Trade associations are circulating a letter to send to U.S. Trade Representative Robert Lighthizer calling for a delay to the EU tariffs set to begin on Oct. 18 (see 1910020044). "These new duties will not be borne by the EU producer or manufacturer of those now-dutiable goods, but by the American importers which have already purchased the products and, very quickly, by American consumers," the letter says. "Nearly every product impacted by these tariffs transits to the United States from Europe by sea. In order to arrive in Washington State or Alaska before October 18, shipments of these products would have had to depart Europe in the first half of September or earlier." The USTR should revise its plans so that "all goods exported from Europe October 2 or earlier [will] be exempt from tariffs." The agency allowed for a "similar accommodation" in May for the third tranche of Section 301 tariffs (see 1905310070).
Section 301 (too broad)
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.
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.
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.
CBP posted a list of frequently asked questions about the entry type 86 test within a new agency page dedicated to the test. The new entry type is meant to allow importers of goods valued under the $800 de minimis level to file a less complex informal entry, including for goods subject to partner government agency (PGA) requirements (see 1908120019). Among other answers to questions, CBP explains that entries subject to the Sections 301, 201 and 232 trade remedies are eligible for type 86, though "merchandise subject to a quota does not qualify for the de minimis exemption, nor is it eligible for informal entry procedures." Also, while type 86 entries can be corrected or canceled, a Post Summary Correction can't be filed.
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.