News

The Office of the United States Trade Representative (USTR) has asked the Office of Management & Budget (OMB) for emergency clearance of the form it intends to use for product exclusion requests for tranche 3 $200 billion list of items subject to Section 301 duties.  According the USTR, requesters must use the form attached to the notice.

The window for submitting requests will open on or around June 30, 2019.  Requests for exclusion are required to identify the particular product sought to be excluded from the 301 duties and provide supporting data and the rationale for the requested exclusion. Within 14 days after USTR posts a request for exclusion, interested persons can provide a response with the reasons they support or oppose the request. Interested persons can reply to the response within 7 days after it is posted.

Questions on the form generally concern:  (1) whether the product advances or is important to China’s “Made in China 2025” program; (2) whether the product can be sourced elsewhere (in the U.S. or third countries); (3) harm the tariffs inflict on the requester; and (4) whether the product is easily identified for Customs & Border Protection (CBP) administration of the exclusion.

With the form now available, companies can begin to prepare their requests for exclusions for submission to USTR once the window is open on or around June 30, 2019.

1. For Tranche 4 $300 billion list.  Comment and testify at June hearing before USTR-led Committee in Washington, D.C. Due date for filing requests to appear and summary of expected testimony are due June 10, 2019.  Hearings will begin June 17, 2019.  Must explain why product does not advance China’s Made in China 2025 program, how they hurt your company, whether it is possible to source the product elsewhere and whether the product is easily identifiable for CBP. Official documents are available online. 
2. For Tranche 3 $200 billion list.  Ask for a product exclusion.  Window for submission of requests to USTR will open “on or around June 30, 2019.” A form provided by USTSR must be used to make the exclusion request.  Form elicits same information as for Tranche 4. Official documents are available online.

For assistance, please contact Evelyn Suarez at  esuarez@suarezfirm.com or (202) 552-0310.

Update on Section 301 tariff for third $200 billion tranche of Chinese imports

A 10% ad valorem duty was imposed on a third tranche of $200 billion worth of Chinese imports effective September 24, 2018.  The full list is available online.

On December 1, President Trump and President Xi reached an agreement to delay an increase on the $200 billion from 10% to 25% pending talks between the two nations.

The tariffs on the third $200 billion tranche remained at 10% until May 10, 2019 when the third tranche tariffs of 10% were lifted to 25%.  The increase is effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and exported to the U.S. on or after May 10, 2019.   If exported before May 10, 2019, the goods will be subject to the 10% duty. The Federal Register has the full documentation.  Here is the list of products in the third tranche.

Ambassador Lighthizer has said that there will be an exclusion process announced shortly for the third tranche.

Proposed tariffs for fourth tranche of approximately $300 billion of Chinese imports

Ambassador Lighthizer also announced that the President directed USTR “to begin the process of raising tariffs on essentially all remaining imports from China, which are valued at approximately $300 billion.” USTR issued a draft notice calling for public comment on a proposed 25% ad valorem duty covering approximately $300 billion worth of Chinese goods, listing more than 3,800 items that could be hit with the tariff.  A public hearing will be held on June 17 and comments are due by June 10.  According to USTR,  “The proposed product list excludes pharmaceuticals, certain pharmaceutical inputs, select medical goods, rare earth materials, and critical minerals.”

The latest list for a fourth $300 billion tranche of Chinese goods to be covered by a 25% ad valorem tariff includes some items dropped from previous lists.  It is, thus, extremely important to check whether your product is potentially exposed to such tariffs.  8426.19.00 Transporter cranes, gantry cranes and bridge cranes is on the list.  https://www.federalregister.gov/documents/2019/05/17/2019-10191/request-for-comments-concerning-proposed-modification-of-action-pursuant-to-section-301-chinas-acts 

As with the other tranches, USTSR will provide an opportunity to comment and testify at hearings as to why your product should not be included.  Here is the schedule:

June 10, 2019: Due date for filing requests to appear and a summary of expected testimony at the public hearing.

June 17, 2019: Due date for submission of written comments.

June 17, 2019: The Section 301 Committee will convene a public hearing in the main hearing room of the U.S. International Trade Commission, 500 E Street SW Washington DC 20436 that begins at 9:30 a.m.

Seven days after the last day of the public hearing: Due date for submission of post-hearing rebuttal comments

On April 12, 2019, the United States Trade Representative (USTR) published a notice of a proposed 100% ad valorem duty on various products from the European Union (EU) or certain member states.  The notice invites public comment on the preliminary list of products to be covered by such duties, which can be accessed at https://ustr.gov/sites/default/files/enforcement/301Investigations/Preliminary_Product_List.pdf

If you import products on the list you may wish to: (1) submit written comments (due May 28, 2019); and/ or (2) testify at a public hearing on May 15, 2019 in Washington, D.C. (requests to appear are due May 6, 2019).

You may wish to explain why the product you import should not be subject to these extra duties.  Special consideration will be made where the duties on a particular product might have an adverse effect upon U.S. stakeholders, including small businesses and consumers.

If you require further information or need assistance submitting comments or testifying, please contact Evelyn Suarez, Esq. at esuarez@suarezfirm.com or 202.552.0310.