Update to Prior Tariff Stacking Post
On May 1st U.S. Customs and Border Protection (“Customs”) issued additional guidance on import duties on certain automobiles through Cargo Systems Messaging Service # 64916414 (the “CSMS”). The CSMS stated the following:
- The Executive Order applies retroactively to merchandise effected by the Section 232 Automobile and Auto Parts Tariffs, the IEEPA Fentanyl Tariffs on Canada or Mexico, or the Section 232 Steel and Aluminum Tariffs entered for consumption or withdrawn from warehouse for consumption on or after March 4, 2025; and
- Customs will publish refund procedures for eligible entries and make the necessary edits to the Harmonized Tariff Schedule no later than May 16, 2025. Filers should not request refunds until Customs publishes the refund procedure.
Treasury Secretary States “Agreements in Principle” Can Prevent Reinstatement of Tariffs for 17 Countries
In an interview earlier this week, Treasury Secretary Scott Bessent stated that 17 trading partners who reach an “agreement in principle” with the U.S. can avoid having the “reciprocal tariffs,” which have been paused until July 31, 2025, increased back to the maximum, original duty. According to Bessent, these 17 countries make up all but one of the U.S.’s important trading partners. The other, China, would have its own negotiation process.
Treasury Publishes Oil Smuggling “Red Flag” Guidance for Banks
The Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) issued an alert urging financial institutions to report suspicious activity involving smuggling of stolen crude oil from Mexico across the U.S. southwest border by various cartels and other Mexico-based transnational criminal organizations (“TCOs”). The alert outline (1) the tactics and “financial typologies” utilized by smuggling operations, (2) “red flag” indicators, and (3”) financial institutions’ reporting requirements under the Bank Secrecy Act.
Week Fifteen Sanctions Designations
OFAC also added several persons and entities to its Specially Designated Nationals and Blocked Persons List (“SDN List”) during Week Fifteen of President Trump’s return to office:
- On April 28, OFAC sanctioned three vessels and their owners for providing oil derivatives and support to the Houthis as part of Iran’s network of proxies and partners (see OFAC press release here).
- On April 29, OFAC designated six entities and six individuals based in Iran and China for their role in a network procuring ballistic missile propellant ingredients on behalf of Iran’s Islamic Revolutionary Guard Corps (“IRGC”) (see OFAC press release here).
- On April 30, OFAC sanctioned three Mexican nationals and two Mexico-based entities involved in a drug trafficking and fuel theft network linked to the Cartel Jalisco Nueva Generacion (“CJNG”) (see OFAC press release here).