Update on Chinese import tariffs

On July 10th, the US Trade Representative announced the third list of HTS numbers that will be hit with penalties on imports from China. The escalating trade war between the United States and China continues to flare up around steel and aluminum manufacturers, but other sectors and commodities will also absorb the impact. Increasing prices will impact US consumers as some of the items on this list are things that are purchased directly at retailers like luggage, toys, fresh and frozen agricultural products and sporting goods. The press release is here, the proposed list and draft Federal Register notice are here.

Currently, Section 301 duties of 25% only apply to this list of 818 HTS numbers and that went into effect on July 6th.

Imports can seek relief through a year-long exclusion

On July 6th as the 25% duties went into effect, the USTR also published guidance on how exclusions could be requested from this duty and would be retroactive to July 6th if their applications were approved. From the USTR’s announcement:

The exclusion process has the following important dates and features:

  • The public will have 90 days to file a request for a product exclusion; the request period will end on October 9, 2018.
  • Following public posting of the filed request on Regulations.gov, the public will have 14 days to file responses to the request for product exclusion.  After the close of the 14 day response period, interested persons will have an additional 7 days to reply to any responses received in support of or opposition to the request.
  • Exclusions will be effective for one year upon the publication of the exclusion determination in the Federal Register, and will apply retroactively to July 6, 2018.

Nelson International is working diligently to understand and translate these new laws and issues that are impacting so many of our customers. Though we are all stuck waiting for further information to come down the pike, we empathize with our clients in this trying time. Please continue to use us as a resource for information and guidance as we take bring and every new update to our readership. Our goal is that you remain in compliance as these issues unfold across our industry. Please don’t hesitate to reach out to our industry experts for assistance and advice.