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Updates on EU Tariffs & the Section 301: List 4 Exclusion Request Procedure

Over the past week, there have been new developments for the EU (European Union) Tariffs and the Section 301 Tariffs: List 4 Exclusion Procedure that we want to ensure you are up to date on.

EU Tariffs became effective on October 18, 2019:

This situation has been ongoing ever since the US filed a complaint with the WTO (World Trade Organization) in 2004. The complaint centered on subsidies to Airbus. There have since been a number of legal reviews within the WTO on this matter, over the last 15 years.

In April 2019, the WTO provided their findings and the WTO arbitrator determined that the US may impose up to $7.5 billion, annually, in countermeasures against the EU, due to its failure to fully comply with a previous WTO ruling against subsidies it provided to the aircraft manufacturer, Airbus. There is an additional 10% duty on Aircraft and Aircraft parts, and an additional 25% duty on a wide range of agricultural miscellaneous products.

The following is an excerpt from the Federal Register:

“The U.S. Trade Representative has determined that the European Union (EU) and certain member States have denied U.S. rights under the World Trade Organization (WTO) Agreement and have failed to implement WTO Dispute Settlement Body recommendations concerning certain subsidies to the EU large civil aircraft industry. The U.S. Trade Representative has determined to take action in the form of additional duties on products of certain member States of the EU.”

The Federal Register which includes the Appendix list of the affected HTS #s can be found here.

The Section 301 Tariffs: List 4 Exclusion Procedure is now published:

The final list of the Section 301 Tariffs is partially in effect now – List 4A went into effect on September 1st, with an additional 15% duty,  and List 4B goes into effect on December 15th. As has been the case with all previous Lists 1-3, there is a process by which the trade may request exclusions from the Section 301 duties. Importers must complete the prescribed format under the Docket number listed, explaining why they would qualify for an exclusion.

Section 301 List 4A (which went into effect on 9/1/2019) now has published exclusion request instructions for which submissions are due by January 31, 2020. The open date to submit the requests is October 31, 2019. Exclusion requests must be submitted through an online portal and will require a significant amount of company and product information.

Sandler, Travis & Rosenberg, P.A. has published the instructions and Docket number for submission of List 4A exclusion requests here.