Industry News

Section 301 List 4 Effective September 1, 2019

Section 301 List 4 Effective September 1, 2019

In a tweet, President Trump threatened that starting September 1, 2019 an additional 10% duty rate will be imposed on almost all remaining imports from China that are not already subject to a Section 301 tariff.  The products come from what is known as Section 301 List 4 and encompass approximately $300 billion worth of Chinese imports.

Section 301 List 4

 

List 4 products were originally due to incur a 25% additional duty rate in May when U.S.-China talks weren’t going as planned.  Once talks started headed in the right direction, the tariffs were postponed indefinitely until just now.  You can see if your product is affected here or you can also view the entire List 4 posted by the USTR below. According to Sandler, Travis and Rosenberg, “The Office of the U.S. Trade Representative said at that time that this list covers all apparel, footwear, and manufactured textile products, among others, but excludes pharmaceuticals, certain pharmaceutical inputs, select medical goods, rare earth materials, and critical minerals. A Federal Register notice providing additional clarifying details is expected shortly.”

 

Download List 4

 

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.   There are some exceptions to these tariffs through a product exclusion process.

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:


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

Enter your information below and our team will set up a FREE 20 minute consultation.

 

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