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China Tariff Hike Postponed – USTR to Establish an Exclusion Process – Seminar on “China Tariffs/AD/CVD 101”

posted by Jennifer Diaz February 26, 2019 9 Comments

China TThe on-going trade war continues as China and the US make progress to come to an agreement. For background information on past actions taken by the Trump Administration to protect American Intellectual Property, check out our previous blogs.

China Tariff Increase is Postponed

President Trump reported in a February 24th tweet that as a result of the “substantial progress” in trade negotiations with China on “important structural issues” he will be delaying the increase from 10 percent to 25 percent in the additional Section 301 tariffs on the List 3 goods (valued at about US$200 billion) that is scheduled to take place on  March 2nd. To formalize the extension, the administration will have to publish a Federal Register notice stating the Section 301 additional tariff on the so-called List 3 products will remain at ten percent for now and the notice will likely provide the new date for the tariff increase. To date no formal notice has been published.

Update Tariff Chart pic

In a February 25 tweet President Trump stated, “Relationship between our two Countries is very strong.” The President intends to take this time to further the still on-going bi-lateral trade negotiations with China. Both Presidents are planning a Summit at Mar-a-Lago to conclude an agreement. Some issues being discussed include intellectual property protection, technology transfer, agriculture, services, currency, and many other issues.

The tweet announcing the extension of time was sent just two days after the President met with members of the U.S. and Chinese delegations. At the meeting, U.S. Trade Representative Robert Lighthizer referenced “major hurdles” still remaining in the negotiations.

With an additional extension of time, this provides time for importers to assess their options to best prepare for the future increase and avail themselves of viable opportunities to ensure your company’s price points remain competitive during this ever-changing trade environment.

Options to consider:

  • Conduct a Harmonized Tariff System classification review;
  • Consider tariff engineering;
  • Watch out for an exclusion request process (anticipated to be announced on March 17);
  • Consider your country of origin;
  • Shift supply chains where appropriate;
  • Consider bonded warehouse or FTZ’s (ensure you plan for an approximate 6-month lead time);
  • Determine if eligible for duty drawback;
  • Work with CBP to ensure your competitors are paying the China Tariffs;
  • Report First Sale to CBP (after a thorough review with counsel);
  • And more…

Exclusion Process: Now You Have the Ability to Tell USTR Why Your Products Should NOT be on the Section 301 List 3.

The Office of the U.S. Trade Representative (USTR) has been directed to report to Congress by March 17 on the establishment of a process for requesting exclusions for good on List 3 for U.S. businesses to obtain relief from the existing ten percent tariff on these goods.

In a statement issued on February 15, 2018, Congress voiced its concerns that exclusion process was provided for Lists 1 and 2, but not for List 3. Congress’ intent is for the USTR to provide the same procedures as those for Lists 1 and 2, allowing stakeholders to request that particular products classified within a tariff subheading subject to List 3 tariffs be excluded from the Section 301 tariffs. For more information on this process visit our blog discussing the process for exclusion from List 2.

“China Tariffs/ AD/CVD 101” Seminar

The rapid changes that concern trade negotiation with China has left many importers questioning how their business is being impacted. As a result, Diaz Trade Consulting is hosting a one day in person seminar on the topic of “China Tariffs/ AD/CVD 101” where participants will learn how to identify whether their product is subject to Section 301 Tariffs along with strategies on how to avoid paying the additional tariffs and whether their product is subject to Antidumping/Countervailing duties! This seminar is limited to the first 30 registrants and will discuss the following:

  • President Trump’s Directive
  • China Tariffs: The 3 Lists
  • What can you do to avoid Chinese Tariffs?
  • What can I do if my competitor isn’t paying the extra duties?
  • What are anti-dumping and countervailing duties (AD/CVD)?
  • How do I know if my products are subject to AD/CVD or one of the lists?
  • What are the CBP’s Centers of Excellence and Expertise (CEE) and how can they help you?
  • What is CBP’s role in administering and enforcing imports subject to AD/CVD?
  • What are top tips when importing to ensure compliance with AD/CVD & China Tariffs?
  • What’s the difference between a binding ruling and a scope ruling?

Register today!

https://www.eventbrite.com/e/china-tariffsadcvd-101-tickets-54994624402?aff=ebdssbdestsearch

Your team of international trade attorneys at Diaz Trade Law is here to help.  Contact DTL TODAY at 305-456-3830 or info@diaztradelaw.com.

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9 Comments

President Trump Threatens Increase to 25% Duty for Products on List 3 | Customs & International Trade Law Blog May 6, 2019 at 5:26 pm

[…] on China Tariffs, and numerous ways to mitigate the effect of the China tariffs, check out our previous blogs. Diaz Trade Law assist clients in assessing their best options to prepare or mitigate the China […]

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Customs & International Trade Law ExpertUPDATE: USTR Increases Section 301 Tariffs to 25% Duty for Products on List 3 - Customs & International Trade Law Expert May 9, 2019 at 4:11 pm

[…] on China Tariffs and numerous ways to mitigate the effect of the China tariffs, check out our previous blogs. Diaz Trade Law assist clients in assessing their best options to prepare or mitigate the China […]

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China Imposes Retaliatory Tariffs and US intends to Strike Back – Tell the USTR Why Your Product Should Not Be on the New List! | Customs & International Trade Law Blog May 14, 2019 at 5:00 pm

[…] on China Tariffs and numerous ways to mitigate the effect of the China tariffs, check out our previous blogs. Diaz Trade Law has assisted clients in assessing their best options to prepare or mitigate the […]

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Customs & International Trade Law ExpertChina Imposes Retaliatory Tariffs and US intends to Strike Back – Tell the USTR Why Your Product Should Not Be on the New List! - Customs & International Trade Law Expert May 21, 2019 at 10:16 am

[…] on China Tariffs and numerous ways to mitigate the effect of the China tariffs, check out our previous blogs. Diaz Trade Law has assisted clients in assessing their best options to prepare or mitigate the […]

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Tony Muller July 9, 2019 at 11:26 am

The explanation is really informative and interesting! Will China and the US make progress to come to an agreement to solve this problem? Looking forward for more information! Thanks a lot!

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Customs & International Trade Law ExpertSection 301 - List 3 Tariff Exclusion Requests Open Until September 30th - Customs & International Trade Law Expert July 16, 2019 at 2:59 pm

[…] on China Tariffs and numerous ways to mitigate the effect of the China tariffs, check out our previous blogs. Diaz Trade Law has assisted clients in assessing their best options to prepare or mitigate the […]

Reply
Section 301 - List 3 Tariff Exclusion Requests Open Until September 30th | Customs & International Trade Law Blog July 16, 2019 at 3:03 pm

[…] on China Tariffs and numerous ways to mitigate the effect of the China tariffs, check out our previous blogs. Diaz Trade Law has assisted clients in assessing their best options to prepare or mitigate the […]

Reply
BREAKING NEWS: EXCLUSION PORTAL TO OPEN FOR LIST 4A | Customs & International Trade Law Blog October 23, 2019 at 6:15 pm

[…] on China Tariffs and numerous ways to mitigate the effect of the China tariffs, check out our previous blogs. Diaz Trade Law has assisted clients in assessing their best options to prepare or mitigate the […]

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Customs & International Trade Law ExpertBREAKING NEWS: EXCLUSION PORTAL TO OPEN FOR LIST 4A - Customs & International Trade Law Expert October 24, 2019 at 9:28 am

[…] on China Tariffs and numerous ways to mitigate the effect of the China tariffs, check out our previous blogs. Diaz Trade Law has assisted clients in assessing their best options to prepare or mitigate the […]

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