On April 3, 2018, under Section 301 of the Trade Act of 1974 the Office of the U.S. Trade Representative (“USTR”) announced a proposed list of approximately 1,300 tariff lines subject to additional 25% tariff. These additional tariffs were as a result of an investigation into “China’s unfair trade practices related to the forced transfer of U.S. technology and intellectual property.”
After this proposed list underwent extensive public comment, on June 15, 2018, the USTR: (1) Removed 515 product lines from the initial proposed list (2): Recommended adding 284 product lines to target products that benefit from China’s industrial policies; and (3) Maintained 818 products lines from the initial proposed list unchanged.
With respect to the 818 products, the list of affected products may be found here. The 25% additional tariff will come into effect on July 6, 2018.
EXCLUSION REQUEST DEADLINE: OCTOBER 6, 2018
On August 12, 2018, the USTR finalized the second tranche of tariffs on Chinese products in response to China’s unfair trade practices. The list contains 279 of the original 284 tariff lines that were on a proposed list announced on June 15 which may be found here. The 25% additional tariff will come into effect on August 23, 2018.
EXCLUSION REQUEST DEADLINE: DECEMBER 18, 2018
On September 17, 2018, the USTR finalized a list of approximately $200 billion worth of Chinese imports that will be subject to additional tariffs. The list contains 5,745 full or partial lines of the original 6,031 tariff lines that were on a proposed list of Chinese imports announced on July 10, 2018.
In accordance with the direction of President Trump, the additional tariffs will be effective starting September 24, 2018, and initially will be in the amount of 10%. Starting January 1, 2019, the level of the additional tariffs will increase to 25%. The third list may be found here.
There are options for handling these additional tariffs:
1. Apply for an exclusion;
Individual companies and trade associations may submit requests for exclusions. A request can only address one product(i.e. multiple requests would be submitted for each product). The request must include the following information:
In addition, each exclusion request “should address” the following factors:
See the exclusion form here:
3. Import components for assembly in the U.S.
6. Shifting manufacture to a third country that would lead to “substantial transformation.”
7. Chapter 98 special classification in the HTSUS.
8. Valuation strategies such as assists.
*We will update this blog post based on further tariffs.
DISCLAIMER: The content of this website has been prepared by the Abady Law Firm, P.C., for informational purposes only and should not be construed as legal advice. The material posted on this website is not intended to create, and receipt of it does not constitute, a lawyer-client relationship, and readers should not act upon it without seeking professional counsel. The Abady Law Firm, P.C., did not produce and is not responsible for the content of off-site legal resources. The materials on this site may constitute advertising under various state ethics rules.