Kim Quoted Discussing CBP’s Steel Tariff Calculation Method
Politico
International Trade Partner James Kim was quoted in a recent newsletter discussing a legal challenge to US Customs and Border Protection’s (CBP) method of calculating tariffs on steel imports.
The article examines CBP’s decision to apply the Trump Administration’s 50% steel tariff to the full value of certain imported steel products, including labor, machining, and profit, rather than only the value of the steel itself. The change, which was communicated through a guidance memorandum rather than a formal rulemaking process, is now being challenged before the US Court of International Trade by an Illinois-based importer.
James said, “There is a procedural defect in the way customs rolled out its guidance.”
The lawsuit argues that CBP’s revised tariff calculation effectively created a new regulatory requirement without following the formal procedures required for rulemaking. James explained that the guidance went beyond merely interpreting existing law. He added, “It was impactful enough that it could change the duty liability significantly, and that changes whether importers are subject to penalties.”
The dispute highlights the broader legal and compliance implications of federal agencies implementing policy changes through informal guidance rather than formal regulations.
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