UPDATE > U.S. to Further Increase Tariffs on Chinese Goods on Lists 1, 2, 3, 4a and 4b

Posted on Sep 19

September 19, 2019

Additional Exclusions for China Lists 1,2, and 3 announced by the USTR

Additional exclusions from the Section 301 additional 25 percent tariff on List 1, 2, and 3 goods from China have been announced by the Office of the U.S. Trade Representative. These partial exclusions cover a total of 437 specific product descriptions that reflect 1,170 exclusion requests. The USTR announced each list separately as follows:

The List 1 notice contains 310 HTS subheadings which covered 724 separate requests.
The List 2 notice contains 89 HTS subheadings which covered 400 separate requests.
The List 3 notice contains 38 HTS subheadings which covered 46 separate requests.

It is important to note that importers who have an eligible product from List 1 and List 2 are able to claim an exemption under the new exclusions for up to a year from the date the official notice is posted in the Federal Register, regardless of whether the importer filed an exclusion request. However, additional List 3 product exclusions will expire on August 7, 2020, as a full year “would have resulted in disparities in the effective periods between exclusions granted early in the exclusion process and those granted later.”

To recap:
> exclusions for List 1 goods will be retroactive to July 6, 2018, and remain in place for one year after publication of a formal notice in the Federal Register and must be claimed using new HTSUS subheading 9903.88.14
> exclusions for List 2 goods will be retroactive to Aug. 23, 2018, and remain in place for one year after publication of a formal notice in the Federal Register and must be claimed using new HTSUS subheading 9903.88.17
> exclusions for List 3 goods will be retroactive to Sept. 24, 2018, and remain in place until Aug. 7, 2020 (which are now the uniform beginning and expiration dates for all List 3 exclusions that have been or may be granted) and must be claimed using new HTSUS subheading 9903.88.18

V. Alexander will continue to monitor this and provide updates as they become available. Please contact your account team with any questions.
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September 12, 2019

Tariff Increases for China goods on Lists 1, 2 and 3 Postponed Until October 15th

President Donald Trump has announced that the United States will delay by two weeks a planned increase in tariffs on some Chinese imports. In a Wednesday tweet, Mr. Trump said the delay is “a gesture of good will.” The President said Chinese Vice Premier Liu He requested the delay “due to the fact that the People’s Republic of China will be celebrating their 70th Anniversary … on October 1st.” The delay could signal a de-escalation of tensions ahead of trade negotiations that are slated to resume in Washington next month, although expectations are tempered, analysts said.

This delay means that the planned increase from 25% to 30% for Chinese goods on Lists 1,2, & 3 will not take place until October 15, 2019.

V. Alexander will continue to monitor this situation and provides updates. If you have any questions, please contact your V. Alexander account team.

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September 5, 2019

USTR issues Notice Seeking Comments on the Proposed October 1 Increase in China Section 301 Tariffs

On September 3, 2019, the office of the U.S. Trade Representative (USTR) issued a notice seeking comments from the public regarding the proposed increase in duties from 25% to 30% for products covered in Lists 1,2, & 3. These increases, previously announced by the President are schedule to go into effect on October 1, 2019.

The USTR has asked for comments to include…

• Details as to whether the tariff increases would be effective or practical enough to properly achieve the elimination of China’s unfair trade practices
• Information indicating that the rate increases would cause disproportionate economic harm to “U.S. interests, including small- or medium-sized businesses and consumers”

All submission requests must be sent electronically via the Federal eRulemaking Portal by September 20, 2019 using docket number USTR–2019–0015.

China List 3 exclusion Request Deadline Looming

We would also like to remind you that September 30, 2019 is the deadline for requesting an exclusion for the $200 billion worth of products covered in China List 3. Any exclusions granted will be retroactive to Sept. 24, 2018, and remain in effect for one year from the date of publication of the exclusion determination in the Federal Register.

The additional tariff on List 3 goods is currently 25 percent and is set to increase to 30 percent as of October 1, 2019 (comments on this increase are due by September 20, 2019). Any interested person, including trade associations, may request exclusions from this tariff by submitting a request through the exclusion portal (found here).

If you have any questions, please contact your V. Alexander account team.

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August 27, 2019

The Office of the U.S. Trade Representative (USTR) will publish the official Federal Register notice about the additional 15% tariffs for Section 301 List 4A products, effective September 1, 2019, and List 4B products, effective December 15, 2019, on August 30, 2019.

The unofficial Federal Notice can be found here.

There is no mention of the threatened additional increase on List 1, 2 and 3 items in the notice.

We will publish any further updates as soon as they become available.

Please contact your V. Alexander Account Team with any questions about this topic.

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August 26, 2019

President Trump tweeted, and the Office of the United States Trade Representative (USTR) confirmed last Friday that the United States, in response to China’s announcement of additional tariffs on $75 billion worth of American products, would increase existing tariffs on most Chinese goods by an additional 5% effective as of the dates stated below.

According to the release, the USTR will begin the process of increasing the 25% tariffs currently on approximately $250 billion worth of Chinese imports on lists 1, 2 and 3 to 30%, effective October 1 following a notice and comment period.

The 10% tariffs the President announced earlier this month on approximately $300 billion worth of Chinese imports on Lists 4A and 4B will increase to 15%, effective on the scheduled dates for these increases (September 1 for List 4A, and December 15 for List 4B).

A Federal Register notice is forthcoming.

V. Alexander will continue to monitor this situation and provide updates as needed.

Please contact your V. Alexander Account Team with any questions about this topic, and visit our website for further information.