Industry News

USTR Proposes Section 301 Tariffs on Imports from France

Section 301 Imports from France

New Section 301 Duties Proposed for Certain Products from France

The Office of the U.S. Trade Representative has determined that the Digital Services Tax that will be imposed by France is unreasonable or discriminatory and burdens or restricts U.S. commerce.  As a result, the Section 301 committee will hold hearings to determine which products from France may be subject to additional duties of up to 100% of the dutiable value to compensate for this action by France.

Section 301 France

We suggest importers submit comments

The USTR is seeking public comments and suggestions via the schedule posted below:

December 30, 2019:
Due date for request to appear at the public hearing and summary of testimony

January 6, 2020:
Due date for written comments

January 7, 2020:
Public hearings begin @ U.S. International Trade Commission
500 E Street SW, Washington DC 20436
@ 9:30 am

January 14, 2020:
Due date for post hearing rebuttal comments

You should submit written comments through the Federal eRulemaking
Portal: http://www.regulations.gov. Follow the instructions for submissions in sections V and VI
below. The docket number is USTR-2019-0009. For issues with on-line submissions, please
contact the USTR Section 301 line at (202) 395-5725.

Products Identified

A list of 63 proposed products has been identified with an estimated import trade value of $2.4 billion in 2018.  A final list will be drawn from these proposed products.  Some of the products include:

  • yogurt
  • whey protein
  • butter
  • cheese
  • manicure and pedicure preparations
  • make up
  • soap
  • handbags
  • household chinaware
  • cast iron household items
  • wine

[*side note: The USTR has been imposing additional tariffs of 25% on more than 150 goods imported from various European Union members, including France, since October 18, 2019.]

View the full USTR announcement to see the full list with HTS numbers.

View USTR Announcement

Background

On July 24, 2019, France signed into law a 3% Digital Services Tax (DST) on revenues that certain companies generate from providing certain digital services to, or aimed at, persons in France.  As a result, USTR initiated an investigation of the French DST pursuant to section 302(b)(1)(A) of the Trade Act of 1974, as amended (the Trade Act), and evidence shows that the DST is unreasonable and discriminatory towards U.S. commerce.  To read more details, please read the USTR announcement.   Pursuant to sections 301(b) and (c), the U.S. Trade Representative proposes to determine that action is appropriate and that appropriate action would include the imposition of additional ad valorem duties of up to
100 percent on certain products of France.

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

Enter your information below and our team will be in touch with you via email. Thanks!

 

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 read more about Section 301, visit USTR.gov