CBP added the ability in ACE for importers to file entries with recently excluded goods in the second tranche of Section 301 tariffs on Oct. 8, it said in a CSMS messages. For the second tranche exclusions, filers of imported products that were granted an exclusion (see 1909300041) should report the regular Chapters 39, 70, 73, 84, 85, 86 and 90 Harmonized Tariff Schedule number, as well as subheading 9903.88.20. “Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when" subheading 9903.88.20 is submitted, CBP said.
President Donald Trump announced a "very substantial phase 1" deal in the Oval Office Oct. 11, saying the Chinese and American negotiators came to a deal on intellectual property, financial services and agricultural sales. The president said China will buy as much as $40 billion to $50 billion worth of American commodities. He also said good progress had been made on issues around technology transfer from American companies to Chinese partners.
There's the possibility of an agreement on currency manipulation this week, according to U.S. Chamber of Commerce Head of International Affairs Myron Brilliant. Brilliant, who spoke with both China's chief negotiator and members of the Trump administration ahead of the Oct. 10 negotiating session, told reporters on a conference call that if the two sides come up with a currency agreement, that might lead to a reprieve for importers who are expecting 25 percent tariffs to go to 30 percent on Oct. 15.
Fitbit will shift production to "outside China," starting in January, for “effectively all of its trackers and smartwatches” to escape exposure to the tariffs on Chinese goods, the company said Oct. 9. "[T]hose products will no longer be of Chinese origin and therefore not subject to Section 301 tariffs.” Smartwatches and fitness trackers, comprising the entire product line, were hit with 15 percent List 4A tariffs Sept. 1 as part of the broad category of 8517.62.00.90 goods that also includes smart speakers and Bluetooth headphones (see 1908140031). The company began exploring potential alternatives to China last year, Chief Financial Officer Ron Kisling said. It altered its supply chain and manufacturing operations with “additional changes underway,” the company said. Fitbit will give additional details on its Q3 call within the month.
CBP's role in considering Section 301 exclusion requests is limited to a review of drafted exclusions from the Office of the U.S. Trade Representative, a CBP spokesperson said. Asked whether CBP sees the full exclusion requests in their entirety, the spokesperson said "CBP does not review individual petitions for exclusions to the remedy." USTR "evaluates and approves requests for exclusions to the China 301 remedy," the CBP spokesperson said.
August TV unit imports from China increased 22.3 percent sequentially from July, and 37.5 percent year over year, according to newly published Census Bureau statistics accessed Sunday through the International Trade Commission’s DataWeb tool. Observers will debate whether the August spikes were evidence of importers speeding product through U.S. ports to beat the 15 percent Section 301 tariffs on finished TV sets from China that took effect Sept. 1.
International Trade Today is providing readers with some of the top stories for Sept. 30 - Oct. 4 in case they were missed.
Correction: After assembly in Sweden, Volvo cars that CBP found to be subject to Section 301 tariffs were imported into the U.S. under subheadings 8703.60.00 and 8703.80.00 (see 1910030014).
Costco is experiencing “a lot of moving parts” with the Section 301 tariffs on Chinese goods, including a few price increases “along the way,” said Chief Financial Officer Richard Galanti on a fiscal Q4 call on Oct. 3. Costco has tariff exposure to many of the products on “the first three lists,” and “we'll just have to wait and see” the impact if those tariffs rise to 30 percent as scheduled Oct. 15, he said.
CBP has assessed about $41 billion in duties under the major trade remedies started during the Trump administration as of Oct. 2, according to CBP's trade statistics page. That includes $31 billion in duties from the Section 301 tariffs on goods from China, up around $4 billion from about a month ago. The assessed tariffs under Section 301 now include the 15 percent tariffs that took effect on Sept. 1 (see 1908270066). CBP also has assessed about $8.1 billion under the Section 232 tariffs on steel and $1.7 billion under tariffs on aluminum. The Section 201 trade remedies on washing machines, washing machine parts and solar cells (see 1801230052), imposed Jan. 23, 2018, account for $1.1 billion in assessed tariffs.