Customs

Additional 25% Duty on $50 billion of Chinese Imports

Section 301 

On June 15, 2018, The White House issued a statement in regards to tariffs on Chinese goods worth about $50 billion. An additional 25% duty rate will be imposed on goods that “contain industrially significant technologies [,]” including those “related to China’s Made in China 2025 strategic plan to dominate the emerging high-technology industries [,]” according to the statement. The statement goes on to say, “China has, for example, long been engaging in several unfair practices related to the acquisition of American intellectual property and technology. These practices, documented in an extensive report published by the United States Trade Representative (USTR) on March 22, 2018, harm our economic and national security and deepen our already massive trade imbalance with China.”

The move is implied to protect American jobs. In addition, the tariffs will service as an initial step toward a balanced trade relationship between China and The United States.

The statement also goes on to say the United States will pursue additional tariffs if China engages in retaliatory measures, such as imposing new tariffs on United States goods, services, or agricultural products; raising non-tariff barriers; or taking punitive actions against American exporters or American companies operating in China.

Following the issuance of the White House statement, the U.S. Trade Representative published a notice on its website containing the list of products/tariff classifications that will be subject to the additional 25% duty. The list is broken down into two pieces and focuses on “industrial” (non-consumer) products.

There are two sets of U.S. Tariff Lines that will be imposed.

List 1

An additional 25% duty will be assessed on July 6, 2018

Download List 1

Hint:
To find your product or HTS number, hit ctrl+f and enter a short keyword associated with your product.

List 2

This list of products will undergo further review in a separate public notice and comment process, including a public hearing. After completion of this process, USTR will issue a final determination on the products from this list that would be subject to the additional duties.

Download List 2

Hint:
To find your product or HTS number, hit ctrl+f and enter a short keyword associated with your product.

 

USTR recognizes that some U.S. companies may have an interest in importing items from China that are covered by the additional duties. Accordingly, USTR will soon provide an opportunity for the public to request the exclusion of particular products from the additional duties subject to this action. USTR will issue a notice in the Federal Register with details regarding this process within the next few weeks.

We recommend clients to review both lists published by the USTR.

Your dedicated Scarbrough contact will be contacting all affected customers who have used Scarbrough as their customs broker in the last 12 months.  We suggest you review your HTS numbers and ensure you have the goods classified correctly(by law, it is the ultimate responsibility of the importer of record to determine HTS numbers).

If you are unsure if your product is affected, the lists mentioned above have both lists of HTS as provided by President Trump.  The lists are to the HTS subheading or 8-digit level.  If would like to come up with a new solution for your supply chain or import needs, or need help auditing your current HTS numbers, please contact our consulting team.  Mention this post for a free 30-minute consultation.  Email consulting@scarbrough-intl.com.

 

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