May 2019 Update on Section 301 Tariffs

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  The increase is effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on May 10, 2019, and exported to the U.S. on or after May 10, 2019.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