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Customer Advisory – Section 301 Tariffs Update: New Exclusions & Update on List 4

We continue to see developments with the Section 301 Tariffs and want to continue to keep you informed of this dynamic situation.

Background

  • On August 18, 2017, the Office of the United States Trade Representative (USTR) initiated an investigation, under Section 301 of the Trade Act of 1974, into the government of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. 
  • On March 22, 2018, the USTR issued a notice of determination and request for comments that stated that the government of China’s acts, policies, and practices covered by the investigation were found to be actionable under Section 301(b) of the Trade Act.  The notice proposed the imposition of additional import duties on a preliminary list of 1,300 Chinese products, and indicated that a final list would be forthcoming after the period for public comment expired (See Federal Register, 83 FR 14906).
  • On June 15, 2018, the USTR issued a notice of action for the imposition of additional import duties on a final list of Chinese products.

The following is a recap of what has transpired since July 6, 2018, in regards to the Section 301 Tariffs for goods with the Country of Origin of China:

1. Implementation of additional Duties at 25%

List 1, effective July 6, 2018, 818 HTS Headings reported with 9903.88.01, followed by the Chapter 1-97 HTS that applies to the product(s).

List 2, effective August 23, 2018, 279 HTS Headings reported with 9903.88.02, followed by the Chapter 1-97 HTS that applies to the product(s).

Implementation of additional Duties at 10%, then at 25%.

List 3 (Part 1), effective September 24, 2018, & (Part 2), with partial exemptions at the 10-digit level.Reported with 9903.88.03 and 9903.88.04, respectively, followed by the Chapter 1-97 HTS that applies to the product(s).

  • List 3 from the USTR, which includes the HTS list (which was amended), as well as actions for the 10% to 25% increase.
  • This 25% increase became effective on June 15, 2019.

2. Exclusions

Exclusions  & Provisional Tariffs for Items on List 1 of Section 301 (9903.88.01) 

Set 1  – 9903.88.05, effective 12/21/2018.

Set 2 – 9903.88.06, effective 3/25/2019.

Set 3 – 9903.88.07, effective 4/18/2019.

Set 4 – 9903.88.08, effective 5/14/2019.

Set 5 – 9903.88.10, effective 6/4/2019.

Set 6 – 9903.88.11, effective 7/9/2019.

Exclusions  & Provisional Tariffs for Items on List 2 (9903.88.02)

Set 7  – 9903.88.12, effective 7/31/2019.

Exclusions  & Provisional Tariffs for Items on List 3 (9903.88.03)

Set 8 – 9903.88.13, effective 8/2/2019.

3. Implementation of additional duties for List 4(a), effective September 1, 2019 and 4(b), effective December 15, 2019.

On May 17, 2019, USTR published a list of products imported from China that would potentially be subject to an additional 10 percent tariff.  This new tariff will go into effect on September 1, 2019, as announced by President Trump on August 1, 2019. 

References

  • US Trade Representative Press Release on List 4 from August 13, 2019, in regards to List 4(a) and 4(b).
  • How to Navigate the Section 301 Tariff Process.” This explains how to identify if your items’ HTS is on a Section 301 Tariff List (1, 2, 3, or 4), and how to see if any exclusions exist. Note: Some exclusions are at the description level, so items must be reviewed to determine if the exclusion applies or not.

Should you have questions on any of these topics, please contact your local Branch Compliance representative.

RIM logistics, ltd. will continue to monitor the changes and effects of news that impact global trade and keep you informed as we receive updated information.