USTR Suspends Additional Section 301 Tariffs For 6 Countries in the Digital Services Tax (DST) Investigation

USTR Suspends Additional Section 301 Tariffs For 6 Countries in the Digital Services Tax (DST) Investigation

Posted on Jun 3

06/03/2021

USTR Suspends Additional Section 301 Tariffs For 6 Countries in the Digital Services Tax (DST) Investigation

The Office of the United Sates Trade Representative (USTR) has concluded their year-long investigation into U.S. concerns about the DST and has determined that DST’s adopted by Austria, India, Italy, Spain, Turkey, and the United Kingdom have discriminated against U.S. digital companies, are inconsistent with principles of international taxation, and will burden U.S. companies. As a result, the USTR has determined to impose additional 25 percent on $2.1 billion worth of certain goods from these 6 countries.

However, The USTR announced it is immediately suspending the tariffs for up to 180 days to provide additional time to complete the ongoing multilateral negotiations on international taxation at the Organization for Economic Cooperation and Development (OECD) and in the G20 processes. This action will provide “time for those negotiations to continue to make progress while maintaining the option of imposing tariffs under Section 301 if warranted in the future” said Ambassador Katherine Tai. The complete text of the notice can be found here.

If you import goods from any of these 6 countries you may want to review the products that could be subject to these additional duties. Links to each of the countries and products can be found below:

Notice of Action in the Section 301 Investigation of Austria’s Digital Services Tax – June 2, 2021
Notice of Action in the Section 301 Investigation of India’s Digital Services Tax – June 2, 2021
Notice of Action in the Section 301 Investigation of Italy’s Digital Services Tax – June 2, 2021
Notice of Action in the Section 301 Investigation of Spain’s Digital Services Tax – June 2, 2021
Notice of Action in the Section 301 Investigation of Turkey’s Digital Services Tax – June 2, 2021
Notice of Action in the Section 301 Investigation of the United Kingdom’s Digital Services Tax – June 2, 2021

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

Please contact your V. Alexander account team with any questions and follow us on our website www.valexander.com for updates on this and other topics.

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04/07/21

USTR Considers Additional Tariffs on Goods From Six Countries to Offset the DST

The Office of the United States Trade Representative (USTR) is considering an additional 25% tariff on certain goods from Austria, India, Italy, Spain, Turkey, and the United Kingdom in response to the Digital Services Tax (DST) recently imposed by these six countries.

The U.S. government believes that the DST unfairly discriminate against U.S. companies in the digital space (e.g., Google, Facebook, Netflix, et al.), are inconsistent with principles of international taxation, and disproportionately burden American companies.

Targeted products include the following:

Austria — Leather articles, textile products, ceramic articles, stemware, glassware, glass fibers, copper alloys, printed circuit assemblies, and various instruments;
India — Seafood, rice, bamboo articles, corks, cigarette paper, wool yarn, bras, pearls, precious stones, precious metal articles, and furniture;
Italy — Seafood, perfumery, travel and leather goods, apparel, footwear, spectacle lenses, and optical elements;
Spain — Seafood, handbags, belts, footwear, hats, and glassware;
Turkey — Textile floor coverings, bed linen, curtains, stone/ceramic articles, precious metal articles, and imitation jewelry;
United Kingdom — Personal care/cosmetic products, apparel, footwear, ceramic articles, precious metal articles, imitation jewelry, refrigeration equipment, industrial robots, furniture, and games.

Interested parties can comment up until April 30, 2021, and comments must be submitted via the USTR’s electronic comments portal and should be placed under the appropriate docket number for each country.

Please contact your V. Alexander account team with any questions and follow us on our website www.valexander.com for updates on this and other topics.

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