While most of the witnesses on the first day of Section 301 tariffs hearings on Aug. 20 asked that items be taken off the tariff list, several companies and a trade group asked that more products be taxed. Mike Branson, executive vice president of Rheem Manufacturing's air conditioning division, said he was pleased that several subheadings in heading 8415 were on the latest list of targets. But he said 8415.94.40 and 8414.90.80 need to be added, "otherwise Chinese exporters of finished good air conditioners will be able to avoid the tariffs."
Section 301 (too broad)
CBP on Aug. 21 issued new filing instructions for goods subject to Section 301 duties, in light of recent changes to how the duties apply to goods from China and a new group of tariff subheadings that will become subject to the tariffs in the coming days. The agency’s CSMS message contains updated information on how to file Chapter 98 entries for several subheadings of that chapter newly subject to duties (see 1808160049), as well as how to enter goods under the 279 eight-digit subheadings for which Section 301 duties take effect at 12:01 a.m. on Aug. 23 (see 1808080020).
The Consumer Technology Association asked the Section 301 hearing panel to remove 380 items from the $200 billion list, arguing that there will be a drop in consumer demand as prices rise. Because many of the items are inputs, there will not be a direct 25 percent cost increase, but CTA commissioned a study that said there could be price increases of up to 6 percent, even on U.S. products, because of tariffs on circuit boards.
International Trade Today is providing readers with some of the top stories for Aug. 13-17 in case they were missed.
David Mathison, founder of furniture leather company Leather Miracles, asked a panel of government officials to strike Harmonized Tariff Schedule headings 4107.11.50, leather upholstery, and 9401.90.50, leather for auto seats, from the Section 301 tariff list. He spoke as one of 62 witnesses testifying on the first of six days of scheduled hearings to determine which products will face additional tariffs. Mathison's career has been disrupted by China before. The rise of Chinese shoe manufacturing, and then Chinese furniture manufacturing, drove his previous company, Lackawanna Leather, out of business after about 100 years of operation.
A group of 80 trade associations has asked for exclusions to Section 301 Chinese tariffs to be liberally granted, including that they be granted automatically to all importers who have a "binding 'signed purchase order' to procure products from a supplier in China" if that order was signed before July 6.
Special tariff provisions for U.S. goods returned after assembly, repair, alterations and processing will soon become subject to Section 301 tariffs on China, the Office of the U.S. Trade Representative said in a notice published Aug. 16. Products on the tariff list properly claimed under Chapter 98 provisions have up to now been fully exempt from the 25 percent duty, but beginning 12:01 a.m. on Aug. 23, subheadings 9802.00.40, 9802.00.50, 9802.00.60 and 9802.00.80 will no longer be eligible for the carve-out if classified under a Chapter 1-97 tariff provision otherwise covered by the tariffs.
Tech startups are among the many hundreds of innovators from various industries voicing opposition to a third proposed tranche of 25 percent Section 301 tariffs on Chinese imports (see 1808150002), comments in docket USTR-2016-0026 show. One such startup, Cao Gadgets, worries about the impact tariffs will have on its “family owned small business,” which develops wireless sensor tags for a variety of Internet of Things uses, commented owner Mike Cao. Four days of public hearings are to begin Aug. 20 on the proposed third tranche. Final comments in the docket are due Sept. 6.
Hundreds of companies -- the vast majority in opposition to new duties on goods from China -- asked to testify during four days of hearings beginning Aug. 20 on the proposed third tranche of Section 301 tariffs on an estimated $200 billion worth of Chinese imports. Requests were due Aug. 13 in docket USTR-2018-0026 under the deadline U.S. Trade Representative Robert Lighthizer extended from July 27 when he announced Aug. 1 he will “consider,” at President Donald Trump’s direction, raising the third tranche of proposed duties to 25 percent from 10 percent. Lighthizer in an Aug. 7 notice said he reserves the option to “extend the length of the hearing depending on the number of additional interested persons who request to appear.”
ATLANTA -- CBP has assessed about $2.7 billion in duties under the recent major trade remedies started during the Trump administration, said John Leonard, executive director-trade policy and programs, during an Aug. 14 meeting with reporters at the CBP 2018 Trade Symposium. That includes $477 million in duties from the Section 301 tariffs on goods from China so far, he said. The first tranche of Section 301 tariffs took effect on July 6 (see 1807050033) and more are scheduled to take effect on Aug. 23 (see 1808070046). CBP also has assessed just over $2 billion under the Section 232 tariffs on steel and aluminum and $263 million under the Section 201 trade remedies on washing machines and solar cells (see 1801230052). Leonard also noted that the Section 201 tariff-rate quota for washer parts was recently reached. According to the most recent quota status report, the washer parts TRQ was filled as of July 23.