On Friday, July 6, 2018, the effective date of the new U.S. Section 301 tariffs, the United States Trade Representative (USTR) published the procedure on how companies can request exclusion from the tariffs on specific products from China.
News / Regulatory Updates
July 6, 2018 marks the effective date of the U.S. Section 301 25% duties on imports of Chinese-made products included in this list: Chinese Line Items. U.S. importers should be aware that they may need to increase their bond amounts to address the increase in duties on these specific imported goods.
The Office of the United States Trade Representative (USTR) today released a list of products imported from China that will be subject to additional tariffs as part of the U.S. response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property.
The list of products issued today covers 1,102 separate U.S. tariff lines valued at approximately $50 billion in 2018 trade values. This list was compiled based on extensive interagency analysis and a thorough examination of comments and testimony from interested parties. It generally focuses on products from industrial sectors that contribute to or benefit from the “Made in China 2025” industrial policy, which include industries such as aerospace, information and communications technology, robotics, industrial machinery, new materials, and automobiles. The list does not include goods commonly purchased by American consumers such as cellular telephones or televisions.
On Tuesday, May 29, it was announced that the administration would proceed with its Section 301 of the Trade Act of 1974 proposal to impose a 25% tariff on selected Chinese goods. This is approximately 10 days after declaring that the tariffs would be placed on hold. To clarify this rapidly changing situation regarding tariffs, below is an outline of important points and a timeline of pertinent events.
Starting Friday June 1, 2018, the 25% tariff on steel and 10% tariff on aluminum will go into effect for the European Union, Canada, and Mexico. The tariffs were originally announced in March (Steel and Aluminum Tariff List) but provided a temporary exemption to several U.S. allies while negotiations of export limits to the U.S. were discussed. According to U.S. Commerce Secretary Wilbur Ross, export limits were negotiated with South Korea, Argentina, Australia, and Brazil. However, Ross said negotiations didn’t go as far as he wanted them to with Canada, Mexico, and European diplomats and talks will continue.
On Friday, March 23, 2018, the President signed into law H.R. 1625 (Public Law 115-141), the “Consolidated Appropriations Act, 2018,” which in addition to providing full-year federal appropriations through September 30, 2018, extended GSP with retroactivity, for goods entered or withdrawn from a warehouse for consumption from January 1, 2018 through December 31, 2020. The new law, effective April 22, 2018, also provided for the retroactive refund of all duties (without interest) to the importer of record (IOR) on GSP-eligible goods entered during the January 1, 2018 through April 21, 2018 lapse period.
The latest United States Trade Representative (USTR) proposed application of an additional 25% duty covering more than 1300 import tariff classifications including: medicaments; pumps and valves; machinery for the oil and gas, agriculture, food, beverage, and apparel industries; motors; generators; trucks; bulldozers; railway cars; automobiles; helicopters; airplanes; boats; and consumer products such as dishwashers, microwaves, TVs, and VCRs. The list of products, defined by 8-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), is set out in the Annex to the Federal Register Notice (click here).
President Trump Proposes Increased Tariffs on China Imports
Based upon an investigation by the United States Trade Representative (USTR) under section 301 of the Trade Act of 1974, as amended (the “Act”) (19 U.S.C. 2411) President Trump issued a Memorandum on March 22 stating he will impose about $60 billion worth of annual tariffs on Chinese imports as a result of China’s laws, policies, practices, or actions that may be unreasonable or discriminatory and that may be harming American intellectual property rights, innovation, or technology development. The tariffs, which the United States trade representative will publish within 15 days, will target 1,300 lines of Chinese goods — everything from shoes and clothing to electronics, administration officials said. Under the terms of the memorandum, the President ordered a 60-day consultation period, which will give industry lobbyists and legislators a chance to water down a proposed target list.
Safeguard Tariffs on Imported Solar Cells
- The ITC determined that increased solar cell and module imports are a substantial cause of serious injury to the domestic industry. Although the Commissioners could not agree on a single remedy to recommend, most of them favored an increase in duties with a carve-out for a specified quantity of imported cells.
GSP Expired On December 31, 2017
The Generalized System of Preferences (GSP) provides duty-free treatment to goods of designated beneficiary countries. The program was authorized by the Trade Act of 1974 to promote economic growth in the developing countries and was implemented on January 1, 1976.