International Trade Today is providing readers with some of the top stories for Oct. 15-19 in case they were missed.
Section 301 (too broad)
Quota processing for quota entry summary lines with three or more Harmonized Tariff Schedule codes will require manual input by CBP, the agency said in a CSMS message. That situation may occur "if the line is properly classified with two chapter 99 HTS codes (a section 301 HTS and a quota HTS) and the commodity HTS," it said. "Until a programming fix can be implemented, once you have successfully transmitted into ACE a summary including a quota line with three or more HTS codes, please email your entry details to HQQUOTA@cbp.dhs.gov and your assigned Client Representative for assistance," the agency said.
The International Trade Commission posted Revision 13 to the Harmonized Tariff Schedule, adding provisions in Chapter 99 to implement tariff exemptions under the Miscellaneous Tariff Bill. All previously included notes to Subchapter II to Chapter 99 are eliminated. New tariff subheadings 9902.01.01 through 9902.18.01 are added, covering the goods that received duty exemptions in the latest MTB (see 1809140004). All of these changes took effect along with the MTB on Oct. 13. The tariff exemptions are in effect until the end of 2020. Though MTB grants exemptions from general duty rates, Section 301 and other additional duties still apply (see 1810150051).
CBP's CSMS message on changes to the Section 301 tariff subheadings that removed frozen salmon from the list (see 1809280045) included a typographical error, CBP said in a CSMS message. Subheadings 0304.81.10 and 0304.81.50 were removed from the list, but CBP mistakenly referred to "subheadings 0304.81.10 or 0304.84.50," in its Sept. 28 message.
International Trade Today is providing readers with some of the top stories for Oct. 9-12 in case they were missed.
U.S. Trade Representative Robert Lighthizer should put in place a process for exclusion from the 10 percent Section 301 tariffs on $200 billion worth of Chinese imports, which the Trump administration imposed last month (see 1809240015), a group of 169 members of Congress said in an Oct. 15 letter to the USTR. While the USTR allowed for exclusions to each of the first two lists of Section 301 tariffs, there's been no mention from the administration about a similar process for the latest list of tariffs. A wide range of industries asked the USTR for an exclusion process in a letter last month (see 1809270038).
BOSTON -- The effects of the 10 percent Section 301 tariffs on $200 billion worth of Chinese imports, which the Trump administration imposed last month (see 1809240015), aren’t likely to be felt at retail this holiday season, Consumer Technology Association President Gary Shapiro said Oct. 15 at the association's Innovate Celebrate conference. Shapiro’s bigger concern is what happens after Jan. 1 when the tariffs are scheduled to rise to 25 percent. Jan. 1 is a “very critical date because 10 percent is a lot different than 25 percent, Shapiro” said. “Ten percent hurts; 25 percent makes companies reel. The pain throughout the industry is real -- and soon to the consumer and retail is real.”
The Miscellaneous Tariff Bill Act took effect on Oct. 13 (see 1809140004) and CBP programmed all Harmonized Tariff Schedule numbers in ACE in preparation, the agency said in an Oct. 12 CSMS message. The MTB provisions are in subchapter II to Chapter 99, the agency said. The MTB reduces tariffs on nearly 1,700 items. "Since approximately half of the 1,660 MTB-eligible items are produced in China, there is overlap with Section 301 tariffs," CBP said. "Products of China subject to Section 301 tariffs can benefit from MTB’s suspensions and reductions for the general (column 1) rate of duty, but remain subject to the 25 percent ad valorem rate of duty imposed by headings 9903.88.01 and 9903.88.02 or 10 percent ad valorem rate of duty imposed by headings 9903.88.03 and 9903.88.04."
Voxx International expects soon to impose price increases to offset higher costs of Section 301 tariffs on Chinese imports, CEO Pat Lavelle said on an Oct. 11 earnings call. Printed circuit assemblies took an especially heavy hit among the items targeted with 10 percent tariffs that took effect Sept. 24 and are scheduled to rise to 25 percent on Jan. 1. Most of the products “within the competitive field” on which Voxx plays are sourced from China, but all manufacturers of similar ilk face the same challenges, he said. “I don't see anybody having a real distinct advantage based on where they're getting their product,” Lavelle said. “Most of it comes out of China. So as the tariffs come through, we will adjust our prices, our selling prices, and you'll see increases in prices. That is the game plan.”
It’s impossible to forecast how many product-specific exemptions to the Section 301 tariffs on Chinese imports the Office of the U.S. Trade Representative will grant “because we’re in uncharted territory,” David Cohen, a trade expert with Sandler Travis, told a Sports & Fitness Industry Association webinar Oct. 11. With Tuesday’s deadline having lapsed for requesting exemptions to the first round of tariffs that took effect July 6, USTR denied 108 requests of the more than 10,000 filed and has yet to grant a single exemption, Cohen said.