Section 301: The Proposed Tariff List and the Administrative ProcessSection 301: The Proposed Tariff List and the Administrative Process
- March 19, 2018
As we shared with you yesterday, as part of the U.S. response to China’s unfair trade practices related to the forced transfer of U.S. technology and intellectual property, the Office of the U.S. Trade Representative (USTR) published a proposed list of products imported from China that could be subject to additional tariffs.
The United States is looking to impose tariffs on approximately $50 billion worth of Chinese imports and take other actions in response to China’s policies that coerce American companies into transferring their technology and intellectual property to domestic Chinese enterprises. These policies bolster China’s stated intention of seizing economic leadership in advanced technology as set forth in its industrial plans, such as “Made in China 2025.”
The proposed list of products is based on extensive interagency economic analysis and would target products that benefit from China’s industrial plans while attempting to minimize the impact on the U.S. economy. Sectors subject to the proposed tariffs include industries such as aerospace, information and communication technology, robotics, and machinery.
The complete list of products and intended tariff increases can be found here, with the following Harmonized Tariff Schedule chapters and subheadings slotted for inclusion:
- Chapter 28: 2844, 2845
- Chapter 29: 2914, 2918, 2921, 2922, 2924, 2928, 2931, 2932, 2933, 2934, 2937
- Chapter 30: 3001, 3002, 3003, 3004, 3005, 3006
- Chapter 38: 3820
- Chapter 40: 4006, 4009, 4010, 4011, 4012, 4016
- Chapter 72: 7207, 7208, 7209, 7210, 7211, 7212, 7213, 7214, 7215, 7216, 7217, 7218, 7219, 7220, 7222, 7223, 7224, 7225, 7226, 7227, 7228, 7229
- Chapter 73: 7302, 7304, 7305, 7306, 7318, 7320
- Chapter 76: 7601, 7604, 7605, 7606, 7607, 7608, 7609
- Chapter 83: 8302
- Chapter 84: 8401, 8402, 8403, 8404, 8405, 8406, 8407, 8408, 8409, 8410, 8411, 8412, 8413, 8414, 8415, 8406, 8417, 8418, 8419, 8420, 8421, 8422, 8423, 8424, 8425, 8426, 8427, 8428, 8429, 8430, 8431, 8432, 8433, 8434, 8435, 8436, 8437, 8438, 8439, 8440, 8441, 8442, 8443, 8444, 8444, 8445, 8446, 8447, 8448, 8449, 8452, 8453, 8454, 8455, 8456, 8457, 8458, 8459, 8460, 8461, 8462, 8463, 8434, 8465, 8466, 8467, 8468, 8470, 8471, 8473, 8474, 8475, 8476, 8477, 8478, 8479, 8480, 8481, 8482, 8483, 8484, 8487
- Chapter 85: 8501, 8502, 8503, 8504, 8505, 8506, 8507, 8514, 8515, 8519, 8523, 8525, 8526, 8527, 8528, 8529, 8530, 8532, 8533, 8535, 8536, 8537, 8538, 8539, 8540, 8541, 8543, 8544
- Chapter 86: 8601, 8603, 8604, 8607, 8608
- Chapter 87: 8701, 8702, 8703, 8704, 8705, 8706, 8709, 8711, 8714
- Chapter 88: 8801, 8802, 8803, 8805
- Chapter 89: 8901, 8902, 8904, 8905, 8906, 8907, 8909
- Chapter 90: 9002, 9007, 9011, 9012, 9013, 9014, 9015, 9018, 9019, 9021, 9022, 9024, 9025, 9026, 9027, 9028, 9029, 9030, 9031, 9032, 9033
- Chapter 91: 9104
- Chapter 93: 9301, 9304, 9305, 9306
- Chapter 94: 9401
The proposed list covers approximately 1,300 separate tariff lines and will undergo further review in a public notice and comment process, including a public hearing that is set for May 15th.
Below is the schedule for administrative review:
- April 23, 2018: Due date for filing requests to appear and a summary of expected testimony at the public hearing and for filing pre-hearing submissions.
- May 11, 2018: Due date for submission of written comments.
- May 15, 2018: The Section 301 Committee will convene a public hearing in the main hearing room of the U.S. International Trade Commission, 500 E Street SW Washington DC 20436 beginning at 10:00 am.
- May 22, 2018: Due date for submission of post-hearing rebuttal comments.
After completion of this process, USTR will issue a final determination on the products subject to the additional duties. Affected commodities will likely be subject to a 25% tariff that will be levied on top of current duties. (Please note: These additional duties are in addition to the new steel/aluminum tariffs that have been imposed. In other words, importers could potentially be subject to 35% or 50% more in duty.)
We encourage importers to review their products, get involved with their national product associations to make a united front, and make comments and attend the public hearing.
Shapiro has identified your company as possibly affected by the additional tariffs that may be imposed on products from China. Shapiro’s compliance team is certainly here to help however we can!
Shapiro will continue to monitor the situation and provide updates as they become available.