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Section 301 List 4 – Products Removed, Products Delayed until Dec. 15

Section 301 List 4 – Products Removed, Products Delayed until Dec. 15

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The USTR announced updates on the Section 301 List 4.  First, 25 different items were completely removed from the list and will not undergo the additional tariff.  Second, an ad valorem duty of 10% will be imposed on products on List 4a effective September 1, 2019.  Third, another list of products were pulled from the original list 4 and the additional duty of 10% will imposed on December 15, 2019.  These items are reflected in List 4b.

The draft Federal Register notice verifies that there will be no grace period for goods on the water or exported prior to the stated dates.  The additional 10%  duty is due on goods entered into the U.S. on or after September 1, 2019 or December 15, 2019 respectively.  As stated in the USTR modification notice, “Additional duties at a rate of 10 percent ad valorem on the tariff subheadings set out in Annex A to this notice are applicable with respect to products that are entered for consumption, or withdrawn from warehouse for consumption, on or after September 1, 2019. Additional duties at a rate of 10 percent ad valorem on the tariff subheadings set out in Annex C to this notice are applicable with respect to products that are entered for consumption, or withdrawn from warehouse for consumption, on or after December 15, 2019.”

In a tweet on August 1, 2019, 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.  These goods are considered to be List 4a and must be filed under subheading 9903.88.15.

View List 4a Effective Sept 1

25 Products Removed from Original List 4

On August 13, 2019, the United States Trade Representative announced certain products will be removed from List 4 based on “health, safety, national security, and other factors,” and will not face the 10% ad valorem duty.  These items include:

HTS Product name
0303.69.00 Other fish in Bregmacerotidae et al,etc. frozen, excluding fillets, other meat portions, livers and roes
0304.71.10 Frozen cod fillets, skinned, in blocks weighing over 4.5 kg, to be minced, ground or cut into pieces of uniform weight and dimension
0304.71.50 Fillets, frozen, of cod, other than above
0304.72.10 Frozen haddock fillets, skinned, in blocks weighing over 4.5 kg, to be minced, ground or cut into pieces of uniform weight and dimension
0304.81.10 Frozen salmon fillets, skinned, in blocks weighing over 4.5 kg, to be minced, ground or cut into pieces of uniform weight
0304.81.50 Other frozen salmon fillets
0304.95.90 Bregamacerotidae other fish, other than Alaska pollack, nesoi, chilled or frozen fillets,nesoi
2511.10.10 Natural barium sulfate (barytes), ground
2511.10.50 Natural barium sulfate (barytes), not ground
2816.40.20 Oxides, hydroxides and peroxides of barium
2818.20.00 Aluminum oxide, other than artificial corundum
2826.90.90 Other complex fluorine salts, nesoi
2827.49.50 Chloride oxides and chloride hydroxides other than of copper or of vanadium
2844.40.00 Radioactive elements, isotopes, compounds nesoi; alloys, dispersions, ceramicproducts and mixtures of these products; radioactive residues
3606.90.30 Ferrocerium and other pyrophoric alloys in all forms
4901.99.00.40 Bibles, testaments, prater books and other religious books
8109.20.00 Zirconium, unwrought; zirconium powders
8112.92.60 Germanium, unwrought
8426.11.00 Overhead traveling cranes on fixed support
8426.12.00 Mobile lifting frames on tires and straddle carriers
8426.19.00 Transporter cranes, gantry cranes and bridge cranes
8426.20.00 Tower cranes
8609.00.00 Containers (including containers for transport of fluids) specially designed and equipped for carriage by one or more modes of transport
9401.80.60.21 CHILD SAFETY SEATS WITH DETACHABLE HARD-SHELL SEAT
9401.80.60.23 CHILD SAFETY SEATS, NESOI

Some List 4 Products Delayed until Dec. 15

Furthermore, the effective date for an additional 10% duty for certain products on the list will be delayed until December 15, 2019.  “Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing.” These products are included in list 4B under subheading 9903.88.16.

View List 4b Effective Dec 15

Exclusion Process

The USTR intends to conduct an exclusion process for Section 301 List 4 products.

Trade Talks Continue

According to CNBC.com, “China’s Commerce Ministry said Vice Premier Liu had a phone call with U.S. Trade Representative Robert Lightizer and U.S. Treasury Secretary Steven Mnuchin. China said they agreed to another call in two weeks.  The next round of trade talks were expected to take place in September, after the tariffs went into place.”

Original Date

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.

Download Original 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.

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