China 301 Tariffs and Exclusions, Updated
List of China section 301 exclusions as of today:
List of
all commodities on China
Section 301 additional duties:
https://www.strtrade.com/assets/htmldocuments/USTR%20301%20All%20Lists%20Combined.pdf
Around 3,000 CN Rail workers threaten to launch national strike in November
MONTREAL, THE CANADIAN PRESS, PUBLISHED 1 DAY AGO
CN Rail employees represented by the Teamsters Canada Rail Conference voted last month in favor of a strike. RYAN REMIORZ/THE CANADIAN PRESS
Canadian National Railway conductors, trainpersons and yardpersons have threatened to launch a strike in three weeks after six months of negotiations.
The Teamsters Canada Rail Conference disclosed Monday that its 3,000 members voted 99.2 per cent last month in favor of a strike.
A strike could begin at 12:01 a.m. on Nov. 19, after the union provides at least 72 hours notice.
The union is trying to put pressure on the Montreal-based railway ahead of a resumption of negotiations with the help of federal mediators on Nov. 12.
The workers, who are mostly located in major urban centers across Canada, have been without a contract since July 23.
CN Rail lowered its forecasts last week by pointing to a deterioration in North American rail demand and a further slowdown in the economy.
“CN remains committed to working with the TCRC and is optimistic that an agreement will be reached,” a CN Rail spokesman said.
USTR Announces China 301 Tariffs List 4A Exclusions Process
[Billing Code 3290-F0]OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Docket Number USTR-2019-0005
Procedures for Requests to Exclude Particular Products from the August 2019 Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation
AGENCY: Office of the United States Trade Representative.
ACTION: Notice and request for comments.
SUMMARY: In a notice published on August 20, 2019, the U.S. Trade Representative announced that the Office of the U.S. Trade Representative (USTR) would establish a process by which U.S. stakeholders may request an exclusion from additional duties of particular products classified within a tariff subheading covered by the August 2019 action. This notice announces that USTR will open an electronic portal for submission of exclusion requests on October 31, 2019 for products covered by Annex A of the August 2019 action, and sets out the specific procedures for submitting requests.
DATES:
October 31, 2019 at noon EDT: The web portal for submitting exclusion requests – https://exclusions.USTR.gov – will open.
January 31, 2020 at 11:59 PM EDT: Last day for submitting exclusion requests.
Responses to individual exclusion requests are due 14 days after USTR posts the request on the online portal. Any replies to responses to an exclusion request are due the later of 7 days after the close of the 14-day response period, or 7 days after the posting of a response.
ADDRESSES: You must submit all requests, responses to requests, and replies to responses through the online portal: https://exclusions.ustr.gov.
FOR FURTHER INFORMATION CONTACT: For questions about the product exclusion process, contact Assistant General Counsels Philip Butler or Megan Grimball at (202) 395-5725. For questions on customs classification or implementation of additional duties, contact traderemedy@cbp.dhs.gov.
SUPPLEMENTARY INFORMATION:
A. August 2019 Action
For background on the proceedings in this investigation, please see the prior notices issued in the investigation, including 82 FR 40213 (August 24, 2017), 83 FR
14906 (April 6, 2018), and 84 FR 22564 (May 17, 2019).
In a notice published on August 20, 2019, the U.S. Trade Representative, at the direction of the President, announced a determination to modify the action being taken in the Section 301 investigation by imposing an additional 10 percent ad valorem duty on products of China with an annual aggregate trade value of approximately $300 billion. 84 FR 43304 (August 20, 2019). The August 20 notice contains two separate lists of tariff subheadings, with two different effective dates. List 1, which is set out in Annex A of the August 20 notice, was effective September 1, 2019. List 2, which is set out in Annex C of the August 20 notice, currently is scheduled to take effect on December 15, 2019. On August 30, 2019, the U.S. Trade Representative, at the direction of the President, determined to modify the action being taken in the investigation by increasing the rate of additional duty from 10 to 15 percent ad valorem on the goods of China specified in Annex A and Annex C of the August 20 notice.
B. Procedures to Request the Exclusion of Particular Products
USTR invites interested persons, including trade associations, to submit requests for exclusion from the additional duties for products covered by List 1 of the August 2019 action. As explained in more detail below, each request specifically must identify a particular product, and provide supporting data and the rationale for the requested exclusion. USTR will evaluate each request on a case-by-case basis, taking into account the asserted rationale for the exclusion, whether the exclusion would undermine the objective of the Section 301 investigation, and whether the request defines the product with sufficient precision. Any exclusion will be effective for one year, starting from the September 1, 2019 effective date for Annex A of the August 20, 2019 notice. USTR will periodically announce decisions on pending requests.
To submit an exclusion request, requesters must first register on the portal at https://exclusions.ustr.gov. As noted above, the portal will open at noon EDT on October 31, 2019. After registration, the requester can fill out and submit one or more exclusion request forms.
Fields on the exclusion request form marked with an asterisk (*) are required fields. Fields with a green (Public) notation will be publicly available. Fields with a gray (BCI) notation are for Business Confidential Information and the information entered will not be publicly available. Additionally, parties will be able to upload documents and indicate whether the documents are BCI or public. Requesters will be able to review the public version of their submission before the submission is posted.
In order to facilitate preparation of requests prior to the October 31 opening of the web portal, a facsimile of the exclusion request form to be used on the portal is attached as an annex to this notice. Please note that the color-coding of public fields and BCI fields is not visible on the attached facsimile, but will be apparent on the actual form used on the portal.
Set out below is a summary of the information to be entered on the exclusion request form.
Each requester must provide contact information, including the full legal name of the organization making the request, whether the requester is a third party (law firm, trade association, or customs broker) submitting on behalf of an organization or industry, and the primary point of contact (requester and/or third party submitter). The requester may report whether the requester’s business satisfies the Small Business Administration’s size standards for a small business, which are identified by North American Industry Classification Systems Codes and are found in 13 CFR 121.201.
With regard to product identification, any request for exclusion must include the following information:
- The 10-digit subheading of the HTSUS applicable to the particular product requested for exclusion. If no 10-digit subheading is available (i.e., the 8-digit subheading does not contain breakouts at the 10-digit level), requesters should use the 8-digit subheading and add “00”. Different models classified under different 8-digit or 10-digit subheadings are considered different products and require separate exclusion requests.
- Product name and a detailed description of the product. A detailed description of the product includes, but is not limited to, its physical characteristics (e.g., dimensions, weight, material composition, etc.). Requesters may submit a range of comparable goods within the product definition set out in an exclusion request. Thus, a product request may include two or more goods with similar product characteristics or attributes. Goods with different SKUs, model numbers, or sizes are not necessarily different products.
- The product’s function, application (e.g., whether the product is designed to function in or with a particular machine or other device), principal use, and any unique physical features that distinguish it from other products within the covered 8-digit HTSUS subheading. Requesters may submit attachments that help distinguish the product (e.g., CBP rulings, photos and specification sheets, and previous import documentation). Documents submitted to support a requester’s product description must be made available for public inspection and contain no BCI. USTR will not consider requests that identify the product using criteria that cannot be made available for public inspection.
- Whether the product is currently subject to an antidumping or countervailing duty order issued by the U.S. Department of Commerce.
Requesters must provide their relationship to the product (Importer, U.S. Producer, Purchaser, Industry Association, Other) and provide specific data on the annual quantity and value of the Chinese-origin product, domestic product, and third-country product the requester purchased, in 2017, 2018, and the first half of 2019.
Requesters must provide information regarding their gross revenues for 2018 and the first half of 2019.
For imports sold as final products, requesters must provide the percentage of their total gross sales in 2018 that sales of the Chinese-origin product accounted for.
For imports used in the production of final products, requesters must provide the percentage of the total cost of producing the final product(s) the Chinese-origin input accounts for and the percentage of their total gross sales in 2018 that sales of the final product(s) accounted for.
As noted in the attached facsimile, required information regarding the requester’s purchases and gross sales and revenue is BCI and the information entered will not be publicly available.
With regard to the rationale for the requested exclusion, each requester will be asked to address the following:
- Whether the particular product is available only from China and whether the particular product and/or a comparable product is available from sources in the United States and/or in third countries. The requester must provide an explanation if the product is not available outside of China or the requester is not sure of the product availability.
- Whether the requester has attempted to source the product from the United States or third countries.
- Whether the imposition of additional duties on the particular product will cause severe economic harm to the requester or other U.S. interests.
- Whether the particular product is strategically important or related to “Made in China 2025” or other Chinese industrial programs.
In addressing each factor, the requester should provide support for their assertions. To provide information about the possible cumulative effects of the Section 301 tariff actions, requesters also may submit information about any exclusion requests submitted by the requester under the initial $34 billion tariff action (Docket ID: USTR- 2018-0025), the additional $16 billion tariff action (Docket ID: USTR-2018-0032), or the additional $200 billion tariff action (Docket ID: USTR-2019-0005) and the value of the requester’s imports covered by the previous tariff actions. Requesters also may provide any other information or data that they consider relevant to an evaluation of the request.
C. Responses to Requests for Exclusions
After a request for exclusion of a particular product is posted on USTR’s online portal, interested persons will have 14 days to respond to the request, indicating support or opposition and providing reasons for their view. A response to a product exclusion request must be submitted using USTR’s online portal at https://exclusions.ustr.gov. To file a response, an interested party does not have to register. Responses will be publicly available.
D. Replies to Responses to Requests for Exclusions
After a response is posted on USTR’s online portal, the requester will have the opportunity to reply to the response using the same portal. Any reply must be submitted within the later of 7 days after the close of the 14-day response period, or 7 days after the posting of a response. A reply to a response must be submitted using USTR’s online portal at https://exclusions.ustr.gov. Replies to responses will be publicly available.
E. Submission Instructions
As noted above, interested persons must submit requests for exclusions in the period between the opening of the portal on October 31, 2019, and January 31, 2020. Any responses to those requests must be submitted within 14 days after the requests are posted. Any reply to a response must be submitted within the later of 7 days after the close of the 14-day response period, or 7 days after the posting of a response. Interested persons seeking to exclude two or more products must submit a separate request for each product, i.e., one product per request. As noted above, a single product may include two or more goods with similar product characteristics or attributes.
By submitting an exclusion request, a response, or a reply, the submitter certifies that the information provided is complete and correct to the best of his or her knowledge.
F. Paperwork Reduction Act
In accordance with the requirements of the Paperwork Reduction Act of 1995 (PRA) and its implementing regulations, USTR submitted a request to the Office of Management and Budget (OMB) for emergency review and clearance of this information collection request (ICR) titled 301 Exclusion Requests. OMB assigned control number 0350-0015, which is due to expire on December 31, 2019. USTR has submitted the information collection to OMB for review and approval of a three-year extension of the control number. 84 FR 43853 (August 22, 2019).
Joseph Barloon
General Counsel
Office of the U.S. Trade Representative.
Exclusion Request Form
- Submitter Information
Full Organization Legal Name * (Public)
Requestor First Name * (BCI)
Requestor Last Name * (BCI)
Requestor Mailing Address
Street Address Line 1 * (BCI)
Street Address Line 2 (BCI)
City * (BCI)
State * (BCI)
Zip Code * (BCI)
Country * (BCI)
Requestor E-mail Address * (BCI)
Requestor Phone Number * (BCI)
Does your business meet the size standards for a small business as established by the Small Business Administration? * (Public) YES/NO/Not Sure
Are you a third party, such as a law firm, trade association, or customs broker, submitting on behalf of an organization or industry? * (Public) YES/NO
Note: If you are submitting on behalf of an organization/industry, the information below is required.
Third Party Firm/Association Name (Public)
Third Party First Name (BCI)
Third Party Last Name (BCI)
Third Party Mailing Address
Street Address Line 1 (BCI)
Street Address Line 2 (BCI)
City (BCI)
State (BCI)
Zip Code (BCI)
Country (BCI)
Third Party E-mail Address (BCI)
Third Party Phone Number (BCI)
Who will be the primary point of contact? (Select One) * (BCI)
- Requestor
- Third Party Submitter
- Requestor and Third Party Submitter
- Please provide the 10-digit HTSUS item number* for the product you wish to address in this product exclusion request. A 10-digit HTSUS number is required. * (Public)
Use numerical characters only with no special characters (Example: 1023456789). For help with finding the HTSUS item number associated with your product, see https://hts.usitc.gov/.
- Is this product subject to an antidumping or countervailing duty order issued by the U.S. Department of Commerce? *
- Please provide a complete and detailed description of the particular product of concern. (A detailed description of the product includes, but is not limited to, its physical characteristics (e.g., dimensions, weight, material composition, etc.), whether product is designed to function in or with a particular machine (application), the unit value of the product (please provide a range if necessary), and any unique physical features that distinguish it from other products within the covered 8-digit HTSUS subheading. If needed, please attach images and specification sheets, CBP rulings, court decisions, and previous import documentation below.) Please also describe the product’s principal use.
Note: USTR will not consider requests that identify the product using criteria that cannot be made available to the public. USTR will not consider requests in which more than one unique product is identified.
Product Name * (Public)
Product Description (e.g. dimensions, weight, material composition, etc.) * (Public)
Product Function, Application, and Principal Use * (Public)
Please upload any relevant attachments that will help identify and distinguish your product (e.g. CBP rulings, photos and specification sheets, and previous import documentation) (Public)
- Requestor’s relationship to the product (select all that apply) * (Public)
- Importer
- U.S. Producer
- Purchaser
- Industry Association
- Other
- Is this product, or a comparable product, available from sources in the United States? (If you indicate “NO” or “NOT SURE,” in the box below, you must explain why the product is unavailable or why you are unsure of the product’s availability.)
* (Public)
- YES
- NO
- NOT SURE
Please explain why the product is unavailable or why you are unsure of the product’s availability. (Submitter Determines BCI or Public)
- Is this product, or a comparable product, available from sources in third countries? (If you indicate “NO” or “NOT SURE,” in the box below, you must explain why the product is unavailable or why you are unsure of the product’s availability.) * (Public)
- YES
- NO
- NOT SURE
Please explain why the product is unavailable or why you are unsure of the product’s availability. (Submitter Determines BCI or Public)
- Please discuss any attempts to source this product from United States or third countries. * (Public)
- Please provide the value in USD and quantity (with units) of the Chinese-origin product of concern that you purchased in 2017, 2018, and the first half of 2019. Limit this figure to the products purchased by your firm (or by members of your trade association). Please provide estimates if precise figures are unavailable. * (BCI)
2017 Value: 2017 Quantity:
2018 Value: 2018 Quantity:
2019 Value (Jan-Jun): 2019 Quantity (Jan-Jun):
Are the provided figures estimates?: * (BCI) YES/NO
Are any of these purchases from a related company? * (BCI) YES/NO
Please list the name and relationship of the related company. (BCI)
- Please provide the value in USD and quantity (with units) of the product of concern that you purchased from any third-country source in 2017, 2018, and the first half of 2019 (Jan-Jun). Limit this figure to the products purchased by your firm (or by members of your trade association). Please provide estimates if precise figures are unavailable. * (BCI)
2017 Value: 2017 Quantity:
2018 Value: 2018 Quantity:
2019 Value (Jan-Jun): 2019 Quantity (Jan-Jun):
Are the provided figures estimates?: * (BCI) YES/NO
- Please provide the value in USD and quantity (with units) of the product of concern that you purchased from domestic sources in 2017, 2018, and the first half of 2019 (Jan-Jun). Limit this figure to the products purchased by your firm (or by members of your trade association). Please provide estimates if precise figures are unavailable. * (BCI)
2017 Value: 2017 Quantity:
2018 Value: 2018 Quantity:
2019 Value (Jan-Jun): 2019 Quantity (Jan-Jun):
Are the provided figures estimates?: * (BCI) YES/NO
- Please provide information regarding your company’s gross revenue in USD for 2018 and the first half of 2019 (Jan-Jun). * (BCI)
Fiscal Year 2018:
First Half of 2018 (Jan-Jun):
First Half of 2019 (Jan-Jun):
Are the provided figures estimates?: * (BCI) YES/NO
- Is the Chinese-origin product of concern sold as a final product or as an input used in the production of a final product or products? * (Public)
a) For imports sold as final products, please provide: (BCI)
% of your company’s total, U.S. gross sales in 2018 that the Chinese-origin product accounted for.
b) For imports of inputs used in the production of final products, please provide: (BCI)
% of the total cost of producing the final product(s) the Chinese-origin input accounts for.
% of your company’s total, U.S. gross sales in 2018 that sales of the final product(s) incorporating the input accounts for.
- Please comment on whether the imposition of additional duties on the product you are seeking to exclude will result in severe economic harm to your company or other U.S. interests. In addressing this factor, please address the number of employees in your company and the number of employees potentially affected. * (BCI)
- Please provide any additional information in support of your request, taking account of the instructions provided in Section [B] of the Federal Register notice. (Submitter Determines BCI or Public)
- Did you submit exclusion requests for the Section 301 $34 billion (Docket ID: USTR- 2018-0025), the $16 billion (Docket ID: USTR-2018-0032), and/or the $200 billion (Docket ID: USTR-2019-0005) tariff actions? * (Public) YES/NO
Please enter the total value of your company’s imports applicable to the tariff action for which you submitted one or more exclusion request: (BCI)
Initial $34 Billion Tariff Action:
Additional $16 Billion Tariff Action:
Additional $200 Billion Tariff Action:
- Please comment on whether the particular product of concern is strategically important or related to “Made in China 2025” or other Chinese industrial programs. You must explain in the box below why you believe the product of concern is or is not strategically important or related to “Made in China 2025” or other Chinese industrial programs. * (Public)
- Include any additional attachments that should be considered along with this exclusion request (e.g., customs rulings, court decisions, previous import documentation, etc.). Please do not include attachments that contain your written argument. (Submitter Determines BCI or Public)
Failure to recoup increased low sulphur fuel costs could see lines blanking more sailings
Source: theloadstar.com, By Mike Wackett, 17/09/2019
With IMO 2020 0.5% sulphur cap on marine fuel just over 100 days from becoming law a leading shipping analyst has warned shippers that it is vital that ocean carriers succeed in obtaining their interim BAF surcharges.
Container market expert and chief executive of SeaIntelligence Consulting Lars Jensen said that a failure to obtain compensation for the extra costs relating to the preparation for IMO 2020 could result in a “significant” increase in blanked sailings.
Container lines will begin to incur additional costs in the final quarter of the year as vessels that are not equipped with exhaust gas cleaning scrubbers transition from the current mainstay of 3.5% HFO (heavy fuel oil) to a compliant maximum 0.5% sulphur content LSFO (low sulphur fuel oil).
Indeed, carriers are preparing for a one-off hit of millions of dollars of costs associated with the decontamination of tanks, along with the extra expense of bunkering with LSFO, in order to be compliant with IMO 2020 from the 1 January start date.
“It is clear that the carriers will incur additional costs in the final stretch of 2019, due to the fuel switch,” said Mr Jensen.
“What is less clear is the degree to which they will be successful in passing this through to shippers,” said Mr Jensen.
Yesterday The Loadstar reported on a “disturbing” container market appraisal from Bimco’s chief shipping analyst, Peter Sand.
Mr Sand cautioned that the weak outlook for liner shipping would be further aggravated by a failure of ocean carriers to recover the cost of IMO 2020 from shippers.
The analyst argued that the oversupply of container capacity would make it “difficult” for the lines to recover the additional fuel costs from IMO 2020.
However, with the liner industry estimated to have lost a cumulative $0.5bn in the first half of the year; freight rates coming under severe pressure; and booking forecasts on the major tradelanes worsening by the week carriers could be forced to act ruthlessly and take out even more capacity.
Mr Jensen argued that if carriers are not successful in implementing their interim BAFs they might “also be challenged in implementing the full BAF from January.
“As a consequence, they would likely feel compelled to reduce capacity in many tradelanes in order to ensure implementation, and in this case we could see the amount of blank sailings significantly beyond what we are already witnessing,” Mr Jensen continued.
And with the bombing of a Saudi refinery at the weekend substantially spiking global oil prices the spread could grow even.
A Challenge to Shippers Who Would Never Dream of Controlling the Insurance
Shippers who rely on suppliers to furnish cargo insurance or who rely on their carriers to take responsibility for losses may be in for a big surprise. Protecting your investments by insuring your goods provides peace of mind.
Buying CIF: Who’s really responsible if your product is lost or damaged in transit? According to internationally accepted trade terms, referred to as Incoterms, suppliers selling “CIF” (Cost, Insurance, Freight) are responsible for arranging cargo insurance. But just because your supplier has the obligation to arrange insurance under CIF terms, it doesn’t mean that they are ultimately responsible if your product is lost or damaged during transit. The ultimate burden of loss falls upon you, the buyer. This is why many experts recommend importers change their buying terms to EXW, FOB, FCA, CFR or similar terms in order to control the selection, and thereby the quality, of insurance coverage.
How much is that insurance really costing you? Foreign suppliers and their forwarding agents often tack on placement fees to the insurance costs. Those added fees often inflate the cost of insurance well beyond market pricing for the same coverage purchased in the United States. Find out how much you’re really paying and then compare quotes received from BOC International.
Is the coverage your supplier purchased for you adequate? Importers relying on their suppliers to arrange insurance run the risk of having inadequate insurance coverage. Cargo insurance policies can vary widely in levels of coverage, deductibles and special restrictions. Ask your supplier for a complete copy of the insurance policy or for a certificate of insurance detailing all the policy terms and conditions
What’s the financial health of your supplier’s insurance company? Recent financial and catastrophic events have exposed the vulnerability of insurance companies to sudden economic devastation. Importers are encouraged to make certain their suppliers use insurers with a favorable financial rating supplied by a respected financial rating service. A.M. Best, Standard & Poor’s and Moody’s are among some of the world’s most respected. BOC’s insurance company, underwriters at Lloyd’s of London, has an A.M. Best financial rating of A (Excellent).
How will your claim be handled? If insurance is arranged overseas, will you be forced to deal with an inexperienced, sub-contracted independent adjuster unfamiliar with the assessment of transportation related losses? Ask your supplier for a list of insurance claims adjusters contracted by the insurance company. Adjuster and surveyor networks approved by Lloyd’s of London and AIMA are among the most credible. BOC has a vested interest in your insurance needs and will directly handle cargo claim documentation requirements to ensure prompt processing and timely settlement.
Every Shipper Needs Cargo Insurance
Global trading involves risk; however, broad insurance coverage minimizes your financial risk. Don’t leave your livelihood up to chance! Statistics show that one ship sinks each day and you will experience a General Average loss every eight years. If you are depending on the carrier to cover losses, their responsibility is limited by law as follows:
Ocean Carriers $500 per shipping unit
A shipping unit may be defined as one ocean container.
Air Carriers $9.07 per pound
Truckers $.50 per pound
The insurance we offer is competitively priced and insures approved merchandise against physical loss or damage from external causes. By purchasing cargo insurance, you can avoid inconvenience and frustration. Contact your BOC Representative at 617-345-0050 for your free quote.
Are you familiar with GENERAL AVERAGE?
2019, year to date, there are a number of notable fire cases, with many resulting in General Average!
- Sincerity Ace – January 2019
- Maersk Honam – March 2018
- Maersk Kensington – March 2018
- Barcelona Ferry Excellent – October 2018
- Hyundai Auto Banner – May 2018
- MOL Prestige – February 2018
- Caribbean Fantasy – June 2018
Yantian
Express Year built 2002, 100,003 dwt Date of loss: 1/3/19 Part loaded with 4,000 teu (capacity 7,551 teu.) 198 total loss, 462 damaged required survey LOF salvage – security 32.5% GA – security estimate 28% |
APL
Vancouver Year built 2013, 115,060 dwt Date of loss: 1/31/19 Part loaded with (capacity 9,200 teu.) 947 containers affected LOF salvage – security 15-20% GA – security |
ER
KOBE Year built 2001, 68,196 dwt Date of loss: 2/24/19 GA declaration on March 12, 2019 NO SEPARATE SALVAGE CLAIM GA – security estimate 10% |
General Average – The Concept
- Formulated by the Ancient Greeks to deal with situations where cargo has been jettisoned.
- Basic principle – that which has been sacrificed for the benefit of all shall be made good by the contribution of all.
- Applies to maritime claims only.
- Is declared by the captain when there is imminent danger to the vessel, voyage or crew.
- You are contractually obligated, via the Bill of Lading, for unknown and undetermined costs.
How does it work?
- Value of the voyage is determined (vessel value plus value of all cargo on the vessel.)
- Participation is determined by the percentage that the value of your cargo bears to the overall value of the voyage.
- The loss amount is determined, and participation percentage is applied to the loss amount to determine security deposit.
- Shipper or their cargo insurer pay twice – first for the initial contribution, then for a bond covering future adjustments to that estimate.
Hidden Costs
- The great unknown (is my cargo OK?); delays – finding a port, unloading & sorting; has my shipment missed deadlines?
- LCL Freight – has everyone in my container paid? Freight is not released until all payments received.
Difficulties of preventing and extinguishing fires on the open sea, include:
- Ships are larger with more varied cargo.
- Crew are ill equipped to deal with these fires.
- Fire-fighting tugs are often days or weeks away.
- Prevention is difficult, with rising problems with mis-declared cargo.
- IMDG Code is evolving to impose stricter rules on dangerous goods (DG.)
Problems Facing the Industry
- Stricter rules on DG will lead to higher costs and more incentive on the part of shippers to avoid proper declarations
- Ship owners and shipbuilders need to improve fire-fighting capabilities with CO² systems being shown to be inadequate – cost benefit analysis – are potential losses greater than the prevention costs?
- National Cargo Bureau in NY found in 2017 that of 1,721 stowage plans inspected, 20% showed errors with DG
General Average will never go away, so how do we make that less painful?
- Awareness across all business units that losses & delays are part of any supply chain. Mission-critical shipments need more risk analysis to determine transport mode.
- Understanding of what to do when General Average occurs. This is best led by your cargo insurance provider meeting with your ‘team,’ not just the risk manager or CFO.
When was the last time your insurance provider did this for you?
Do they know how to handle a GA claim?
- Have a contingency plan or at least an understanding of how the event will unfold.
Blank Sailings in October, Update
Per official notices received this morning, there are 36 vessels in October omitted stop (week 40 – week 44). Week 41 shows 15 canceled sailings. The outlook is not optimistic as to general space status after China National Holiday. We have been informed by several carriers that vessels through the end of October are overbooked. Most Shipping Orders are only being released for new bookings “subject to rolling”.
The large number of blank sailings causes the entire market in October to be a mess, and space will be tight the entire month. We will try our best to protect urgent shipments, or we can explore whether there are other, premium services available, in order to guarantee space.
Thank you in advance for your understanding of any inconvenience caused. If you have any questions, please contact your BOC Representative.
Blank Sailings (announced at this time):
Week# | Alliance | Carrier (Service String) | Gateway | Blank Sailing Details |
40 | 2M |
*MSK (TP6), *MSC (Pearl), Hamburg (UPAS3), Hyundai (PS5) | PSW |
M/V : ETD NSA 10/04 ETD HKG 10/06 ETD YTN 10/07 ETD XMN 10/09 ETA LAX 10/22 |
40 | 2M+Zim |
*ZIM (ZCP), MSK (TP10),MSC (Amber Jack) Hamburg (ASUS1), Hyundai (AW3) | EC – (P) |
M/V : ETD XNG 10/04 ETD TAO 10/06 ETD NBO 10/08 ETD SHA 10/10 ETD BUS 10/13 ETA SAV 11/06 |
41 | 2M+Zim |
*MSK (TP88), ZIM (ZGX), MSC (Pelican) Hamburg (ASUS 6) New – 1st sailing ETD XMN 08/16/2019 | EC – (P) |
M/V : ETD XMN 10/11 ETD YTN 10/14 ETD BUS 10/17 ETA HOU 11/10 |
41 | 2M+Zim |
*MSK (TP16), *MSC (Emerald), ZIM (ZSA), Hamburg (ASUS3) , Hyundai (AW4) – new routing from WK 33 2019 Merask Sydney | EC – (P) |
M/V : TBA ETD XMN 10/08 ETD KAO 10/09 ETD YTN 10/11 ETD SHA 10/15 ETD BUS 10/18 ETA SAV 11/11 |
41 | 2M+Zim |
*MSK (TP8), *MSC (Orient), Hamburg (UPAS1), Hyundai (PS4), ZIM (ZP8) Zim callling PRR only | PNW |
M/V : Gunvor Maersk ETD XNG 10/09 ETD TAO 10/11 ETD SHA 10/15 ETD BUS 10/17 ETD YOK 10/20 ETA PRR 10/28 |
43 | 2M+Zim |
*ZIM (ZCP), MSK (TP10),MSC (Amber Jack) Hamburg (ASUS1), Hyundai (AW3) | EC – (P) |
M/V : ETD XNG 10/25 ETD TAO 10/27 ETD NBO 10/29 ETD SHA 10/31 ETD BUS 11/03 ETA SAV 11/27 |
40 | Non-alliance | SM Line (PNS) | PNW |
M/V :TBA ETD YTN 10/04 ETD NBO 10/06 ETD SHA 10/08 ETD BUS 10/10 ETA YVT 10/21 |
40 | Non-alliance |
*Cosco (AAC3), *PIL (ACS), *Wanhai (CP2) OOCL(PCC2), APL (CC3), CMA (YangTse) | PSW |
M/V : KOTA PURI ETD LYG 10/02 ETD SHA 10/06 ETD NBO 10/07 ETA LGB 10/20 |
41 | Non-alliance | SM Line (PNS) | PNW |
M/V : TBA ETD YTN 10/11 ETD NBO 10/13 ETD SHA 10/15 ETD BUS 10/17 ETA YVT 10/28 |
41 | Non-alliance |
*OOCL (SC2) , Cosco (AASP), – Summer Loop only Till Oct 06 2019 – 8 sailing only | PSW |
M/V : COSCO VENICE ETD HKG 10/07 ETD YTN 10/08 ETA LGB 10/21 |
42 | Non-alliance |
*Hyundai (PS1), MSK (TP3) / MSC (Yulan) | PSW |
M/V : ETD SHA 10/16 ETD Gwangyang 10/18 ETD BUS 10/20 ETA LAX 10/30 |
42 | Not in OA | APL (EXX) – add Honolulu in Aug 2019 | PSW |
M/V : Northern Diplomat ETD NBO 10/17 ETD SHA 10/18 ETA LAX 10/29 |
40 | Ocean Alliance |
*CMA (Columbus PNW), APL (WAX), OOCL (PNW2), Cosco (MPNW) EMC (NP1), PIL (AN2) | PNW |
M/V : CMA CGM Aquila ETD YTN 10/01 ETD XMN 10/03 ETD NBO 10/04 ETD SHA 10/07 ETD BUS 10/10 ETA SEA 10/20 |
40 | Ocean Alliance |
*Cosco (CEN), OOCL (PCN1) APL (CC2), CMA (Bohai) EMC/ZIM /YML/Wanhai (CEN), PIL (AC3) | PSW |
M/V :Cosco Italy V.031E ETD XNG 10/06 ETD TAO 110/09 ETD SHA 10/11 ETD NBO 10/12 ETA PRR 10/24 |
41 | Ocean Alliance |
*OOCL(ECX1), Cosco (AWE4) EMC (SAX) APL (AW2), CMA (SAX), | EC – (P) |
M/V : OOCL Chongqing V.029E ETD Cai Mep 10/08 ETD HKG 10/11 ETD YTN 10/13 ETD XMN 10/14 ETD SHA 10/17 ETA NYC 11/12 |
41 | Ocean Alliance |
*Cosco (AWE2), OOCL (ECX2), APL (AW1), CMA (Manhattan Bridge), EMC (NUE2) | EC – (P) |
M/V : CMA CGM J.Adams V.108E ETD TAO 10/07 ETD NBO 10/10 ETD SHA 10/12 ETD BUS 10/14 ETA NYC 11/08 |
41 | Ocean Alliance |
*CMA (PEX3), APL (PG6), OOCL(GCC1), Cosco (GME2), EMC (PEX3) | EC – (P) |
M/V : APL Califorina ETD SGP 10/07 ETD HKG 10/11 ETD SHE 10/12 ETD NBO 10/16 ETD SHA 10/17 ETD BUS 10/19 ETA HOU 11/12 |
41 | Ocean Alliance |
*Cosco (GME) CMA (GMX), EMC (GME), OOCL (GCC2) | EC – (P) |
M/V : Cosco Auckland V.043E ETD SHA 10/07 ETD NBO 10/08 ETD XMN 10/10 ETD YTN 10/11 ETA HOU 11/06 |
41 | Ocean Alliance |
*Cosco (CPNW), OOCL (PNW4), APL (NP2),CMA (TPX), EMC (PE2), PIL (ANW) | PNW |
M/V : CSCL Bohai Sea 030N ETD HKG 10/08 ETD YTN 10/10 ETD NBO 10/13 ETD SHA 10/15 ETA PRR 10/26 |
41 | Ocean Alliance |
*OOCL (PCC1), Cosco (AAC4) APL (CC9), CMA (HIX), EMC (PCC1), PIL (AC7) | PSW |
M/V :OOCL Luxemburg V.069E ETD NBO 10/13 ETD SHA 10/15 ETD BUS 10/17 ETA LGB 10/28 |
41 | Ocean Alliance |
*CMA (PRX), APL (SC1), OOCL (PCS1), Cosco (AAS2) EMC (PRX), PIL (AC6), Wanhai (CP3) | PSW |
M/V : CMA CGM Bougainville V.018E ETD FUQ 10/07 ETD NSA 10/09 ETD HKG 10/10 ETD YTN 10/11 ETD XMN 10/13 ETA LAX 10/26 |
42 | Ocean Alliance |
*OOCL (PNW1), Cosco (OPNW), APL (NP4), CMA (DAS), EMC (PNW1) | PNW |
M/V : OOCL Vancouver V.111E ETD SHE 10/20 ETD HKG 10/21 ETD YTN 10/22 ETD KAO 10/23 ETA YVR 11/11 |
42 | Ocean Alliance |
*CMA (Columbus PNW), APL (WAX), OOCL (PNW2), Cosco (MPNW) EMC (NP1), PIL (AN2) | PNW |
M/V : APL SOUTHAMPTON ETD YTN 10/15 ETD XMN 10/17 ETD NBO 10/18 ETD SHA 10/21 ETD BUS 10/24 ETA SEA 11/03 |
44 | Ocean Alliance |
*EMC (HTW) OOCL(PCS2), Cosco (AAS3) CMA (GEX), | PSW |
M/V : Ever Ursula ETD TPE 10/29 ETD XMN 10/31 ETD SHE 11/02 ETD YTN 11/03 ETA LAX 111/17 |
40 | The Alliance | *ONE,*YML, Hapag (EC2) | EC – (P) |
M/V : SEASPAN HUDSON 0014E ETD TAO 10/05 ETD NBO 10/07 ETD SHA 10/10 ETD BUS 10/12 ETA NYC 11/05 |
40 | The Alliance | *Hapag, *YML, ONE (EC3) | EC – (P) |
M/V : HOUSTON BRIDGE 0038E ETD KAO 10/04 ETD XMN 10/05 ETD HKG 10/07 ETD YTN 10/08 ETD SHA 10/11 ETA SAV 11/04 |
40 | The Alliance | *ONE , Hapag, YML (PN1) | PNW |
M/V :ONE CONTRIBUTION 0038E ETD TAO 10/06 ETD SHA 10/08 ETD NBO 10/11 ETD BUS 10/14 ETA PRR 10/23 |
40 | The Alliance | *ONE, *Hapag, YML (PS7) | PSW |
M/V : ARISTOMENIS V.0009E ETD XMN 10/05 ETD HKG 10/09 ETD YTN 10/11 ETA LAX 10/24 |
41 | The Alliance | *Hapag,* YML, ONE , (PN3) | PNW |
M/V : YM ULTIMATE 0079E ETD HKG 10/13 ETD YTN 10/14 ETD NBO 10/17 ETD SHA 10/19 ETD BUS 10/21 ETA YVR 11/01 |
41 | The Alliance | *YML, Hapag, ONE , (PS4) | PSW |
M/V : YM MILESTONE V.0063E ETD HKG 10/13 ETD YTN 10/14 ETD KAO 10/15 ETD KEE 10/16 ETA LAX 10/28 |
41 | The Alliance | *Hapag, *ONE, YML,(PS6) | PSW |
M/V : NYK ADONIS V.0050E ETD TAO 10/07 ETD SHA 10/10 ETD NBO 10/12 ETA LGB 10/24 |
42 | The Alliance | *Hapag, *YML, ONE (EC3) | EC – (P) |
M/V : YM Uniform 029E ETD KAO 10/18 ETD XMN 10/19 ETD HKG 10/21 ETD YTN 10/22 ETD SHA 10/25 ETA SAV 11/18 |
42 | The Alliance | *ONE , Hapag, YML (PN1) | PNW |
M/V : MOL Creation v.071E ETD TAO 10/20 ETD SHA 10/24 ETD NBO 10/25 ETD BUS 10/28 ETA PRR 11/07 |
42 | The Alliance | * YML, Hapag, ONE (PS5) | PSW |
M/V :ONE COMMITMENT V.0045E ETD SHA 10/15 ETD BUS 10/18 ETA LAX 10/ 29 |
43 | The Alliance | *ONE, Hapag , YML (PS3) | PSW |
M/V :TBA ETD NHV 10/26 ETD PIP 10/27 ETD COL 10/30 ETD PKL 11/02 ETD SIN 11/04 ETD LCB 11/07 ETD CMP 11/09 ETA LAX 11/26 |
44 | The Alliance | * YML, Hapag, ONE (PS5) | PSW |
M/V : YM Utmost V.084E ETD SHA 10/29 ETD BUS 11/01 ETA LAX 11/12 |
China 301 Tariffs Update
CSMS #39985407 – GUIDANCE: Tenth Round of Products Excluded from Section 301 Duties
BACKGROUND
On September 20, 2019, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 84 FR 49564 announcing the decision to grant the tenth round of certain exclusion requests from the 25 percent duty assessed under the Section 301 investigation related to goods from China ($34B Action – Tranche 1).
These product exclusions relate to the imposed additional duties announced in 83 FR 28710 on Chinese goods with an annual trade value of approximately $34 billion as part of the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. The product exclusions announced in this notice will retroactively apply as of the July 6, 2018 effective date of the $34 billion action (Tranche 1) and will extend for one year after the publication of 84 FR 49564.
The exclusions are available for any product that meets the description as set out in the Annex to Federal Register Notice 84 FR 49564, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the Harmonized Tariff Schedule of the United States (HTSUS) 10-digit headings and product descriptions in the Annex; not by the product descriptions set out in any particular request for exclusion. The Annex to 84 FR 49564 link is embedded in this document for ease of reference. ANNEX
The functionality for the acceptance of the tenth round of products of China excluded from Section 301 duties will be available in the Automated Commercial Environment (ACE) as of September 29, 2019.
GUIDANCE
Instructions for importers, brokers, and filers on submitting entries to CBP containing products granted exclusions by the USTR from the Section 301 measures as set out in 84 FR 49564 are as follows:
- In addition to reporting the regular Chapters 84, 85, 87, 88 and 90 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.14 (Articles the product of China, as provided for in U.S. note 20(q) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative) for imported merchandise subject to the exclusion.
- Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.14 is submitted.
- Paragraph “B” of the Annex to 84 FR 49564 corrects a previous exclusion round; U.S. note 20(n) (105) to subchapter III of chapter 99 of the HTSUS (6th Round – 9903.88.11), correcting the description of “Dental X-ray alignment and positioning apparatus.”
ADDITIONAL INFORMATION
Duty exclusions granted by the USTR are retroactive for imports on or after the initial effective date of July 6, 2018 (83 FR 28710). To request a refund of Section 301 duties paid on previous imports of products granted duty exclusions by the USTR, importers may file a Post Summary Correction (PSC) if within the PSC filing timeframe. If the entry is beyond the PSC filing timeframe, importers may protest the liquidation.
Reminder: when importers, brokers, and/or filers are submitting an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise, they should refer to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS in ACE).
Imports which have been granted a product exclusion from the Section 301 measures, and which are not subject to the Section 301 duties, are not covered by the Foreign Trade Zone (FTZ) provisions of the Section 301 Federal Register notices, but instead are subject to the FTZ provisions in 19 CFR part 146.
For ease of reference, a summary of Section 301 actions are provided below:
For more information related to the eleventh round of products of China excluded from Section 301 duties, please refer 84 FR 49564, issued September 20, 2019.
Questions from the importing community concerning ACE entry rejections involving product exclusions should be referred to their CBP Client Representative. Questions related to Section 301 entry-filing requirements should be emailed to Traderemedy@cbp.dhs.gov.
Related Messages: #38840764, 19-000332- 19-000244, 19-000212, 19-000155, 19-000052
Tariff Actions Resource Page
Updated September 12, 2019 | www.strtrade.com
This page features information, deadlines and resource documents on the various U.S. tariff actions and the responses by the rest of the world.
The “U.S. Actions” section includes information on the Section 232 investigations of steel and aluminum, automobiles and auto parts, and uranium. It also includes information on the Section 301 investigations of China and the EU, as well as the tariffs on Mexico under the International Emergency Economic Powers Act. In the “Retaliatory Actions” section, find lists of all affected products.
If you’d like an ST&R professional to narrow down the information to what’s relevant and actionable for your company, don’t hesitate to contact us.
U.S. Actions: Section 301 Tariffs, Section 232 Tariffs
Section 301 Tariffs on China
A Section 301 investigation determined that China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation are unreasonable and discriminatory.
Product Lists
Please note these lists use the 2018 HTS. They are in the process of being updated to the most current 2019 HTS.
• Final List 1 – $34 Billion – 25% Tariff Until 9/30/19 | 30% Tariff as of 10/15/19
• List 1 – Product Specific Exclusions Granted (12/18, 3/19, 4/19, 5/19, 6/3 & 7/8 Exclusions)
• Final List 2 – $16 Billion – 25% Tariff Until 9/30/19 | 30% Tariff as of 10/15/19
• List 2 – Product Specific Exclusions Granted (7/31/19 Exclusions)
• Final List 3 – $200 Billion – 25% Tariff Until 9/30/19 | 30% Tariff as of 10/15/19
• List 3 – Product Specific Exclusions Granted (8/7/19 Exclusions)
• Final List 4A – 15% Tariff Effective 9/1/19
• Final List 4B – 15% Tariff Effective 12/15/19
• Products Removed from List 4
• Combined Section 301 Lists – Lists 1, 2, 3 & 4
• Product Specific Exclusions Granted – Lists 1, 2 & 3
Section 301 Tariff: List 4A & List 4B
Goods on List 4A and 4B will face a tariff of 15%, not 10% as previously indicated, effective Sept. 1, 2019, for List 4A products and Dec. 15, 2019, for List 4B products. 25 products have been removed from List 4 due to health, safety, national security, and other reasons and will not face any additional tariffs.
The combined list 4 covers essentially all products not already subject to Section 301 additional tariffs. It includes all apparel, footwear, and manufactured textile products, among others, but excludes pharmaceuticals, certain pharmaceutical inputs, select medical goods, rare earth materials, and critical minerals.
ST&R has extensive experience helping companies respond to Section 301 tariff increases. Contact us for assistance.
Section 301 Tariff: List 3
List 3 products, with a total import value of $200 billion, were subject to an additional 10 percent tariff as of Sept. 24, 2018, and a tariff increase to 25% in May 2019.
New! Tariffs on List 3 goods were due to increase from 25% to 30% on October 1, 2019. Per a presidential tweet on September 11, 2019, the increase will be delayed until October 15, 2019. Comments on this proposal are due by Sept. 20.
The exclusion process for List 3 products opened on June 30, 2019. Requests for exclusions may be submitted until Sept. 30, 2019. Requests for exclusion from List 3 require much more information than has been required for List 1 and List 2 goods and must be submitted via an online portal.
USTR has granted 10 HTS exclusions, all of which are product specific. Please see List 3 – Exclusion Requests Granted. All exclusions granted will be retroactive to Sept. 24, 2018, and will remain in effect for one year from the date of publication of the exclusion determination.
ST&R has extensive experience assisting companies with requesting exclusions as well as mitigating the impact of this tariff increase through tariff classification, tariff engineering, first sale, and other methods. Contact us for assistance.
Section 301 Tariff: List 2
List 2 products, with a total import value of $16 billion, were subject to an additional 25% tariff as of Aug. 23, 2018.
New! Tariffs on List 2 goods were due to increase from 25% to 30% on October 1, 2019. Per a presidential tweet on September 11, 2019, the increase will be delayed until October 15, 2019. Comments on this proposal are due by Sept. 20.
The deadline for requesting exclusions from this increase was Dec. 18, 2018. USTR has granted 292 individual HTS exclusion requests, all of which are product-specific. 1151 exclusion requests are still undergoing review as of the latest update (Sept. 6, 2019). Please see List 2 – Exclusion Requests Granted. All exclusions granted are retroactive to Aug. 23, 2018, and remain in place for one year after the exclusion determination is published in the Federal Register.
Section 301 Tariff: List 1
List 1 products, with a total import value of $34 billion, were subject to an additional 25% tariff as of July 19, 2018.
New! Tariffs on List 1 goods were due to increase from 25% to 30% on October 1, 2019. Per a presidential tweet on September 11, 2019, the increase will be delayed until October 15, 2019. Comments on this proposal are due by Sept. 20.
The deadline for requesting exclusions from this increase was Oct. 9, 2018. USTR has granted 2,813 individual HTS exclusion requests, some of which are product-specific and others that cover entire subheadings. 1,133 exclusion requests are still undergoing review as of the latest update (Sept. 6, 2019).
Please see List 1 – Exclusion Requests Granted. All exclusions granted are retroactive to July 6, 2018, and remain in place for one year after the exclusion determination is published in the Federal Register.
Latest News
• Determining Origin for Section 301 Tariffs Poses Challenges
• Act Now to Request Exclusions from Tariff Increase on China List 3 Goods
• Sept. 20 Deadline for Comments on Tariff Increase for Chinese Goods
• No Grace Period for Tariff Increase on Imports from China
• China Tariff Exclusion Request Denials Increase Amid Limited Approvals
• Trump Hikes Tariffs on Chinese Goods Again, Threatens to Force U.S. Companies Out of China
Exclusion Requests
• Exclusion Request Online Portal
Official Documents
List 4
• List 4: Notice of Modification of Section 301 Action: China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property, and Innovation (August 30, 2019)
• List 4: Notice of Modification of Section 301 Action: China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property, and Innovation (August 20, 2019)
• List 4: Request For Comments Concerning Proposed Modification of Action Pursuant to Section 301: China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property, and Innovation (May 17, 2019)
List 3
• Lists 1, 2 & 3: Request for Comments Concerning Proposed Modification of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation (September 3, 2019)
• List 3: CSMS #39268267 – Eighth Round of Products Excluded From Section 301 Duties (Tranche 3) (August 7, 2019)
• List 3: Notice of Product Exclusions: China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property, and Innovation (August 7, 2019)
• List 3: Procedures for Requests to Exclude Particular Products from the September 2018 Action Pursuant to Section 301: China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property, and Innovation (June 20, 2019)
• List 3: FR Notice Requests for Emergency Clearance of a Collection of Information by the Office of Management and for Comments
• List 3: CSMS #19-000238: UPDATE- Section 301 (Tranche 3) Duties as of May 10, 2019
• List 3: CSMS #19-000236: UPDATE-Change in Effective Date of Duty Increase of Section 301 (Tranche 3) Duties
• List 3: FR Notice Implementing Modification to Section 301 Action: China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property, and Innovation (May 10, 2019)
• List 3: FR Notice of Modification of Section 301 Action: China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property, and Innovation (May 9, 2019)
• List 3: FR Notice of Modification of Section 301 Action: China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property, and Innovation (February 28, 2019)
• List 3: Exclusion Process Excerpt from Congress’ Joint Explanatory Statement (February 15, 2019)
• List 3: FR Notice of Modification of Section 301 Action – China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation (December 19, 2018)
• List 3: FR Notice of Conforming Amendment and Modification to Section 301 Action: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property and Innovation (September 28, 2018)
• List 3: FR Notice of Modification of Section 301 Action: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation (September 21, 2018)
• List 3: FR Notice on Extension of Public Comment Period Concerning Proposed Modification of Action Pursuant to Section 301 (July 17, 2018)
• List 3: Request for Comments Concerning Proposed Modification of Action Pursuant to Section 301 (Docket ID: USTR-2018-0026)
List 2
• Lists 1, 2 & 3: Request for Comments Concerning Proposed Modification of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation (September 3, 2019)
• List 2: CSMS Guidance: Seventh Round of Products Excluded from Section 301 Duties (Tranche 2) (August 2, 2019)
• List 2: FR Notice of Product Exclusions: China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property, and Innovation (July 31, 2019)
• List 2: FR Notice on Procedures to Consider Requests for Exclusion of Particular Products from the Additional Action Pursuant to Section 301 (September 18, 2018)
• List 2: Requests for Comments: Proposed Determination of Action Pursuant to Section 301 (Docket ID: USTR-2018-0018)
• List 2: FR Notice of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation (August 16, 2018)
List 1
• Lists 1, 2 & 3: Request for Comments Concerning Proposed Modification of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation (September 3, 2019)
• List 1: Notice of Product Exclusions: China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property, and Innovation (July 8, 2019)
• List 1: Notice of Product Exclusions: China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property, and Innovation (June 4, 2019)
• List 1: Notice of Product Exclusions: China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property, and Innovation (May 14, 2019)
• List 1: Notice of Product Exclusions: China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property, and Innovation (April 18, 2019)
• List 1: Notice of Product Exclusions: China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property, and Innovation (March 25, 2019)
• List 1: CBP Updates ACE for List 1 Exclusions (February 11, 2019)
• List 1: FR Notice of Product Exclusions: China’s Acts, Policies and Practices Related to Technology Transfer, Intellectual Property, and Innovation (December 28, 2018)
• List 1: Procedures to Consider Requests for Exclusion of Particular Products from the Determination of Action Pursuant to Section 301 (July 11, 2018)
Other
• Section 301 Exclusion Request Process: Filing Guidelines for Product-Specific Exclusion Requests
• Customs Instructions on 25% Additional Tariffs July 3, 2018 (CSMS #18-000419)
Dates & Deadlines
List 1 Date
25% duty effective on List 1 items July 6, 2018
Deadline to request exclusions October 9. 2018
Duty raised to 30%
October 15, 2019 (previously October 1, 2019)
List 2 Date
Comments on specific subheadings due July 23, 2018
Deadline to request to appear at hearing June 29, 2018
Pre-hearing submissions due June 29, 2018
Hearing on List 2 products July 24, 2018
Post-hearing rebuttal comments due July 31, 2018
25% duty effective on List 2 products August 23, 2018
Deadline to request exclusions December 18, 2018
Duty raised to 30%
October 15, 2019 (previously October 1, 2019)
List 3 Date
Deadline for filing requests to appear at hearing and summary of expected testimony August 13, 2018 (previously July 27, 2018)
Hearing on List 3 products August 20 – 27, 2018 (extended from August 20 – 23)
Post-hearing rebuttal comments due September 6, 2018 (previously August 30, 2018)
Due date for submission of written comments September 6, 2018 (previously August 17, 2018)
10% additional tduty effective on List 3 products September 24, 2018
USTR reports the nature & timing of exclusion process to Congress March 17, 2019 (USTR did not meet deadline)
25% additional duty effective on List 3 products May 10, 2019 (previously January 1, 2019 & March 2, 2019)
Exclusion process details released
June 20, 2019
Web portal for submitting exclusions opens June 30, 2019, noon EDT
Deadline to request exclusions September 30, 2019
Duty raised to 30%
October 15, 2019 (previously October 1, 2019)
List 4 Date
Deadline for requests to appear at the public hearing June 10, 2019
Public hearing on List 4 products June 17, 2019 – June 25, 2019
Written comments due, including input on the specific tariff levels that should be imposed and requests to exclude specific subheadings June 17, 2019
Post-hearing rebuttal comments July 2, 2019
15% additional duty effective on List 4A products
Note duty was originally 10%
September 1, 2019
15% additional duty effective on List 4B products
Note duty was originally 10%
December 15, 2019
Section 301 Investigation of France’s Digital Services Tax
On July 10, 2019, USTR initiated an investigation with respect to the Digital Services Tax (DST) under consideration by France. This investigation could take up to 12 months, and could result in tariffs or other restrictions on imports from France if the two sides are not able to reach a settlement. Watch this space for updates on this investigation.
Latest News
• France Could be Tariff Target as U.S. Launches 301 Probe of Digital Services Tax
Official Documents
• Initiation of a Section 301 Investigation of France’s Digital Services Tax
Dates & Deadlines
USTR initiates the investigation July 10. 2019
Deadline for filing requests to appear at the public hearing August 12, 2019, noon EDT
Public hearing August 19, 2019
Deadline for filing post-hearing submissions August 26, 2019
Section 232 Tariffs on Steel & Aluminum
Effective June 1, 2018, additional tariffs of 25 percent and 10 percent on steel and aluminum imports were imposed for almost all countries. As of May 20, 2019, steel and aluminum products from Canada and Mexico are not subject to the additional tariffs. The following products are covered by these proclamations.
• steel articles classified under HTSUS subheadings 7206.10 through 7216.50, 7216.99 through 7301.10, 7302.10, 7302.40 through 7302.90, and 7304.10 through 7306.90, including any subsequent revisions to these HTSUS classifications
• the following aluminum articles: (a) unwrought aluminum (heading 7601); (b) aluminum bars, rods, and profiles (heading 7604); (c) aluminum wire (heading 7605); (d) aluminum plate, sheet, strip, and foil (flat rolled products) (headings 7606 and 7607); (e) aluminum tubes and pipes and tube and pipe fitting (headings 7608 and 7609); and (f) aluminum castings and forgings (HTSUS 7616.99.5160 and 7616.99.5170), including any subsequent revisions to these HTSUS classifications
Countries and/or companies negatively impacted by these additional tariffs can petition for an exclusion. In June 2019, the BIS announced a new online portal to facilitate the submission and management of Section 232 exclusion requests, objections to exclusion requests, rebuttals, and surrebuttals. All new Section 232 exclusion requests must be submitted through this portal beginning June 14.
Latest News
• Section 232 Tariff and Quota Exclusion Process Transferred to New System
• Turkey Terminated from GSP, Subject to TRQ on Solar Cells and Washers
• U.S., Canada, Mexico to Terminate Steel and Aluminum Tariffs
• Section 232 Tariffs Reviewable by WTO, Panel Says
• Steel and Aluminum Tariffs Upheld as Court Affirms Constitutionality of Section 232
Exclusion Request Forms
• Aluminum Exclusion Request Form
• Steel Exclusion Request Form
Official Documents
• BIS Implementation of New Commerce Section 232 Exclusions Portal
• CSMS #19-000252: Termination of Section 232 Duty for Steel and Aluminum Products of Canada and MX
• Changes to DOC Exclusion Request Process
• August 29 Presidential Proclamation on Steel
• August 29 Presidential Proclamation on Aluminum
• CBP webpage on Section 232 Tariffs on Aluminum and Steel (cbp.gov)
Section 232 Investigation of Automobiles & Auto Parts
The Department of Commerce announced May 23, 2018 its self-initiation of an investigation under section 232 of the Trade Expansion Act of 1962 to determine whether imports of automobiles (including SUVs, vans, and light trucks) and auto parts are harming U.S. national security. The results of the investigation were submitted to President Trump on February 17, 2019.
On May 17, 2019, President Trump announced that he is delaying a decision for 180 days. During that time the U.S. plans to hold talks with the European Union, Japan, and possibly others that will likely seek to reduce imports from those countries. According to the proclamation, the DOC determined that U.S.-owned auto producers’ share of the domestic and global markets has fallen sharply in recent decades, which decreases the sales revenues that enable the research and development expenditures necessary for long-term automotive technological superiority, which in turn is essential for national defense.
Latest News
• Auto Import Review Results Sent to White House; No Word on Recommendations or Response
• Legislation to Delay Section 232 Tariffs on Autos Introduced
• Amid Rumors of New Auto Duties, Grassley Vows Review of Presidential Tariff Authority
• Senate Hearing on Auto Tariffs Scheduled for Sept. 26
• Auto Import Hearing Shortened
Section 232 Investigation of Uranium
President Trump will not impose tariffs or quotas on uranium imports.
The Department of Commerce announced July 18, 2018 its self-initiation of an investigation under section 232 of the Trade Expansion Act of 1962 to determine whether the present quantity and circumstances of uranium ore and product imports threaten to impair U.S. national security. In April 2019, the department determined that imports of uranium are threatening U.S. national security.
However, a July 12, 2019 presidential memorandum states that while the report’s findings “raise significant concerns…a fuller analysis of national security considerations with respect to the entire nuclear fuel supply chain is necessary at this time.” To that end, the memorandum establishes the United States Nuclear Fuel Working Group, but declines to adjust imports through tariffs and quotas.
Latest News
• No Section 232 Import Restrictions on Uranium
• Import Restrictions on Uranium Possible in July
• Deadline for Input on Section 232 Probe of Uranium Extended
• Sept. 10 Deadline for Input on Section 232 Probe of Uranium
• Uranium Imports Could Face Tariffs, Quotas from New Section 232 Investigation
Official documents
• Memorandum on the Effect of Uranium Imports on the National Security and Establishment of the United States Nuclear Fuel Working Group
• FR Notice of Change in Comment Deadline for Section 232 National Security Investigation of Imports of Uranium
• FR Notice of Request for Public Comments on Section 232 National Security Investigation of Imports of Uranium
Tariffs on the EU – Aircraft Dispute
In May 2019, the World Trade Organization ruled that European Union subsidies to Airbus have caused adverse affects to the United States. On April 8, 2019, USTR identified a preliminary list of EU products to which additional duties may be applied. The estimated import value of the goods on the preliminary list was approximately $21 billion in 2018. On July 5, 2019, USTR identified a second list of EU products, with a value of approximately $4 billion, that may be subject to additional duty. The products can be found here.
USTR estimates the harm from the EU subsidies at $11 billion in trade each year, but the EU has challenged that figure. A final decision from a WTO arbiter is expected this summer, and the final list subject to additional duty will reflect only the amount of trade found to be adversely affected in the arbitrator’s decision.
Importers with goods on these lists should consider taking proactive measures to mitigate the impact of any potential tariff increase, such as working to have their products omitted from the final list or considering alternative sourcing locations. For assistance in this effort, please contact Kristen Smith at (202) 730-4965.
The EU has published their own preliminary list of U.S. products on which the EU could impose additional tariffs of up to 100 percent as part of this dispute, which you can find here and in the Retaliatory Actions section below.
Latest News
• First Sale Rule Can Mitigate Impact if U.S. Hits EU with New Import Tariffs
• More Imports from EU Targeted for Potential Tariffs Up to 100 Percent
• Tariff Hike on $11 Billion in Imports from EU Could Come This Summer
• EU Trade Sanctions Against U.S. Unclear After Latest WTO Aircraft Subsidy Ruling
Product List
• Preliminary List – Proposed Products for Tariff Countermeasures in Response to Harm Caused by EU Aircraft Subsidies (includes both May and July 2019 proposed products)
Official Documents
• FR Notice: Notice of Hearing and Request for Public Comments: Enforcement of U.S. WTO Rights in Large Civil Aircraft Dispute (July 5, 2019)
• FR Notice: Initiation of Investigation; Notice of Hearing and Request for Public Comments: Enforcement of U.S. WTO Rights in Large Civil Aircraft Dispute (April 12, 2019)
Dates & Deadlines
Item Date
Due date for submission of requests to appear at the public hearing and summary of testimony (Products on April 2019 notice) May 6, 2019
Section 301 Committee Public Hearing
(Products on April 2019 notice) May 15, 2019
Due date for submission of written comments, including post-hearing rebuttal comments
(Products on April 2019 notice) May 28, 2019
Due date for submission of requests to appear at the public hearing and summary of testimony
(Products on July 2019 notice) July 24, 2019
Due date for submission of written comments, including post-hearing rebuttal comments
(Products on July 2019 notice) August 5, 2019
Section 301 Committee Public Hearing
(Products on July 2019 notice) August 5, 2019
Due date for post-hearing rebuttal comments
(Products on July 2019 notice) August 12, 2019
Tariffs on Mexico (indefinitely suspended)
No additional tariffs related to border security are in effect or are currently scheduled to go into effect.
On the evening of May 30, 2019 in an effort to push Mexico to address immigration issues, the White House announced that a 5% tariff would be imposed on goods from Mexico effective June 10, with the rate increasing by 5% each month, up to 25%. On Friday, June 7th, President Trump announced that the tariff was “indefinitely suspended” in light of a bilateral agreement to work toward a “durable solution” on “irregular migration” from Mexico to the U.S.
Latest News
• Update: No Import Tariffs on Mexico on June 10
• Mexico Tariffs Could Hit 10 Percent or More but Details Remain Scarce
• Tariffs on All Imports from Mexico to Begin June 10
U.S. Legislation that Could Affect Section 232 & Section 301 Tariffs
Companies interested in supporting any or all of the below legislation should contact Nicole Bivens Collinson by email or at (202) 730-4956.
Name Description Senate House
Global Trade Accountability Act of 2019 To provide for congressional review of the imposition of duties and other trade measures by the executive branch, and for other purposes. S.1284
H.R.273
Import Tax Relief Act of 2019 To require the establishment of a process for excluding articles imported from the People’s Republic of China from certain duties imposed under section 301 of the Trade Act of 1974, and for other purposes. S.577
H.R.1452
Bicameral Congressional Trade Authority Act of 2019 To amend the Trade Expansion Act of 1962 (Section 232) to impose limitations on the authority of the President to adjust imports that are determined to threaten to impair national security, and for other purposes. S.287
H.R.940
Trade Security Act of 2019 To amend section 232 of the Trade Expansion Act of 1962 to require the Secretary of Defense to initiate investigations and to provide for congressional disapproval of certain actions, and for other purposes. S.365
H.R.1008
Reclaiming Congressional Trade Authority Act 2019 To limit the authority of the President to modify duty rates for national security reasons (Section 232) and to limit the authority of the United States Trade Representative to impose certain duties or import restrictions, and for other purposes. S.899
H.R.3477
To prohibit the imposition of duties on the importation of goods under the International Emergency Economic Powers Act Legislation has been introduced in the House to limit the President’s ability to impose duties under the IEEPA. The IEEPA was the act invoked for the proposed tariffs on Mexico in June 2019. No Senate Bill H.R.3557
Promoting Responsible and Free Trade Act of 2019 To require congressional approval of certain trade remedies, and for other purposes. No Senate Bill H.R.3673
Trade Certainty Act of 2019 To exclude the imposition of duties and import quotas from the authorities provided to the President under the International Emergency Economic Powers Act. S___
No House Bill
Establishing exclusions from section 301 & section 232 duties To establish a process for United States businesses to obtain exclusions from certain duties imposed under section 301 of the Trade Act of 1974 and section 232 of the Trade Expansion Act of 1962, and for other purposes S.2362
No House Bill Yet
Retaliatory Actions
The U.S. faces retaliatory actions from China, the EU, India, Turkey and Russia. Find affected products by viewing our Mega Matrix. The Mega Matrix now contains products on the 301 Airbus retaliation list proposed by the EU in April 2019.
New! On September 11, 2019, China released two lists of products to be excluded from from 301 tariffs. The exclusions will start on Sept. 17, 2019 and be valid for one year.
Prior to May 20, 2019, the U.S. faced retaliatory actions from Canada and Mexico in addition the countries named above. However, all retaliatory tariffs from Canada and Mexico have now been eliminated.
There is an exclusion process for China’s tariffs. Contact us for more information.
Click the list name below to view products by country along with tariff rates.
Latest News
• China Threatens Tariff Hike on Virtually All Remaining U.S. Goods
• Exclusions for China Retaliatory Tariffs Can be Requested Starting June 3
• U.S., Canada, Mexico to Terminate Steel and Aluminum Tariffs
• China Increases Retaliatory Tariffs on U.S. Goods, Will Allow for Exclusions
• $20 Billion in U.S. Exports on EU Retaliation List in Aircraft Subsidy Dispute
• Retaliatory Tariffs Could Harm Agricultural Exports, Report Finds
Country / Region Product List Effective Date
China 232 Retaliation List
April 2, 2018
China 301 Retaliation List One
Released June 16, 2018
July 6, 2018
Exclusion requests accepted between June 3, 2019 – July 5, 2019
China 301 Retaliation List Two, Version 1
Released June 16, 2018
301 Retaliation List Two, Version 2
Released August 8, 2018 August 23, 2018
Exclusion requests accepted between June 3, 2019 – July 5, 2019
China 301 Retaliation List 3.1 – 10% & 25% Tariff
301 Retaliation List 3.2 – 10% & 20% Tariff
301 Retaliation List 3.3 – 5% & 10% Tariff
301 Retaliation List 3.4 – 5% & 5% Tariff (no rate change)
Released August 3, 2018
Finalized September 17, 2018
Amended May 13, 2019 September 24, 2018 at lower tariff rate specified
June 1, 2019 at higher tariff rate specified
Exclusion requests accepted between September 2, 2019 – October 18, 2019
EU 232 Retaliation List One
June 22, 2018
EU 232 Retaliation List Two
March 23, 2021
EU 301 Airbus Retaliation
Released April 17, 2019 TBD – level of damages depends on WTO arbitration verdict expected in late 2019 or early 2020.
India 232 Retaliation List
June 16, 2019
(previously 6/21/2018, 9/18/2018, 11/2/2018, 12/17/2018, 3/2/2019 & 4/1/2019)
Turkey 232 Retaliation List
Certain Duties Doubled as of August 15, 2018
June 21, 2018
Russia 232 Retaliation List
August 5, 2018