News

Quick Take on U.S. Tariffs on Imports from China:

• If you have a product on the third list hit with Section 301 tariffs the deadline for filing a request for a product exclusion is September 30, 2019.
  • Here is the list of products on that list – and portal for product exclusion.
• Tariffs for products on List 4A have been raised from 10% to 15%, effective September 1, 2019.
  • List 4A Products
• Tariffs for products on List 4B will be raised from 10% to 15%, effective December 15, 2019.
  • List 4B Products
• USTR is asking for comments by September 20, 2019, on its proposal to raise tariffs on the first 3 lists from 25% to 30%.
  • Notice and list of products
• The period for asking for product exclusions for the first 2 lists covering $50 billion of imports from China is closed.
• USTR has not yet instituted a product exclusion process for Lists 4A and 4B.

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.