The Office of the U.S. Trade Representative issued its first set of product exclusions from the third group of Section 301 tariffs on goods from China. The new exclusions from the tariffs include "10 specially prepared product descriptions" and cover 15 separate requests, according to the notice. The product exclusions apply retroactively to Sept. 24, 2018, the date the third set of tariffs took effect at 10 percent. The tariffs were subsequently increased to 25 percent. The exclusions will remain in effect until one year after the notice is published.
Section 301 (too broad)
CBP added the ability in ACE for importers to file entries with the first group of excluded goods from the second tranche of Section 301 tariffs on Aug. 1, it said in a CSMS message. Filers of imported products that were granted an exclusion (see 1907290023) should report the regular Chapters 39, 84, 85, 86, 87 and 90 Harmonized Tariff Schedule number, as well as subheading 9903.88.12, for products subject to Section 301 duties on products from China but that have been granted an exclusion by the Office of the U.S. Trade Representative. “Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.12 is submitted,” CBP said.
President Donald Trump said a 10 percent tariff on imported goods from China on List 4 -- nearly all the remaining imports that have not been hit in Section 301 -- will start on Sept. 1. He linked the punishment to a lack of agriculture purchases and the fact that "my friend President Xi" did not stop the sale of fentanyl to the U.S.
U.S. Trade Representative Robert Lighthizer told Sen. Todd Young, R-Ind., that the stacking of Section 301 tariffs on tool sets is being reviewed by the agency. Young mentioned the issue in written questions, submitted for the record of Lighthizer's June 18 hearing before the Senate Finance Committee, that the committee recently released. Young said he'd "been informed that some tool manufacturers are facing tariff rates of more than 50 percent" as a result of CBP rulings on the sets and the application of the 301 tariffs on goods from China. Young said that while so far, it's only affecting one industry, if List 4 tariffs go into effect, there could be a wider problem.
President Donald Trump, angry that China neither stopped the flow of fentanyl nor returned to buying U.S. soybeans, announced on Twitter Aug. 1 that tariffs on nearly 3,800 8-digit tariff lines will begin Sept. 1. Just like with List 3, the tariffs will start at 10 percent.
U.S. Trade Representative Robert Lighthizer addressed the recent end to India's Generalized System of Preferences benefits eligibility (see 1906050043) in written responses to two senators on the Senate Finance Committee. Sen. John Cornyn, R-Texas, asked about GSP and the possibility of Section 301 actions against India at a June 18 hearing at which Lighthizer appeared. Lighthizer replied, "A USTR team ... recently visited New Delhi to meet with a variety of Indian government officials in an attempt to make progress on the broad range of trade barriers we have highlighted. We remain committed to finding solutions to the myriad of trade concerns we have with India. I hope that the Government of India demonstrates a comparable commitment to resolving our concerns."
U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin traveled to Shanghai for July 30 and 31 talks on a comprehensive U.S.-China trade deal, the White House said July 30. Vice Premier Liu He and Commerce Minister Zhong Shan led the Chinese delegation, it said. “The two sides discussed topics such as forced technology transfer, intellectual property rights, services, non-tariff barriers, and agriculture.” The Chinese “confirmed their commitment to increase purchases” of U.S. agricultural exports, it said. “The meetings were constructive, and we expect negotiations on an enforceable trade deal to continue” in Washington in early September, it said. The Shanghai meetings were the 12th round of negotiations that started in December, and were the first face-to-face talks between the sides since the negotiations broke down in May over Trump administration allegations that the Chinese reneged on previously agreed-to commitments. Overhanging the talks is the threat that the administration could put the List 4 Section 301 tariffs into effect at any time on virtually all Chinese goods not previously dutied.
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U.S. Trade Representative Robert Lighthizer said there's no need for more money for Section 301 exclusion adjudicators, but will assess whether additional funding is necessary as the process continues. He also said "USTR is reviewing various courses of action with respect to whether and how to renew the exclusions granted for Lists 1 and 2" in a newly released written response to one of the chairman's questions stemming from his testimony in June before the Senate Finance Committee.
The Office of the U.S. Trade Representative issued its first set of product exclusions from the second group of Section 301 tariffs on goods from China. Newly exempt from the tariffs are "69 specially prepared product descriptions." The exclusions cover 292 separate requests, according to the notice. The product exclusions apply retroactively to Aug. 23, 2018, the date the second set of tariffs took effect, and will remain in effect until one year after the notice is published.