Industry News

Section 301 List 4a Additional Tariffs decrease to 7.5%

Section 301 List 4a Additional Tariffs decrease to 7.5%

List 4a Decreases to 7.5% on February 14, 2020

On January 16, 2020, The United States and China signed a “phase one” agreement, which was originally agreed upon on December 13, 2019.  The USTR announcement states, [the] “phase one trade deal requires structural reforms and other changes to China’s economic and trade regime, including with respect to certain issues covered in this Section 301 investigation…The agreement is scheduled to enter into force 30 days thereafter on February 14, 2020.”

As mentioned, some outcomes of the agreement relate to Section 301 tariffs on Chinese imports into the United States.  More specifically, the United States Trade Representative has determined to decrease List 4a additional tariffs from 15% to 7.5% effective February 14, 2020.  Section 301 List 4b tariffs were originally planned for December 15, 2019 but were suspended after the “phase one” agreement between the United States and China took place.  To view more details on the “Phase One” agreement, click here.

Exclusion Process

The exclusion process for Section 301 List 4a closes on January 31, 2020.  Exclusions must be submitted online.  If this is something your company is interested in and need help, please contact consulting@scarbrough-intl.com.

 

View USTR Announcement

 


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.  Four separate lists have been announced.  To view the most up to date information, check out our debriefing on Section 301 Imports from China.  This post indicates effective dates, duty rates, and more.

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.

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.

Consulting

Scarbrough is offering a FREE 30-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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Resources

To read more about Section 301, visit USTR.gov

Download each Section 301 List below:

View List 4a

View List 4b


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