CBP created Harmonized System Update (HSU) 1917 on Oct. 18, containing 81 Automated Broker Interface records and 26 Harmonized Tariff Schedule records, it said in a CSMS message. The update includes recently announced exclusions and other changes to the Section 301 tariffs (see 1909300009). Another change is related to the tariffs on goods from Europe that began on Oct. 18 (see 1910170049)
Section 301 (too broad)
China is going to ask the World Trade Organization to authorize retaliatory tariffs on $2.4 billion worth of goods at the WTO's dispute settlement body meeting Oct. 28. If the U.S. disagrees with either the argument that it's not complying with the ruling on countervailing duties, or the amount of retaliation permitted, an arbitrator will decide how much China may retaliate.
The Customs Rulings Online Search System (CROSS) was updated with 39 rulings on Oct. 18. The following headquarters ruling not involving carriers were modified on Oct. 18, according to CBP:
The Office of the U.S. Trade Representative announced procedures for requesting product exclusions to some of the fourth list of Section 301 tariffs on products from China. A subset of those tariffs took effect on Sept. 1 (see 1908270066), while the rest of the tariffs are scheduled to begin on Dec. 15. This process only applies to tariffs that began on Sept. 1, it said.
A new report on the economic impact of the tariff reductions on 1,655 products covered by the Miscellaneous Tariff Bill finds a tiny effect on GDP from the $179 million in duties saved over seven months.
Trade experts identified many weaknesses of the World Trade Organization -- the evidentiary standard for countervailing duties: the fact that CVD in one market doesn't help the industry's economics when surplus flows to other countries; the length of time it takes to show adverse effects to domestic firms; the fact that 164 countries can't agree on trade liberalization.
CBP issued filing instructions for goods subject to the tariffs on goods from Europe set to begin on Oct. 18 (see 1910020044). The Oct. 17 CSMS message includes instructions for "submitting an entry summary in which a heading or subheading in Chapter 98 and/or 99 is claimed on imported merchandise" and the sequence order for reporting the tariff numbers. The additional duties of either 10 percent or 25 percent "are effective on or after 12:01 a.m. eastern daylight time on October 18, 2019," it said.
Details remain vague about the “very substantial phase one” trade deal President Donald Trump announced at the White House Oct. 11 with China's Vice Premier Liu He that persuaded the president to delay hiking three rounds of Section 301 tariffs to 30 percent (see 1910110038). Trump “approved” the delay at Liu's request, “while we go through a process of documenting” phase one and putting the agreement on paper, Treasury Secretary Steven Mnuchin said.
The Congressional Research Service, in a recent report, quantified the U.S.-China trade war and estimated its effects so far on bilateral trade. It said that as of Sept. 1, about 67 percent of U.S. imports from China have additional tariffs, most 15 to 25 percentage points higher, and about 60 percent of U.S. exports to China are taxed at an additional 5 percent to 25 percent.
International Trade Today is providing readers with some of the top stories for Oct. 7-11 in case they were missed.