The latest United States Trade Representative (USTR) proposed application of an additional 25% duty covering more than 1300 import tariff classifications including: medicaments; pumps and valves; machinery for the oil and gas, agriculture, food, beverage, and apparel industries; motors; generators; trucks; bulldozers; railway cars; automobiles; helicopters; airplanes; boats; and consumer products such as dishwashers, microwaves, TVs, and VCRs. The list of products, defined by 8-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), is set out in the Annex to the Federal Register Notice (click here).
The USTR also announced that there will be a public comment period including a hearing after which the USTR will issue a final determination on the merchandise subject to the additional tariffs. The timetable is short and we expect the new tariffs to be in place in June:
- April 23, 2018 due date for filing requests to appear at the public hearing
- May 11, 2018 due date for submission of written comments
- May 15, 2018 public hearing
- May 22, 2018 due date for submission of post-hearing rebuttal comments.
Comments may address whether to retain or remove products from the proposed list, whether products not currently on the list should be added, and the proposed 25% additional duty.
Key facts:
- The 25% duty will be in addition to any existing duty (see page 7 of the Federal Register Notice).
- The duty will be applied according to the HTSUS Classification of the affected products in the condition as imported, as determined by existing classification principles. See e.g., HTSUS 8506.50.00 lithium batteries (see page 57 of the Federal Register Notice).
- We expect the duty will be applicable to products “entered” into the U.S. on or after the effective date (i.e., The time the appropriate CBP officer authorizes the release of the merchandise. 19 CFR 141.68)
To determine if your products imported from China are affected, see the Annex to the USTR Notice.
For more information, please contact your local MIQ Logistics representative.