Tariffs go into Effect August 23, 2018
On August 9, 2018, The Office of the United States Trade Representative (USTR) released a list of approximately $16 billion worth of imports from China that will be subject to a 25 percent additional tariff as part of the U.S. response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property. This second tranche of additional tariffs under Section 301 follows the first tranche of tariffs on approximately $34 billion of imports from China, which went into effect on July 6.
List 2 Details
The list contains 279 of the original 284 tariff lines that were on a proposed list announced on June 15. Changes to the proposed list were made after USTR and the interagency Section 301 Committee sought and received written comments and testimony during a two-day public hearing last month. Customs and Border Protection will begin to collect the additional duties on the Chinese imports on August 23.
According to Sandler, Travis, and Rosenberg, the new list reflects the removal of the following items:
– HTSUS 3913.10.00 – alginic acid and its salts and esters in primary forms
– HTSUS 8465.96.00 – splitting, slicing, or paring machines for working wood, cork, bone, hard rubber, hard plastics, or similar hard materials
– HTSUS 8609.00.00 – containers (including containers for transport of fluids) specially designed and equipped for carriage by one or more modes of transport
– HTSUS 8905.90.10 – floating docks
– HTSUS 9027.90.20 – microtomes
Furthermore, “many of the products included in the final list are classified in Chapters 39, 84, and 85, but various products in Chapters 27, 34, 38, 70, 73, 76, 86, 87, 89, and 90 are also included. Changes to the list were made after USTR and the interagency Section 301 Committee sought and received input and testimony during a two-day public hearing last month.”
In March 2018, USTR released the findings of its Section 301 investigation that found China’s acts, policies and practices related to technology transfer, intellectual property and innovation are unreasonable and discriminatory and burden U.S. commerce.
Specifically, the Section 301 investigation revealed:
- China uses joint venture requirements, foreign investment restrictions, and administrative review and licensing processes to require or pressure technology transfer from U.S. companies.
- China deprives U.S. companies of the ability to set market-based terms in licensing and other technology-related negotiations.
- China directs and unfairly facilitates the systematic investment in, and acquisition of, U.S. companies and assets to generate large-scale technology transfer.
- China conducts and supports cyber intrusions into U.S. commercial computer networks to gain unauthorized access to commercially valuable business information.
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. Four lists have been announced. Check out our Section 301 Debriefing to get the most up to date information.
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 email@example.com or fill out the form below. Our Global Trade Experts and Licensed Customs brokers are here to help.
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.
To review Section 301, visit this helpful Resource Page
To read more about Section 301, visit USTR.gov
Download each Section 301 List below:
Scarbrough is offering a FREE 20-minute consultation to any importer affected by the Section 301 Tariffs. Email firstname.lastname@example.org or fill out the form below.