While there are often updates and changes within U.S. Trade, this is a particularly active time.  If you import goods from China, it is important to be aware of the following issues.

The Office of U.S. Trade Representative (USTR) has determined that the policies, acts and practices of the Government of China related to technology transfer, intellectual USA flagproperty  and innovation covered in the investigation are  discriminatory or unreasonable and burden or restrict U.S. commerce. The (USTR) is seeking public comment and will hold a public hearing regarding a proposed determination on appropriate action in response to these policies, acts and practices. The USTR proposes an additional duty of 25 percent on a list of products from China.  You can find a list of products, defined by 8-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), by clicking here.  Scroll down to pages 14- 58.

If you import goods from China, and want to participate in Public Comment, you must follow the following schedule:

  • April 23, 2018: Filing requests due date. Must appear and a summary of expected testimony at the public hearing and for filing pre-hearing submissions.
  • May 11, 2018: Submission of written comments due.
  • May 15, 2018: A public hearing will be convened in the main hearing room of the U.S. International Trade Commission, 500 E Street SW Washington DC 20436 beginning at 10:00 am, and held by the Section 301 Committee.
  • May 22, 2018: Due date for submission of post-hearing rebuttal comments

To learn more about how to submit your comments electronically, see page 2 of the document.

Import goods from China. US trade dispute

If the USTR determines that the acts, policies, and practices under investigation are actionable,  the proposed action is an additional duty of 25 percent on a list of products of Chinese origin listed in the Annex of the document. For example, if a good of Chinese origin is currently subject to zero duty, the product would be subject to a 25 percent duty; if a good of Chinese origin were currently subject to a 10 percent duty, the product would be subject to a 35 percent duty; and so on.

To ensure the effectiveness of the action, any merchandise admitted into a U.S. foreign trade zone on or after the effective date of the increased tariffs are subject to the increased tariffs admitted, or  would have to be admitted as “privileged foreign status” as defined in 19 CFR 146.41, and would be subject upon entry for consumption to the additional duty.

The following methodology was used to determine the list of products covered by the proposed action. Trade analysts developed the methodology using input from several U.S. Government agencies which identified products that benefit from Chinese industrial policies, including Made in China 2025. The list was refined by removing tariff lines that are subject to legal or administrative constraints, and specific products identified by analysts as likely to cause disruptions to the U.S. economy. Using available trade data involving alternative country sources for each product, the remaining products were ranked according to the likely impact on U.S. consumers.  The 144102.pdf 8 proposed list was then compiled by selecting products from the ranked list with lowest consumer impact.

Please note, if you import goods from China, this is a complicated issue. This blog post only serves as a summary.

The entire text from Docket No. USTR-2018-0005 from the OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE can be read here.

If you find that your business may be impacted by the outlined tariff increase, our brokers are available to assist.  Call 303-365-1000 or email us anytime.