The Office of the United States Trade Representative (“USTR”) announced tariff increases under Section 301 for imports from the People’s Republic of China of certain tungsten products, wafers, and polysilicon. The USTR also confirmed that these modifications conclude Section 301 4-year statutory review.
On November 25, 2024, President-elect Trump announced his intention to impose an additional 25% tariff on goods imported into the U.S. from Mexico and Canada and an additional 10% tariff on goods imported into the U.S. from China. These additional tariffs could go into effect as early as January 20, 2025.
On November 14, 2024, Chairman John Moolenaar (R-MI) of the House Select Committee on the Chinese Communist Party announced the introduction of the Restoring Trade Fairness Act (“RTFA” or “Act”), a bill that would revoke China’s Permanent Normal Trade Relations (“PNTR”) status with the U.S., a designation that has facilitated favorable trade terms since 2000, increase the rates of duty applicable to goods from China, and end de minimis imports from China.
The Office of the United States Trade Representative (USTR) has announced that it opened an electronic portal on October 15, 2024, establishing a process by which interested persons may submit requests for temporary exclusion from Section 301 China tariffs for particular machinery used in domestic manufacturing classified within Chapters 84 and 85 of the Harmonized Tariff Schedule of the United States (HTSUS). The subheadings eligible for consideration of temporary exclusion under the machinery exclusion process are set forth in Annex E of another USTR notice published on September 18, 2024. Exclusion requests will be accepted through March 31, 2025.
The Biden Administration announced today that it is pursuing significant regulatory actions, including a proposal to exclude goods subject to major trade actions, such as Section 301 tariffs, from de minimis entry and require additional information for each de minimis entry that remains eligible. Since the de minimis entry exemption is used to import most e-commerce shipments, this proposed action would prohibit any Chinese merchandise subject to Section 301 tariffs from utilizing the de minimis exemption.
With the end of the year fast approaching many importers that rely on current China tariff exemptions are facing the imminent loss of relief. Remaining active USTR exclusions will expire on December 31, 2020. As a result, Congressional pressure is mounting for the U.S. Trade Representative (USTR) to allow for an automatic extension of relief during this period of transition.
On Sept. 10, several importers filed a judicial challenge to the USTR’s authority to assess List 3 Section 301 (China) tariffs. These actions were filed at the U.S. Court of International Trade (CIT).
The plaintiffs argue that the U.S. Trade Representative (USTR) failed to follow certain statutory timeframes when implementing List 3 and 4A tariffs more than a year after the initial Section 301 investigation was commenced under the Trade Act of 1974. The actions also allege the USTR unlawfully imposed these tariffs in response to retaliatory tariffs enacted by China, rather than the intellectual property violations initially cited in the investigation.
Rock Trade Law is pleased to announce an expansion of our duty drawback services. The consulting firm, Kennard & Associates, will join our existing personnel to offer expanded duty drawback capabilities effective August 1, 2020. Rock Trade Law will also expand its portfolio of services to include vessel repair entry filings.
U.S. Customs and Border Protection (CBP) has announced that it will postpone the deadline for deposit of estimated duties, taxes and fees for 90 days for importers impacted by COVID-19. This temporary rule was announced via a CBP message which can be accessed here. The postponement is available to importers experiencing a significant financial hardship due to COVID-19.
On March 20, the USTR issued a notice seeking public comment on whether further modifications to remove China 301 duties from certain medical-care products are necessary. This notice was issued in furtherance to the USTR’s efforts in addressing the current COVID-19 outbreak and prioritizing health considerations. A copy of the USTR notice is available here.
Current versions of both the House and Senate stimulus bills call for new reporting mechanisms to require drug manufacturers and active pharmaceutical ingredient (API) manufacturers to report on their supply chain. This would include reporting on where material is made, and the amount of drug or API being manufactured.
Yesterday, the U.S. and China signed the Phase One Agreement to address Section 301 tariffs. Although the text of the agreement did not specify when List 4A tariffs might be reduced from 15% to 7.5%, the U.S. Trade Representative has submitted a notice to appear in the Federal Register today indicating that the tariff reduction will become effective on 12:01 Eastern Time on February 14, 2020.
After speculation and varying press reports, both the U.S. and China have confirmed U.S. List 4B tariffs set to go into effect Sunday will be canceled, and List 4A tariffs implemented this past September will be cut in half to 7.5% from 15%. Section 301 tariffs on Lists 1-3 will remain at 25% until further notice.
The USTR announced it will begin accepting exclusion requests for List 4A products subject to Section 301 duties assessed against China. The process will open on October 31, 2019 at noon Eastern Time. The final deadline for submitting applications will be January 31, 2020 11:59 PM Eastern time. The USTR notice is available here.
The U.S. International Trade Commission (ITC) will begin accepting petitions to seek duty reductions or suspensions under the next Miscellaneous Tariff Bill (MTB). The MTB provides temporary (typically 3-year) relief from ordinary import duties on goods that are not produced domestically to improve the competitiveness of U.S. companies.
In response to China’s recent announcement of retaliatory tariffs imposed on U.S. goods, President Trump tweeted and the USTR published today intent to levy a 5% increase on Section 301 tariffs across all lists of merchandise scheduled or currently being assessed Section 301 duties. The USTR notice is available here.
President Trump tweeted earlier today that the United States will impose a 10% additional duty on Chinese articles included on List 4 beginning September 1, 2019. List 4 has not yet been finalized as to product coverage; but at last publication covered all apparel, footwear, and manufactured textile products. The List also covered a host of consumer products, including electronics, cellphones and toys.
The USTR announced it will begin accepting exclusion requests for List 3 products subject to Section 301 duties assessed against China. The process will open on June 30, 2019 at noon Eastern Time. The final deadline for submitting applications will be September 30, 2019. The USTR notice is available here.
Approved exclusion requests will exempt List 3 products from Section 301 tariffs retroactively from the September 24, 2018 effective date until one year after the publication of the exclusion determination in the Federal Register.
The USTR will evaluate each request on a case-by-case, and will determine whether a specific product should be excluded based on: 1) the rationale of the exclusion, 2) whether the granting of the exclusion would undermine the objective of the Section 301 investigation, and 3) whether the request defines the product with sufficient precision.
The USTR will be using a new web portal and application form to collect submissions. Newly required information in the application includes, but is not limited to:
An expanded description of the product describing the product function, application, principal use, and any unique physical features that distinguish it from other products within the covered 10-digit HTSUS subheading.
Information regarding the requester’s gross revenues for 2018, the first quarter of 2018 and the first quarter of 2019, which will not be made public.
Applications must be supported with specific information as to whether a product is available only from China; whether a product is available from the U.S. or a third country; and whether the requester has attempted to source the products elsewhere.
An indication of whether the applicant has made prior applications for relief under Lists 1 or 2.
Like the process for List 1 and List 2 exclusions, applicants must also establish whether the products are critical to the “Made in China 2025” program and must establish the degree of economic harm to the applicant. All submissions must also provide a clear basis for the HTS subheading asserted for the product.
The application form with the full information required can be viewed here.
All applications will be open for public comment. Responses to individual requests are due 14 days after the application is posted. Replies to responses are due 7 days after the close of the 14-day response period, or 7 days after the posting of a response-whichever occurs later.
Should you require assistance to prepare or validate List 3 submissions prior to their submission to the USTR, please contact one of the trade professionals listed here.
