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Section 301 increase from 25% to 30% on October 15 on List 1, 2, 3

Section 301 increase from 25% to 30% on October 15 on List 1, 2, 3

Tariff Increase from 25% to 30%

In retaliation to China’s tariffs on $75 billion worth of U.S. products, the United States Trade Representative announced that the Section 301 tariffs on $250 billion worth of Chinese goods (List 1,2, and 3 combined) would increase from 25% to 30% effective October 1, 2019. However, on September 11, 2019, President Trump tweeted that “as a gesture of good will, to move the increased tariffs on 250 billion dollars worth of goods (25% to 30%), from October 1st to October 15th.”  President Trump did this at the request of the Vice Premier of China, Liu He, and due to the fact that the People’s Republic of China will be celebrating their 70th anniversary on October 1, 2019.

Section 301 increase

 

 

On August 23, 2019, China announced it would impose tariffs on $75 billion worth of U.S. products imported into China.  The retaliatory tariffs will impose an additional 5% or 10% duty on a total of 5,078 products, which include soybeans, auto parts, cars, small air crafts, beef and pork. According to Reuters, “China is also reinstituting an additional 25% tariff on U.S.-made vehicles and 5% tariffs on auto parts that had been suspended at the beginning of the year.”  To view a summary of Chinese retaliation tariffs on U.S. goods, click here.


What to do

Scarbrough Consulting, Inc. is offering a free 30-minute consultation to any company that may be affected by the Section 301 announcements.  Please send an email to consulting@scarbrough-intl.com or fill out the form below.  Our Global Trade Experts and Licensed Customs brokers are here to help.

Background

On August 18, 2017, USTR initiated an investigation into certain acts, policies and practices of the Government of China related to technology transfer, intellectual property and innovation (82 FR 40213). During the investigation, the Trade Representative determined that the acts, policies and practices of China under investigation are unreasonable or discriminatory and burden or restrict U.S. commerce, and are thus actionable under Section 301(b) of the Trade Act of 1974, as amended (Trade Act).

In response, President Trump initiated a number of actions which imposed ad valorem tariffs on certain imports originating in China. List 1, effective July 6, 2018 places an additional duty rate of 25% on $34 billion worth of goods from China.  List 2, effective August 23, 2018 places an additional duty rate of 25% on $16 billion worth of goods from China.  List 3, effective September 24, 2018 places an additional 10% on $200 billion worth of goods from China, and an increase up to 25% of these goods was imposed on June 15, 2019.  List 1, 2, and 3 tariffs currently at 25% will jump to 30% on October 15, 2019.   There are some exceptions to these tariffs through a product exclusion process. As mentioned above, List 4a is scheduled for September 1, 2019 and List 4b is scheduled for December 15, 2019.

Other ways to Learn More about Duty Savings

If the Section 301 tariffs are affecting your company, watch this webinar recording to learn more.  Scarbrough’s President and COO, Adam Hill, along with Patrick Caulfield, an attorney at GDLSK, an international trade and customs law firm, talk about legal opportunities to recover or avoid paying duty to CBP.  This is an interactive webinar set up as a question/answer forum.


Resources

To review Section 301, visit this helpful Resource Page

To read more about Section 301, visit USTR.gov

Download each Section 301 List below:

View List 4a Effective Sept 1

View List 4b Effective Dec 15


Section 301 List 1
Section 301 List 2 Section 301 List 3

 

 

 

 

 

Consulting

Scarbrough is offering a FREE 20-minute consultation to any importer affected by the Section 301 Tariffs. Email consulting@scarbrough-intl.com or fill out the form below.

Consulting Request

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