Deal Reached for Delay in Increase of List Three Section 301 Tariffs
Although this announcement has not been published in the Federal Register at this point, the White House has announced that there is a 90 day delay from December 1 before the tariffs may increase to 25%. Thus, there is a reprieve until March 1. We will watch for the Federal Register formal notice confirming this, and will publish it once we see it. Meanwhile, below is an announcement from Customs attorney Paula Connelly.
Please contact your BOC Representative, if you have any questions.
LAW OFFICES OF PAULA M. CONNELLY
100 Trade Center
Woburn, MA 01801
President Trump and Chinese President Xi Jinpeng reached a deal at the G20 Summit in Buenos Aires over the weekend which will suspend the proposed increase to 25% for products on “List Three” under the Section 301 investigation. The tariffs will remain at 10% after January 1 as a result of China’s agreement to start purchasing a “very substantial” amount of agricultural, energy and industrial goods.
The U.S. and China will also begin negotiations on “structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft, services and agriculture” according to the report. The parties have agreed to try to complete the transaction within the next 90 days. If the agreement is not reached within 90 days, the 10% duties will then increase to 25%.
Thus, companies faced with a potential increase in the Section 301 duties to 25% now have a 90-day reprieve which began on December 1 and will end on March 1. Keep in mind the 10% duties remain in place.
In addition, there has been no discussion on removal of the List One and List Two tariffs which remain in place.
At this time, there has been no announcement concerning potential exclusion requests for products on List Three. According to a White House official, they do not believe an exclusion process will be allowed for List Three items while at the 10% rate of duty.
Exclusion requests for products on List Two are due by December 18. Exclusion requests for products on List One are no longer being accepted.
If you have questions or need assistance with this matter, please contact our office.