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Start Prepping to Submit Comments for Section 301 List 4 Imports from China

Submit Comments for Section 301 List 4 Imports from China

Do you Import from China?

Just recently, President Trump announced his consideration to impose 25% additional tariffs on almost all remaining imports from China into the United States which add up to a trade value of approximately $300 billion. This would encompass “List 4” of imports from China and can be found here.  If your business has not already been impacted by the Section 301 tariffs placed on imports from China into the United States, now is the time to submit comments on how the recent announcement would affect your business.  We suggest that importers start prepping public comments now and submit them electronically when the link is available on www.regulations.gov.  More information below on who should submit comments and the steps to do so.

Furthermore, it never hurts to start prepping for an exclusion should the tariffs go into effect and if the USTR announces a product exclusion process.  A handy guide that was used for the past exclusion processes on List 1 and List 2 can be found here.

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.

Section 301 List 4

Who Should Submit Comments:

USTR requests comments with respect to any aspect of the proposed action, including:

  • The specific tariff subheadings to be subject to increased duties, including whether the subheadings listed in the Annex should be retained or removed, or whether subheadings not currently on the list should be added.
  • The level of the increase, if any, in the rate of duty.
  • The appropriate aggregate level of trade to be covered by additional duties.

In commenting on the inclusion or removal of particular tariff subheadings listed in the Annex, USTR requests that commenters address specifically whether imposing increased duties on a particular product would be practicable or effective to obtain the elimination of China’s acts, policies and practices, and whether imposing additional duties on a particular product would cause disproportionate economic harm to U.S. interests, including small- or medium-size businesses and consumers.

How to Submit Comments:

All written submissions must be in English and sent electronically

  1. Go to www.regulations.gov
  2. Insert the Docket Number USTR-2019-0004 in the search field.  The site will provide a search-results page listing all documents associated with this docket.
  3. Find a reference to this notice and click on the link titled ‘comment now!’

For further information on using the www.regulations.gov website, consult the resources provided on the website by clicking on ‘How to Use Regulations.gov’ on the bottom of the home page.  They will not accept hand-delivered submissions.

The full list of instructions can be found on Page 4 of the USTR Notice.

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.

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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