October 14, 2019

President Trump Delays the October 15 China Tariff Increase of 5%

On October 12, President Trump announced that the United States would be halting its October 15 tariff increase on Chinese imports after successful negotiations in Washington, D.C. this past week.

Products on China lists 1,2, and 3 were scheduled to rise from 25% to 30% on October 15.

The United States suspended the tariff hike on $250 billion in Chinese imports, and China agreed to buy $40 billion to $50 billion in U.S. farm products as the world’s two biggest economies reached a partial cease-fire in their 15-month trade war.

Nothing has been said to date about the proposed December 15 tariff increase on almost all remaining Chinese imports including laptops, smartphone, footwear and clothing.

Please contact your V. Alexander account team with any questions and follow us on our website www.valexander.com for updates on this and other topics.

**************************************************************************************************************************************************************
October 2, 2019

Additional China Tariff Exclusions Announced for List 1 & List 2

The USTR has announced additional exclusions for Lists 1 & 2, granting partial exclusions on a total of 203 products.

The List 1 exclusions cover 92 HTS subheadings (found here) partially excluded from 25% tariffs, which were in response to 129 separate requests.

The List 2 exclusions cover 111 HTS subheadings (found here) partially excluded from 25% tariffs, which were in response to 382 separate requests.

These partial exclusions will be applied retroactively to the original effective dates of each list, July 6, 2018 for List 1, and August 23, 2018 for List 2. As has been the case in the past, importers who import exempt products from Lists 1 & 2, can claim an exemption for up to one year from the date the official notice is posted in the Federal Register.

Please note that the USTR has also removed 6 product exclusions as outlined below.

1. Aluminum structural angles for sliding or rolling driveway gates (HTSUS 7610.90.0080)
2. Machine tool stands having leveling, stabilizing, attachment, or other special features (HTSUS 8466.30.8000)
3. Granulating machines not specifically designated for use with specific particulate materials (HTSUS 8479.89.9499)
4. Vertical or single shaft shredding machines used in recycling (HTSUS 8479.89.9499)
5. CB radio antennas (HTSUS 8529.10.9100)
6. Electric three-wheeled carriages for disabled persons (HTSUS 8713.90.0030)

Please contact your V. Alexander account team with any questions and follow us on our website www.valexander.com for updates on this and other topics.

**************************************************************************************************************************************************************

September 19, 2019

Additional Exclusions for China Lists 1,2, and 3 announced by the USTR

Additional exclusions from the Section 301 additional 25 percent tariff on List 1, 2, and 3 goods from China have been announced by the Office of the U.S. Trade Representative. These partial exclusions cover a total of 437 specific product descriptions that reflect 1,170 exclusion requests. The USTR announced each list separately as follows:

The List 1 notice contains 310 HTS subheadings which covered 724 separate requests.
The List 2 notice contains 89 HTS subheadings which covered 400 separate requests.
The List 3 notice contains 38 HTS subheadings which covered 46 separate requests.

It is important to note that importers who have an eligible product from List 1 and List 2 are able to claim an exemption under the new exclusions for up to a year from the date the official notice is posted in the Federal Register, regardless of whether the importer filed an exclusion request. However, additional List 3 product exclusions will expire on August 7, 2020, as a full year “would have resulted in disparities in the effective periods between exclusions granted early in the exclusion process and those granted later.”

To recap:
> exclusions for List 1 goods will be retroactive to July 6, 2018, and remain in place for one year after publication of a formal notice in the Federal Register and must be claimed using new HTSUS subheading 9903.88.14
> exclusions for List 2 goods will be retroactive to Aug. 23, 2018, and remain in place for one year after publication of a formal notice in the Federal Register and must be claimed using new HTSUS subheading 9903.88.17
> exclusions for List 3 goods will be retroactive to Sept. 24, 2018, and remain in place until Aug. 7, 2020 (which are now the uniform beginning and expiration dates for all List 3 exclusions that have been or may be granted) and must be claimed using new HTSUS subheading 9903.88.18

V. Alexander will continue to monitor this and provide updates as they become available. Please contact your account team with any questions.
**************************************************************************************************************************************************************
September 12, 2019

Tariff Increases for China goods on Lists 1, 2 and 3 Postponed Until October 15th

President Donald Trump has announced that the United States will delay by two weeks a planned increase in tariffs on some Chinese imports. In a Wednesday tweet, Mr. Trump said the delay is “a gesture of good will.” The President said Chinese Vice Premier Liu He requested the delay “due to the fact that the People’s Republic of China will be celebrating their 70th Anniversary … on October 1st.” The delay could signal a de-escalation of tensions ahead of trade negotiations that are slated to resume in Washington next month, although expectations are tempered, analysts said.

This delay means that the planned increase from 25% to 30% for Chinese goods on Lists 1,2, & 3 will not take place until October 15, 2019.

V. Alexander will continue to monitor this situation and provides updates. If you have any questions, please contact your V. Alexander account team.

**************************************************************************************************************************************************************
September 5, 2019

USTR issues Notice Seeking Comments on the Proposed October 1 Increase in China Section 301 Tariffs

On September 3, 2019, the office of the U.S. Trade Representative (USTR) issued a notice seeking comments from the public regarding the proposed increase in duties from 25% to 30% for products covered in Lists 1,2, & 3. These increases, previously announced by the President are schedule to go into effect on October 1, 2019.

The USTR has asked for comments to include…

• Details as to whether the tariff increases would be effective or practical enough to properly achieve the elimination of China’s unfair trade practices
• Information indicating that the rate increases would cause disproportionate economic harm to “U.S. interests, including small- or medium-sized businesses and consumers”

All submission requests must be sent electronically via the Federal eRulemaking Portal by September 20, 2019 using docket number USTR–2019–0015.

China List 3 exclusion Request Deadline Looming

We would also like to remind you that September 30, 2019 is the deadline for requesting an exclusion for the $200 billion worth of products covered in China List 3. Any exclusions granted will be retroactive to Sept. 24, 2018, and remain in effect for one year from the date of publication of the exclusion determination in the Federal Register.

The additional tariff on List 3 goods is currently 25 percent and is set to increase to 30 percent as of October 1, 2019 (comments on this increase are due by September 20, 2019). Any interested person, including trade associations, may request exclusions from this tariff by submitting a request through the exclusion portal (found here).

If you have any questions, please contact your V. Alexander account team.

**************************************************************************************************************************************************************
August 27, 2019

The Office of the U.S. Trade Representative (USTR) will publish the official Federal Register notice about the additional 15% tariffs for Section 301 List 4A products, effective September 1, 2019, and List 4B products, effective December 15, 2019, on August 30, 2019.

The unofficial Federal Notice can be found here.

There is no mention of the threatened additional increase on List 1, 2 and 3 items in the notice.

We will publish any further updates as soon as they become available.

Please contact your V. Alexander Account Team with any questions about this topic.

**************************************************************************************************************************************************************

August 26, 2019

President Trump tweeted, and the Office of the United States Trade Representative (USTR) confirmed last Friday that the United States, in response to China’s announcement of additional tariffs on $75 billion worth of American products, would increase existing tariffs on most Chinese goods by an additional 5% effective as of the dates stated below.

According to the release, the USTR will begin the process of increasing the 25% tariffs currently on approximately $250 billion worth of Chinese imports on lists 1, 2 and 3 to 30%, effective October 1 following a notice and comment period.

The 10% tariffs the President announced earlier this month on approximately $300 billion worth of Chinese imports on Lists 4A and 4B will increase to 15%, effective on the scheduled dates for these increases (September 1 for List 4A, and December 15 for List 4B).

A Federal Register notice is forthcoming.

V. Alexander will continue to monitor this situation and provide updates as needed.

Please contact your V. Alexander Account Team with any questions about this topic, and visit our website for further information.