The United States Trade Representative (USTR) has announced an additional list of 5745 products from China that will be subject to 10% Section 301 duties effective September 24, 2018. This confirmation by the USTR follows its related announcement earlier in the year and recent public hearings on the matter.
This final list of products subject to this duty (tariff) is available here. This list of products was reduced by approximately 300 items, from the list originally published, based upon further review by the USTR. Products excluded from the original list include some wearable technology and children’s products.
Once in effect, Section 301 duties will cover almost 50% of all U.S. imports from China with a value of $250 billion.
The U.S. further stated these Section 301 tariffs will increase from 10% to 25% on January 1st, 2019 if the U.S. and China are unable to reach an agreement prior to that date. The U.S. has enacted these and previous Section 301 tariffs based on its position that China engages in unfair trade practices.
U.S. importers and exporters should note that additional duties assessed under this Section 301 action will be eligible for U.S. drawback claims. Additional information on Section 301 drawback eligibility is available here.
U.S. importers are encouraged to review their import transactions to determine the impact and scale of this action on their trade programs. Specifically, applicable products from China and/or any assigned Harmonized Tariff System (HS) codes within the scope of this action should be carefully reviewed and confirmed.
Importers should consider compliant tariff reduction opportunities including product modification, submission of exemption application(s) and/or supply chain changes as may be available or possible.
Please contact your local Delmar International representative or our North American Customs Advisory Services Group at AdvisoryServices@delmarusa.com for additional information and assistance with any of the above actions.