On June 15, 2018, the U.S. Trade Representative issued a notice concerning the imposition of an additional ad valorem duty of 25% on products from China, pursuant to Section 301, as well as the proposed imposition of an additional ad valorem duty of 25% on other products from China with tariff subheadings newly identified by the USTR.
Annex A of the USTR’s June 15 Notice lists the tariff subheadings of products from China which will be subject to an additional 25% ad valorem duty when such products are entered for consumption, or withdrawn from warehouse for consumption, on or after July 6, 2018. Based on public comments and the review process of the USTR and the interagency Section 301 Committee, the list of proposed tariff subheadings in the USTR’s April 6, 2018 Notice was narrowed to 818 tariff subheadings with an approximate annual trade value of $34 billion. Products from China within these tariff subheadings will be provided for in the new HTSUS heading 9903.88.01 and the new 25% ad valorem duty shall apply in addition to all other applicable duties, fees, exactions, and charges. Products listed in Annex A and subject to the additional duty, except those products eligible for admission under “domestic status” as defined in 19 CFR § 146.43, that are admitted into a U.S. foreign trade zone on or after July 6, 2018, may only be admitted as “privileged foreign status” as defined in 19 CFR § 146.41.
The USTR will establish a process by which U.S. stakeholders may request that particular products classified within one of the tariff subheadings listed in Annex A may be excluded from these additional Section 301 duties. A separate notice will be published by USTR describing the product exclusion process.
In addition, the USTR has identified additional tariff subheadings in Annex C of its June 15 Notice for which an additional 25% ad valorem duty is proposed. These products have an approximate annual trade volume of $16 billion and have been proposed to maintain the magnitude of the President’s original proposed $50 billion trade action on goods containing industrially significant technology, including those related to the “Made in China 2025” program. Written comments can be submitted on this proposed additional action by July 23, 2018. A public hearing will be convened by the Section 301 Committee beginning on July 24, 2018; requests to appear at the hearing must be submitted by June 29, 2018. Post-hearing rebuttal written comments can be submitted by July 31, 2018.