top import compliance-related topics to watch in the new year.

1. Generalized System of Preferences (GSP)

GSP is still pending renewal with U.S. Congress. GSP expired Dec 31, 2020.

Importers may continue flagging eligible products for GSP at the time of entry. When GSP is reauthorized, the expectation is that U.S. Customs will automatically refund duties paid back to the Importer. 

2. Section 301 China Tariffs

Product exclusions continue to expire, with 352 expiring at the end of December and 81 scheduled to expire on Feb 28, 2023.

At the moment, there is no exclusion process available.

Importers can comment on List 1 and 2 tariffs through Jan 17, 2023, to help the U.S. Trade Representative make informed decisions on the tariff action. List 3 and 4A tariffs will get their turn for review soon. A List 3 review may come quickly, in early 2023, and List 4A closer to the end of 2023 or early 2024.

3. Indo-Pacific Economic Framework (IPEF)

This new framework includes 14 members, the U.S., Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, and Vietnam. Notably missing are China, Hong Kong, and Taiwan. 

One of four pillars, Pillar I - Trade seeks "to develop new and creative approaches to trade and technology policies that advance a broad set of objectives and that fuel economic activities and generate investments; promote resilient, sustainable, and inclusive economic growth and development; and benefit workers, consumers, indigenous peoples, local communities, women, and micro-, small-, and medium-sized enterprises." The first in-person negotiating round for the IPEF takes place Dec 10-15.

It's to be seen what IPEF does for trade between these countries.

4. Steel and Aluminum Tariffs

The overcapacity and carbon input of Chinese steel and aluminum is being discussed in meetings between the U.S. and every 'friendly' country. The latest talks between the U.S. and E.U. are concerning implementing climate-based tariffs targeting Chinese steel and aluminum. So far, this is only talk, with nothing officially announced.

With sustainability gaining traction, this may be the new front of tariffs.

5. Forced Labor 

The strongest U.S. forced labor law – Uyghur Forced Labor Prevention Act (UFLPA), went into force on Jun 21, 2022, prohibiting goods from the Xinjiang Uyghur Autonomous Region (XUAR) in China.

This year, knowing your supply chain down to the raw material level became even more critical.

Be prepared to expect more forced labor enforcement in 2023.

6. More Import Data Collection

It's a big job to regulate imports from various countries with extended supply chains subject to over 50 government agencies. Customs continues to explore ways to learn more about imports before releasing goods. This is all in the name of facilitating legitimate trade. Here are two key actions that may require additional data elements in 2023.

• Global Business Identifier

Status: Undergoing testing from Dec 19, 2022 – Jul 21, 2023.

What is it? Test participants will submit global business identifiers (GBIs) for manufacturers, sellers, and shippers of merchandise. Participants may also provide GBIs for exporters, distributors, and packagers. The test aims to see if GBI data will enable the enhanced tracing of the supply chains of certain commodities.

• Chinese Postal Code Requirement

Status: On Hold

Provide early notification to importers (and customs) that goods may have been produced in the XUAR and are subject to Uyghur Forced Labor Prevention Act restrictions. Goods produced in XUAR are automatically detained or seized. Read More