More China List 2, All Current China List 4A Tariff Exclusions Considered for Extension
© , Sandler, Travis & Rosenberg, P.A. Originally published in the [06/25/2020] issue of the Sandler, Travis & Rosenberg Trade Report. Reprinted by permission.
An extension for up to 12 months of specific exclusions from the Section 301 additional tariff on List 2 goods from China as well as all current exclusions from the additional tariff on List 4A goods from China is under consideration by the Office of the U.S. Trade Representative. Comments may be submitted between July 1 and July 30.
List 2 goods have been subject to an additional 25 percent tariff since Aug. 23, 2018. The second set of exclusions (click here for a list of covered products) from this tariff for List 2 goods was issued in September 2019 and is set to expire Sep. 20, 2020, while the third set of exclusions (click here for a list of covered products) was issued in October 2019 and is slated to expire Oct. 2. 2020.
Additionally, as of June 12, 2020 USTR had issued five notices granting exclusions from the additional 7.5 percent tariff on List 4A goods. These exclusions were issued March 10, March 17, March 31, May 13, and June 12, 2020, and are all set to expire Sept. 1, 2020.
USTR is now considering a possible extension of these exclusions and will evaluate each on a case-by-case basis. The focus of this evaluation will be whether the product at issue remains available only from China.
In requesting an extension of an exclusion, commenters should submit a comment form with the following information.
– full legal name of the organization making the comment, whether the commenter is a third party (e.g., law firm, trade association, or customs broker) submitting on behalf of an organization or industry, and (if so) the name of the third-party organization
– the number for the exclusion at issue, as provided in the annex of the applicable Federal Register notice
– whether the product is subject to an antidumping or countervailing duty order
– whether the commenter supports or opposes extending the exclusion and why
– whether the excluded product or comparable products are available from sources in the U.S. or third countries, and any changes in the global supply chain for the product since August 2018 (List 2 goods) or September 2019 (List 4A goods)
– efforts undertaken since August 2018 (List 2 goods) or September 2019 (List 4A goods) to source the product from the U.S. or third countries
– the value and quantity of the excluded product purchased in 2018 and 2019 and whether these purchases are from a related company (and, if so, its name and relationship to the requester)
– whether Chinese suppliers have lowered their prices for the excluded product following the imposition of tariffs
– the value and quantity of the excluded product purchased from domestic and third-country sources in 2018 and 2019
– the commenter’s gross revenue for 2018 and 2019
– whether the excluded product is sold as a final product or as an input
– whether the imposition of tariffs on the excluded product will result in severe economic harm to the commenter or other U.S. interests
– any additional information in support of the extension request